White Flash: India says cheese to oral hygiene

Oral Care Index At New High As Price Cuts, Shift To Toothpaste Power Growth

ARE Indians back to brushing their teeth?
The country’s oral-care index has foamed up to a new high after three years of decay raising speculation whether the country compromised on personal hygiene all this while. Colgate, which traditionally controlled half of the oral-care industry, recorded the sharpest rise in market share, regaining its share to 50.4% in March 05. It has grown 14% in volume while the industry grew 9% in FY 05. Price warriors had rendered the company toothless in the past three years. Equity research firms such as Motilal Oswal and SSKI say major factors driving growth are the price cuts effected by large players in ‘04 and a shift from toothpowder to toothpaste. Toothpowders have declined 7%. According to analysts, the upward trend in toothpaste volumes will be sustained as oral care is one of the most underpenetrated segments of the FMCG industry with only 32% of the total population buying them. Colgate’s discount brands Dental Cream and Colgate Cibaca have driven the market gradually elbowing out original discount brigade Anchor and Ajanta. Dabur’s Lal Dantmanjan toothpowder has suffered but the company says it is cushioned as its oral-care portfolio is wide cutting across discount, midpriced and premium brands. A quick look at the market share data shows Cibaca Top has almost doubled its volume share from 5% in ‘02 to 9.6% in March. The brand was relaunched in ‘04 and has captured 38% of the low-price segment. However, the original discount brands are expected to maintain their share at 25%. The number 2 player HLL, with brands like Close Up and Pepsodent, has on an average maintained its share in the last four quarters. However, at the current 32.5%, it is down from the 36.4% marketshare it enjoyed in 2000. Some also attribute the growth to toothpastes being the highest advertisers. Colgate Dental Cream regained the top slot among the highest spending television advertisers. With a spend of Rs 1.81 crore and gathering GRPs of 823, the toothpaste brand bounced back. Colgate’s close competitor, Lever’s Close-Up, was at No 2 with an ad spend of Rs 1.65 crore and GRPs of 752. Colgate’s advertising spends have now come down to a seven-year low at 14.2%, indicative of a more stable competitive environment, said analysts.

Colgate recorded the sharpest rise in market share, regaining its share to 50.4%. The number 2 player HLL, with brands like Close Up and Pepsodent, has on an average maintained its share in the last four quarters. Cibaca Top has almost doubled its volume share from 5% in ‘02 to 9.6% in March.

Courtesy: EconomicTimes