FMCG distributors suspended their boycott of Colgate after talks with the company over the issue of the price disparity between the traditional distributors and organised business-to-business channel
Colgate India's meeting with distributors comes after the traditional channel stopped supplying its Colgate MaxFresh range of products in Maharashtra
Last week, a group of distributors said they will stop some Colgate products from Jan. 1 in western Maharashtra state, the richest and one of the most populous in India
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Distributors in state to stop supplying Colgate products in phases from January 1
Focus on modern trade and market share gains has led brokerages to hike their target price estimate for the stock
Some recent reports by brokerages indicate an improvement in the company's market share, led by volume recovery
Rise in competitive intensity could make share gains difficult
National consumer brands outpace regional labels three years in a row, reports Kantar. Will the pandemic halt the trend?
Answers to the Strategist quiz #668
Down-trading, competitive intensity key concerns
The toothpaste brand from GSK Consumer ditches the old prescriptive advertising routine, as it looks to widen its appeal among young users
Strategic errors - acts of omission and commission - have hurt many companies
Despite higher spending on advertising, high competition in toothpastes could restrict meaningful recovery in lost market share and weigh on earnings
Analysts estimate low single-digit volume growth, the lowest since June 2017 quarter; companies will need to clock double-digit volume growth in second half to touch FY19 levels
From about 58 per cent in the June 2015 quarter, the market share is down to 52.1 per cent in the June 2019 quarter, a decline of about 600 basis points
Impact of competitive intensity expected to be higher at a time when overall consumption demand is moderating
While topline grew by 8% and net profit by 11% in Q2, margin expansion was muted despite benign input costs
Topline rises 6.6%; market share declines 350 basis points in two years
Colgate already has two toothpastes on the naturals platform in India, Cibaca Vedshakti and Colgate Swarna Vedshakti