FMCG MAJORS REWORK D2C STRATEGY

INDIA'S LARGEST FMCG COMPANIES ARE CATCHING UP IN THE BEAUTY AND PERSONAL CARE DIRECT-TO-CONSUMER RACE BUT NEED TO SHORE UP INVESTMENTS IN R&D AND MANUFACTURING.

- ARNIKA THAKUR

6-7 per cent: HUL’s revenue from ecommerce

EMAMI STARTED its direct-to-consumer (D2C) journey in 2017 when it bought a stake in Helios Lifestyle, which owns men’s grooming brand The Man Company, and gradually raised it to 50.4%. The Kolkata-based consumer goods firm, which also invested in personal care brand Brillare Science in 2018, bought the remaining stake in both the companies this year. The Man Company and Brillare together contribute about ₹225 crore to revenue. This year, it is expected to stand at ₹275 crore, around 8% of total revenue, Emami said in a call with analysts in August.

Vice chairman and managing director Harsha V. Agarwal says D2C presents a huge opportunity, while agreeing that legacy companies faced challenges in tapping it earlier. “From the perspective of innovation, we didn’t do as much as consumers were expecting. There were limitations and challenges at that point of time before e-commerce had taken off,” he tells Fortune India. Now, e-commerce and modern trade contribute 20-22% to sales, he says. “It will go up. This is where growth is the highest. Growth in general trade is low,” he says.