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HLL overtakes Nirma, Colgate in rural market: CIER

27-December-2000
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HLL overtakes Nirma, Colgate in rural market: CIER

Increasing brand consciousness and expanded disposable incomes have altered consumption patterns not only in urban India but also in the rural hinterland, with leading personalcare brands from Hindustan Lever, Colgate-Palmolive and Nirma, fighting for the numero uno position.

A recent survey 'Emerging market trends’ conducted by the Centre for Industrial and Economic Research, found that top marketer HLL had overtaken both Nirma and Colgate-Palmolive in brand awareness and penetration in rural households.

While HLL topped the survey list with 88 per cent rural market penetration, Nirma was a distant second at 56 per cent while Colgate-Palmolive was next at 33 per cent penetration.

The shift in the consumption patterns of rural households had been the main reason for increasing demand of high-quality personal care products, the report said, adding that an average rural household spends anywhere between Rs 333-116 on consumables besides foodgrain, milk and vegetables.

Of the household's total spending, the highest 20 per cent are on toiletries, followed by 13 per cent on washing products, 10 per cent on cosmetics, 4 per cent on over-the-counter products and nine per cent on other consumables, the report found.

As per the survey, while the demand for toothpaste is estimated to grow by 4.5 per cent this year, soaps are expected to log in 8.5 per cent while detergents will grow by a whooping 20 per cent.

On the fast emerging consumption pattern in rural areas, it said, "in rural areas upgradation of products is being witnessed, local and branded products getting replaced by national brands and low priced by high-priced ones".

Quoting a survey conducted by a leading market research organisation, it said of the monthly average expenditure, the rural household spend as much as 56 per cent on personal care products.

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