Durex becomes second-largest condom brand in India: Reckitt
Premium- The brand expanded distribution by 61% compared to 2019. In 2021, it reported market share gains of 210 basis points
New Delhi: Britain’s Reckitt Benckiser Group on Thursday said its product Durex became the second-largest condom brand in India in FY21 after reporting market share gains and significantly expanding distribution. Mankind Pharma's Manforce stands at number one.
The brand expanded distribution by 61% compared to 2019. In 2021, it reported market share gains of 210 basis points.
In an update on the company’s full-year (FY21) performance, the maker of Lysol disinfectant and Dettol anitiseptic, said that its intimate wellness portfolio delivered strong mid-teens growth in both 2021 and on a two-year stack, led by its flagship brands of Durex and K-Y, an intimate lubricants brand.
“Growth in a number of our developing markets has also been strong, with increased distribution and improved display execution, to win in impulse points. As a result, Durex has now become the number two condom brand in India," the company claimed during an update of its full-year earnings.
Meanwhile, for the full year ended 31 December 2021, Reckitt said like-for-like net revenue growth in developing markets stood at 6% with a broad-based growth across regions, in particular in India and Middle East.
The company beat fourth-quarter sales forecasts on Thursday but missed full-year earnings estimates.
In an earnings presentation, the company said that penetration of its Dettol antiseptic liquid and handwash brands dropped year-on-year in India in the third quarter of 2021 but remained well above pre-pandemic levels.
Penetration of Dettol antiseptic liquid stood at 5.3% in Q2 of 2019 while that of its handwash stood even lower at 3.6%. In the third quarter of 2021, the antiseptic liquid reported penetration levels of 9.1% while Dettol handwash moved up to 5.1%. This, while lower than the peak of the first wave, is still higher than pre-covid levels.
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“In India, we have continued to build penetration of our liquid hand wash and antiseptic liquids. As we all seek to keep our families safe in these unusual times, good hygienic practices are the foundation for health, and these have never been more important," Laxman Narasimhan, chief executive officer at the company said in an earnings call.
Dettol benefited significantly as the pandemic drove demand for hygiene products.
Globally, Dettol’s net revenue declined low double-digits in FY21 following exceptional growth in 2020, the company said. “However, the brand has continued to stabilise with net revenue up over 40% compared to 2019, for both the year as a whole and in the fourth quarter," it added.
Reckitt has a "strong pipeline" of innovations lined up for the brand in 2022 and is targeting Dettol to continue its strong, sustainable growth trajectory.
Narasimhan pointed to developing markets such as India and China, where the company has seen a “step" change in penetration of Dettol, with many consumers using the brand for the first time.
“We continue to see significant headroom opportunities in core Dettol markets, and as a result, we are focused on driving distribution and then educating consumers in new habits," he said.
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