The combination of Ayu - Life & Veda - Knowledge, is what makes the ancient Indian science of Ayurveda a holistic approach to healthy living, without confining it within the realms of treatment of diseases only. It is hardly a wonder then that this system of traditional medicine native to India is seeing a strong comeback with the likes of Patanjali, Sri Sri & more recently even Lever Ayush stepping up their new product pipeline & marketing activities around their respective ayurvedic propositions.
Going beyond the overtly visible range of consumer products, ayurveda is an alternative form of medicine that uses 600 plants, herbs & minerals described in 54 books - it provides guidelines for healthy nutrition and preventive approaches to lifestyle management for improving the quality of life. It almost seems obvious to a keen marketing eye then, that only brands with a strong pedigree of generic ayurvedic formulations would win with their consumer marketing efforts in the longer term, given the equity rub-off such a portfolio entails on the proprietary range. The success of Patanjali's retail stores today to a large extent is attributed to the presence of ~1500 Patanjali Chikitsalaya's across the country where trained vaidya's dole out generic ayurvedic prescriptions to visiting patients across a long list of ailments (check: http://patanjalivaidya.blogspot.in)
Let's analyse what role do these generic/ proprietary ayurvedic formulations play in the consumer's life. Across a range of ailments, it is surprising but true that most consumers do nothing about it during the initial 1-3 days... home remedies followed by a 'wait & watch' approach seems to be the default mechanism of dealing with it. In as basic an ailment as a cough for example, 84% Indian consumers would delay taking a cough syrup by at least a day just to be 100% sure that it's required for the treatment.
Thereafter, ayurvedic/ natural ingredients-based home remedies are used as the 'first line of defense' by most consumers. No prizes for guessing then that Himalaya has a tag-line which smartly plays to this sweet spot calling out 'sabse pehle' which is brought alive in their purifying neem face wash communication most significantly.
These remedies form the majority of self-treatment measures across a host of common needs and ailments since they are perceived as safe without side effects as well as economical by ~60% consumers. On the flip-side though, almost 2 of 10 consumers believe these remedies need time to prepare and don't cure completely; a classic example being the home-made 'kadha' of natural ingredients that grand-mums would concoct on hearing a 'cough' in the household or for that matter the cough lozenges available at almost every corner-store across the country (yes, the Vicks cough drops are ayurvedic too!).
These remedies form the majority of self-treatment measures across a host of common needs and ailments since they are perceived as safe without side effects as well as economical by ~60% consumers. On the flip-side though, almost 2 of 10 consumers believe these remedies need time to prepare and don't cure completely; a classic example being the home-made 'kadha' of natural ingredients that grand-mums would concoct on hearing a 'cough' in the household or for that matter the cough lozenges available at almost every corner-store across the country (yes, the Vicks cough drops are ayurvedic too!).
In the case of problem-solution drugs, OTC ayurvedic formulations are out of the purview of government-controlled pricing bodies and can be competitively priced & freely distributed across non-drug stores as well. What makes it even more attractive for marketers to enter this domain is the possibility of liberal claims as well as ability to advertise directly to consumers via national media. It comes as no surprise then, that the top FMCG as well as pharma players in the Indian market have a strong play in the ayurvedic space through a combination of brands.
Besides, the nature of claims being made by few ayurvedic companies can almost promise anything under the sun. (Kailash Jeevan, a brand that lots of consumers swear by, is a multipurpose ayurvedic cream which claims to be effective across a range of 28 ailments: http://www.asum.com/kailas_jeevan.html)
Besides, the nature of claims being made by few ayurvedic companies can almost promise anything under the sun. (Kailash Jeevan, a brand that lots of consumers swear by, is a multipurpose ayurvedic cream which claims to be effective across a range of 28 ailments: http://www.asum.com/kailas_jeevan.html)
The opportunity is not limited to the India market only. Globally, the WHO (World Health Organization) recognizes Ayurveda as 'Traditional Medicine' (TRM) and today exports contribute ~40% of the Ayurvedic market. In fact, across some of the key categories in which ayurvedic brands play, it is for a combination of the above factors that they are bigger in size vis-a-vis the pharmaceutical operators in the same categories. (CCA refers to cough, cold, allergy & VMS refers to Vitamins, Minerals, Supplements)
Across need-benefit FMCG or problem-solution OTC categories alike, consumers almost always make a choice of an ayurvedic brand in totality vis-a-vis choice of individual categories within which the ayurvedic brand plays; this enables an established ayurvedic brand to stretch across categories ensuring that almost all ayurvedic brands today are 'umbrella' brand-names not restricted to only 1-2 categories of play, but driving the relevance across a spectrum of categories deriving significant scale on their marketing and distribution efforts in the process. ~80% of the Ayurveda market today is held by the top 8 players of which 7 operate under the company brand-name with play across 3-4 significant categories at the minimum.
In sum, with the ayurvedic segment at an inflection point for varied reasons listed above, the segment would continue to see significant activity going forward as well. For companies invested in the segment with an appropriate portfolio-mix of generic & proprietary products, the growth impact over the medium term could be substantial. As for the most famous poster-boy of the segment, the by now 10k-plus crore Patanjali needs to focus on amplifying its own product benefit story vis-a-vis putting down competitors, keep away from flash-in-the-pan claims, manage the portfolio proliferation in areas relevant to consumers from an ayurvedic equity viewpoint (recent proliferation into areas like apparel seems to be driven by distributor turnover & profitability vs. consumer needs) and finally, put in place a professional structure to manage the brand after the proprietor & brand endorser.
The Chronicles of Ayurveda will continue to see the birth & growth of
companies with an indigenous mix of pedigree and smart marketing/ business modeling to reach out to the evolving bharatiya-at-heart consumer. Brands with an appetite for risk to venture into niches within this evolving ayurvedic space might be the next game-changers, co-creating the trajectory of this ancient Indian science as well.
In sum, with the ayurvedic segment at an inflection point for varied reasons listed above, the segment would continue to see significant activity going forward as well. For companies invested in the segment with an appropriate portfolio-mix of generic & proprietary products, the growth impact over the medium term could be substantial. As for the most famous poster-boy of the segment, the by now 10k-plus crore Patanjali needs to focus on amplifying its own product benefit story vis-a-vis putting down competitors, keep away from flash-in-the-pan claims, manage the portfolio proliferation in areas relevant to consumers from an ayurvedic equity viewpoint (recent proliferation into areas like apparel seems to be driven by distributor turnover & profitability vs. consumer needs) and finally, put in place a professional structure to manage the brand after the proprietor & brand endorser.
companies with an indigenous mix of pedigree and smart marketing/ business modeling to reach out to the evolving bharatiya-at-heart consumer. Brands with an appetite for risk to venture into niches within this evolving ayurvedic space might be the next game-changers, co-creating the trajectory of this ancient Indian science as well.
