Unilever to launch first online retail offering in Pakistan's FMCG sector

The consumer goods multinational has announced a partnership to sell its beauty and personal care ranges, which include Pond’s and Dove, on the increasingly popular daraz.pk platform.

Although Parkistan remains a less developed market, uptake of technology is very strong among consumers, who are now responding with enthusiasm to the opportunities offered by e-commerce.

Speaking to the Business Recorder of Pakistan, Amir Paracha, vice president for customer development, confirmed that Unilever is looking to meet this consumer enthusiasm.

“E-Commerce in Pakistan is forecasted to generate a turnover of PKR 4 billion over the next 5 years, with much of this growth being driven by beauty and personal care products​,” he said.

“At Unilever, we believe in the potential of e-commerce and are working to make it one of our core channels for customer outreach.”​

Pakistan’s market​

A white paper just released by market research firm Euromonitor International, singled out multinationals like Unilever for outperforming domestic brands.

“Huge marketing and distribution investments by these multinationals led them to attract more consumers due to their high visibility​,” note analysts.

Fragrance, hair care, skin care and deodorants are all dominated by international companies, with consumers preferring international brands as “they trust these brands and perceive them as higher quality products as compared to local brands​”.

The market researchers predict growth ahead for Pakistan, noting that several key economic factors are about to improve.

“An increase in GDP growth rates will allow consumers to enjoy higher spending power in the near future. This would directly have a positive impact on the sales of beauty and personal care​,” they state.

The firm also points out that with unemployment and inflation rates expected to decline, manufacturers will be able to better control their costs, stabilising product prices.

E-commerce in Asia ​

E-commerce is enjoying a strong showing across Asia, as consumers increasingly adopt new retail platforms in the most developed markets, such as China, which boasts the largest online marketplace in the world, right through to those less advanced, like Pakistan.

In neighbouring India for example, revenues of e-commerce companies may increase threefold in the next three years, reaching 504 billion rupees ($8.13 billion) according to Indian research firm Crisil.