Is India a Significant Growth Market for Global Consumer Giants?
Synopsis
Key Takeaways
- India's digital retail ecosystem is rapidly evolving.
- Global brands are significantly increasing their online sales in India.
- Quick-commerce is reshaping market access for international companies.
- Unilever and L’Oreal are leading examples of success in this market.
- The future of consumer goods in India looks promising.
New Delhi, Oct 26 (NationPress) India is rapidly emerging as a significant growth market for global consumer goods brands, fueled by the swift rise of e-commerce and quick-commerce platforms. The country's evolving digital retail landscape is facilitating quicker market entry and enhancing online sales, positioning India as a standout market for international consumer labels.
Leading global consumer goods companies such as Unilever and L’Oreal have reported a remarkable increase in online sales during the September quarter, propelled by the rapid growth of quick-commerce and digital retail avenues.
The CEO of French beauty powerhouse L’Oreal, Nicolas Hieronimus, stated that India has transformed into a “game changer” for the brand, thanks to the surge of quick-commerce and traditional e-commerce channels that enable deeper market access.
“Just ten days ago, I was in India, where it’s evidently a game changer for us. Quick commerce and traditional platforms now allow us to connect with consumers nationwide, a feat we were unable to achieve before,” Hieronimus expressed during the company's earnings call.
British consumer goods titan Unilever also emphasized India's substantial role in its digital expansion.
CEO Fernando Fernandez revealed that digital commerce now constitutes 17 percent of Unilever’s overall revenue.
“We’re experiencing growth with Amazon at 15 percent, Walmart.com at 25 percent, Flipkart in India at 30 percent, and TikTok globally at 70 percent,” he stated.
Unilever, which operates in India through its subsidiary Hindustan Unilever Limited (HUL), indicated that its product lineup is now more strategically positioned for growth following decisions to divest lower-value brands and acquire premium ones.
The company noted that its “digitally native brands” are thriving, especially in markets like India and China.
Fernandez further added that Unilever’s quick-commerce operations in India have more than doubled this year.
“We believe our product portfolios are well-aligned, and our capabilities in this area are substantial,” he expressed, conveying optimism about the company's future digital growth in India.