Homegrown FMCG major Dabur is gearing up for a bigger play in the e-commerce segment in India to tap potential of the fast growing sector.
The company which has ventured into online cosmetics and beauty products through NewU, run by its wholly-owned arm H&B Stores, is also working on another platform DaburUveda.com to enhance its presence in the e-commerce space.
“We do see that e-commerce is going to expand in a very big way. Thanks to technical development and increased mobile phone penetration, the e-commerce opportunity is going to be very very big. We feel that it is going to expand further in the middle and long term scenario,” Dabur India CFO Lalit Malik told PTI.
Commenting on Dabur’s activities in the space, he said: “Although we are growing in the e-commerce side, this is very niche category…presently contribution of online sales is very small. We already have a channel NewU and at the same time we are working on our new platform DaburUveda.com.”
Bullish on the segment, he said: “Going forward we expect to become a significant channel with regards to distribution of our products.”
Malik said currently service providers are indulging in heavy discounts but in the long-run “it has to be a sustainable, profitable model.”
Various studies have predicted the Indian e-commerce market to touch a size of USD 100 billion by 2020 from around USD 13 billion at present.