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Business News›Industry›Cons. Products›FMCG›Nestlé, Panasonic, Dabur & Wipro
Consumer Care among cos planning to focus more on D2C marketing

THE ECONOMIC TIMES DAILY NEWSPAPER IS AVAILABLE ONLINE NOW.

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NESTLÉ, PANASONIC, DABUR & WIPRO CONSUMER CARE AMONG COS PLANNING TO FOCUS MORE
ON D2C MARKETING

SECTIONS
Nestlé, Panasonic, Dabur & Wipro Consumer Care among cos planning to focus more
on D2C marketing
By
Ratna Bhushan

, ET BureauLast Updated: Dec 28, 2022, 06:10 PM IST
Synopsis

DESPITE LOW SALES ON THE INDIVIDUAL PLATFORMS, EXECUTIVES SAID THEY USE THEIR
MICROSITES AS LAUNCH PLATFORMS, TO COLLECT CONSUMER DATA, BUILD LOYALTY AND THEN
ROLL OUT IN OTHER LARGER CHANNELS FOR VOLUMES, OR DIRECT CONSUMERS TO SCALE
PLATFORMS LIKE AMAZON OR FLIPKART.

The country’s packaged foods maker Nestlé is testing its own such platform
called MyNestlé, which the company said, will curate products, personalised
gifting, subscriptions and discounts.
Large packaged goods companies such as Nestle, Panasonic, Dabur and Wipro
Consumer said they were set to foray into or allocate significant investments in
the direct-to-consumer (D2C) segment with their own micro-sites and launch
online-only brands, joining companies like Hindustan Unilever, ITC, Marico and
Emami that began operating their own micro-sites about a year back.

“Dabur Shop is currently in Beta testing stage, and we expect the roll out by
March 2023. We also intend to use this platform to launch digital first brands,”
Dabur chief executive officer Mohit Malhotra said. The company, which makes
Vatika shampoo and Red toothpaste, will also retail its ayurvedic range here.
“This will, over time, become a one-stop shop of the entire Dabur range,
including our ayurvedic medicines portfolio that’s not easily available on the
e-commerce marketplace,” Malhotra said.

Santoor soap maker Wipro Consumer Care, which has invested in nutraceutical
maker Powergummies, ayurvedic company TAC and men’s grooming start-up LetsShave,
is looking at the D2C foods space for the first time, in the coming year. The
company had set aside Rs 200 crore for Wipro Ventures where it invests in
start-ups, of which it still has Rs 100 crore to deploy.

The country’s packaged foods maker Nestle, too, is testing its own such platform
called MyNestl, which the company said, will curate products, personalised
gifting, subscriptions and discounts.

A spokesperson for consumer electronics maker Panasonic, which has just launched
its D2C platform in the country, said the company is looking to expand its
direct-to-consumer range to include lifestyle and grooming products by next
month end. “As of now, products like washing machines, refrigerators and
televisions we manufacture in India are available on the platform. Soon, we
would like to retail a wider range of lifestyle and grooming products and are in
the process of exploring the possibilities.” a Panasonic spokesperson said.

Despite low sales on the individual platforms, executives said they use their
microsites as launch platforms, to collect consumer data, build loyalty and then
roll out in other larger channels for volumes, or direct consumers to scale
platforms like Amazon or Flipkart.

Kannan Sitaram, partner at early stage consumer startup investor Fireside
Ventures which raised $225 million for its third fund focused on digital-first
consumer brands, said: “Legacy companies cannot afford to miss the D2C space; a
lot more are setting up their own platforms, with their own or acquired brands.
We expect the momentum to escalate in the coming year.”

More than 800 new direct-to-consumer platforms (or those which sell directly to
consumers online and not through marketplaces like Amazon or Flipkart), were
introduced between January and December 2022, with 40-50 million new shoppers on
these platforms, said RPSG Capital Ventures, which has invested in independent
D2C companies like Souled Store, mCaffeine, Vedix, and SkinKraft. Sambit Dash,
partner at RPSG said: “Kids-specific platforms, petcare, health foods, apparel
and athleisure are the categories which are set to see maximum traction in this
space in 2023.”

HUL announced a cumulative investment of Rs 334 crore in digital-first start-ups
OZiva and Wellbeing Nutrition earlier this month, extending its existing own
direct-to-consumer presence through shopping sites such as Love Beauty & Planet,
Dermalogica and Simple Labels.

Most companies are experimenting with their own microsites for premium
discretionary products, and to protect shares amid dozens of digital-only
platforms, a trend that escalated during the pandemic when consumers switched
from shopping in malls and markets to online.

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WhatsApp. click here!

( Originally published on Dec 27, 2022 )

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