FMCG major Colgate-Palmolive (India), expects to witness an uptick in the overall market sentiment towards the second half of the fiscal year on the back of improved liquidity due to tax sops and normal outlook for monsoon. The company is also betting big on the premiumisation wave with newer propositions. On Monday, the company said that nearly 4.5 million consumers in over 700 districts benefited from AI-powered digital dental screenings, under the Oral Health Movement initiative.
Prabha Narasimhan, Managing Director & CEO, Colgate-Palmolive (India), told businessline, “We see two pockets of opportunity....The top 30 per cent of urban India has no shortage of money for FMCG products. They continue to seek premium products and quality experiences. Also, rural India continues to be buoyant as crops have been good and the sentiment is also positive. However, nearly 70 per cent of urban India has been slightly under pressure. We expect to see an uptick in consumer sentiment towards the back end of the year. The government has intervened with tax cuts and the liquidity has improved. Monsoons are also meant to be quite good this year.”
Based on user participation, the Oral Health Movement initiative revealed that India’s average Oral Health score was 2.6 out of 5. Nearly 41 per cent of the individuals face high risk of cavities, 44 per cent are prone to gum issues and 14 per cent report stains. About 72 per cent of Indians are at a high risk of at least one oral health concern, it added.
“We hope to encourage every Indian to move the needle. As far as urban India is concerned, the moving of the needle is to get the 80 per cent, who don’t brush twice a day to do the same. As far as rural India is concerned, the campaign aims to get the one in two consumers who don’t brush daily ...to brush daily,” she added.
Premium portfolio
The company has been strengthening its premium portfolio to cater to this top 30 per cent of affluent urban consumers. “We are beginning to scratch the surface in terms of the premiumisation opportunity. For instance: We have been nudging consumers above 50, for whom gum-related issues become a real problem, towards therapeutic toothpastes. Also, younger consumers have a propensity to experiment. Our Colgate Visible White Purple launch has been a runaway success and getting a lot of traction.” At the same time, the company continues to see huge headroom for growth in the rural market.
Responding to a query on the geopolitical volatility, Narasimhan said,” We are a largely “Make-in-India” for India company. So we are reasonably, in that sense, self sufficient. We have also tried very hard to indigenise sourcing of raw materials. So to that extent, we are a little bit insulated. But the macro environment has become so volatile, it’s just impossible to comment on, and it’s impossible for us to do anything other than to insulate on a more structural basis, as we have done and continue to do.”