OVERVIEW OF INDIAN ORAL CARE MARKET
Until not too long ago, there was a tendency to look down on everything Indian.
Consumers who went out to buy products generally gravitated towards the international at best and anything that even sounded remotely international at worst.
The general conclusion was that if it is international, then it must be superior; if it was Indian, then it must be mediocre.
The biggest transformation of the last half-decade is a new-found pride in a number of things Indian.
Let me talk of what is happening in Oral Care space. The emergence of a deeply Indian brand like Patanjali from virtually nowhere is more than a sign of product success; the robust growth of ITC''s foods and FMCG businesses are pivoted around a business model that extends from farm to fork; the rapid strides made by Emami indicate a growing traction for ayurveda-based FMCG products; the rising trend for Dabur indicates a widening room for homegrown success.
Besides, there are a number of other developments at play: a growing scale achieved by these Indian companies, the manufacture of products that reconcile world-class standards with relevant customization, the growing penetration of these products into rural India, the engagement of home-grown role models to endorse these products and increasing competitiveness. The result is that most of these companies are not merely content to play for incremental market share; through the introduction of innovative products, they are keen to create markets that never existed.
The result of this transformation in national identity and pride is captured in the response of Indian and Foreign consumers about everything Indian and slowly to emerge from the outsourcing shadow of a global multinational. And increasingly the Indian companies are taking on international brands.''
The bottom-line is that it is increasingly inconceivable that the second most populous consumption market in the world would need to depend on global brands for its everyday needs. On the contrary, the time has come for home-grown brands to capture a large slice of the Indian market, leverage the prevailing economies of scale and emerge as successful global brands in their own right.
Until not too long ago, there was a tendency to look down on everything Indian.
Consumers who went out to buy products generally gravitated towards the international at best and anything that even sounded remotely international at worst.
The general conclusion was that if it is international, then it must be superior; if it was Indian, then it must be mediocre.
The biggest transformation of the last half-decade is a new-found pride in a number of things Indian.
Let me talk of what is happening in Oral Care space. The emergence of a deeply Indian brand like Patanjali from virtually nowhere is more than a sign of product success; the robust growth of ITC''s foods and FMCG businesses are pivoted around a business model that extends from farm to fork; the rapid strides made by Emami indicate a growing traction for ayurveda-based FMCG products; the rising trend for Dabur indicates a widening room for homegrown success.
Besides, there are a number of other developments at play: a growing scale achieved by these Indian companies, the manufacture of products that reconcile world-class standards with relevant customization, the growing penetration of these products into rural India, the engagement of home-grown role models to endorse these products and increasing competitiveness. The result is that most of these companies are not merely content to play for incremental market share; through the introduction of innovative products, they are keen to create markets that never existed.
The result of this transformation in national identity and pride is captured in the response of Indian and Foreign consumers about everything Indian and slowly to emerge from the outsourcing shadow of a global multinational. And increasingly the Indian companies are taking on international brands.''
The bottom-line is that it is increasingly inconceivable that the second most populous consumption market in the world would need to depend on global brands for its everyday needs. On the contrary, the time has come for home-grown brands to capture a large slice of the Indian market, leverage the prevailing economies of scale and emerge as successful global brands in their own right.
It would be foolhardy to assume that a growing respect for Indian brands will raise the level of water for all ships.
In an Indian FMCG space populated by a variety of national and international brands, success will be derived through a convergence of diverse competencies.
One, a word-class standard.
In an Indian FMCG space populated by a variety of national and international brands, success will be derived through a convergence of diverse competencies.
One, a word-class standard.
An increasing number of consumers will seek to buy products not because they are Indian, but because they are outstanding and Indian....in that order. And here, I must add that the time has come when a number of Indian FMCG products are not just as good as international brands; they are better.
Take the instance of Patanjali''s toothpaste; in the brief tenure of a couple of years, this single product has extensively transformed a decades-old habit of using white toothpaste into a respect for herb-based brown paste. What used to be so down market until not too long ago is now considered acceptable.
Two, future-readiness.
Indian brands will need to invest in research with the objective to create world-beating products instead of conventional reverse-engineering. Besides, Indian brands will need to plan infrastructure from a decadal perspective instead of going back to the drawing board every couple of years.
Three, advertising and promotion.
Take the instance of Patanjali''s toothpaste; in the brief tenure of a couple of years, this single product has extensively transformed a decades-old habit of using white toothpaste into a respect for herb-based brown paste. What used to be so down market until not too long ago is now considered acceptable.
Two, future-readiness.
Indian brands will need to invest in research with the objective to create world-beating products instead of conventional reverse-engineering. Besides, Indian brands will need to plan infrastructure from a decadal perspective instead of going back to the drawing board every couple of years.
Three, advertising and promotion.
Indian companies will need to extend beyond merely putting products on shelf-spaces; they will need to create world-class brands that inspire trust and loyalty.
Four, wider portfolio.
Indian companies will need to put a wide complement of products in the marketplace, so that the success of one feeds on the off take of another -and vice versa.
Overview
The Indian FMCG companies in Oral Care will respond with speed and sensitivity to the great Indian consumption boom, not only as an anonymous back-end for some of the most visible Indian brands but as a proud visible player capturing the attractive upside of the Indian consumption journey.
Happy Investing
Four, wider portfolio.
Indian companies will need to put a wide complement of products in the marketplace, so that the success of one feeds on the off take of another -and vice versa.
Overview
The Indian FMCG companies in Oral Care will respond with speed and sensitivity to the great Indian consumption boom, not only as an anonymous back-end for some of the most visible Indian brands but as a proud visible player capturing the attractive upside of the Indian consumption journey.
Happy Investing
