ECONOMICAL SOCIO-CULTURAL
DEMOGRAPHICAL
The working age
population is growing in
India which rise the per
capita income and GDP.
This increases the
purchasing power of
people and so, growth in
the sector can be
expected.
Rural people are moving
from tooth powders to
tooth pastes, but the
penetration is still low
which provides an
opportunity for big
players.
NATURAL
Tooth pastes made of
natural ingredients /
ayurvedic ingredients are
growing interests among
the consumers in India.
Companies such as
Colgate-Palmolive and
Dabur India have launched
their ayurvedic variants
like Colgate Cibaca
Vedshakti and Dabur Red
Paste. Patanjali is rapidly
emerging in this space.
So pepsodent not having
any herbal variant makes it
challenging to sustain
competition.
In India, incomes have
risen at a fast pace and will
continue rising given the
country’s strong economic
growth prospects.
GDP per capita of India is
expected to increase from
1,481.56 US$ in 2012 to
3,273.85 US$ in 2023
(FMCG-Report-July-2018,
2018)
The consequence of rising
incomes is growing
appetite for premium
products like mouth
washes.
TECHNOLOGICAL
Technology has made the
availability of the products
more easier and
accessibility more
convenient.
It is expected that the count
of online users cross 850
million by 2025. (FMCG-
Report-July-2018, 2018)
It is estimated that by 2020,
40% of FMCG purchases will
be by online. So, there’s a
scope for HUL to increase
their accessibility through
online. (FMCG-Report-July-
2018, 2018)
Change in lifestyle,
improvement in the
standard of living and
awareness of oral hygiene
is driving people towards
products that target
different oral problems,
such as weak gums and
teeth, surface stains, and
teeth and bad breath.
But, pepsodent hasn’t yet
entered into that range
and colgate is leading in
that area.
POLITICAL-LEGAL
The deduction of Rs
40000/- for transport
allowances and
reimbursement of medical
expenses will increase the
disposable income of
people. (FMCG-Report-
July-2018, 2018)
The price of goods in
FMCG are decreased after
GST.
With the GST, it is
expected that logistics in
FMCG are transformed
into an efficient and
modern model as they are
going for larger
warehousing and logistics.