Soap opera: Dettol claims the throne

NEW DELHI | MUMBAI: Reckitt Benckiser's Dettol soap has become the largest-selling brand in India for the first time, its global chief executive said, implying it had outpaced Hindustan Unilever's Lux and Lifebuoy, which have traditionally dominated the segment."Dettol is a power brand in India. In fact, it achieved the number one share in soaps in India for the first time," RB global chief executive Laxman Narasimhan told investors at an earnings call for January-June period, adding that the product's brand equity is at one of its highest points. "So it's a pretty holistic view on how we are committed to India. You recognise that it is a country that is going through a lot, right now, and the team's focus in ensuring that we are as supportive to the country which is a really important market for us."The disinfectant soap brand saw its global sales surge 62%, with market share expanding 430 basis points in India as consumers stockpiled the product amid the coronavirus pandemic, UK healthcare and consumer goods maker Reckitt Benckiser said in an earnings statement on Tuesday. A basis point is one-hundredth of a percent. While Lifebuoy had a market share of 13.1% last year, down from 15.7% two years ago, rival Dettol had marginally increased its share from 9.7% in 2017 to 10.4% in 2019. The latest gain of Dettol could mean Reckitt is also the second-largest soap maker in India now, outpacing Godrej Consumer, which had a share of 12.3% until last calendar year. In the ₹22,000 crore soap segment, Dettol may have added over ₹500 crore of incremental sales over the past six months.Gains in other markets tooRB's Indian business grew in the high single digits between January and June, even as rivals such as HUL posted a sales decline due to supply chain and sales disruptions. While Dettol has grown consistently over the past few years, the recent jump is its steepest ever. In comparison, HUL, still the largest soaps maker, has seen its market share fall from 42.3% in the year ended December 2017 to 38.9% in 2018, according to industry executives quoting Nielsen data.Unilever said the share of its top two skin-cleansing brands in India--Lux and Lifebuoy--had declined at the Consumer Analyst Group of New York conference in Florida in February this year."As a result, we have seen declining sales and share losses in 2019," Unilever chief financial officer Graeme Pitkethly had told investors at the time. "We have made specific interventions on price and product quality and we are becoming sharper on our brand messaging and, believe me, this will make all the difference."HUL did not respond to queries.Narasimhan said it boiled down to tailwinds from Covid in India and better execution in both the health and the hygiene business. "What we are seeing in India is a focus on distribution and on ensuring availability, which hasn't been easy, given all the lockdowns in India at various places at various points," he said.India isn't the only market where it now has the pole position in soaps. Countries such as the United Arab Emirates, Saudi Arabia and Malaysia also saw Dettol climb to the top with share gains of 1,000-1,400 basis points in six months."It is further complemented by the fact that during this pandemic, you are seeing shifts in consumer behaviour," Narasimhan said. "There are more consumers entering these categories, and share is driven by a combination of increase in penetration, as well as an increase in frequency with core consumers."RB, which grew 8% in the first half, said Dettol expanded strongly in both developed and emerging markets led by pandemic-driven demand, which fuelled greater product penetration and frequency of use. Demand for the products along with Lysol is expected to remain at higher-than-pre-Covid levels, driven by greater health awareness.

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