Colgate-Palmolive India (Colgate) witnessed a good recovery in its volumes in the March quarter (Q4) compared to Q3. Volumes were down three per cent in Q4 against a 12 per cent drop in Q3 and was in line with Street estimates. The real concern, though, is the drop in volume market share in its core business of toothpastes. For calendar year 2016, Colgate’s toothpastes volume market share fell to 55.6 per cent from 57.4 per cent in 2015. For FY17, this metric stood at 55.1 per cent. Healthy growth of toothpastes business for peers such as Patanjali (Dant Kanti) and Dabur (Meswak, Red toothpaste) is a key reason behind softness in Colgate’s market share. In a post-results call with investors, the Colgate management disclosed Cibaca Vedshakti’s market share stood at over one per cent in states where it has been launched. Though it has launched its natural ingredients-based toothpaste (Cibaca Vedshakti) in a few states, it is yet to gain significant market share. The company also introduced its sensitivity toothpaste with natural ingredients and is gearing up for more innovation in the naturals segment.The success of these new launches as well as Cibaca Vedshakti will be crucial in enabling Colgate to arrest the loss of market share, believe analysts.
via Colgate: Losing out to competition | Business Standard News
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