Patanjali forays into e-commerce; promises to protect its retailers' interests

To expand its sales network, Baba Ramdev’s Patanjali is foraying into the e-commerce space by launching a dedicated e-retail website and mobile application. 

The company claims that its e-commerce platform will not hurt the interests of its retailers but will only compliment its existing sales and distribution network. 

Patanjali had earlier promised the retailers that it will protect them from the onslaught foreign funded e-commerce websites, who were eating up the business of brick and mortar stores by offering heavily discounted prices for all kind of products. 

S K Tijarawala

"For us, the online foray is only a mechanism to reach out to more people and not to create any competition with our retail partners. We keep the sanctity of our product, quality and pricing intact and it will continue to be our USP," Patanjali spokesperson S K Tijarawala said. 

Tijarawala hinted that prices of products on both offline and online sales networks will remain the same as the company has no plans to offer any discounts online. 

“We will still continue to protect the business interests of our valued retail partners. The retailers are primarily hurt by the discounts offered by the e-commerce players and there will be a blanket ban on discounts on Patanjali products across all platforms," he said.

Akhil Aggarwal, Associate Vice-President and country head, Patanjali Ayurved, said, “We have equitable commercial with all the channel partners through which we will try avoiding the conflict.”

At a time when most of the online sales are pushed on the back of discounts and offers, would Patanjali’s strict no to discounts be a barrier for its mega online dreams? Commenting on this, Tijarawal said, “Convenience for the consumer will be a major driver. Anyone who does not have access to a point of purchase can simply order online and get our products at home. So this is more about facilitating our consumers.”

Patanjali is all set to enter the e-commerce space on January 16 at a mega launch event where it will unveil patanjaliayurved.net as its e-commerce platform and announce partnership with eight major e-commerce players including Paytm mall, Amazon, Flipkart, Snapdeal, Shopclues, Bigbasket, Grofers and 1mg. All the CEOs of e-commerce players along with Baba Ramdev will be present at the event.

“We have inked deal with world’s largest e-commerce players for our huge online push which will be a paradigm shift in online shopping. Very soon we will change the whole scenario and reach out to the common man of the country," said Tijarawala.

Patanjali has set itself a target of Rs 20,000 crore in sales revenue in the current financial year, which is double of the revenue it posted in FY17. The company has lined up launch of several new products in different categories and is also planning to get into the growing the renewable energy category by launching solar panel equipments. 

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