Dabur to take e-commerce route to launch new products: Report

Dabur India will launch its upcoming products through e-commerce channels, as per reports. The company’s decision to take a digital route for all new products was announced by CEO Mohit Malhotra during the second quarter earnings call on Thursday. “This (launches through e-commerce) is a good standard playbook that we have established for new product development. This is also helping us conserve the investments which are going behind establishing a new product because e-commerce is a little more economical channel,” he said. Dabur has seen its e-commerce channel grow by 50 percent in the quarter ended 30 September. E-commerce contributes to about 9 percent of the company’s revenues, while modern trade is responsible for about 10 percent. According to the Dabur India CEO if the same product is launched “all out in general trade”, the company has to invest heavily in mass media. This can be a big burden in the high-inflationary environment these days. Malhotra also added that since consumers on e-commerce are early adopters of products and brands and are willing to try out new merchandise, the idea of digital launches will work very well for Dabur. “There have been no exceptions to this off late and once we launch there, we will roll it out in modern trade and then followed by GT,” he said. Malhotra stated that the organisation has put in a separate infrastructure and business head for e-commerce. He also mentioned that Dabur is competing with digital-first players who do not have the possibility of scaling up in the brick-or-mortar channels or general trade sectors. This will help Dabur India shore up its digital product launches with its strength in these areas. Dabur’s expansion plans: Dabur recently acquired a majority stake in Badshah Masala. The company is also expanding its juices and mixers brand Real beyond urban areas and targeting rural centres. Furthermore, Dabur has also launched several products in recent times including a sanitary napkins range, apple cider vinegars, edible oils, baby care products and more. The company plans to widen its reach in the foods business, with a target of Rs 500 crore in three years. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.