Quick Commerce to Account for 10-15% of HUL's Revenue in Next Few Years: Unilever CEO

Hindustan Unilever Ltd (HUL) is seen by Unilever's CEO, Fernando Fernandez, to show substantial growth in the quick commerce business in the next three to four years with it contributing 10-15% of HUL's revenue. Quick commerce currently contributes a mere 2% of the revenue of HUL but has been doubling the contribution to e-commerce sales each year in India. Fernandez pointed out India's peculiar market dynamics, where co-location of rich and economically weaker sections of society fosters labor supply and demand, making quick commerce a natural growth avenue.

The CEO highlighted the segment's good mix of margins and its ability to grow more than traditional marketplaces in channel development. The announcement comes as India's quick commerce industry is growing exponentially and follows HUL's acquisition of Minimalist, a D2C personal care brand, as a sign of its strategic play on premium portfolios. Fernandez was bullish on the use of quick commerce as a growth-turning channel for the company's future growth.

Source: Business Market Updates