 |
 |
Bangalore, July 31, 2006 |
|
|
|
|
|
|
|
| Ayurvedic basics scale Himalayan heights |
|
|
|
When the 76 six year old Ayurvedic drug manufacturer, Himalaya, launched its range of consumer products six years ago, it took on the combined might of FMCG honchos like Hindustan Levers and Proctor & Gamble in the personal care space and Pharma companies in the health & body care space.
It also had to battle for mindspace with well established ayurvedic consumer brands like Biotique, Dabur, Shahnaaz Hussain, Zandu and Vaidyanath. Six years down the line, the Rs 350 crore company has established a formidable national and international presence, as a 'Herbal Healthcare Multinational' with a footprint across 76 countries.
Single entity
The Consumer Products division recorded a CAGR of 28 per cent by volumes last fiscal, and is expected to grow at 40 per cent in FY 2006-07. This is significant as the Pharma division which contributes to almost 58 per cent of total revenues, is likely to grow between 12-15 per cent only. The substantial improvement in the estimated business for FY 2006-07 can partly be attributed to the restructuring exercise that the company undertook a few months ago, which resulted in the merging of 3 separate divisions, viz, Personal Care, Consumer Health and Retail into a combined entity - Consumer Products. "The synergy created with the merging of 3 divisions has created a leaner structure internally and has helped us present a single face to the retailer. Earlier we had people from all 3 divisions negotiating with the retailer," said Subrata Dutta, Business Head Consumer Products at Himalaya.
 |
Subrata Dutta |
Service culture
Emphasising Himalaya's strong service orientation unlike the FMCG sector's traditional focus on products, Mr Dutta says, "most people in the FMCG business laugh at the way we do business." "While a typical FMCG outfit goes by SKU rationalisation, where products are withdrawn from the market when they are not viable, we do just the opposite.
If there is a customer somewhere with a health-based need, who requires our products, we give it to him. Even if it means manufacturing only 1,000 units of a product or catering to just 3 customers," averred Mr Dutta. Himalaya's focussed customer orientation culture drove it towards an 'Exclusive Retailing,' where customers get to experience products, leisurely browse through product literature and consult with the in-store advisors to make informed purchases thereafter.
Although Himalaya has products which address the 'health needs' of every individual irrespective of age, gender and caste, its core consumers are women in the 18-35 year age group.
Ubiquitous presence
What began purely as a customer service initiative in 2000 is now a thriving, profitable business. Himalaya has 100 exclusive stores which house its entire range of products from Pure Herbs to Personal Care Products, Forest Honey to Chyawanprash, and Herbal Tea. From a presence in far flung areas like Karimnagar, Rishikesh, Chikmagalur and Siliguri, the stores are spread across major metros and in areas where the population is in excess of 500,000. "Each of our exclusive stores (150 sq ft to 450 sq ft), rakes in Rs 2,50,000 per month, which is more than what an average medical store makes.
While the aim is to have 150 exclusive outlets by the year end, we believe in being everywhere, more than logging in numbers," said Dutta. Himalaya is also present in 620 modern trade outlets and shop-in-shops like Fabmall, Health & Glow, Food World etc (with Advisors), at Himalaya Centres in 250 outlets and has over 1.5 lakh small dealers. All retail outlets are electronically linked to a CRM Cell, which is assisted by a team of medical doctors to answer specific customer health queries. Advisors are trained to answer customer queries and provide information about herbs and their specific therapeutic and medicinal properties. Customers are intimated in advance about the doctor's visit to the exclusive outlet every fortnight and this initiative is a big draw attracting close to around 40-70 customers per outlet. "Doctors, for instance, conduct 'Bone Mineral Density' tests to check for signs of osteoporosis," pointed out Mr Dutta.
Personal touch
Come September, 200 'Himalaya Knowledge Kiosks' with interactive touchscreens will be placed within malls and Himalaya stores. "Going through product brochures is tedious, we want to make it easier for customers to navigate easily through visuals and product information, with these kiosks.
We want to replicate the success of our website which receives 6 lakh hits per week with 20,000 hits from people who navigate for at least 30 minutes each," enthused Mr Dutta. "The Customer Services Cell at Himalaya receives close to 50 odd letters and e-mails a day which are read and responded to. The Cell receives 3-4 positive responses every day. In case of a negative response, a gift hamper is sent to the customer and an appointment fixed to meet up to elicit intensive customer feedback, which is immediately acted on," added Dutta.
Back to Ayurveda
The Consumer Products group used a multi-pronged strategy to get where it has today. It leveraged on Himalaya's well entrenched, pharma retail network, kept its prices at affordable levels and educated the masses on the 'goodness' and 'natural' qualities of Ayurveda.
It popularised Ayurveda, which was long relegated to the bygone realm of the Rishi-Munis, with a series of 'Daadimaa' commercials, showcasing its range of consumer care products called 'Ayurvedic Concepts.' Establishing an instant connect with the youth, the campaign presented the 'hip 'n' happening' Daadimaa articulating her knowledge of age-old ayurvedic health tips in chaste English, with the panache of someone conversant with the latest trends, be it technology or high fashion.
Latest offerings
"The Hair Loss cream launched last year is a runaway hit, with customers going in for larger pack sizes," said Mr Dutta. The product promises to reduce hairfall by 20 per cent in 2 weeks and generate regrowth of hair follicles after 3 months of daily use. Pure Herbs, Neem capsules are also extremely fast moving with its antibacterial, antifungal, blood purifying properties contributing to glowing skin and helping boost the body's immunity, added Mr Dutta.
Riding the wave of a global shift towards herbal and natural therapies for wellness and internal health, Himalaya has not only spread its wings across the world but has established a strong 'brand loyalty.'
For instance, a recent study by AC Nielsen ranked Himalaya among the top four brands in the skin and hair care segments in the United Arab Emirates, a market it entered just a few years ago. In Switzerland, Himalaya's Liv 52 tablets - a household name in India - is the only herbal product registered as a 'pharmaceutical specialty' product, allowing it to be prescribed by allopathic doctors.
Global reach
After establishing a footprint across the globe from Azerbaijan to Bulgaria, from Guatemala to Poland, from Turkey to the US, from the UK to Venezeula and Zambia, Himalaya plans to be on the shelves of mainstream stores across South East Asia and the Far East in the next 2 years.
With the launch of it's first 'store-in-store' at Watson's OUB Centre outlet in Singapore in May, Himalaya became the first Indian brand to have a mainstream presence in the herbal healthcare space. Watson's was chosen as it was among one of the most visited, personal care stores in Singapore. It is also the first brand to be invited to open an exclusive outlet in Kuala Lumpur Commercial Centre, the most prestigious shopping mall in the city. Himalaya enjoys pride of place among brands like Gucci, L'Oreal, Christian Dior and Kenzo outlets. Himalaya plans to enter Indonesia, Vietnam, Japan, the Far East, Europe and Latin America.
Himalaya has filed 17 global patents for its pharma and personal care products and has applied for permission from the Health Sciences Authority to put stickers on its products, stating they are safe. The company is also planning a Rs165 crore campus on 200 acres of land in Bidadi, an hour away from Bangalore, where it plans to set up an R&D centre in Phase I, followed by an Export Oriented Unit in Phase II.
|
|
| |
| Back |
 |
| |
|
|
|
| |
|
|
