Is Tiger Balm set for a big leap in India with Alkem as its rider?

Legacy brand, Tiger Balm, is overhauling its image and positioning in a new alliance with the pharmaceutical major

Tiger Balm, the 100-year-old Singapore-headquartered pain relief brand, is overhauling its image and refashioning the product to appeal to the young as it looks to expand its footprint with its new Indian partner, Alkem Laboratories. However, this is not the first time that the brand has sought a larger presence in the country; its two previous partnerships with CavinKare and Elder Pharmaceuticals did not go too far, and the question now is, will the brand prove to be third-time lucky in a country where it has had an iconic status for almost half a century?

Tiger Balm manufacturers, the Haw Par Corporation, has just launched a new cream that targets the gadget-wielding youth. The aim is to offer a solution for shoulder and neck pain – the outcome of the generation’s and even others’ growing reliance on digital devices. While the problem is acute and there exists a demand for such products, the challenge would be breaking through the clutter of brands aiming to the do the same in the market. Think of Zandu Balm, Volini, Moov, Iodex and Amrutanjan and several other local brands.

Also, Tiger Balm, despite its huge recall and strong association with India (one story is that it was first introduced by returning Indian troops that fought the World War II under their then British masters) has not been able to spread its label or launch its entire range of products in India. This is only the second product to be launched under the brand name in India in last 25 years.

Tiger Balm is being officially distributed in India since 1995 but has been sold in local pharmacies for several years prior to that as the medicine was imported by traders. Despite its heritage, Tiger Balm's product portfolio in India has been limited. Earlier, the company lacked strong distribution partners, while copycat brands with similar names, product packaging and category positioning stepped into its space.

Haw Par Corporation now wants to accelerate sales in India and launch at least one product every year. The “tiger is ready to leap”, said A K Han, executive director of Haw Par Corporation. While previously Haw Par had tied up with Elder Pharma and CavinKare, he believes the new partner Alkem gives the company a bigger reach.

Alkem is the fifth-largest domestic pharmaceutical manufacturer by sales and covers over 5,000 stockists across the country. Tiger Balm clocked retail sales of Rs 800 million last year and product sales rose 30 per cent on a year-on-year basis, said Mukesh Tiwary, Alkem's senior vice-president (marketing and sales). “In two years, we will make it a Rs 2-billion brand,” Tewari said, pinning hopes on new product launches from the brand. The brand portfolio includes sprays, gels, medicine patches and mosquito repellent sprays, but the company hasn't disclosed which products will be rolled out next in India.

Besides, there is a market opportunity, as many Indians, especially youngsters, are complaining of tech-related ailments resulting from long hours on laptops or continuous use of cell phones for texting or surfing. Han said the cream was fast-acting and non-greasy and had a lavender fragrance which would appeal to young customers. “It is only natural and logical that we introduce our next new product – Tiger Balm Neck & Shoulder Rub. We believe the timing is right and this product will appeal to the young and tech-savvy consumers in India looking to relieve their neck and shoulder pains,” Han said.

The product has so far been launched in 18 countries, including Germany, UK, France, US and Canada, besides some Asian markets. India is the 19th market to get the neck and should cream. The balm and cream sold in India is manufactured at a third-party site in Hyderabad.

Incidentally, Tiger Balm is not the first brand to have a neck and shoulder pain variant. In 2009, Paras Pharmaceuticals had introduced Moov neck and shoulder pain spray but the product did not do well. In 2010, UK-based consumer product company RB (formerly known as Reckitt Benckiser) acquired Paras Pharmaceuticals. “This product (neck and shoulder pain spray) was part of Paras portfolio, but not RB’s,” a company spokesperson said.

An industry expert said that Tiger Balm's neck and balm pain cream could succeed in the market. “It is a crowded space but there is potential for a niche. However, for success, there must be right product proposition and sustained investment,” he said.

According to Euromonitor International data, the topical analgesic market in India had a size of Rs 27.6 billion in 2017. The topical analgesic market was pegged at Rs 21 billion in 2014 and has grown over 31 per cent in the past three years.

The market is dominated by Ayurvedic and herbal products while other medicated products consisting of diclofenac form a small share. Over 80 per cent of market is comprised by creams and balms, while the remainder is accounted for by sprays. Zandu Balm, Volini, Moov, Iodex and Amrutanjan are the top five products in the category and are bigger than Tiger Balm.

But Han is confident that the new cream will help it scale up the business and is banking on loyal customers. “Eight of our 10 customers make repeat purchases,” he said.

Tiger Balm's global retail sales were pegged at $600 million and these were expected to grow steadily with product extensions and foray in new markets like Brazil, Korea and Eastern Europe, said Vijay Arora, India head of Haw Par.