137 Year Old Dabur is India's Favourite Today

Can you believe this? I mean, who would want to use the same brand all day 🙄 

When it comes to healthcare, you have to, says my mom every time I ask her to change the brand of the toothpaste we use at home.

Not just that! Everything is Dabur 😣 from the early morning tea to the honey we regularly use for breakfast. It is funny because Dabur is not just a brand.

It is like a part of our daily lives. I mean, think about it.

From the Chyawanprash your grandma swears by to the Dabur Honey that makes your pancakes ten times better 🤤 they have been nailing the art of blending tradition with modernity for years.

But here is the kicker: How exactly did they stay so relevant in today’s fast-paced world where trends change faster than you can say Ayurveda?

Let's dive in.

Executive Summary

Dabur India Ltd. is one of India’s oldest and most trusted brands, established in 1884 by Dr. S.K. Burman in Kolkata.

This 137-year-old brand rooted in Ayurveda set out to address the most common problem people face across the globe.

Initially focused on Ayurvedic medicines, the company has expanded into a diversified portfolio that includes healthcare, personal care, home care, and food products.

Today, Dabur works globally with a presence in over 100 countries and a revenue of ₹10,000 crore in FY 2023. The company has a vast distribution network, reaching 6.7 million retail outlets.

Problem Identified

Consumers have shifted toward natural and organic products. However, they often struggle to find options that balance traditional wisdom with modern effectiveness.

This has created a market gap where products are either too traditional, lacking scientific validation, or too modern, missing the charm of natural remedies.

A 2019 survey showed that 60% of urban consumers preferred natural ingredients and wanted scientific backing. And this highlighted a challenge for brands to meet these dual demands.

Additionally, younger consumers often saw Ayurvedic products as outdated compared to modern medicine. A study by Nielsen in 2020 revealed that only 25% of millennials had a positive perception of Ayurvedic products.

Rural areas, where Dabur has a strong presence, have limited access to diverse Ayurvedic products, while urban markets face a shortage of options that combine authenticity with modern convenience.

The rise of startups offering "natural" products has saturated the market, but many lack the scientific backing consumers seek, making it hard for them to find high-quality options.

With the global herbal supplements market valued at USD 100 billion in 2020 and expected to grow at 6.5% annually, there's a clear need for a brand to provide quality, scientifically validated Ayurvedic products.

Dabur recognized this and aimed to fill the gap by using its Ayurvedic heritage while innovating to meet modern consumer needs.

Solution Introduced

Dabur realized that the key to solving the market problem lay in merging its rich Ayurvedic heritage with modern science and innovation. Here's how the Dabur team addressed the problem:

Product Innovation

Dabur responded to the growing demand for natural yet scientifically validated products by creating products that blended Ayurveda with modern healthcare.

One of the company’s standout innovations was Dabur Vedic Suraksha Tea in 2021. It combines Ayurvedic herbs like tulsi, ginger, and ashwagandha with regular tea.

Similarly, Dabur Chyawanprash, one of its products, was rebranded and reformulated to target younger generations.

They introduced flavors like sugar-free Chyawanprash and Chyawanprash infused with chocolate flavor to attract modern consumers while holding its core Ayurvedic elements, such as amla (Indian gooseberry) and giloy.

Dabur also entered the premium skincare market with its Dabur Ayurveda Skincare line.

This line came out with 100% natural ingredients, free from parabens, sulfates, and artificial colors, to meet the growing demand for clean beauty products.

Dabur created products that resonated with consumers looking for safe and effective skincare solutions by combining ancient Ayurvedic recipes with modern cosmetic science.

Consumer Education

Understanding that many younger consumers viewed Ayurvedic products as outdated or less effective, Dabur launched the #TrustInTradition campaign to educate and inform the public about Ayurvedic benefits.

The campaign focused on using social media platforms and collaborating with influencers who resonated with millennials and Gen Z audiences.

Influencers shared their experiences with Dabur products, highlighting their effectiveness and explaining the science behind Ayurvedic ingredients. To build trust, Dabur created engaging content that demystified Ayurveda.

Through educational videos and interactive posts, the company broke down the science behind its products, explaining how Ayurvedic herbs like ashwagandha and amla provide real health benefits.

For example, this YouTube video featuring the campaign showed the properties of Chyawanprash and expert opinions from Ayurvedic practitioners.

According to internal brand perception studies, the campaign led to a 20% increase in brand trust among millennials.

Digital Transformation

With the shift towards online shopping and the increasing importance of e-commerce, Dabur invested heavily in its digital transformation.

In addition to expanding its presence on popular e-commerce platforms like Amazon and Flipkart, Dabur launched its direct-to-consumer (D2C) website to offer a personalized shopping experience.

Dabur utilized targeted digital marketing strategies, leveraging data analytics to personalize product recommendations based on consumer preferences and browsing behavior.

Check this video out to see how Dabur went more digital:

The company also used retargeting ads to remind consumers of products they had viewed online, boosting conversion rates.

These efforts resulted in a 25% increase in online sales in FY 2022, as more consumers opted to purchase Dabur products online due to the convenience and personalized experience.

Moreover, Dabur introduced the Digital Dabba initiative for its rural retailers, enabling them to place orders via a mobile app.

Expanding Distribution

Dabur expanded its distribution network aggressively to address the gap between urban and rural markets.

The company doubled its rural distributors to 10,000 under the Project Double initiative. Doing so contributed to over 50% of Dabur’s revenue.

Since rural people strongly believe in Ayurvedic products, Dabur had to focus only on bringing more products into such areas.

At the same time, Dabur ramped up its presence in urban retail chains and modern trade outlets to meet the growing demand.

They redesigned product packaging to make it more contemporary and visually appealing to buyers while retaining the brand elements. This move resulted in a 10% rise in retail shelf visibility.

Collaborations and Partnerships

Dabur also formed strategic partnerships with scientific research institutions to validate the efficacy of its Ayurvedic products.

By collaborating with leading research bodies, Dabur published studies and reports showing the health benefits of its products.

For instance, a clinical study on Dabur Chyawanprash conducted in collaboration with a renowned Indian medical research institute showed that regular intake could boost immunity and reduce the risk of infections.

This study was widely shared in the media and used in Dabur’s marketing campaigns to solidify its position as a credible player in the natural healthcare industry.

Results

• In FY 2022, Dabur reported a 12% year-on-year revenue growth, reaching ₹10,800 crores ($1.3 billion). This growth was driven by the health supplements category, which saw a 20% increase in sales compared to the previous year.

• According to internal brand perception studies, targeted digital content and influencer partnerships led to a 20% increase in brand trust among millennials and Gen Z.

• Additionally, consumer surveys post-campaign revealed that 75% of respondents now view Dabur as a brand that successfully combines tradition with modernity, up from 60% before the campaign.

• The Project Double initiative, which doubled the number of rural distributors to 10,000, contributed to a 15% growth in rural sales in FY 2022.

• On the urban front, the redesigned packaging and increased shelf visibility in modern trade outlets led to a 10% increase in sales in metro cities.

• Its direct-to-consumer (D2C) website and improved presence on major e-commerce platforms resulted in a 25% increase in online sales in FY 2022.

• Dabur saw a 30% increase in sales of Dabur Chyawanprash within six months into the market.

• According to a study by Kantar, Dabur’s customer retention rate increased by 18% in FY 2022. Many cited the brand’s commitment to authenticity and innovation as key reasons.

Conclusion

Dabur’s ability to blend its rich Ayurvedic heritage with modern consumer expectations has been key to its continued success. By innovating products, improving its digital presence, and expanding distribution, Dabur overcame its challenges and strengthened its market leadership.