Tata Consumer Products
Much like other FMCG companies, Tata Consumer Products Ltd (TCPL), too, is betting on e-commerce and direct-to-consumer (D2C) brands as it tries to tap new and premium product segments.
According to Tata Sons Chairman N Chandrasekaran, digital is going to be a key focus area for the company in the year ahead and it is bolstering e-commerce capabilities.
As an initiative in this direction, the company is launching Eight O'Clock, its American gourmet coffee brand through the D2C route in India.
“A few D2C products have already been launched and I am happy that Eight O'Clock will be launched in India,” said Chandrasekaran, addressing shareholders at the company’s annual general meeting.
Earlier this month, the company had launched customised coffee brand Sonnets through the D2C channel. The company is also offering its products under the brands Tata Sampann, Tata Tea, and others on its D2C platform, Tata Nutrikorner.
Analysts say the company could also be looking at creating synergies with BigBasket, which was acquired by Tata Sons in May, in the future.
Of late, e-commerce has witnessed a newfound interest from FMCG companies, which have been increasing their presence on the channel and launching D2C platforms. COVID-19 has affected traditional retail channels.
According to MD and CEO Sunil D’Souza, e-commerce's contribution to the company’s sales has doubled in the last year and channel sales have grown by 130 percent in FY21.
TCPL has been on a transformation journey in the last few years and has been trying to create synergies between its brands and businesses. Chandrasekaran informed that the company has made significant progress on this front.
“The company has sharpened its focus on key geographies and simplified its business model by exiting non-core markets and businesses,” he said at the AGM.
To achieve the next level of growth, Chandrasekaran said that TCPL is now implementing and integrating its distribution network and supply chain to drive efficiencies, undertaking end-to-end digitisation of its channel partners and field force, bolstering e-commerce, and using data analytics for strategic planning.Tata Consumer Products to bolster e-commerce capabilities: N Chandrasekaran - Moneycontrol.com
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