Back
vishakha Jangir
•
Set2Score • 3m
𝗣𝗮𝗿𝗮𝗰𝗵𝘂𝘁𝗲 𝗶𝘀 𝗹𝗮𝗯𝗲𝗹𝗹𝗲𝗱 𝗮𝘀 𝗲𝗱𝗶𝗯𝗹𝗲 𝗼𝗶𝗹 𝗻𝗼𝘁 𝗵𝗮𝗶𝗿 𝗼𝗶𝗹, 𝘄𝗵𝘆 ? Edible oils in India are taxed at 5%, while hair oils and personal care products attract 18% GST. Labeling as edible oil reduces the tax burden by 13%, lowering production costs and increasing profit margins. Lower tax allows Parachute to price competitively; for example, a 500ml bottle priced at ₹150 as edible oil would cost around ₹170–175 if taxed as a hair oil. The Indian hair oil market is valued at approximately ₹13,500 crore (2024), while the edible oil market exceeds ₹2 lakh crore. Dual positioning allows Parachute to tap into both markets, expanding its consumer base. Being labeled as edible oil reinforces purity and safety, appealing to both health-conscious and personal care consumers. Over 60% of Parachute buyers also use it for hair care, showing strategic market overlap. Parachute holds a 46% market share in the branded coconut oil segment (2024). Lower pricing due to tax benefits helps maintain leadership and penetrate deeper into rural and urban markets. Edible oils face fewer compliance issues than personal care products, reducing operational costs and simplifying market entry. Positioning as edible oil aligns with health trends, reinforcing natural and chemical-free perceptions, which influences over 70% of consumer buying decisions in the hair care and edible oil markets. Promoting Parachute for both cooking and personal care increases consumption frequency and strengthens brand loyalty. Over 55% of Indian households use coconut oil for multiple purposes. Lower tax rates enable Parachute to undercut competitors in both edible and hair oil segments, enhancing market share and profitability.
Replies (4)
More like this
Recommendations from Medial
Download the medial app to read full posts, comements and news.