Friday, August 12, 2016

Herbal toothpaste robs MNCs' shine

In a development that may prove India's growing penchant for herbal and ayurvedic products, homegrown companies such as Dabur and Patanjali have robbed market share from top MNCs such as Colgate and Hindustan Unilever (HUL) in the toothpaste category.


This has prompted some of the larger players to launch 'natural' products and price them competitively. Till now, it was only Haridwar-based company Patanjali, which had been playing the low-price card to disrupt the country's FMCG market.

Quoting data from research firm Nielsen, senior FMCG executives said Patanjali has gained market share at the fastest pace by cornering 2.1% of the pie in January-June 2016, compared to 0.5% in 2015. Dabur managed to increase its share to 12% during the first six months of 2016, as against 11.2% in the same period last year.

In comparison, market leader Colgate-Palmolive and HUL saw a decline in their shares.

"Baba Ramdev deserves credit for the explosion in the ayurvedic FMCG space. The amount of viral marketing that has happened over the last one year over Patanjali products is every marketer's dream," said Arvind Singhal, founder of retail consultancy Technopak. "Also, Indian consumers have a lingering mindset that products made by Western companies may have harmful chemicals, although scientifically it may not be true."


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