Himalaya treks the millennial route

Over a decade after the old pharma company launched its personal care label, it is finding favour with the young and herbally conscious

After many years of being known as the 'Liv 52 company' and then, as an ayurvedic brand out of step with its times, Himalaya says that it is finally in the company of the young millennial, the most sought after consumer group across the world. Its products, the company says, are finding increasing acceptance among young shoppers, especially in the personal care category. Its face washes, for instance, account for 22 per cent share of the Rs 1,700 crore category, placing it ahead of rivals HUL and Garnier. The company that has a significant presence in tier 2 and 3 towns says it is benefiting from deeper penetration of its brands and a growing herbal wave among consumers.

Targeting Gen Y was a conscious decision that the company took a couple of years ago. "Three years ago, we were known as an old style ayurvedic brand. Now the journey is more contemporary, appealing to the 15-24 young population, who are preferring natural products," says Rajesh Krishnamurthy, business head, consumer products division, The Himalaya Drug Company.

The consumer products division that sells its neem-based face wash and lip balms earns nearly half of the Rs 2,000 crore sales revenue for Himalaya. It has been growing at around 30 per cent annually over the last three years.

Encouraged by the widening reach of its brands among the young, the company is relaunching products in categories such as dental care and shampoos. It has launched four new variants of its dental cream as well as an anti-dandruff shampoo and, in select southern markets, it says it has 5-6 per cent share. In dental care and shampoos, it faces stiff competition from Patanjali Ayurveda, a brand that has emerged as the biggest advertiser in recent weeks. Himalaya, in contrast, does not feature on the list of top ten advertisers at all.

Natural thrust
The IMRB-Kantar report on brand footprint (2015) found that worldwide, there is a shift in the way people shop. It said, "We are entering the third age of FMCG: a shift of power towards the socially-conscious consumer, who is more informed, more discerning and influential. So the brand and the retailer must be more agile in chasing their shifting daily needs".

In India, one of the changes that most FMCG players have had to move in step with is the growing preference for herbal-natural products. Many consumers are even willing to pay a premium. This has seen the rise of Patanjali, among many other factors. Himalaya too is benefiting from the increasing preference among the young for herbal products, especially for beauty and skincare.

Bengaluru-based Himalaya says that it had caught the trend early on. And the company decided to communicate clearly and unambiguously that for natural beauty products that don't harm their skin or have side effects, Himalaya is the go-to brand. "There is a marked preference among young urban consumers to prefer natural herbal and ayurvedic products. It could be due to lifestyle changes, concern over side effects of other products," says Krishnamurthy. For Himalaya a large section of its consumers come from small Indian towns though the company does not provide a breakdown of its urban-rural numbers.

He believes that the shift to herbal is not just an India-wide phenomenon. It has the world in its grip. Krishnamurthy says, "Clearly, we are seeing a global trend and it is natural we see it here too."

Image makeover
For Himalaya, the objective of its marketing and distribution thrust over the past three years has not only been emphasising its herbal credentials but also changing its image. The customer had to be told that this is a company that is more than an ayurvedic medicines manufacturer. But the shift to being a consumer product firm has been slow and gradual.

Founded in 1930 and known for its medicines for liver care, gastric ailments and supplements that help build immunity, the company has had to work hard to present itself as a contemporary brand aligned with the latest developments. It did that with face washes and as it began to build itself in this category, it saw the global shift towards herbal products and managed to ride the wave successfully.

Himalaya is not the only company to jump on to the bandwagon. There is a slow surge of products in the herbal and natural category, of course from Patanjali and other Indian firms such as Emami and Dabur as well. Unilever too has revived its natural and ayurvedic brand Ayush. "It is good for the industry if more companies enter it. Previously, people were not taking the herbal space seriously but they are now", Naresh Bhansali, CEO of finance, strategy and business development at Emami said in a recent interview.

Over the coming years the aim will be to consolidate the brand's character as a herbal, environmentally conscious product. The consumer products division is focusing on growth with expanded reach. "We have carved a niche as a brand that has no chemicals and bleach. These are emerging categories where we have created the market and growing it," says Krishnamurthy.

Also part of Himalaya's agenda is stepping into new territories, especially in men's personal care products. It launched its face wash for men last year and, says that it will expand into other categories. The aim is to increase brand awareness and beat the industry figures on growth, Krishnamurthy says.