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Exploring Ecommerce Strategic Framework for FMCG Expansion: An Interview with Anupam Sharma (E-commerce Lead)

Purpos Planet Culture

Family-funded business unlike PE or market-invested E-commerce- what difference does it make in thinking?

Ans- Budgets for family-owned businesses are quite constrained, so we had to spend cautiously. On the other hand, you are free to spend as much as you like, though sometimes this doesn't lead to the desired results. In my case, I'm extremely fortunate to work with Purpose Planet, where they value all of my opinions and adhere to the allocated budget. Now it's my turn to provide the intended outcome.

Since technology culture is new in a legacy trading business, what are the current challenges being faced by you?

Ans- Currently, in my opinion, every business is eager to incorporate new technologies. It is imperative that you keep up with the most recent social media and market trends. The biggest issue for me is preserving the legacy, image, and authenticity of a 25-year-old company without harming it.

Key Pivots to transit a legacy wholesale and GT retail brand, already selling on Myntra, Flipkart, Amazon, etc by resellers, to e-commerce sales.

How do you organize the unorganized presence of RIYA on these platforms?

Ans- Since we are the brand owner and in possession of all necessary legal documentation, it would be quite simple for me to have those sellers removed from the marketplace; however since those sellers paved the way for us by earning positive reviews and ratings, I will take advantage of that. We will enjoy this competition for a while since it will be healthy for us.

PP Growth Plan- Fragrances -led by Deodorants and Perfumes on E-commerce is estimated to grow too approx. Rs 1400 cr and Rs 600 cr respectively in FY24.

What is PP category share % target on the marketplace in the next 2 years?

• FY24- This will be our debut year on the marketplace but seeing the current unorganized number we are targeting 5-10% market share.
• FY25- As a company, we are very much clear that by 2025 Riya will be having 20% of the market share on e-commerce.

Respective platform wise share % to total PP sales target in next 2 years?

• FY24- Flipkart- 30%, Amazon- 20%, Snapdeal- 10%, Meesho-10%, Other-30%
• FY25- Flipkart- 40%, Amazon-25%, Snapdeal-10%, Meesho-15%, other- 10%

Despite being No.1 in General Trade YEC 21 according to Nielsen, it did not have PP -managed brand presence hence did not register sales.

Will it be possible to accrue the sales in PP now?

Ans- Yes, without a doubt. We are in contact with the category managers of all the marketplaces where we operate, and they shared some remarkable data with us. We are confident that we will have strong financial results this year.

All RIYA SKUs currently being sold on e-commerce by resellers, land on platforms through GT B2B and hence are booked by PP at primary sales levels, to begin with

Have you researched B2B partners to understand their perspective?

Ans- No, despite my best efforts, I was unable to identify the company that was behind the sale on Marketplace because you may change your firm name and sale there. But if we begin selling directly, I am confident that some of them will come to us. At Purpose Planet, we are committed to looking out for our partners. We will consult with them and try to find a solution that benefits them both.

Which are PP E-commerce strategy elements in already a cluttered marketplace? What bold steps are you planning to take in first 2 years? e.g.

1. Respect GT channel ( partners and consumers). Engage with new economy partners- media, retail, supply chain , operations
2. Develop technology-led business ecosystem while retaining core business principles
3. Organise the unorganised sales to manage all RIYA business on diverse platforms
4. In fashion & fragrances, there so many legacy brands who have exploded in sales once they tapped technology-led sales platforms.

• Are you well-prepared in production, sourcing, supply chain given the expected pent-up demand of RIYA

Ans- As I said earlier, I guided this company while keeping the brand's image in mind. This is a GT-led company, and I respect that fact. I will not, under any circumstances, alter the true nature of the business model; instead, I will forge my own course with the aid of our current partners and clients and give the brand a new twist. Developing new eco-systems, generating specific products for e-commerce, and introducing new categories like combos and gift sets were all things I made clear to the management from the very first day. Not just with these demands, but also as we prepare to introduce new brands and product lines, I have gotten the management's complete support. Creating this brand is a lifestyle brand is our goal.

What is PP Platform Retail Ecosystem?

We see ourselves as full spectrum O2O business in 2 years.

• We will continue to incubate new brands and SKUs in GT and bring them all on Ecommerce
• At the same time, we aim to exclusively incubate brands and SKUs with category and retail teams of Myntra, Amazon, Flipkart, Nykaa etc and then selectively make them available in GT

Fashion , accessories and casual wear, as the larger RIYA opportunity after beauty and fragrances

• Everyday fashion space is booming as India looks more well-groomed than before

RIYA Lifestyle

• 25 years of TRUST in India
• Technology led RIYA Lifestyle platform to showcase trending ideas, concepts, brands in fashion, beauty and fragrances

PP Technologies

• PP Technologies will be the spinal architecture of PPP Retail Ecosystem
• It will have to provide the necessary internal and external FMCG Tech solutions for BIG INDIA and RIYA in the future

Fashion, beauty is being driven by virtual try on apps to make consumer experiences richer and sort of customized. How about fragrances selection through apps?

• We are looking at beauty virtual try on apps to begin with and follow up with mood mapping tools for fragrances
• Under a new Color Cosmetics brand, Purpose Planet will surely take both tech and beauty to mass market in India