Hi, good evening. Thank you for taking my question. Sir, my question is on the competitive intensity. I think last year we've seen, for lack of any better word, kind of bandwagon effect where a lot of dealers, joined competition, and competition built up some scale. Now, is this because some sort of fatigue has set in there as well, where dealers are going back and buying Asian Paints again and some sort of that effect is waning. And also related to that is that the painter commission that you also gave you also accelerated quite a lot a bit, I believe. How do you record that commission? Is it part of the net pricing or it sits on in the other expenses. But I just wanted to your reaction to it, whether competitive intensity actually is waning from a dealer adoption point of view.
Questions across 3 calls
Amit Sachdeva
Firm not listed in source transcripts
Asian Paints Limited
Colgate Palmolive (India) Limited
The question obviously an analyst asks is, how to look into the future? You know it has been a great year. So, with that, I just want to ask a couple of questions there. I assumed that last year was a lot of pricing and obviously initiative of premiumization, but also simultaneously developing the market. Could you help us understand nearly double -digit full year growth, what has been the volume mix and pricing element? And as we go into the next year, right, how do you see these elements shaping up?
Obviously without any guidance I can sort of see that where you are alluding to will make our own sense of it. Just to follow up a bit, you mentioned that there's a large space in premium, but then if you map the price curve of mostly consumer categories, there's a prestige price point and premium. Oral care has not yet the prestige part of it. I'm sure there's a consumer ready for the best-in-class and nothing can be better in the world kind of pricing as well, but no brand has at least in oral care, has attempted that the prestige part of oral care. Do you think about developing that market as well or it's too early for India to sort of get into that zone? So, I was just very curious.
Godrej Consumer Products Limited
So, my question is that the Deo category seems very attractive when we look at the past, historical growth rate. And it seems like it’s the category to be in, but theoretically few have succeeded even many leaders have failed to sort of monetize that category growth. And in part it’s very mass market, very A&P hungry and maybe one or two leaders take all and others remain fragmented. But if I interestingly compare China market with India markets, now China market deodorant is very small category. And China is about 15 year ahead of the consumption journey or at least a BPC evaluation of China is way ahead. Now China, basically Deo is very small. In fact, India is four times the Deo market of China. And if I look at the fragrance market of China is way larger than the Deo market. And if I look at next say 20 years and India’s economic incomes will be rising, consumer ’s preferences will be shifting from mass market to maybe more evolved category such as Fragrances. Do you see a risk that category takes some amount of transit headwind rather than a tailwind when consumer premiumizes and people who do mass market Deodorant have a right to win in say example the premium side which is Fragrances and more evolved consume r as it becomes. So, do you see that category while offers some tailwinds from the past and with some challenges of mass market being mass marketers when you said, but looking in the future, it might be a bit of a theoretically challenged category where it would be transitioning to something else?
And if I may stretch a little bit on one more thing that, the kind of comment you made that despite very low A&P spend the Park Avenue has been still retaining its market share quite well. And that bit int rigues me because what is that value proposition in such a market where even Unilever has struggled with all the might of distribution and branding and capabilities or market development while Park Avenue silently could manage it without spending much. Wha t is that value proposition that you discovered that the brand has been able to put together that others couldn’t? So, I am sort of interested and when you increase the A&P spends and how do you monetize that capability even further. I mean just want to un derstand from your perspective why this has happened that despite being low spenders they are able to maintain their market share?