For FMCGs, the question is to deo or not to deo

With over 500 brands jostling with each other to grab the consumer’s attention, FMCG companies are no longer sniffing an opportunity in the underpenetrated, but heavily-cluttered, deodorant segment.

Marico, for instance, is focussing more on its other categories. With just 4 per cent share of the ₹2,500-crore market, Marico reckons that it would be better off investing in ‘high potential’ categories, such as gels and serums, than focus on brands such as Zatak and Set Wet in the deo segment.

“Investing in deos has not been the right strategy but, at the same time, we want to hold on to the category and shares. There has to be something different from the rest of the brands for us in this heavily cluttered category,” says Saugata Gupta, CEO and MD, Marico.

Other players such as Godrej Consumer Products, which makes Cinthol deos, is on the verge of vacating the category. “We are no longer investing in the deo category,” says P Ganesh, the company’s Executive Vice-President (Finance & Commercial).

After putting its licenced brand Fa on the backburner, Jyothy Labs is trying to reformulate its deo portfolio but with a limited budget. Ullas Kamath, Joint Managing Director, Jyothy Labs, says, “We will not make any huge investment behind Fa as it is a small brand, but will include it in our portfolio.”

Even MNCs like Garnier have exited the segment. “In the past four years, it is Indian brands which have made a mark in the segment with ‘non-gas’ variants’. It is a growing category as it has low penetration,” says Ranju Mohan, Director & Business Head, JK Ansell (a Raymond group company), which makes KS deos.

The Raymond group is trying hard to maintain the market share of its Park Avenue and Kamasutra (KS) deos. “There are too many players in the deodorant category and there is bound to be some consolidation with smaller players exiting the segment,’’ says Anil Kulkarni, Business Director, JK Helene Curtis, also a Raymond Group company. But a few have done well. Indian companies Vini Cosmetics (Fogg) and ITC (Engage) are the top two players and have ‘non-gas’ deos in their portfolio. Non-gas variants, which have double the amount of perfume than the gas ones, are growing at almost 30 per cent. The segment is estimated to be about ₹300 crore now.

However despite the large number of players, penetration of deos remains low at 32 per cent. As a result, there are new players waiting to enter this segment. “Even if one player exits the deo category, there will be five ready to enter since body odour is an issue in India,” says Jagdeep Kapoor, Managing Director of Samsika Marketing Consultants.