INTERNATIONAL TEA DAY: Brewing success for Pakistan's Tea Industry through e-commerce

TEXT: The potential of e-commerce to reshape Pakistan's tea industry is becoming increasingly evident, with key players recognizing the importance of digital platforms in driving growth and expanding their reach.

We at LIPTON Teas & Infusions, home to brands such as Lipton and Brooke Bond Supreme in Pakistan, have leveraged e-commerce to enhance our business operations and partnerships.

Under the Unilever Pakistan Limited Umbrella, the tea brands were initially sold on various e- commerce platforms.

However, starting from 2022 (after Unilever’s tea division became independent), we took a step further by signing independent Joint Business Plans (JBPs) with key accounts, solidifying partnerships with prominent players in the e-commerce landscape.

Notable collaborations include Pureplay platforms like Daraz and Box, Quick Commerce platforms such as Panda Mart, Krave, and Cheetay, as well as Omni platforms like Metro and Carrefour.

By forging these strategic alliances, LIPTON Teas & Infusions expanded its presence across the online retail space in Pakistan. We now serve a total of 15 accounts nationwide, offering a comprehensive online portfolio that includes all core and bulk Stock Keeping Units (SKUs) for popular brands and sub-brands like Lipton, Lipton Danedar, Lipton Tea Bags, Brooke Bond Supreme and Lipton Green Tea.

As the leading international tea company in the world, our commitment to e-commerce growth is not limited to partnerships alone. We have invested in building our internal capabilities to better serve our partners, creating value for all; shareholders, consumers, our people.

One notable achievement is the establishment of Leopard Courier Services our independent national e- commerce distributor partner. This strategic move has facilitated efficient order fulfillment and delivery, contributing to Lipton's ability to meet the growing demands of its online retail partners.

Our results within the e-commerce platforms speak for themselves. In the past year alone, we achieved an impressive turnover growth of around 20% as compared to 2021. In the case of Daraz, one of the key e-retailers, we experienced a sales revenue turnover growth of 10% and an astounding year-to-date growth of 500% in April.

This was also since there were limited sales in this period last year due to lack of UPL JBP involvement of tea and predevelopment of our own ecommerce department so maybe better not to quote this as out of context it will seems like an exaggerated growth number.

Building on this success, we devised a robust JBP focused on increasing our share of the tea category on Daraz. The plan involves strategic sponsorships in mega campaigns, monthly buying cycle campaigns, and data-driven performance marketing initiatives, with the aim of achieving a 2.5X growth in our business partnership with Daraz this year.

We recognize that online retail is the channel of the future. With aspirations to increase online retail revenue contribution to 25% of our overall revenue globally, we aim to position ourselves at the forefront of the evolving e-commerce landscape in Pakistan.

We recognize that online retail is the channel of the future. With aspirations to increase online retail revenue contribution to 25% of our overall revenue, we aim to position ourselves at the forefront of the evolving e-commerce landscape in Pakistan.

The country's emerging B2C retail market, projected to reach 7 billion Euros with a 12% 5-year compound annual growth rate, presents a significant opportunity! By leveraging e-commerce platforms, we seek to provide consumers with a seamless online shopping experience, capitalizing on its partnerships with top platforms in Pakistan.

The success of LIPTON Teas & Infusions e-commerce initiatives highlights the potential for the tea industry to embrace digital transformation. By establishing strong partnerships, investing in internal capabilities, and leveraging data-driven marketing strategies, tea companies can tap into the growing e-commerce market and drive revenue growth.

Pakistan's tea industry, steeped in tradition and rich flavors, can truly thrive in the digital age, meeting the demands of our consumers far and beyond. The time is ripe for the tea industry to harness the power of e- commerce and embark on an exciting journey of growth and innovation.

Farheen Salman Amir

President BSPAN & General Manager Pakistan

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