Sect of Patanjali households emerging in India: report
MUMBAI: A new sect of households that swear by Patanjali products for all their food, personal and home care needs, is emerging in India, according to global consumer research firm Kantar Worldpanel.
Of the 100 million households that Patanjali reaches today, about 49 million are urban households, of which 43% are termed “Patanjali households”—meaning they buy Patanjali for at least three categories of products, according to the Kantar Worldpanel data.
“The first time anybody buys Patanjali, it is usually toothpaste orsoaps,” said RamakrishnanK, country head of Kantar Worldpanel. However, across homes that use Patanjali products, Kantar Worldpanel found the number of product categories grew to 3 from 1.8 the previous year. Patanjali makes and sells 30 products across food, beverages, home and personal care.
Patanjali has been able to build this loyal household following because of a uniform brand name, accordingto Ramakrishnan. “The constant brand name across 30 categories helps, as opposed to other companies,” he said, adding that some consumer packaged goods firms often market individual brands they own without adding the parent’s name.
Patanjali’s cause was also been helped along by the exclusive stores. “In a Patanjali store, there are no other brands on the shelves to compete (for the consumer’s attention) as compared to modern retail where I may have walked in to get a particular shampoo brand and see other (shampoo) brands to buy as well,” Ramakrishnan said, adding that the brand had now built a formidable presence in other major sales channels as well, including modern retail.
Data from Kantar also shows that Patanjali has high repeat rates, meaning consumers who buy a Patanjali product once are highly likely to come back and buy more of it.
Last year, 65% of consumers who bought Patanjali’s toothpaste repeated the purchase. That proportion grew to 80% this year, according to the data.
Repeat rates have also risen for Patanjali shampoo buyers, from 52% last year to 58% this year, and in bar soaps from 53% last year to 64% this year.
The Baba Ramdev-founded Patanjali finished financial year 2016-17 with revenue of over ₹10,000 crore. As per Kantar data, Patanjali’s brand penetration—the percentage of total households that use the brand— is at 38%, reaching 53% of all urban and 28% of all rural households.