HUL aims to double ecommerce contribution in the next 5 years: CEO Rohit Jawa

Talking about digital adoption, Jawa said that the focus is on driving growth, reducing costs, and enhancing our capabilities

Hindustan Unilever Limited (HUL) is hoping to double its e-commerce contribution in the next five years, Managing Director and CEO Rohit Jawa said in a conversation with CNBC’s Shereen Bhan at Lessons in Marketing Excellence - season 15.

“I give you an example in beauty, e-commerce and digital commerce is already the fastest growing channel for us,” said Jawa. Talking about digital adoption, the HUL CEO said that focus is on driving growth, reducing costs and enhancing capabilities.

The company is engaged in a long-term initiative known as "reimagine HUL" for some years now, which is divided into three main areas. First, is operations and supply chain, where efficiency plays a significant role. Second, interaction with customers, which is crucial for the business. Third, engagement with consumers, where the company is actively involved in developing and selling products through digital commerce platforms, leveraging insights from data analytics.

Jawa said that in terms of supply chain, the company has identified numerous use cases that are generating significant value. For example, the company has implemented digital twins of factories, allowing the company to model productivity improvements remotely and apply them across plants nationwide. Additionally, they have improved demand forecasting accuracy, enabling more precise predictions. “So a whole lot of part of our operations, including enterprise dashboards are all being done by AI. I would say we pretty mature in the space,” he added.

Speaking about customers, Jawa said that through data analysis, the company discerns customer preferences and even anticipates orders when they're not actively placed. Leveraging AI, the company tailors offers to individual customers, enhancing their experience. This digital selling approach constitutes 70 percent of their business, providing a wealth of valuable data that the company utilises to offer additional services like financial support and shop management advice, benefiting customers significantly.