Same strategy for Hindustan Unilever, ITC: Reaping digital dividend

Two of the country’s leading players in the fast-moving consumer goods market (FMCG) — ITC and Hindustan Unilever (HUL) — propose to use digital technology aggressively to get future-ready. In his maiden address to shareholders on Friday, ITC Chairman Sanjiv Puri said the company had formulated a comprehensive business-wise digital strategy to bring about change across the value chain.

A fortnight ago, HUL Chairman and Managing Director Sanjiv Mehta had articulated a similar point in his speech to shareholders, saying the company had set up a digital council, comprising cross-functional team leaders, aimed at redefining the business. Eighty experiments, he said, were already underway to aid in the transformation.

As Indians increasingly embrace technology, experts said digital would become central to the business plans of many firms. India has nearly 1.2 billion mobile phone subscribers and more than 560 million internet users. Experts said the nature of FMCG business, which demands full attention on the consumer, was pushing them to adopt digital practices across departments.

Puri said ITC was enhancing back-end efficiencies through increased use of artificial intelligence, data analytics, augmented and virtual reality, and advanced automation. “These are being deployed to enable smart manufacturing and utility management, better dealer and transportation management, supply chain agility as well as front-end execution in sales and marketing,” he said.

Mehta, too, emphasised the importance of digital adoption across the value chain, saying HUL had reduced service lead time through an integrated sales and operation planning programme, creating a customer-focused factory network and a faster logistics and distribution footprint.

HUL CMD Sanjiv Mehta

“Our Internet of Things-powered digital factories are helping us leverage installed capacities. Automated warehouse robotics and guided vehicles are helping with stock accuracy, reducing truck loading time and raising the level of customer service,” he said in his address to shareholders.

“Our people data centre picks up real-time consumer signals and identifies business opportunities. We are using shopper data to drive precision marketing and are also using machine learning to monitor demand real time,” he said.

Both companies are also riding the digital wave when it comes to consumer engagement, creating mobile apps and content hubs around key brands. As Puri said: “Our innovative apps such as Mangaldeep, which provides devotional content to users, MyClassmate, a learning app, and IRIS, an app on ITC’s various businesses, have helped enhance insight discovery and brand advocacy.”

Mehta said based on consumer preference, HUL was launching ads online that highlighted specific product benefits that people were looking for. The company had also launched platforms such as BeBeautiful and Cleanipedia as a source of addressing consumer issues and passion points. 

In addition to this, HUL had introduced connected store initiatives such as Hamara Shop that helped neighbourhood shops go online. It has also launched apps such as Shikar and Samadhan to help retailers in direct ordering and fulfilment.