Unilever CEO sees QComm driving up to 15% of HUL’s revenue in India

FMCG giant Unilever’s newly appointed CEO, Fernando Fernandez, has projected that quick commerce will contribute 10% to 15% of Hindustan Unilever Ltd’s (HUL) revenue within the next few years. His remarks come amid the rapid rise of instant delivery services in India.

Speaking at Barclays event, Fernandez noted that quick commerce's share of e-commerce sales in India has been doubling year-on-year, though from a relatively small base. Currently, quick commerce accounts for about 2% of HUL’s revenue, but the CEO expects this figure to surge to 10% to 15% in the next three to four years. “India is a very special place because richer Indians and poorer Indians live in close proximity, which provides both demand and supply of labour, making quick commerce a logical channel to grow,” Fernandez said.

He also highlighted that quick commerce offers a better margin mix compared to traditional marketplaces. “I prefer quick commerce to marketplace in terms of channel development quick commerce is a limited assortment channel. For a company like us, it’s a good development channel,” he added.

However, Fernandez acknowledged that HUL’s beauty segment is currently facing headwinds due to channel and segment development issues. Last month, in a bid to strengthen its beauty and personal care portfolio, HUL acquired direct-to-consumer (D2C) brand Minimalist for approximately Rs 3,000 crore.

His comments come at a time when quick commerce is experiencing exponential growth in India. The segment’s three leading players, Blinkit, Swiggy Instamart and Zepto, reported a combined revenue of nearly $1 billion for FY24. The space has also become increasingly competitive, with e-commerce giants like Amazon, Flipkart Minutes, BigBasket, and JioMart vying for a share of the market. Additionally, Rebel Foods has entered the fray with its new 15-minute food delivery service, QuickiES.