Colgate looks to make bigger mark in toothbrush segment

The segment pegged at around Rs 1,000 cr, growing at 15-20% per annum

It is a category where Colgate-Palmolive does not tower over its rivals like it does in toothpastes. Yet, the toothbrush segment is an area where the Mumbai-headquartered oral care major sees enormous potential for growth. The reason for this is the low penetration of the category, especially in semi-urban and rural areas in India. The toothbrush segment is pegged at around Rs 1,000 crore, growing at 15-20 per cent per annum.

According to a report by financial major JPMorgan, Colgate has been gaining share in toothbrush in recent quarters driven by new launches and aggressive attempts to improve reach. The report says that volume growth in toothbrush for Colgate has been in the mid-teens (that is, around 14-15 per cent) in the last few quarters, higher than the 10-11 per cent volume growth it saw in toothpastes in the June and September 2012 ended quarters.

Colgate has a share of 39 per cent in toothbrushes, as against Procter & Gamble's (P&G’s) 27-28 per cent. The latter is represented by its Oral-B brand, which is the worldwide leader in the brushing segment.

How aggressive Colgate is in the brushing space can be gauged from this: The oral care major added nearly 270 basis points to its share in the September 2012 ended quarter. Its December 2012 numbers are yet to be declared. Between January and June, Colgate's share in the brushing space was 36.3 per cent.

Analysts say that P&G's Oral-B has also been aggressive in the brushing space driven by the know-how and expertise it brings to the table thanks to its global leadership in the category. Oral-B was acquired by P&G in 2005 as part of The Gillette Company's portfolio. The latter is the largest player in the men's razor space in the world with a plethora of products that straddle the price pyramid.

Since acquisition seven years ago, P&G has been pushing Oral-B aggressively in global markets especially in emerging countries located in Asia, Africa and Latin America, where using a brush is still not commonplace. For instance, in India, people in the interiors of the country continue to use barks of trees or their fingers to brush their teeth.

While the scenario is better in urban areas, analysts say that price is a key factor in the brushing space. On an average, the price of a toothbrush for an adult costs anywhere between Rs 25-30 going up to Rs 50 -60 depending on the quality and brand. Both Colgate and Oral-B are competitively priced within this band.

In recent years, however, both Colgate and Oral-B have focused on convenience of use and the ability to reach difficult areas of the mouth as a means to drive penetration.

For instance, Colgate has a wide range of extensions in its toothbrush portfolio including products with a flexible head, those with a tongue cleaner and also those that are battery-powered.

Oral-B also has similar products in its portfolio. Players have aggressively pushed their brands on the ground with initiatives such as the Smile India Movement by P&G and camps held in association with the Indian Dental Association by Colgate. Consumers are also becoming choosy with design, aesthetics and colour playing a big role when selecting a brush.