Unilever launched Shikhar in India — an app that transforms traditional sales models to empower retailers to buy smarter, increases efficiency in daily operations, and positively impacts the profitability of their businesses.
In India's rapidly transforming FMCG industry, Hindustan Unilever Limited (HUL) has pioneered automation to manage its demand-supply chains effectively and revolutionizing B2B sales models with retailers.
With 1.3 million retailers registered on Shikhar, Unilever created a perceivable win-win situation, for the distribution of their range of products. While the number of app installed signaled higher acquisition, it didn't convert into adoption. The issue remained.
The campaign was designed with a fresh approach, incorporating advanced technology and leveraging celebrity influence for the first time in Unilever's strategy. The use of gen AI and partnering with a high-profile celebrity like Arshad Warsi aimed to create a significant impact and establish new benchmarks in retailer engagement and app adoption.
HUL's strength lies in its 9 million retailer tribe nationwide. From these 9 million, they also dominate the digital retail strength with 1.3 million registered on the Shikhar app solidifying FMCG dominance in India. Recognizing small shop owners as crucial partners, HUL positioned them as brand ambassadors. The extensive retail ecosystem that spans across Mom-and-Pop stores and pharmacists are seen as vital collaborators, fostering a symbiotic relationship.
HUL's creative and media strategies were seamlessly integrated to help local retailers effectively reach its customers. WhatsApp was chosen for its high usage among small business owners, enabling direct and personal engagement through hyper-personalized video messages. Social media platforms like Facebook and Instagram were selected for their broad reach, fostering wider content sharing and interaction for retailers.
The campaign adapted in real time: Initial success on WhatsApp led to the increased focus on optimizing content for this platform. Localization strategies were employed to tailor content to regional preferences, ensuring greater relevance and resonance. This flexible approach ensured that the campaign effectively addressed the diverse needs and behaviors of the target audience.
The execution of the Shikhar campaign effectively leveraged enabling technology to achieve significant results. Gen AI allowed retailers to create hyper-personalized video messages quickly and easily, enhancing the relevance and appeal of promotions. This technology automated content creation, making it accessible for local retailers to produce engaging, customized offers without extensive technical skills.
Arshad Warsi's celebrity endorsement added a relatable and trustworthy element, increasing the perceived value of the personalized messages. His involvement captured attention and enhanced the emotional connection with both retailers and their customers.
This technology-driven approach led to a 10 percent increase in monthly active users (MAU) and double-digit sales growth, as it effectively addressed the challenge of engaging retailers and their customers with relevant, personalized content. The integration of these technologies ensured efficient, scalable, and impactful campaign execution.
Creating a personalized video was easy, as shown in the steps below:
Each of these unique videos was shareable across WhatsApp, social media, and YouTube, taking it to millions of homes as the mascot of the neighborhood store.
Before the campaign, HUL faced challenges in the rapidly evolving Indian fast-moving consumer goods (FMCG) market. The industry was marked by traditional sales practices, with many retailers still relying on face-to-face interactions for order placements. Despite high app installations, Unilever struggled with low adoption rates of their Shikhar app among local mom-and-pop stores. Retailers preferred personal connections over digital solutions, impacting efficiency and sales performance. The marketplace was competitive, with numerous brands vying for attention and consumer loyalty. The need to modernize sales processes and enhance retailer engagement was crucial for Unilever to maintain its market leadership and drive profitability in this dynamic environment.
The campaign's success demonstrated the effectiveness of using gen AI and celebrity endorsements to drive retailer engagement and sales. This has set a new standard for digital adoption in Unilever's sales strategies. Enabling technology will likely be integrated into future campaigns, enhancing personalization and scalability. The positive impact has also encouraged Unilever to explore further digital innovations to streamline operations and deepen retailer relationships.
The campaign revolutionized the FMCG market by significantly enhancing retailer engagement and adoption of digital tools. The innovative use of gen AI for creating personalized video messages, combined with Arshad Warsi's celebrity appeal, set a new benchmark for integrating technology with traditional sales practices. This approach not only modernized retailer interactions but also drove a 10 percent increase in the app.
Consumers responded positively, with high engagement rates and favorable reception of personalized content. The campaign's success demonstrated the potential for digital transformation in FMCG sales, leading to increased interest in adopting similar technological innovations within the industry.
