This is anything but a bizarre statement given by Adi Godrej.
Patanjali is doing well by leveraging its founder Ramdev’s image and selling “simple products like ghee and honey”, but is still small in the value-added segment, Godrej Group Chairman Adi Godrej said today.
“They seem to be leveraging Baba Ramdev’s image in yoga and ayurveda quite well, but most of their sales are in simple products like ghee and honey. Their sales in value-added products are still relatively small,” Godrej said during an interactive session organised by industry ..
What else is it for Godrej? Don’t Godrej products ride on the Godrej image as well? Most FMCG products are essentially about who can capture the space using branding associated with founders etc. It stands for trust and pedigree. How else do you sell these FMCG categories where it is really difficult for the consumer to differentiate goods on the basic of product attributes alone. So you bring some celebrity etc to differentiate. In Patanjali’s case, Baba Ramdev happens to be the celebrity. Though, Patanjali also has Hema Malini selling biscuits and not soaps surprisingly.
Patanjali has truly shaken the FMCG industry from nowhere. Most would have rubbished the threat as an experiment which will not last. It is truly an incredible story whatever anyone may say..