Eureka Forbes tweaks plan for mop-up via e-commerce

Admin   |   04 March, 2015   |   1583   |   3980

Will adopt omni-retail strategy where online sales complement direct selling

Reported by The Hindu Business Line:

Mumbai: Eureka Forbes, which started out as a direct-selling entity, is adopting a multi-channel retail strategy as it takes the next step towards growth.

The company said its e-commerce vertical will complement its direct selling by filling the gap in places its field-force finds difficult to reach.

Eureka Forbes started with its sales force going door to door, selling products such as vaccum cleaners and water purifiers.

Combination approach

Marzin Shroff, CEO, Direct Sales, and Senior Vice-President, Marketing, Eureka Forbes, said the rise and reach of e-commerce needs to be matched with omni-retail — which is a combination of online and brick and mortar retailing.

Shroff said that while direct selling will still form the core of its business, e-commerce will play a major part.

“Having both digital and direct selling has turned into a comparative advantage for us as backend operations such as installations and service can be handled better.”

The company said it has spruced up its digital platforms to address the needs of the online buyer.

“There is a consumer segment that wants to buy products online and we are catering to it. Our digital budget has gone up by 30 per cent over the last year. The business itself is growing by 100 per cent in the online space,” he said, adding that it sells its products through other e-commerce marketplaces as well.

He did not divulge the extent of investment into the segment.

Shroff said the company currently delivers to about 19,000 pin codes.

India Post has about 23,000 pin codes pan-India.

According to an EY report, global online growth is set to soar to 15 per cent annually between 2014 and 2019, while brick and mortar sales will see just five per cent growth.

The report recommends placing the omni-channel approach at the centre of operations to understand how to meet consumers’ ever-changing needs and expectations.

Presence across platforms

Asked about discounting practices in the online segment, Shroff said discounting is relatively low.

However, in other online marketplaces, it does cross-selling to attract consumers”.

Eureka Forbes, a Shapoorji Pallonji group company, has a presence across platforms such as franchises, rural, institutional, community and e-tail platforms.

Shroff pointed out that cash on delivery accounts for a significant chunk of payment for its online sales.