Fast-moving consumer goods (FMCG) major Hindustan Unilever (HUL) seems to be ceding ground in some personal-care categories to domestic and overseas players, as the market increasingly tilts towards the herbal products.
A Nielsen data showed the company has seen 290 basis points (bps) decline in skin-cleansing or soaps category in the past two years to 41 percent, the largest segment within personal care according to a report published in The Economic Times.
The report said oral care has seen a fall of 320 bps, hand-and-body-care category declined to 29.8 percent in September as compared to 34.2 percent two years ago.
HUL indicated there could be a disconnect between its growth patterns and the Nielsen statistics, but declined to comment on specific marketshare trends.
There is a huge disparity between the HUL’s actual growth number and the growth numbers data presented by the market research firm, said HUL spokesperson.
Nielsen on it part said, as it only covers retail-to-consumer sales and does not factor in other channels like export, army canteen, B2B sales etc, there will be divergence between the manufacturer’s shipment numbers and our estimates.About 60 percent of HUL’s profit comes from personal care segment that has seen tepid sales growth as compared to company's overall business.