Yardley, a British personal care brand, has been around for 253 years. In 2009, the brand came into the fold of Wipro Consumer Care from Lornamead, a marketer of personal care brands, for $45.5 million. The company had operations in Asia, Middle East and North Africa, and Australasia.
Three years later, Wipro went on to acquire the brand’s UK business and parts of its Europe business. Since then, it has ventured into 16 categories and has sales to the tune of Rs 350 crore today.
Storyboard18 got in touch with Manish Vyas, senior vice president and business head, Yardley India and Thailand, to get insights into the brand’s business in key markets, its advertising and marketing strategies, the concept of celebrity endorsements, and more.
Edited excerpts.
From the perspective of profitability, how has Yardley’s journey been so far in India?
In 2009, when we acquired the brand, it was acquired for the Middle East. The Middle East was the market where we wanted to expand, which we were trying to do through Santoor, and through some of our internal brands at that time.
When we acquired the brand in the Middle East and India, we had to see in which other parts of the world the brand was available, which also went with our strategy. We acquired the brand in Southeast Asia. We have the rights of the brand in Australia and Europe (except one or two countries). We have the rights in Africa except South Africa. In America, we don’t own the brand.
We saw the opportunity in Yardley and decided to acquire the brand, which would give us a foothold in key accounts like the Lulu Hypermarket and other accounts in the Middle East. We also had the option of buying the brand in India, because the brand in India was very small. It was around 9-10 crore in India.
We bundled the deal and acquired the brand in India. We entered the category of deodorants. From single digit turnover, we moved to 100 crore. From 2015/2016, the deo category began to stagnate and we realised that there was a lot of deep discounting happening. Consumers were not looking at loyalty in this category, so 2016-2018 was a low growth phase for the brand. But from 2018 onwards, we had a great run.
When we acquired the brand in the Middle East and India, we had to see in which other parts of the world the brand was available, which also went with our strategy. We acquired the brand in Southeast Asia. We have the rights of the brand in Australia and Europe (except one or two countries). We have the rights in Africa except South Africa. In America, we don’t own the brand.
How difficult was the competition when it entered the Indian market? How did the brand strike a chord among the audience?
We had two sets of consumers. One was consumers who were already acquainted with the brand. But, the direct presence was very weak. There are a lot of consumers whom we call back-to-home consumers, who could be found in Kerala, Tamil Nadu, parts of Andhra Pradesh, part of Uttar Pradesh.
So, these are migrant workers who go to the Middle East. Whenever they come back to their homes, they would carry Yardley back with them. The brand was seen as a very premium brand, and Indian consumers were happy using the brand.
Though there was minimal presence, there was a lot of grey market in India. Because, through Dubai and other markets, the goods would enter through smuggled channels. Yardley’s distribution was largely restricted to custom notified stores and imported goods stores across the country. The first challenge we had was: ‘how do we scale it up?’
We focused on those markets where we had a strong presence and the latent equity of the brand was tremendous. It was Kerala, Andhra Pradesh and Tamil Nadu. We decided on converting the grey channel into a direct channel. That was the first challenge, and we got good results out of that.
The second challenge was how to use Wipro’s network to expand distribution. The challenge was that the brand was not so popular among the rural consumers as compared to Santoor. We had a strong network in modern trade, and this channel is very strong in the West and South. Hence, we decided to focus on that rather than go by the general trade route. That gave us access to many consumers.
Though there was minimal presence, there was a lot of grey market in India. Because, through Dubai and other markets, the goods would enter through smuggled channels. Yardley’s distribution was largely restricted to custom notified stores and imported goods stores across the country. The first challenge we had was: ‘how do we scale it up?’
We looked at the talcum powder category where the brand had strong competitors like Ponds. We decided to get into a growth category and that is how we entered into deodorants. That is how the first wave of 100 crore happened.
Currently, what are Yardley’s sales and revenue figures?
In 2018, we were around Rs 100 crore. Currently, sales wise, we are more than Rs 350 crore.
What are the trends Wipro has been able to capitalise on in the personal care category?
One of the important trends I would like to label is acquiring aspirations. That is the stage where consumers aspire for brands but find they are not affordable. Hence, the aspirations remain aspirations.
Today, consumers are ready to acquire them. One reason is, the overall economy is doing well and people have more disposable income. There are two sides. Brands are making the brands more affordable either by pricing or launching smaller unit packs.
With e-commerce and modern trade, accessibility has drastically improved. On our e-stores, which are not even promoted heavily, we get orders from remote areas like Kalahandi, which is a district in Orissa. We got orders for six soaps of Yardley, where each soap costs Rs 80.
The big trend that is happening is consumers moving from unbranded to branded. We are working on the strategy of how to convert from ‘U’ (Unbranded) to ‘Y’ (Yardley). Unbranded perfumes are of really poor quality. They are affordable, they are fancy and are widely distributed. They come from the local players who are statewise players. There is room for a good brand to play here, but it has to understand the consumer network and then be launched.
What are the consumer insights in the personal care space, and how do you tap them?
Consumers want safety, the benefits of the here and now, and a brand that is trustworthy and has value for money. We are using it (the insight) in various campaigns and in our development.
How has your target audience evolved over a period?
The target audience is more educated and aware of what the brand says. Earlier, there used to be a clear difference between urban consumer or a metro consumer and a smaller town consumer.
Now, the difference is no more there. There might be some differences in the aspiration but awareness about the brands, awareness about what is happening around the world, all of them are more or less very similar. All thanks to the digital world, where access to information is very easy. Overall, infrastructure has improved, we have seen malls and brands open in smaller towns.
What is your take on celebrity endorsements? When did you start roping in celebrities to advertise the brand?
We always believe that celebrities have a role in two to three ways. There has to be a strong message, which has to be unique, has to be relevant to the target audience, and has to be meaningful to the consumer.
If there is no strong differentiated message, the celebrity will just help to improve the brand’s awareness. But, if there is a strong or a relevant message, the celebrity helps as a catalyst.
If the celebrity is well-known, the brand can spend less on media. In Yardley’s journey, we used celebrities twice or thrice. We used actor Katrina Kaif when the brand had to be rejuvenated. The overall idea was: how do we refresh the brand equity? Katrina did it beautifully because she had an English background.
We always believe that celebrities have a role in two to three ways. There has to be a strong message, which has to be unique, has to be relevant to the target audience, and has to be meaningful to the consumer.
In 2019 or 2020, when we brought actor Kriti Sanon on board, the brand had a very different agenda. We said that we need to upgrade the consumers, and we stated that we would start with women consumers. How do we step up the consumer on a category level, at an emotional level, and how does she step up in her life?
The brand is kind of a partner in this step-up journey. Kriti did not come from a celebrity family and created her own place in the industry. She was beautiful, stylish and was a thinking person who had a lot of substance. She brought glamour to the brand, which was required.
Celebrity endorsements work beautifully when there is a strong message. Over a period, I have realised that when a brand onboards a celebrity, the trade partners take it very seriously, and they invest upfront in the brand.
What are the different marketing and advertising strategies deployed for the brand?
The strategies will be decided by what opportunities you want to milk. Our thought was, ‘How do we accelerate growth?’ Yardley has a strong international legacy, has a strong premium imagery and it is known for its rich ingredients like lavender. It has a strong fragrance background, which is its strength.
During Covid-19, all the discretionary categories dipped big time except for Yardley, which maintained its volume. This happened because we went into certain categories like handwash and sanitisers.
Right now, there are two sets of consumers we are targeting. One is a traditional Yardley (TY) consumer who has some association with the brand because of his parents and grandparents. Then there are new-age Yardley consumers (NY) who don’t know about the brand.
We started because there were compulsions from the restrictions point of view. We decided to experiment in stronger markets like Kerala and Tamil Nadu. The response was fantastic.
We could cover all the degrowth (contraction) happening in deos, perfumes and other categories. Yardley grew in soaps, handwashes, sanitisers and so many other categories. That opened up a huge opportunity for the brand in the personal care category.
Right now, there are two sets of consumers we are targeting. One is a traditional Yardley (TY) consumer who has some association with the brand because of his parents and grandparents. Then there are new-age Yardley consumers (NY) who don’t know about the brand.
For the TY consumers, we stated that we would refresh the equity. We re-launched some of the newer products like talcum powder in a more interesting pack. We made it more modern and contemporary, in 2016. We also got into some categories like face powder, which is more premium than the regular tin.
We also got into advertising heavily on talcum powder. We never advertised in the Hindi markets and focused on the strong talcum powder markets like South India and Maharashtra.
We also got into some interesting categories like hand and body lotion. Handwashes have become a huge category for us. In some of the modern trade outlets like Lulu, we have almost 40 percent share, which is the highest in the category among all brands.
In some of the newer channels, our market share is 10 percent, which is within one year of launch. We did not promote it on television. The moment we made Yardley visible to consumers through modern trade, consumers lapped it up.
For traditional consumers, we increased awareness through advertising. We made it more visible on the shelves in terms of modern trade. We also launched smaller packs like Rs 5 and Rs 10 packs that consumers can access.
We had a complete marketing strategy which is focusing on certain categories and certain geographies that address traditional Yardley consumers.
In terms of new Yardley consumers, we mentioned that we should get into digital and e-commerce. We looked at unbranded to branded strategy.
Lot of consumers don’t know that Yardley is a very strong men’s brand. Almost 30 percent to 35 percent of Yardley’s business comes from men’s portfolios. We have men’s talc and we have launched a men’s soap. We have a shaving category for men that has been there for many years. We have men’s perfume, men’s roll-on, deodorants and many more categories the team is looking at.
We launched pocket perfumes which consumers could use on the go. Lot of college students began to use Yardley because of that. Yardley got into body mist, which is a big category among young women.
We got into body perfume, which is a no-gas deo can for men. We got into roll-ons, which is one of the fastest categories.
Our e-commerce sales, which were almost non-existent five years back, have become 12 percent of our business. Our price point is compact, as low as Rs 70.
Making the brand easily available through e-commerce, we have interesting formats. We just launched homecare brand Floralis in Kerala. It has been test marketed and has been a very successful launch. Now, we are rolling it across India.
Lot of consumers don’t know that Yardley is a very strong men’s brand. Almost 30 percent to 35 percent of Yardley’s business comes from men’s portfolios. We have men’s talc and we have launched a men’s soap. We have a shaving category for men that has been there for many years. We have men’s perfume, men’s roll-on, deodorants and many more categories the team is looking at.
Which markets have been successful for Yardley in India?
Yardley is a pan-India brand but has a stronger market share in Kerala and Tamil Nadu followed by Andhra Pradesh and Karnataka. Maharashtra is turning out to be a strong market for us followed by Gujarat. The North and East are the fastest growing markets for us. Last month, we opened up in Bhutan and Sikkim.
Generative AI is the buzzword today. How will you use it in advertising and marketing Yardley?
We are very cautious because our marketing team has been seeing how they can use it. They have found it useful in doing standard things. For example, if you want to make a standard mailer, then it is helpful. But, in areas where we need to do creative thinking and strategic thinking, we don’t think that we can rely on this.
What are your future plans for Yardley?
We have a 4P strategy for men and women. The brand is well-known, with very high awareness. Yardley is strong on grocery channels such as Amazon, Flipkart and Big Basket because of Santoor. But, we can do much better on Nykaa, Myntra, and other lifestyle channels.
In the states where we are very big, we are thinking about how we can target rural areas. In the states where we are still small, we will focus on large outlets and big cities.