HUL points to hyper-personalization, rapid digital adoption over the next decade: report2 min read . Updated: 12 Sep 2021, 12:26 PM IST
- The company outlined key consumption themes which are likely to unfold in India over the next decade
NEW DELHI :
India’s largest consumer goods company Hindustan Unilever Ltd (HUL) is likely to focus on driving its core portfolio, while also launching more premium products and accelerating digital capabilities, analysts at Jefferies said in a report on the company.
HUL—the maker of Dove soaps and Surf Excel detergents—held its annual investor meet last week.
It outlined key consumption themes which are likely to unfold in India over the next decade.
“HUL analyst meet focused on the key consumption themes which are likely to unfold over the next decade. In this context, HUL management is taking measures to drive sustainable growth through focusing on the core, market development, premiumization etc. Excessive focus is visible on digital and series of initiatives are underway to drive agility but this is still work in progress," analysts at Jefferies said.
The company that retails via 8 million outlets in India is eyeing six mega trends over the next decade that will likely determine how it launches new products and markets itself to shoppers here.
Jefferies, in its note highlighting management commentary from the company, said that HUL expects that consumers are likely to move away from stereotypes, while seeking more authenticity i.e. natural and local products. HUL also pointed out to a shift in “hyper-personalisation" of products while a rapid digital adoption will also dictate how consumers shop for fast moving consumer goods. Increased caring for holistic health and a growing focus on environment and sustainability, are also among the key themes outlined by HUL.
HUL has also been ramping up digital capabilities, beyond just selling goods online.
The company has been driving digital initiatives on the business-to-business side as well. It also using data to gain consumer insights and improve speed to market.
The company has also recently stepped-up direct e-commerce channels to reach shoppers.
“HUL is using technology to generate consumer insights, enable faster innovation, planning the right assortment and even flexible production (nano factories) etc. HUL has ramped up efforts in e-commerce through own digital content platform (BeBeautiful, Get Set Clean), product trials, direct-to-consumer channel for brands such as Lakme and Indulekha. HUL has also rolled-out own D2C multi-brand platform, UShop in Mumbai and Delhi. More interventions are underway," it said.
Meanwhile, HUL’s e-B—2B ordering app, 'Shikhar', has ramped up to 6,00,000 retailers, with over 10% orders generated through the app.
Its recent tie-up with JioMart distribution is non-exclusive and will target outlets which HUL does not reach directly.
In the last fiscal year, HUL reported revenues of Rs45, 996 crore. Its portfolio comprises of daily household products such as soaps, shampoos, detergent, jams and beauty and personal care products with presence in 15 categories and over 50 brands.
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