What would be your primary challenge if you are strongly associated with a single product and perceived to be a largely regional brand? It will be to protect your loyal older audience while slowly building trust with new customers.
Cholayil Group’s Cuticura, best known for its signature talcum powder and a dominant presence in the markets of the south, is eyeing growth opportunities in new markets through D2C and e-commerce channels. General trade will continue to remain critical for building availability and scale. Over the past few years, the brand has made its way into segments such as soaps, shower gels, hand washes and roll-on deodorants. The goal: Make its heritage of over 160 years relevant to younger consumers beyond the markets of the south.
Rupa Murudkar, VP, marketing, Cholayil Group, notes that the brand’s expansion into adjacent categories will help younger consumers enjoy its unique fragrance in more contemporary formats. “It enables the brand to participate in multiple moments across their daily routines,” she says.
Even with its new products, Cuticura plans to first strengthen its position in the core Southern markets — especially Kerala, where it ranks among the top three talcum powder brands — before moving into geographies where it has strong salience. It has classified the new markets as P1, P2 and P3 based on brand strength.
Murudkar says the company will replicate Medimix’s strategy in its expansion of Cuticura, employing culturally relevant storytelling, regional brand ambassadors and more. But India’s fast-evolving personal care market presents unique challenges, points out Harikrishnan Pillai, CEO & co-founder, TheSmallBigIdea. Until a few years ago, the brand’s competition came largely from legacy brand names. Today, it also competes with D2C brands that have mastered the tricks of digital-first marketing. “The fight is twofold – building brand awareness from a relatively low base, and doing so against established giants and a fast-growing set of smaller, agile players,” says Pillai.
Despite its portfolio expansion, Cuticura’s biggest selling product remains the talcum powder. Industry estimates peg the talcum powder market at Rs 2,000 crore, dominated by brands such as Pond’s and Yardley.
Growth potential in the category is limited, says Nikhil Sethi, partner and head, consumer goods, KPMG in India. “Talcum powder is a mature category and penetration is unlikely to be a disproportionate source of future growth. Increasingly, a larger share of category growth is likely to come from adjacent segments that offer greater scope for innovation and premiumisation,” he adds.
Experts agree the first step for the brand would be to identify the distinctive space it can own in the consumer’s mind. Nisha Sampath, managing partner, Bright Angles Consulting, says the answer could be in its legacy, or its freshness and fragrance expertise. “Its heritage can provide authenticity, but beyond that, the brand’s task is to embed itself in contemporary culture through its choices, from packaging, to storytelling and collaborations,” she says.
Nostalgia could also prove to be a key differentiation lever for the brand, adds Pillai. For younger consumers, though, Cuticura may need to explore influencer-led content or product innovation. But nostalgia or product innovation aren’t optional. Without one or the other, Pillai argues, breaking into new markets will be an uphill task.