We are trying to digitally connect retail & e-comm: Ganesh Ramaswamy

The Himalaya Drug Company recently fortified its e-commerce offering with the launch if the Himalaya store app, which gives consumers the option to purchase products from the convenience of their homes. The app gives consumers the option to purchase the entire gamut of Himalaya’s ‘head-to-heel’ range of products spanning Pharmaceuticals, Wellness, Personal Care, Baby Care, Animal Health and Nutrition.

The Himalaya Drug Company plans on scaling up its e-commerce business and targets Rs 100 crore by 2018.

According to the company, within a month of the launch, the app has clocked more than 11,000 downloads and today, it averages 200-plus downloads per day, making it one of India’s top 150 shopping apps on Google Play and top 100 shopping apps App Store. 43 per cent of the downloads have come from Tier 3 markets. Himalaya has also developed a robust omni-channel strategy that will connect its network of 170 retail outlets to the app.

In conversation with AdGully, Ganesh Ramaswamy, Senior Manager, Digital Wing, The Himalaya Drug Company, throws more light on the company’s plans for the digital space.

When was app launch and since the launch what has been the total number of downloads?
The app was launched in the month of May. It was in the response to our consumers looking for online transaction, buying the products on the go. Our e-commerce website, himalayastore.com, was launched back in 2008 and since last year we have seen that mobile traffic has surpassed desktop traffic and that’s why have been looking at mobile app as an option. And seeing the consumer demand, the app would be much more helpful than the website. And since the launch of the app, though we haven’t done much ATL promotions, there have been around 80,000 downloads on both iOS and Android.

What is the total percentage of transaction through the app?
Since the launch of the app, we had seen a 20 per cent share on desktop and mobile. It has now gone up to 25 per cent of the overall revenue that we generate.

Which product categories are bought more in the Tier 3 markets via the app?
It is almost the same as in the Tier 1 markets, which includes Personal Care, anti hair loss cream, Neem Facewash, etc. The products are well accepted in all the markets.

Your online sales have been witnessing 70 per cent growth y-o-y. What are the key drivers of this growth?
I think the need for convenience of an online store is one factor. The visibility has become larger now, earlier we used to service on our website, but since last year, we have got on to several e-commerce portals such as Amazon, Flipkart, Snapdeal, Paytm, etc., and these markets have got great response in terms of Himalaya products sold online. A lot of digital initiatives are also being undertaken to address the people who are more net savvy and want to buy products online.

What is the current revenue earning from your e-commerce business?
It is 1 per cent of the total revenue, which is close to Rs 1,800 crore.

Himalaya is targeting Rs 100 crore by 2018. What is your strategy to achieve this kind of growth?
As I mentioned earlier, we haven’t done much of ATL promotions. We are planning to have a marketing and strategy team, who will drive awareness for the e-commerce market and the products available online as we see there is much higher demand there. We will, of course, continue to have ads in traditional marketing and make sure that we have a 360-degree marketing approach in our ad campaigns.

What are the kinds of investment you are making to scale up your e-commerce business?
So far, we have not set a budget for e-commerce. For the convenience channel, we have come up with this app and are looking to increase visibility. We have a certain percentage of the budget allocated for digital.

How are you building up your omni channel strategy for enhanced networking?
We are looking forward to enable retail to connect back to our e-commerce store, wherein if we see that a consumer walks in and finds that the stock is not available, then he or she can order the product online and get it delivered at their home. No retail house has 100 per cent stock all the time. This system was not available earlier. This could act as a good consumer programme as no customer will walk out empty-handed. We are trying to digitally connect both retail and e-commerce.

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