Hindustan Unilever To Assist Kirana Stores Compete With E-Commerce Players Via ONDC (Image: HUL)
Hindustan Unilever (HUL) is reportedly planning to assist in the onboarding of nearly 1.3 million kirana stores on the central government”s Open Network for Digital Commerce (ONDC) network. The Economic Times reported that this move will help kirana stores compete with e-commerce and quick-service grocery retailers. Kirana stores are the small local shops referred to as corner stores or convenience stores.
The development is an expansion of Shikhar, Hindustan Unilever”s digital platform, which permits the outlets to directly connect with HUL sellers and place orders at any time. Notably, 1.2 million retail outlets used the Shikhar app to place orders in FY23. This platform currently accounts for almost one-third of HUL”s sales from neighbourhood retailers. In 2022, HUL became the first fast-moving consumer goods (FMCG) firm to join ONDC through UShop, its multi-brand direct-to-consumer (D2C) platform.
Kedar Lele, the executive director of customer development for HUL, told the Economic Times that HUL has realised that retailers need to service orders directly instead of the company doing it through UShop. Kedar Lele also added that 1.3 million stores might join the ONDC network in the future and buy whatever the retailer sells, not just HUL goods.
This significant initiative from HUL is in the pilot phase, as they have introduced an integrated Shikhar module called the Shikhar Seller app. Through this, local Kirana stores can go live on ONDC and offer their whole product catalogue online. Currently, it is being piloted in Bengaluru and New Delhi, spanning 60 stores. This initiative will be expanded across the country in a phased manner. The Open Network for Digital Commerce (ONDC) is an initiative that seeks to revolutionize India’s digital commerce ecosystem. Introduced by the central government, ONDC aims to promote open networks for all aspects of the exchange of goods and services over digital or electronic networks. It operates as an intermediary layer between buyers and sellers.
