There are multiple ways in which Colgate India can and could have grown, specially during the ongoing Pandemic but the execution has been in need of wanting more. It could be because of the way the Indian subsidiary or rather any subsidiary of the parent is run…
First of all…Colgate is not a toothpaste company…it is a predominantly Oral Care company…
Talking about penetration of toothpaste in India…How many follow the dentist recommended twice a day brushing?..the growth can be huge if just all the existing consumers start this basic oral hygiene step…and sooner or later most will…
Mouthwash - This could have been a huge growth driver and scope of innovation during this pandemic…adjacencies like mouth sprays etc. and educating & promoting a must use of this oral hygiene…however this innovation was lagging…one can argue that Colgate rather behaved responsibly and did not capitalize on the fear of Pandemic as it could be driven by global standards of new product launches in even adjacencies… whatever said and done…Mouthwash penetration is miniscule in India
Toothbrush - Huge scope of premiumization and many in US use battery operated brushes…right from kids to 70+ on their dentures…
Prescription Products - Colgate sells prescription based toothpastes and oral hygiene products in USA…these are very premium products…once people in India start brushing twice a day, floss regularly, use mouthwash then probably they would think of using such premium products…
So I have no doubt on the runway and growth of even this small Oral hygiene category but what is amiss is the zeal in Colgate India to behave like a category LEADER…to create new sub categories in India and accelerate their adoption…Pandemic could have been an excellent opportunity when entire world is inclined towards hygiene to accelerate the oral hygiene adoption but I did not see anything innovative or dramatic from the house of Colgate India…seems they are content with 5-10% growth rate…at least for now…
Disc: Tracking position. No buy/sell recommendation. Post only for academic purpose. I can be completely wrong in all my assessments