The beauty of (future) potential is that it's coming towards us because you have the rise of the middle class. And once disposable income goes up, categories develop, said Rob De Groot, President of Hygiene Home Business at Reckitt Benckiser
Consumer goods giant Reckitt Benckiser will be using digital technology for boosting its e-commerce growth in emerging markets like India and China. It will ‘unlock the emerging markets’ by hyper-targeting consumers digitally to grow online, the company said in its Q4 2018 post earnings call this week.
“In India, we have seen 10x the e-commerce growth over the last 3 years,” Rob De Groot, President of Hygiene Home Business at Reckitt Benckiser said.
“How do we do that (unlocking the emerging markets) is by hyper targeting consumers. Today’s technology gives you that possibility that you can target very dedicated parts of the population,” said Groot.
The potential of e-commerce growth in India, he said, is because of the rising disposable income of the middle class category.
India’s e-commerce market is expected to hit $150-billion target by 2022 from $38.5 billion in 2017. The increase in income level couple with rise in internet population and growing middle class will support the market growth, said a report by software industry association Nasscom and professional services firm PwC India last year.
The middle-class population is expected to grow from 380 million in 2017 to 540 million by 2022, the report said.
“India (is) one of our top markets and you can see the penetration potential of the categories of the future. And the beauty of this potential is that it’s coming towards us because you have the rise of the middle class. And once disposable income goes up, categories develop,” Groot said.
He claimed that emerging markets that contribute around 27% part of the company’s business is ‘super interesting’ because of technology impact on fast-moving consumer goods industry.
In the past, it was about putting big sales forces and going to the stores, (but) now the digital technology, both at the consumer communication part as well as the transaction part from a channel perspective, opens up completely new opportunities, he said.
Reckitt Benckiser claimed its growth strengthened in the personal health category with ‘continuing strong Dettol performance’ in India.
The company has also set up six new local innovation centers, in the US, UK, India, China, and Mexico to develop local insights “to be able to create new categories to go after new consumers with new benefits and also new markets and new channels,” said Adi Sehgal, COO for Health businesses at Reckitt Benckiser.