In the year 2016, Patanjali was the most discussed topic in the industry, as its sales were soaring high, outshining similar brands that existed in the market to produce products in the field of healthcare and grocery.
Almost half of India had come under the wave of Patanjali, portraying an inclination towards Ayurvedic products; and if viewed from that perspective, India upholds a history of Ayurveda since ages and has proven its wellness applications in various fields of medicine.
However, the scenario has reversed; Baba Ramdev’s Patanjali has failed to secure impressive figures in the market since the inception of 2018. Moreover Annual financial report states that its sales have slumped from 10% to 81 billion rupees in a short time.
Further Business Analysts have concluded that it did deteriorate excessively,
pointing out to the information which was compiled by CARE ratings, which indicated that the company had just made sales of 47 billion rupees in the nine months to December 31, depicting an explicit loss in their performance.
A Kantar study says the company’s urban volumes dipped 2.7% in the year to April 2019 while rural sales grew just 15.7%, down from 45.2% the previous year.
According to interviews with three suppliers and letters reviewed by Reuters, facts revealed that the suppliers were not paid which compelled them to turn their backs on the company.
Soon Patanjali fell short of intermediaries, which led to inefficiency and saturation of their existence in the market.
Therefore the firm is now finding it difficult to stake its claim over FMCG giants: natural brands, as it has lost its control over quality and customer loyalty.
Few of the reasons being:
•Ineffective marketing and lack of rational advertising strategies.
•Increased competition with rivals, that adversely affected their sales.
•Inability to adapt to the newly formulated GST regime, thus developing an inferior infrastructure and supply chain.
As a result of this, other brands like HUL, L’Oreal, and Colgate-Palmolive started rolling out several products, gaining massive customer-base in recent times.
Hence, the downfall of Patanjali has reached its peak, demonstrating a slump in the sales figures, questioning its continuation in the market.