Dabur’s Digital-First Brands Hit ₹100 Crore Milestone, Embracing Online Growth

Dabur India, a leading FMCG player, is making significant strides in the digital space. According to their annual report, the company’s digital-first brands, launched exclusively online, achieved a collective turnover of over ₹100 crore in FY24. This highlights Dabur’s strategic shift towards capitalising on the burgeoning online market.

New Product Launches and Category Expansion

Dabur actively expanded its product portfolio in FY24, introducing 14 new offerings. These launches strategically aligned with its dual goals of developing a premium product segment and increasing its overall market reach. Notably, these new products mark Dabur’s entry into promising new categories, such as mosquito-repellent liquid vaporisers, cooling hair oils, gel toothpastes, speciality teas, and shower gels.

Aligning with Industry Trends

Dabur’s foray into digital-first brands reflects a broader trend within the FMCG sector. Many established players are adopting similar strategies to cater to niche consumer preferences online and compete effectively with new-age digital brands gaining traction. This is particularly evident in categories like beauty and personal care, and packaged foods.

Financial Performance and Brand Portfolio

Despite a subdued domestic FMCG market in FY24, Dabur reported a total revenue of ₹12,404 crore with a net profit of ₹1,843 crore. The company boasts a well-established brand portfolio encompassing home and personal care products (HPC), food and beverages, and healthcare essentials. Some of their popular offerings include Meswak toothpaste, Dabur honey, Amla hair oil, and Real fruit drinks.

Looking Ahead: Sugar Reduction and Innovation

Dabur remains committed to product innovation and consumer health. They are embarking on the fourth phase of their sugar reduction initiative for the beverage portfolio. This phase aims to achieve an average 3% reduction in added sugar across two-thirds of their drinks. This initiative builds upon their “reformulation” journey initiated in 2019, which focused on lowering sugar levels in their Real fruit juice range.

“FY2023-24 opened strong but became challenging as the year progressed. Despite softening inflation and a general improvement in consumer sentiments, the domestic fast-moving consumer goods (FMCG) sector witnessed a period of subdued growth during the year. The household consumption trends reflected a reduction in bulk purchases by consumers to manage expenses, allowing for discretionary spending on smaller categories. Low wage growth in rural India also resulted in downtrading by consumers. Climate change marked by uneven weather patterns such as unseasonal rainfall, delayed and contracted winter also impacted our seasonal portfolio,” said Mohit Burman, chairman of Dabur India.

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