Hindustan Unilever To Debut In E-commerce Business

Hindustan Unilever plans to sell premium tea through its own portal, marking its entry into the ecommerce business in India. Until now, Consumer Goods Company has been selling its products online through marketplaces such as Big Basket and Amazon.

HUL’s first direct-to-consumer venture will mostly target gifting segment consumers with pricier products under the Brooke Bond Taj Mahal brand and will compete with Ratan Tata-backed Teabox, an online marketplace.

Sudhir Sitapati, executive director, refreshments, at HUL said, Our range of gourmet teas and exquisite tea ware has been specially curated to offer the finest gifting experience for every occasion and budget.”

HUL made its restaurant debut about two years ago by opening the Brooke Bond Taj Mahal Tea House in Bandra, an upmarket suburb of Mumbai. The company has been using consumer insights from the restaurant to develop new products and blends for its premium tea brand Taj Mahal. HUL could use its online initiative for marketing and understanding consumer behaviour, said analysts.

Edelweiss Securities senior vice president Abneesh Roy said “HUL has been experimenting with physical retail models for a few of its brands, including Bru and Knorr, not just for sales push but also to increase brand salience. An online initiative for its tea brand is a similar strategy with less cost.”

Gujarat-based Wagh Bakri, which also has tea lounges, and start-ups such as Tea box and Tea monk have been selling specialty products online for the past few years, attracting customers especially in markets such as the UK and the US.