Hindustan Unilever Limited (HUL) has tweaked the Hindustan Unilever Network’s operating model in order to enter the e-commerce industry. A spokesperson of HUL claimed that the Hindustan Unilever Network, that is the direct selling business model of the group has transitioned from being a physical servicing model to an online ordering and fulfillment one.
Eventually, consumers can purchase the Aviance and Lever Ayush range of products related to health and beauty via HUL network consultants. These consultants will operate only via online and will not have physical offices anymore. However, HUL has not provided any additional details regarding the same for now.
The direct selling business model was launched by Hindustan Unilever group in 2003 in order to provide high value home and beauty care products. This attributed the modification in the model to optimizing operating costs and ensuring a more competitive business. Now, with the transition of the business model to online, analysts believe that HUL is looking forward to try out the e-commerce industry and evolve into selling consumer products such as deodorants to detergents online. Notably, this particular segment is a small one in the e-commerce industry, but it is growing at a rapid pace.
As per Paul Polman, Chief Executive at Unilever, over the next few years, the global e-commerce business will be approaching the size of HUL’s business and it will not remain small. He added that the firm believes in doing e-commerce through distributors and not on by itself.
In an interview, Unilever’s CEO, Paul Polman stated that e-commerce is a great advantage in the major cities in the country has the portals deliver the ordered products in a day to make their services more appealing to customers. He added that it can be done inIndiaat a low cost as there is abundance of workforce. Furthermore, he said that three to four years back,Indiawas not suitable for e-commerce, but the market has grown pretty fast and HUL will be there.