The Rs 2.2-lakh-crore FMCG sector is set to witness a lot of action in the e-commerce space. While Britannia Industries (BIL) is building its infrastructure for e-commerce activities, Tata Global Beverages (TGBL) is stepping up e-commerce operations for the domestic market. Godrej Consumer Products (GCPL) is setting up a separate e-commerce sales structure and even Hindustan Unilever (HUL) is building capabilities in the online space.
On Tata Global’s e-commerce strategy, Ajoy Misra, managing director of TGBL, said, “We are now putting a lot more focus on this new channel. We are placing more products on leading e-commerce sites. Also, we are creating products to be present in all e-malls.”
TGBL is also examining the prospect of setting up its own e-commerce site. “Our brands are currently available in key e-malls like Amazon and Flipkart. I always have the option of having our own site. We are examining it. Sometimes, e-channel works out to be more profitable than the retail channel,” said Misra.
As e-commerce gains scale, Britannia Industries is looking at strategic partnerships with e-tailers like Amazon and Flipkart. “We are building our infrastructure for e-commerce activities. We are creating a store locator in our website but we do not want to sell directly. E-commerce has potential for growth but it is very small at the moment,” said Varun Berry, managing director, BIL.
According to Sunil Kataria, chief operating officer, sales & marketing, GCPL, the company has tie-ups with Snapdeal and Flipkart to sell brands online. “For us, e-commerce is an important channel going forward. So, we have decided to create a separate e-commerce sales structure which will handle both back end and front end of our e-commerce activities,” he explained. GCPL also plans to create strategic tie-ups with multiple players. “As e-commerce models are still evolving, we would like to explore all models, whether it’s marketplace model or inventory,” said Kataria.
Consumer giant HUL is also building capabilities in e-commerce channels to drive volumes. “Globally, we have created a dedicated team that is looking at e-commerce activity across key markets, including India. We are planning to bring the best practices in this channel to other countries,” he added.