Indian consumer goods legacy company Hindustan Unilever Limited (HUL) has announced that ecommerce companies can use its Delhi warehouse at reduced rates. The goodwill gesture of HUL is to tide over the problems that many ecommerce companies face when they don’t have warehouses in all the major cities. The company is doing a test run with Paytm, and will consider extending the service to others if it works well.
Experts feel that this is a smart move by HUL towards getting a foot in the door in having an online presence.
“This move will accelerate HUL sales on e-commerce portals and sellers will have a larger range of assortments ready to be dispatched,” says a HUL employee requesting anonymity.
As it is a HUL warehouse, the company’s products will be available right there, thus enticing the online retailers to pick HUL over others. It would be more convenient and save on time and costs to ship the products readily available.
HUL has been keen on taking the leap to cyber selling. In February 2015, the company turned to an online selling model as against the direct selling model it had previously. It also sells on Amazon and Flipkart. The company has expressed its need to reach out to the youth through its campaign, ‘Winning in Many Indias’.
The company offering warehouse space to online retailers is a good way to promote itself to the latter. It might just be a neat trick to win a greater online presence sans the extra costs.