Modern retailers are making exclusive Patanjali destinations in their outlets as Baba Ramdev’s products are flying off their retail shelves. Reliance Retail, Big Bazaar, SRS, and Spencer’s Retail report that Patanjali products including honey, ghee, juices, chyawamprash, shampoo and instant noodles are the best selling brands in their categories. The retailers are setting up standalone racks, bays or counters based on their store size to stick the grocery products from Patanjali.
On the other hand, the rivals of Patanjali are closely tracking the brand’s progress. Analysts have noted the increasing popularity of the brand. The brokerage estimates that the sales of the brand will reach Rs 20,000 crore by the fiscal year 2020.
As per the brokerage firm IIFL Institutional Equities, the reason for the success of Patanjali is its unique model of business, a range of categories, exclusive network of stores, and a very close association of the yoga guru. The increasing appeal of the Ayurvedic products as well as low price of the products has helped the brand.
The report further stated that it estimates the highest impact on the toothpaste brand Colgate that is the most trusted brand of 2015 as Patanjali is gaining traction in the oral care category as well.
It was Reliance Retail that pioneered selling the products of Baba Ramdev via Patanjali destinations a year ago. Later, Big Bazaar of Future Group partnered with Patanjali. In fact, this is the very first time that a brand is given standalone spaces in the history of grocery retail, stated Aditya Pittie, the CEO of Pittie Group. SRS Retail has reported that there is 30 percent increase every month in the sales of Patanjali products across its 32 outlets and online as well. At Reliance, there is double digit share of sales of products such as ghee and chyawanprash from Patanjali brand, and single digit share of sales of the brand’s soaps and toothpaste.
