Hindustan Unilever Mulls Over E-grocery Market Option

Description

The prospect of online grocery (e-grocery) shopping has generated a substantial amount of interest. Many fast-moving consumer goods companies have entered this potential market, and Hindustan Unilever Limited (HUL) is contemplating building its own e-grocery platform. However, e-grocery firms have yet to develop a business model that can consistently deliver profits while also creating value for customers. HUL needs to assess the potential barriers to success, including challenges such as inadequate infrastructure and customer skepticism. If the company decides to launch its e-grocery store, which model should it follow? Should HUL enter the e-grocery arena with a full range of products or only a select few? What technical and physical capabilities would the company need to succeed in the online retailing business? HUL has always been at the forefront of using technology to reach consumers, but is e-commerce the best way forward?

Learning Objective

·To illustrate the challenges faced by e-commerce retailers (and particularly e-grocers) in India. ·To examine the different e-grocery models for driving growth and improving profitability. ·To analyze the conflicts between online retailing and traditional retailing for an FMCG company. ·To discuss the technical and digital capabilities required for success in online retailing.

Keywords

business development Decision-making e-retail Marketing online Strategy