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Durex makes India condom push for ladies, rural shoppers

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© Reuters. FILE PHOTO: A man selects packets of condoms that are displayed for sale at a chemist shop in Ahmedabad, India, September 2, 2024. REUTERS/Amit Dave/File Photo

By Richa Naidu and Dhwani Pandya

LONDON/MUMBAI (Reuters) – For years, the world’s largest condom maker Reckitt Benckiser (LON:) designed merchandise and advertising and marketing to lure Indian males to its Durex model. Now, it’s pushing a progress technique by betting on ladies and rural shoppers.

India final 12 months surpassed China to change into the world’s most populous nation, however nonetheless fares poorly on the usage of contraceptives. India’s authorities estimates solely round 10% of males use condoms and for ladies, sterilization stays the favored type of contraception.

Social stigma surrounding intercourse – which some say stems from Victorian social norms established throughout British colonization – has for many years marginalized feminine pleasure within the Indian society.

However attitudes are altering and Reckitt is shifting advertising and marketing gears to reap the benefits of an upswing in condom use amongst Indian ladies – now a key audience for Durex.

Round 9.5% of married Indian ladies cited utilizing condoms throughout intercourse by 2021, virtually double the use 5 years earlier, in accordance with newest out there authorities statistics. Amongst single ladies, such use greater than doubled to 27%.

Reckitt is reformulating merchandise resembling lubricants geared toward attracting ladies shoppers, and has new advertising and marketing campaigns, Pankaj Duhan, Reckitt’s senior vp of intimate wellness, informed Reuters in an interview.

The Durex lubricants in India will use improved formulations to enchantment to ladies and have been created after performing medical research to deal with considerations females face — 30% of Indian ladies expertise some discomfort when having intercourse with their companion.

“We need to change this … That’s the reason we’re relaunching our lubes portfolio,” stated Duhan. “The ladies are likely to change into slightly bit extra underserved shopper teams.”

The India condoms market is at the moment dominated by Mankind Pharma, which makes Manforce, adopted by Reckitt and TTK Healthcare.

CHALLENGES

The British shopper items agency faces some stiff challenges in its quest to carve out a profitable slice of the feminine condom market and rural shoppers, primarily with distribution and pricing – two areas business watchers consider are key to success – but in addition in coaxing a still-largely conservative rural inhabitants to purchase its merchandise.

Furthermore, opponents are making a pitch to ladies too, with Durex’s essential rival and market chief Manforce tweaking its advertising and marketing — a latest advert stars a Bollywood actress speaking about advantages of condoms and asking ladies to “go purchase your personal.”

“One problem Reckitt could face is consistency of messaging,” stated Devangshu Dutta, head of retail consultancy Third Eyesight, including the corporate wants to determine whether it is focusing on condoms for well being, household planning, or pleasure as there might be totally different messaging for every sort of purchaser.

The expansion alternative is compelling – India’s condom market measurement is merely value $210 million, in comparison with China’s $4.1 billion, however is forecast to develop at 7.4% compound annual price between 2024 and 2030, in accordance with Indian consulting agency 6Wresearch. The worldwide market is value $11.3 billion.

Rising the market will take some doing although, not least due to India’s huge measurement and hundreds of thousands of mom-and-pop shops require a widespread distributor community.

At the moment, solely about 10-15% of Durex’s gross sales in India come from rural areas, which is way extra value delicate than city cities.

“Distribution is the large problem just because despite the fact that most shopper items firms have made their method to all pincodes within the nation, the query is sustaining availability at retail factors,” stated Dutta of Third Eyesight.

CHIPPING AWAY AT TABOOS

Intercourse schooling within the conservative nation can also be lagging, and there’s a huge gulf between consciousness and precise use of contraceptives.

Matt Godfrey, govt vp for Asia Pacific at Monks advert company, a part of S4Capital, stated advertising and marketing tweaks by the likes of Durex are a welcome change however condom use and intercourse schooling want to enhance in India.

“There are vital societal and cultural points that should be quickly shifted to reverse the established order,” he stated.

Within the japanese state of Odisha, for instance, a small medical retailer of Sudam Padhan doesn’t prominently show condoms as “individuals frown upon them.”

In India, it is males who largely purchase condoms, however some like Pooja, a marketer in Mumbai, try to drive change. She made an “awkward” determination to purchase condoms herself for the primary time this 12 months, saying “after I’m asking for a condom over-the-counter I’m mainly placing my well being first.”

Nonetheless, in a telling signal of the considerably taboo nature of the subject, the 31-year-old declined to share her final identify as she is single and feared societal admonition.

“An open dialog encouraging secure and accountable intercourse in India has been steadily progressing however must be frequently supported” by manufacturers together with Durex, S4Capital’s Godfrey stated.

Like a lot of its rivals, Reckitt has over time largely focussed on Indian males, with many adverts that includes ladies carrying skimpy garments.

Rival Manforce Condoms options former pornstar Sunny Leone in movies, some labelled “EXCLUSIVE UNCENSORED”. Duhan stated lots of the condom adverts “objectified ladies.”

However that is altering. Durex earlier this 12 months launched a risqué “Explorers Needed” lubricants marketing campaign in India which featured sensual pictures of nude male physique elements.

PRICING PAINS

Pricing is one other huge problem, particularly in shops in smaller cities and villages that are reluctant to inventory condoms and lubes. Duhan stated merchandise must be “extraordinarily low-cost” to promote in some rural areas, the place many use free government-provided condoms.

Padhan, from the medical retailer in Odisha, would not inventory Durex “as a result of they’re pricey and there is no demand for them in rural areas,” and says most gross sales are of Ustad “Deluxe (NYSE:) Condoms” made by a state-run agency.

Ustaad prices simply 10 rupees (11 U.S. cents) for a pack of six. A pack of 10 Durex condoms begins retailing at round 250 rupees, with some priced above $6, and an identical pack of Manforce begins at $1.

However the smaller three-condom Durex pack begins retailing round 99 rupees, and Reckitt believes they may promote higher in rural India.

“We’re beginning on the high (and) planning to get right down to the agricultural areas,” Duhan stated. “It is a huge enterprise”.

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Why Plug Energy Inventory Plunged on Friday After an Early Week Rally

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Plug Energy (NASDAQ: PLUG) inventory surged by as a lot as 15.3% at its highest level in buying and selling this week earlier than reversing course on Thursday. And on Friday morning, shares of the hydrogen and gasoline cell maker crashed by greater than 8% and have been buying and selling 3.5% decrease for the week via 11 a.m. ET, in response to knowledge offered by .

Plug Energy introduced a brand new technique this week that might usher in some money, however a recent growth in one other a part of the clear power business dampened investor sentiment and despatched the tumbling once more.

Why Plug Energy inventory rose beforehand

This week, Plug Energy introduced it was initiating a brand new gear leasing platform that might assist it elevate $150 million within the mid-to-near time period. To begin, it signed three sale and leaseback transactions price $44 million with GTL Leasing, a lessor of hydrogen storage and transport gear. Personal fairness agency Antin Infrastructure Companions owns a majority stake in GTL.

Beneath such transactions, Plug Energy can obtain lump sum funds for gear akin to trailers and storage tanks whereas retaining the precise to make use of them, giving it speedy entry to funds it will possibly use to cowl its day-to-day operational bills.

Plug Energy inventory may stay risky

Plug Energy is dealing with an ongoing money crunch , and even issued a going concern warning final yr. Its new leasing platform may enable it to lift some money whereas it tries to safe greater funding, akin to a mortgage from the Division of Vitality. Plug Energy has a conditional mortgage assure of as much as $1.66 billion, and says it’s working carefully with the division to finalize the mortgage.

This week, Plug Energy additionally secured an order for 25 megawatts of electrolyzers from Castellon Inexperienced Hydrogen, a three way partnership between power large BP and Spain-based utility operator Iberdrola. Whereas this order alerts a rising curiosity in inexperienced hydrogen, different clear power sources are getting much more consideration.

On Friday, utility large Constellation Vitality introduced plans to restart a shuttered nuclear reactor in Pennsylvania after signing an enormous contract to supply carbon-free electrical energy to tech large Microsoft‘s knowledge facilities. The deal might be a harbinger of extra alternatives to return for nuclear energy, which is cheaper to supply, making it even more durable for firms like Plug Energy to make a compelling case for alternate options akin to inexperienced hydrogen.

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Darden Eating places: Bernstein sees restricted upside, Evercore ISI bullish

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Darden Eating places (NYSE:) has drawn combined views from analysts on Friday, with Evercore ISI upgrading the inventory whereas Bernstein takes a extra cautious stance.

Evercore ISI upgraded Darden to Outperform from In Line, elevating the value goal from $165 to $205, citing elevated confidence in gross sales progress, significantly at Olive Backyard, which makes up 45% of the corporate’s gross sales.

Evercore ISI highlighted new initiatives akin to extra price-point promoting, limited-time affords (LTOs), and the mixing of Uber Eats as key drivers.

“We imagine the corporate will proceed to concentrate on worthwhile gross sales progress permitting EBITDA margin to enhance over the subsequent 12 months,” Evercore ISI mentioned, additionally elevating its fiscal 12 months 2026 same-store gross sales (SSS) progress estimate to three% from 1.5%.

“We additionally stay assured on Lengthy Horn (25% of gross sales) because it continues to realize share,” added the agency.

In distinction, Bernstein downgraded Darden to Market-Carry out from Outperform, citing restricted upside and continued macroeconomic pressures affecting client spending.

The agency famous that Olive Backyard’s same-store gross sales declined by 2.9% within the first quarter of fiscal 12 months 2025, marking the chain’s largest setback in over a decade, excluding pandemic disruptions.

Bernstein famous that whereas administration has shifted to a extra aggressive technique, together with LTOs and price-point promoting, they see potential long-term challenges: “We notice that these makes an attempt could also be masking extra enduring pressures than we had anticipated.”

“With the low frequency within the classes by which Darden operates, we count on it would take a while for customers to note the modifications,” they added.

Bernstein stays involved about labor inflation dangers and the potential affect of tighter immigration controls, which may shrink the labor pool.

Regardless of these considerations, they count on Darden to satisfy its fiscal 12 months 2025 steering of 6-8% EPS progress however revised their value goal all the way down to $180 from $190, noting that the current inventory rally has balanced the risk-reward profile.

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Boeing 'In A Loss of life Spiral Of Their Personal Making' In accordance To A Advisor As 'Workers Already Have A Dim View Of Administration'

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Boeing 'In A Death Spiral Of Their Own Making' According To A Consultant As 'Employees Already Have A Dim View Of Management'

Boeing ‘In A Loss of life Spiral Of Their Personal Making’ In accordance To A Advisor As ‘Workers Already Have A Dim View Of Administration’

Boeing is dealing with one of many hardest instances in its historical past. Lately, 33,000 union after rejecting the corporate’s newest contract provide. The strike has solely added to the corporate’s rising checklist of issues, such because the 737 Max manufacturing points, monetary losses and sinking worker morale.

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The union members, most of them based mostly in Washington state, turned down a proposal to lift wages by 25% over 4 years, as they have been . Boeing’s inventory has dropped by over 6% as a result of rejection and analysts are warning that ranking companies could decrease the corporate’s debt to junk standing.

Boeing’s new CEO, is coming into a turbulent time after lately buying a $4.1 million house in Seattle. He assumed the place following the corporate’s staggering $1.4 billion loss within the 2024 second quarter. Now, he faces a strike that might jeopardize Boeing’s probabilities of restoration.

Trending: The startup behind White Fortress’s favourite Robotic Fry Prepare dinner broadcasts a next-generation quick meals robotic –

To handle these issues, Boeing’s CFO Brian West has devised , akin to stopping new hiring, halting raises, lowering pointless journey and even contemplating short-term layoffs. Boeing additionally plans to spend much less on suppliers and cease shopping for its personal planes, such because the 737 Max, 767 and 777 fashions.

Whereas these measures may assist Boeing lower your expenses within the brief time period, specialists like Jason Walker, a marketing consultant from Thrive HR Consulting, warn they might make issues worse in the long term, as they might additional harm worker morale, which is already low. Walker famous, “Workers have already got a dim view of administration and that is simply going to make it worse. I believe they’re actually in a loss of life spiral of their very own making.”

Trending: Throughout market downturns, traders are studying that not like equities, these

The Boeing administration is dashing to succeed in a settlement with the union and forestall extra hurt. West has indicated that he desires to return to the negotiating desk and Ortberg actively participates within the discussions.

An aerospace advisor, James Darcy, cautioned that though resolving the strike is important for Boeing to renew plane deliveries and improve money stream, the settlement circumstances “will do nothing to assist” the corporate’s long-term monetary well being.

Boeing is presently in a weak scenario. For one of many greatest aerospace corporations on this planet, the longer term seems tough, given the mounting distrust between administration and staff, huge monetary losses and an unclear plan of action. It stays to be seen if Boeing can bounce again and win again the belief of each its workers and purchasers.

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