Colgate prepares for P&G India brush
P&G is believed to be readying its Oral B toothpaste brand for a June launch in India, moving in on personal care giant Colgate Palmolive
There’s renewed worry Colgate Palmolive India – its stock recently slid 5% - could be hit when Procter & Gamble (P&G) unleash their own toothpaste offerings in the country. P&G is thought to be readying its Oral B toothpaste brand for a June launch.
Credit Suisse analysts acknowledge the threat to Colgate, though Colgate remains buttressed by a hefty market share. It’s likely the company will up its advertising spend – at the expense of profits, inevitably - in order to counter P&G’s incursions; a strategy it adopted under similar conditions in Brazil.
Indian competition is likely to step up given middle class incomes are forecast to soar – growth in consumer spending is expected to come close to 10% in the next five years (compared with less than half that figure in the UK) - with more space for branded premium products and niche product areas, such as teeth whitening.