Colgate-Palmolive India‘s managing director, Prabha Narasimhan, attributes the slowdown in the FMCG sector to consumers delaying purchases or extending product usage.
“Consumers tend to titrate or delay their usage of things…when they feel the pressure,” she said, while talking to ET.
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Despite this, Colgate-Palmolive India outpaced the market with 10% growth in the quarter ended September. The company dominates the oral care segment with a 50% market share.
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Narasimhan noted, “Oral care consumption is very low in India…even markets like the Philippines consume 1.8 times and Brazil 3.1 times more than India.” Colgate aims to increase consumption through awareness and innovation.
Meanwhile, the company has introduced an AI-powered oral health screening initiative and partnered with the Indian Dental Association to provide free check-ups. “We’re marrying the idea of 800 million-plus smartphones with technology to give people access to dental health reports,” Narasimhan explained.
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Further, Colgate has also launched new products, including Colgate Visible White Purple, and invested in advertising, resulting in an 18% jump in spends. “Our focus is on building new segments, like whitening and gum health, and adjuncts to toothpaste,” Narasimhan said.
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Despite temporary urban growth slowdown, Narasimhan remains optimistic. “We have so much headroom to go in terms of moving per capita consumption…our focus really needs to be on that.”
NielsenIQ reports urban demand grew 2.8% year-on-year, while rural demand grew 6%. The FMCG sector grew 5.7% by value and 4.1% by volume.
Narasimhan further stressed, “We’re back to driving consumption…with technology.” Colgate’s global technology hub in India enables innovation for key markets.
“Over the years, the company has focused on getting universal penetration…now we’re back to driving consumption,” Narasimhan said. With its science-based approach, Colgate aims to leverage clinically proven technology to improve oral health in India.
As Narasimhan concluded, “As a science-based company, we spend a lot on oral care…we want to bring effective technology into the country.”
