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HLL to ramp up direct selling lines
Reeba Zachariah & S Ravindran in Mumbai |
June 13, 2003 14:07 IST
Consumer goods giant Hindustan Lever, in a major push to its direct selling business, is planning to expand its portfolio and increase the number of direct sales agents (consultants in marketing parlance).
As a first step, the company, which thus far marketed only the all-woman Aviance range of personal care products, has now brought the all-male Denim range of personal products under the direct selling outfit, Hindustan Lever Network.
Other additions on the anvil include, fresh categories within the home and personal care and foods business.
"When we studied the direct selling market, we realized that the key to success lay in an enhanced portfolio and a larger number of direct sales agents. For instance, we had about 45,000 consultants in our network while some of our competitors had about 200,000. Consequently, we have beefed up our net work of consultants to 107,000 and are adding 10,000 every month," Dalip Sehgal, executive director -- new ventures and marketing services, Hindustan Lever said.
The company has brought the Denim range of men's personal care products within the network in a new form. It has launched Denim Exclusive, a premium range of men's grooming products.
It is also entering the foods segment and is introducing Nutrium Plus, nutritional supplements from Unilever Thailand's portfolio.
HLL is taking the direct marketing route to sell those products whose benefits are difficult to convey through the conventional mass media.
It entered direct selling through its subsidiary Aviance Ltd, selling Aviance, a international range of customised beauty solutions two years ago.
However, this initiative did not make any mark. Last year, it revamped the business and brought it under Hindustan Lever Network and launched Lever home range of products for home, kitchen and laundry care.
Sehgal is unwilling to talk about market shares. "We start with the inherent advantage of Lever brand name and a strong understanding of the consumer based-over a 100 year presence in India," he explained.
The direct selling industry is estimated around Rs 2,000-2,500 crore (Rs 20-25 billion).
The other major players in the direct market segment are Amway, Oriflame, Avon, Tupperware and Herbal Life.
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