Colgate Turns To Bombay Shaving Company To Fix Palmolive’s D2C Play

Colgate-Palmolive India has entered a partnership with digital-first D2C startup Bombay Shaving Company to rejuvenate its struggling personal care brand, Palmolive. The collaboration will see Bombay Shaving Company managing consumer-facing advertising and customer relationships for Palmolive through D2C and ecommerce channels. Colgate-Palmolive will keep overseeing Palmolive's modern and general trade business, traditional advertising, product innovation, quality, and supply chain.

Colgate-Palmolive India CEO Prabha Narasimhan revealed that the company initially struggled to grasp the D2C "flywheel" of a brand, leading to underperformance. However, the partnership has shown promising beginnings, indicating learning from the partner's digital capabilities. The FMCG giant was not satisfied with its past handling of Palmolive, which leads only the premium handwash segment.

While the category remains relatively small, it holds significant growth potential. Both companies share a strategic relationship, with Colgate-Palmolive Asia Pacific having acquired a 14% stake in Bombay Shaving Company in 2018. As Colgate-Palmolive intensifies its focus on digital channels, around 50%-60% of its advertising and promotional spend is now allocated to digital platforms. The FMCG major is prepared to temporarily accept margin pressure as it pushes for growth.