In a recent event, Dabur India stated that it does not take Patanjali’s ‘Herbal’ products as the threat in the context of it’s ‘Scientific’ based products. The FMCG items manufactured by the respective company has staged a position and goodwill, thus making it an appropriate brand all over the country. In fact, the competition has helped Dabur to reconcile, rebrand so as to scatter in more vigorous manner. There are certain or specific areas where Patanjali has over-boarded Dabur products but in medicine section, it still holds a strong market. Also, when it comes to pricing, consumers reliability becomes the prime agenda.
According to Lalit Malik, CFO, Dabur India,There is a difference between faith and science. We provide all products, which are science-based and we have some impact (on sales) on account of ‘faith-based’.These are more healthcare products and people are very careful. We do see consumers coming back but having said that in the short run we have seen some impact on account of this competition.
Although there was the time when Ayurvedic products from Patanjali, Art of Living as well as Dera Sacha Sauda (led by Gurmeet Ram Rahim Singh) hampered the sales of Dabur but pricing game would not behold them in long-run as consumers’ ideology respect to product’s value for money will come into terms. The products sold by otherwise companies are of lesser costs which eventually hits the quality in some or the other way. People unknowingly may choose those FMCG items but in near future, they would solely focus on qualitative products rather than choosing the former.
One of nation’s leading news agency PTI engaged in conversation with Lalit Malik. When asked for regarding sales as how much did it get hit, He reverted as “We will not be able to say anything in specific or particular but there is some impact of about one to one—and—a—half percentage, that has been the impact on honey.The impact we have on account of Patanjali is primary because of the price differentiation.”
Dabur India’s CFO further added as, the company has come up with naive ideas, product innovation scheme where a brand is relaunched in entirely different way. Along with that, an introduction of ‘premium’ products, which include better quality and price, would help in the betterment of the company. It might contribute to increasing the sales and investing on it would be a positive and advantage decision. The older/previous products have come on tracks after giving it a better quality and standards.
The products provided by Dabur India such ashoney, chyawanprash, Meswak toothpaste, hair oil, skin care, etc. directly compete with Patanjali products. It has also helped ayurvedic and herbal products to expand quickly all over the country.