Colgate which is currently facing a tough competition from rivals such as Dabur and Patanjali Indian market is planning to regain its share back by expanding the range of products it sells. Global Chairman, President and chief executive officer (CEO), Ian Cook has revealed this in a recent interview as he discussed the future of Colgate in India.
Cook believes that launching Colgate Swarna Vedshakti has helped the brand immensely and the company is now looking to compete with local brands using such products.
“Market shares are moving up on an ongoing basis. In modern trade, share is already up beyond 3 percentage points. So, we know the product (Swarna Vedshakti) will be effective in the marketplace. We will remain committed to putting advertising might behind it,” he said.
Colgate seems to be pretty clear about its approach by building its naturals portfolio quickly with the launch of its first indigenously developed toothpaste Cibaca Vedshakti. Raising the awareness of Indians of brands such as Colgate Active Salt and Colgate Herbal toothpaste has helped Colgate.
Cook said that one-fifth of this Rs 1,500 crore market is herbal with the segment estimated to become a fourth (Rs 2,000 crore) in the next few years.
“Naturals is a global trend and each market has its own interpretation of it, whether it is ingredient-based as in India or a specialised portfolio such as Tom’s of Maine in the US and Canada,” he added.
Colgate is creating an urgency to compensate for the losses the company had to face after the entrance of Patanjali. According to a recent report, Colgate has 52.4 percent share in Indian market with Dabur and Patanjali are estimated to have 12.6 percent and 8.4 percent, respectively. Hindustan Unilever’s (HUL’s) total share in market is estimated to be around 17 percent.
After India, these natural-based products will be sold across markets such as China, Russia, US, West Asia also. Cook revealed that these products are currently available in 44 markets and would be rolled out in an additional 32 markets by the end of 2018.
The future of Indian market looks very impressive as more and more brands are trying to win the heart of customers.
