High repeat buys of Patanjali products prove the brand is here to stay: Ramakrishnan K, Country Head, Kantar Worldpanel

Patanjali’s growth has been noticed by everyone. Kantar Worldpanel too has pointed out the rise in its numbers, marking special patterns in the growth trajectory of the homegrown brand. As per the Kantar Worldpanel report ‘Brand Footprint’, Patanjali penetrated over 44 per cent of households in urban India in 2016, against an approximately 22 per cent that the brand reached in 2015. In the homecare category alone, Patanjali has 14 per cent penetration – rapidly becoming a legitimate competition to multinationals. The company’s consumer reach points (CRPs) have increased by 134 per cent in 2016.

The report mentions, “Its steadily increasing monthly turnover was predicted to reach $1 billion during 2017, making it the fifth biggest FMCG company in India behind such giants as Unilever and Nestle.”

Ramakrishnan K

A lot of people have been guessing if Patanjali is a real success story or just a flash in the pan, a bubble of success that is soon to burst. When asked about it, Ramakrishnan K, Country Head of Kantar Worldpanel, said, “It doesn’t look like it is short term. The success is considered to be temporary when the purchases don’t get repeated, which is clearly not the case with Patanjali. When a consumer samples the product (buys it for the first time) and then stops buying, then it is a flash in the pan. Here, the repeat purchases are increasing and so much so that the company’s presence in multiple categories is helping it expand the consumers of one category to another.”

As per the research by Kantar Worldpanel, close to 43 per cent Patanjali consumers buy products in three categories on an average. The report mentioned that the company has spent less on advertising and has relied more on word-of-mouth promotions.

Andy Parkinson, MD South Asia, Korea and India, Kantar Worldpanel, said, “Globally, homegrown brands have larger affinity, more so in fast developing markets. Local brands are moving up the ladder rapidly, majorly for three reasons – quality, pricing and a sense of national pride. In India, Patanjali is a great example. The brand is not limited to this country, since even in foreign dailies have lead stories about the brand and its growth trajectory. In UK, recently, there were reports of Patanjali getting into security services.”

Ramakrishnan too agrees that pride and nationality of Patanjali is one of the important factors of growth. Second is the strategy of using the same name across multiple categories. Other companies don’t do that. It becomes easy to recognise and it stands for a certain set of values. That is one of the important reasons too. In addition to all of this, Baba Ramdev’s popularity and affinity is another major reason.

Dantkanti is the most popular and most bought product in the product range of Patanjali. The report states that the company has played a vital role in the development of herbal products in the country, especially in the oral care segment where the company has about 26.4 per cent penetration.

The company has a strong repeat buying. Of the total consumers who bought toothpastes, 65 per cent have repeated the purchase. This number stands at 58 per cent in the shampoo category and 64 per cent for soaps.

Patanjali has developed its market demand through exclusive ‘Patanjali stores’ where the other brands are not present, to compete with the consumers’ choice. The company then slowly expanded to traditional and modern trade, as well as e-commerce to reach consumers directly. Already approved by the FDA and available in the US and Canada, Patanjali is exploring expansion into China, Bangladesh and Africa markets.

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