‘We got distracted by Ayurveda...’: How Colgate’s CEO is turning things around in India

Colgate-Palmolive's global CEO, Noel Wallace, said the company lost its focus in India by getting distracted with the Ayurvedic segment but has since refocused on its core strengths. 

"The India business unfortunately had gotten distracted, and we got back to the core of what it stood for. We got distracted with the Ayurvedic segment. We took a step back and said, ‘let’s get back to what we stand for,’” Wallace said during the Barclays Global Consumer Staples Conference.

By focusing on its core product offerings, Colgate saw growth not only in its base anti-cavity toothpaste but also in the premium segment. Wallace highlighted the importance of being considered by consumers, stating, “You can’t get in a consumer shopping basket unless you’re being considered.” Colgate's renewed approach has successfully increased consideration among Indian consumers over the past three years, especially for products like Strong Teeth, Max Fresh, Active Salt, and Visible White.

Colgate controls about half of India’s oral care market. While the Ayurvedic segment saw a rise between 2016 and 2019, it has since plateaued. Recognizing the opportunity to drive growth in a market where oral care consumption is relatively low, the company has focused on premiumizing its offerings. 

Wallace noted that only 12% of the oral care category in India is premium, but 28% of SEC A consumers buy premium products, presenting a clear path for expansion.

The company has relaunched its base anti-cavity business with enhanced efficacy and introduced new innovations such as Max Fresh, a product designed to deliver 10 times longer-lasting freshness than standard fluoride toothpaste. Colgate also launched a whitening product to tap into the growing demand for premium oral care solutions in India.

Wallace emphasized the significant opportunity to drive consumption in India, where the majority of the 1.3 billion population brushes less than once a day. This consumer behavior, combined with cultural habits like consuming sweets before bedtime, presented an avenue for Colgate to develop campaigns aimed at encouraging nighttime brushing. “We developed a campaign to really tap into that insight,” Wallace explained, noting that 80% of urban Indians do not brush their teeth at night, and the company is actively working to change that habit.

With a market share of over 50%, Colgate sees long-term growth opportunities in India's expanding middle class. The company aims to continue premiumizing its offerings while maintaining its commitment to profitability and category growth.