HUL – The Digital Rise

Abstract

This paper examines the transformative impact of the Shikhar software introduced by Hindustan Unilever Limited (HUL) on the traditional distribution model of Fast-Moving Consumer Goods (FMCG) in India. Unveiled on December 8, 2020, the Shikhar platform emerged as a catalyst for digitalizing small mom-and-pop shops, empowering them to optimize inventory, accept online payments, and augment sales. By December 2021, the platform had rapidly expanded its footprint, becoming the preferred ordering platform for over 3,00,000 stores nationwide, marking a threefold increase from the previous year. The primary objective of HUL's digital initiative is twofold: to onboard more stores onto the Shikhar platform and concurrently leverage digital inclusion as a tool to bolster the company's competitive edge. As India's largest FMCG company and the local arm of the global giant Unilever plc, HUL's extensive product portfolio encompasses soaps, shampoos, detergents, skincare items, cosmetics, tea, packaged goods, ice cream, and water purifiers. This paper delves into the evolution of HUL's distribution network, from the traditional "wholesaler network" to the innovative "registered wholesaler" model. Additionally, it explores the company's foray into e-commerce with Humara-shop in 2015, a precursor to Shikhar, which aimed at digitally empowering small shops and general trade, constituting 90% of HUL's revenue. The growth fueled by technology, particularly through initiatives like 'Project Shakti' and collaborations with modern trade channels, supermarkets, hypermarkets, and e-commerce, is highlighted. In conclusion, the Shikhar software's integration into HUL's distribution strategy exemplifies a successful marriage of technology and traditional retail, enhancing efficiency and accessibility while reinforcing the company's market dominance. This study contributes to the understanding of how established FMCG giants can harness technology to transform and adapt to the evolving retail landscape.