16 December , 2019 Fdiindia
Procter and Gamble Tests India’s Ecommerce Waters
Joining the ranks of Hindustan Unilever and Coca Cola, Procter and Gamble (P & G) is now launching an e-commerce platform in order to tap the country’s growing online market. The company is currently testing the beta version of the website. As per ET, a top industry distributor says that the products are sold and the supply chain managed by its Kolkata-based distributor- BG distributor.
According to a person close to Procter and Gamble, it is a “test and learn” approach and its Kolkata distributor is managing the web store “end to end.”
The company hopes to use the learning’s from the exercise that the “distributor has undertaken.”
As per another person with knowledge of the recent development, the website pgshop.in is likely to go live by the next month or so.
The existing foreign direct investment rules and regulations state that a foreign company is permitted to sell products through their own online platforms if the items they are selling are fully manufactured within the country. One big example of this would be Amway, a US based company that has its win e-commerce portal to sell their products made in India.
However, in the case of Procter and Gamble, its online store will be owned and run by the Kolkata distributor and P&G will only supply products. Also, the company will not be having any financial investment in the venture. The products that will be found on the site are listed by P&G and they are- Oral-B branded oral care products and Herbal Essence shampoo, hair oil, and other items.
One of the sources revealed that the full range of products from the US giant will be available for the buyers in the coming months through the website.
Coca Cola had launched its online store in India over a year ago which leads consumers to other websites like Bigbasket , Grofers and Flipkart to buy their products. Likewise, HUL also sells premium Tal Mahal tea online.