Dettol rides hygiene wave to expand business amid Covid-19 pandemic

The recent declaration from RB suggests Dettol now holds some 14% of the local soap market

Dettol has taken pole position in India’s soap market, riding on the renewed surge in consumption of hygiene and sanitary products. Better availability and rationalisation of shelf-keeping units (SKUs) has helped its business during the pandemic.

According to Laxman Narasimhan, group chief executive officer and ED of Reckitt Benck­iser (RB), the brand gained 430 basis points in market share during the first half of 2020, overtaking long-standing leaders Lifebuoy and Lux of Hindustan Unilever (HUL).

Nielsen data sourced from the industry shows that in the Rs 22,000-crore soap market, Lifebuoy has been the market leader for years. 

While it had a 15 per cent share, Lux had 13 per cent till 2017. Over the last two years, however, both have lost share and held 13 per cent and 11 per cent as of late-2019, respectively.

Godrej Consumer had 11-12 per cent share in its kitty, with its brands Cinthol and Godrej No.1.

Though Dettol traditionally held 9-10 per cent share, the recent declaration from RB suggests it now holds some 14 per cent of the local soap market. An email sent to HUL elicited no response.

According to experts, the brand gained share during the April-June period, when the virus was spreading. With awareness on health and hygiene at a peak given the rapid rise in infections, sale of disinfectant and antiseptic brands like Dettol has touched new highs.

In fact, the ongoing crisis could achieve for RB in India what its high-decibel bet on Swachh Bharat could not. Data available with the Registrar of Companies shows that in spite of multiple attempts to promote the brand, RB’s India revenue grew a meagre 1.77 per cent year-on-year to Rs 5,814 crore in FY18, from Rs 5,711 crore in FY17. Filings for FY19 could not be accessed.

Besides growing consciousness over hygiene measures that has led to higher usage of hygiene products, efficient management of the supply chain during the lockdown also aided growth.

“Ensuring supply has meant bold choices on how we respond to market demand. The emphasis will remain on the simplification of the business, including SKU rationalisation,” said Narasimhan.

A better showing by its hygiene brands, in recent months, has helped RB post high single-digit growth in sales on a like-for-like basis, during the January-June period. 

Dettol, along with other hygiene-related brands like Lysol and Harpic, contribute over 60 per cent to the firm’s revenue in India.

Over the last few years, it has pushed its flagship brands Dettol and Lysol via the Swachh India Campaign. During the lockdown, it aggressively used brand ambassadors like Amitabh Bachchan and Madhuri Dixit to raise awareness. To add further momentum, it hired ad agency Dentsu X in January.

Capitalising on the popularity of TikTok, RB launched a campaign — Dettol India handwash challenge — in April, which got in excess of 120 billion views, the firm has claimed. Further, to promote relevant research programmes on hygiene and other non-pharmaceutical items till 2025, it has tied up with AIIMS.