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CONSUMERS |Patanjali: Patanjali increases reach across India

Brand found in 100 million households

 

In India, the brand Patanjali is synonymous with disruption. Patanjali began around a decade ago when a Yoga guru named Baba Ramdev started a company devoted to Ayurvedic healing. Since then, the brand has expanded into a broad range of FMCG products and has opened retail outlets, marketed relentlessly, and challenged multinationals.

 

The Patanjali Group, which includes the brand’s Ayurvedic and FMCG businesses, along with a charitable trust, reported revenue of $1.6 billion for the year ending March 2017, a 111 percent year-on-year increase, following a 150 percent rise a year earlier. The brand is available at 47,000 points of sale.

 

Baba Ramdev inspired and capitalized on the current Indian consumer interest in Ayurveda and brands that seem to authentically understand Indian needs. Patanjali’s growth also corresponds with a surge in Indian nationalism.

 

All these factors contributed to the Patanjali brand’s extraordinary growth—but they did not guarantee it. The other unquantifiable factor is the charisma and drive of Baba Ramdev, for whom brand building seems to be not only a business imperative, but, more fundamentally, a mission.

 

New research by Kantar Worldpanel, a WPP company, reveals the brand’s scale in new ways that help appreciate its impact. The Patanjali brand is in over 100 million Indian households. And those households typically have Patanjali products in 3 categories compared with 1.8 categories just three years ago.

 

The brand reach increased dramatically in the past year. Patanjali FMCG products now reach 53 percent of urban households, compared with 31 percent in 2016. In rural India, Patanjali doubled its reach to 28 percent, in just one year. And customers come back for more. The customer retention rate for toothpaste is 80 percent, for example, up from 65 percent a year ago.