Emami pulling back from entering baby talc mkt

Says test marketing results for Boroplus Kids-Total Defence talc did not see a favourable outcome

Don't want to miss the best from Business Standard?

FMCG major Emami is dragging its feet back from entering the baby talc market with the test marketing response not having seen a favourable outcome.

It had planned to launch the product under its superbrand Boroplus targeting the 5-12 year segment, where Johnson & Johnson already has the leading market share, and was test marketing the product in Andhra Pradesh.

Now, according to Krishna Mohan, CEO, sales (supply chain and human capital) at Emami, the company is not too sure of a national launch. “We have to go back to the drawing board again and take another look at this strategy,” said Mohan.

Boroplus Kids - Total Defence talc was supposed to be placed as a value-for-money product priced at Rs 45 for 100 gm.

Emami currently has Boroplus Prickly Heat Powder (more than the Rs 30-crore brand) in the Rs 300 crore prickly heat powder market. It may be noted that the firm has a tendency to enter niche categories such as fairness cream for men, cooling oils & cool talc and this might be the first time that the company has decided to put a national launch on an indefinite hold.

A company spokesperson also indicated that not being able to create adequate differentiator compared to existing products propelled the company to put it on hold.

"It is not certain, if at all, this product would be launched nationwide,” the spokesperson said.  

The Indian baby skincare market alone is projected to grow at 15.6 per cent during 2011-14.

According to sector experts, talc is primarily used in the SEC B & C segments of the population and the biggest goal for any FMCG company is to get these consumers to buy more than one talcum powder as most would not like the idea of buying separate talc for kids.

And as the current macro economic conditions in the market remain weak, it was unlikely that the mentioned section of consumers would prefer to go for an additional product. Besides the fact that a MNC giant like Johnson & Johnson and Wipro is present in the category who have a strong brand equity.

By extending the brand into the kids’ personal care market, Emami had hoped to create some excitement around the brand to keep sales up.