Dabur partners Amazon to sell in US

Also working on pilot project to offer online, offline medical advisory in India

Ayurveda major Dabur has joined American e-commerce giant Amazon.com to sell its products in the overseas markets. To begin with it would be placing 30 products on Amazon.com for the largest consumer goods market in the world – the US – and its neighbours Canada and Mexico.

While Dabur’s products are already available in the US through ethnic stores, the firm is beginning direct supply to tap the e-commerce firm’s wider reach, said Krishan Chutani, executive director, Dabur India. 

Initially, hair care products such as Vatika hair oil and shampoos, Meswak toothpaste, Chyawanprash and honey would be made available. Dabur also plans to add another 80 products in food, health care and personal categories by the end of this year.

“There is already a trend towards natural and ayurvedic products and it’s time for the world to taste them. Not just non-residential Indians, we want to cater to local American consumers, too. The honey that we are supplying is specifically made for the overseas market, and more such exclusive products may be launched soon. While we will export some products from here, others will be supplied from our international plants like that in the UAE,” Chutani said.

In 2015, Amazon opened up its global selling programme to Indian firms and sellers. Since then, local fast-moving consumer goods firms such as Amul, Himalaya and 24 Mantra have tied-up with Amazon. Fashion brands such as Titan, Biba, Manyavar, Fabindia, and footwear companies such as Liberty, have also joined Amazon. At present, some 26,000 sellers and 70 million products are listed on Amazon.com from India.

“The tie-up should work out well for them. This will increase the availability of Dabur products in the international markets and also improve consumer awareness about its herbal and ayurvedic product range. Players like Himalaya get huge international revenues that can now be targeted by Dabur,” said Abneesh Roy, senior vice-president, institutional equities, Edelweiss Securities.

During the past one year, the revenue share of Dabur’s international business has come down by close to three percentage points to 31 percent in April-June, from 34 per cent. During the quarter, revenues from the overseas business went down by 2.5 per cent on a constant currency basis compared to a 4.4 per cent dip in its domestic sales. Continued slowdown in the West Asia and North Africa region and in the rest of Asia, hampered growth.

To counter growing competition in the domestic market, Dabur is also working on a pilot project with ayurvedic physicians to offer online, telephonic and offline medical advisory. It has tied-up with a number of doctors for the offline service, while the online and telephonic consultancy would be provided by its own physicians.

According to Chutani, the firm was exploring options to ramp up the service.

While consumer good firms like Nestlé offer advisory on call and online on its own products and nutrition, only Patanjali has a wide network of ayurvedic doctors who diagnose patients. The Haridwar-based firm, which banks on Ayurveda to sell its products, has thousands of ‘chikitshalayas’ that offer the services and sells its products. Its recently launched Patanjali Mega Stores, equipped with diagnostic facilities and Ayurveda doctors.

Dabur, which received considerable competition from Baba Ramdev’s pet project, suffered loss of sale in honey and had been in a row over alleged violation of advertisement standards with Patanjali recently. According to Sunil Duggal, chief executive officer, Dabur India, the firm would seek legal help if matters get worse.

TAKING THE ONLINE ROUTE

• Dabur to supply directly to Amazon for international markets like the US, Canada and Mexico
• 30 products including honey, Vatika shampoos, chyawanprash and oil are placed on Amazon.com
• Another 80 products to be added by the end of 2017; aims to increase share of online to 2-2.5%
• Other FMCG brands like Amul, Himalaya and 24Mantra already avail Amazon’s international sales service
• Launched in 2015 in India, Amazon’s global sales network has 26,000 sellers and 24 brands from India