Godrej, HUL look to tap e-comm wave, set up separate verticals

MUMBAI: The e-commerce sector, which recently witnessed a flurry of activities, is slowly emerging as the new growth hotspot.

Fast-moving consumer goods majors such as Godrej Consumer Products and Hindustan Unilever are setting up dedicated verticals and separate teams to forge partnerships with e-tailers.

Godrej Consumer is in the midst of creating a separate e-commerce vertical within two months. It is looking for an experienced hand to drive it.

“We are in the process of forming a separate organisation for e-commerce. It’s a different channel, and the best way to develop it is to have a dedicated e-commerce head and organisation,” said Vivek Gambhir, MD, Godrej Consumer Products.

The maker of Cinthol soaps and Good Knight mosquito repellent will look to partner other e-commerce portals to sell its products. It will also sell premium hair-care products under the BBlunt brand via a dedicated website.

The company had acquired a 30% stake in BBlunt, a pan-India hair salon chain, in October 2013.

Godrej Consumer’s bigger rival, Hindustan Unilever, is also betting big on the online market.

“We have created a global team to see how across key markets we can bring the best practice in managing e-commerce,” said Harish Manwani, chairman, HUL.

The maker of Lux soap and Fair & Lovely fairness cream is also pushing existing partnerships. “We are working with all the big e-commerce players in India,” Manwani added.

“67% of total retail trade is food and FMCG. There is a huge potential for growth,” said Ankur Bisen, senior vice-president, retail, Technopak.