Tata Motors has begun testing hydrogen-powered heavy-duty trucks for the first time. This development is aligned with India’s goal of having net-zero emissions by 2070. The Union Minister of Road Transport & Highways, Nitin Gadkari, and the Union Minister of New and Renewable Energy, Pralhad Joshi, officially launched this historic trial, which is a major step towards sustainable long-distance cargo transportation. Tata Motors demonstrates its dedication to spearheading sustainable transportation solutions through this groundbreaking project, which is in line with India’s larger green energy objectives. It won the contract for this trial, which is supported by the National Green Hydrogen Mission of the Ministry of New and Renewable Energy. It represents a major advancement in determining the practical and profitable feasibility of employing vehicles powered by hydrogen for long-distance transportation and in establishing the necessary supporting infrastructure to ensure their smooth functioning.
The Trial Phase
During the testing period, which might last up to 24 months, 16 sophisticated hydrogen-powered vehicles with different payload capacities and configurations will be deployed. The most well-known freight routes in India, such as those in Mumbai, Pune, Delhi-NCR, Surat, Vadodara, Jamshedpur, and Kalinganagar, will be used to test these vehicles, which are outfitted with cutting-edge hydrogen internal combustion engines (H2-ICE) and fuel cell (H2-FCEV) technologies. “Hydrogen is the fuel of the future with immense potential to transform India’s transport sector by reducing emissions and enhancing energy self-reliance,” stated Nitin Gadkari as he kicked off the trial. Initiatives like this will hasten the heavy-duty trucking industry’s shift to sustainable mobility and bring us one step closer to a productive, low-carbon future. He commended Tata Motors for spearheading this important development in the direction of hydrogen-powered smart and environmentally friendly transportation.
Girish Wagh, Executive Director of Tata Motors, emphasised the company’s readiness and stated that it is a great honour to lead India’s transition to smarter, greener, and sustainable mobility. With a long history of fostering national development, the corporation has consistently embraced innovation to create mobility solutions that support India’s expansion and advancement. Tata Motors is pleased to carry on this tradition by leading the way in the switch to clean, emission-free energy for long-distance transportation with the launch of these hydrogen truck trials today.
The Technology Opted to Design these Trucks
The vehicles that have been flagged off demonstrate both hydrogen internal combustion engine (H2ICE) and hydrogen fuel cell electric vehicle (FCEV) technology, demonstrating Tata Motors’ all-encompassing approach to hydrogen mobility. This includes the Tata Prima H.28, a cutting-edge H2ICE vehicle, and two Tata Prima H.55S prime movers, one with an H2ICE engine and the other with an FCEV engine. These vehicles, which have a 300–500 km operating range, are designed for high-performance, economical, and environmentally friendly transportation. With the high-end Prima cabin and cutting-edge driver-assist safety systems, they raise the bar for trucking safety while improving driver comfort, lowering tiredness, and increasing productivity.
Waaree Energies is led by the visionary Chairman and Managing Director Hitesh Chimanlal Doshi, who has not only changed the face of Indian solar but has also set an example of entrepreneurship. He was born on Feb 22, 1967, in a small village, Tunki, in Maharashtra, where he grew up in an economic and resource-poor family.
Doshi had a dream to make a better future for himself and to be part of constructing India’s energy needs. What started as a small venture manufacturing pressure and temperature gauges has evolved into a colossal enterprise: India’s largest solar energy company, Waaree Energies.
In this StartupTalky story, we will cover his early life, his struggles, Waaree Group’s founding, and more. We will look at how innovative Hitesh Doshi has been in becoming a business tycoon. We will also learn about the investments made, controversies, and remarkable recognitions he has achieved for his role in India’s renewable energy sector.
Biography
Name
Hitesh Doshi
Born
February 22, 1967
Birth Place
Tunki, Maharashtra
Education
Khoteawar Maharaj Vidhyalay Eklara Buldhana Bachelor’s Degree in Commerce, Shri Chinai College of Commerce & Economics, University of Mumbai. Doctorate in professional entrepreneurship in business project management, European Continental University
Hitesh Doshi – Chairman and Managing Director of Waaree Energies
The founder of Waaree Group, Hitesh Chimanlal Doshi, comes from a modest background in the Buldhana district of Maharashtra, India. Doshi grew up in a village without electricity or telephones. The family was always under financial constraint, and his father had a small grocery store, but he kept plugging away to build a better future.
Education was a way to provide Doshi with avenues of opportunity; however, his village school taught up to only the 7th grade. Doshi had to cycle daily to a nearby village to pursue further studies. It didn’t scare him; it motivated him to forge beyond the walls of his upbringing. Doshi later went to Shri Chinai College of Commerce & Economics at the University of Mumbai and graduated with a bachelor’s degree in commerce in 1987.
Doshi spent his college years in a hostel in Nagdevi, Mumbai, where he began his entrepreneurial career. Doshi soon became aware that financial independence is important, so he traded and ran a bit of business to keep himself, picking up valuable skills and experience that would one day help him in the renewable energy sector.
Doshi started his first business with a small loan of INR 5,000 from a relative, manufacturing pressure and temperature gauges. The Waaree Group took this modest beginning as a big step towards its success.
Founding Waaree Energies was a bold step into the renewable energy sector by Hitesh Doshi. Doshi’s company began producing temperature and pressure gauges for industrial uses and soon realized a burgeoning business niche in solar energy. Globally, there is an increasing demand for alternative, sustainable energy solutions, which was a crucial time for India’s energy landscape.
In the early days of Waaree Energies, Doshi spent most of his time creating solar modules. At this time, India was not a major player in the global solar market, and domestic manufacturers were few. As Doshi led Waaree Energies, it managed to carve a space for itself as a niche player in India’s solar market, providing high-quality products for both the residential and industrial markets.
Seeing increasing demand for clean energy all over the world, Waaree Energies began scaling up its operations. The company expanded its solar module manufacturing capability in the mid-2000s and gained a reputation for reliability and quality. Doshi, however, helped Waaree Energies become a leader in India’s solar energy sector even in the face of stiff competition from international players, especially China.
Doshi recognized Waaree’s footprint beyond India, and he realised that the company had the potential to tap into global markets. Government incentives to encourage renewable energy adoption allowed the company to begin exporting solar modules to places like the U.S. The turning point for Waaree was that it was able to reach more lucrative international markets and spread its revenue base.
In 2015, Doshi was instrumental in setting up Waaree Energies’ modern solar module manufacturing facility in Tumb, Gujarat. Investment in the plant was INR 8,000 crore, and it became one of the largest solar panel manufacturing facilities in India. This was a huge expansion, which helped Waaree to increase its production capacity and to serve better the rising domestic and international demand for solar panels.
By 2018, Waaree Energies had become a leader in India’s solar sector. It gained a reputation as a high-performance solar panel company that was trusted across residential and commercial markets. However, Waaree’s expansion was not only manufacturing; it also included a push into solar power generation and EPC services, which were vital to meet the requirements of large-scale infrastructure projects.
Waaree Energies, under Doshi’s leadership, filed for an initial public offering (IPO) on the Bombay Stock Exchange (BSE). This was a big step for the company and a marker of readiness for the next stage. The Waaree Energies IPO generated INR 2,800 crore (around $514 million), which became one of the major investments by Doshi and his company. The IPO was meant to raise capital to expand production capacity and advance research and development, as India pushed for more renewable energy.
Waaree, a part of Waaree Bluegrip, a wholly owned subsidiary of the Waaree Group, headquartered in Rajkot, India, continued its international growth strategy through solidification of the company’s position in the U.S. market. Waaree took advantage of the U.S. government’s clean energy focus by offering high-quality, competitively priced solar products free from Chinese influence, Doshi said. Waaree’s strategic move helped it gain a competitive advantage in one of the biggest solar markets in the world.
Under the leadership of Doshi, Waaree Energies focused on innovation and brought new solar technologies to market to improve efficiency and costs. The company started to concentrate more on the development of high-efficiency solar modules to fortify India’s position as a global leader in renewable energy.
To date, Waaree Energies, under the leadership of Hitesh Doshi, has been expanding and innovating. As a leading contributor to India’s renewable energy goals, the company has played an important role in India’s aspiration to reduce its reliance on fossil fuels and achieve greater energy independence. Doshi has been instrumental in pushing the boundaries of sustainable manufacturing in India’s solar landscape, and Waaree’s impact on India’s solar landscape is undeniable.
Hitesh Doshi – Investments
The Chairman of Waaree Energies, Hitesh Chimanlal Doshi, has been investing heavily in the renewable energy sector through his company, Waaree Energies. Solar cell manufacturing is the company’s focus, and it has emerged as a leading player in the Indian energy landscape, with a manufacturing capacity of 12,000 MW installed. Doshi’s family also owns a large stake in Waaree Renewable Technologies and Waaree Technologies, both listed companies in engineering and energy storage solutions.
This article has been contributed by Prakhar Gupta, Lead of ESG Initiatives at InCorp.
The shift towards sustainability as a concept has gradually evolved past corporate duty; it is turning into an essential requirement for businesses, particularly startups looking to make their mark in the global corporate landscape. Today’s investors, employees, and consumers are becoming increasingly aware of the environmental effects of businesses. Startups, known for their innovation, adaptability, and flexibility, have a great opportunity to integrate sustainable practices from the outset, ensuring lasting success in an environment-conscious world.
India’s Roadmap to a Net-Zero Economy
India is poised to play a critical role in the global effort to combat climate change. With a target of achieving net-zero emissions by 2070, the country has great potential to be at the forefront of balancing rapid economic growth with sustainable development. As we have seen with many other economies, setting an emissions target acts as a catalyst for consumers and businesses to work towards adopting sustainable practices. However, despite this goal, there is a long journey, particularly in reducing carbon emissions across key sectors.
As of 2021, India contributed about 7% of global CO2 emissions from combustible fuels, making it the 3rd largest CO2 emitter behind China and the USA. The energy sector alone accounts for about half of these emissions, while transportation, agriculture, and industrial processes are significant contributors.
India surpassed its 2030 climate goals 9 years in advance, with plans to invest $35 billion annually into advanced renewable energy technologies alone. Considering the track record so far, this sum does not seem to be a distant goal.
Moreover, the numbers speak for themselves and show that the country is looking to become a sustainable economy in the coming decades. Sustainability-focussed startups can take advantage of the relatively favourable policy structure supporting Indigenous sustainable development.
Importance: Sustainable Practices for Long-Term Success
Consumers Who Are Very Concerned About Environmental Sustainability
Adopting and following sustainable business practices is not just to abide by regulatory sanctions or tap into an eco-conscious customer base, it also displays the long-term vision that business decision-makers have in mind.
Companies that harm the environment by creating waste or emitting copious amounts of carbon are now seeing themselves imposed with restrictions or fines. Moreover, 9 in 10 millennials are willing to pay more for sustainable products and services – a radical shift from just two decades ago.
Moreover, to add to an already growing environmentally conscious customer base, such penalties directly or indirectly affect the balance sheets and EBITDA margins of businesses that haven’t taken steps to minimize environmental impact, hindering long-term growth. Below are some companies that are embracing change and leading the way in sustainable business practices.
Founded in 2013, Ather Energy is one of the most prominent players in India’s electric vehicle (EV) market, specializing in two-wheeler mobility. It also boasts an impressive charging infrastructure, with India’s largest two-wheeler EV fast-charging network.
Ather Energy has also announced that it is working on reducing its reliance on rare-earth metals, an initiative which will reduce its mining impact and Scope 3 emissions in the supply chain. Moreover, the company is adding to its renewable energy generation capacity, with 13% of current manufacturing energy requirements being met by solar panels. The company has also adhered to implementing the ISO 4001 environmental management system for continuous optimization.
BluSmart
BluSmart is India’s first all-electric ride-sharing service provider, tapping into a customer base looking for an eco-friendly alternative to traditional rideshare platforms like Uber and Ola. In doing so, BluSmart eliminates its Scope 1 emissions (direct emissions from the vehicles) and creates a positive impact on urban Air Quality Index (AQI).
In major Indian cities like Mumbai and Delhi, where a higher percentage of eco-aware consumers are located, and air pollution is becoming challenging to manage by the day, BluSmart’s model is helping consumers make cleaner transportation choices.
Zypp Electric
The rapid rise in e-commerce and food/grocery delivery platforms in India has led to a surge in last-mile deliveries, typically fulfilled using vehicles powered by CNG, petrol, or diesel. This is where Zypp Electric comes in – it aims to reduce the environmental impact of the logistics sector by using electric scooters to transport goods to the end consumer.
Its clientele includes food delivery and e-commerce giants like Flipkart and BigBasket, significantly reducing their Scope 1 emissions. As more businesses look to reduce their environmental impact, Zypp Electric is well-positioned to cater to growing demands.
Just Organik
Organic farming has been practiced in India since ancient times, but rapid industrialization and the use of chemicals like pesticides and insecticides have reduced water quality and soil fertility. Just Organik encourages organic farming practices across India, promoting processes to follow sustainable agriculture methods and reducing the overall upstream and downstream environmental impact of food production.
Even though India is moving towards an increasingly manufacturing and service-based economy, it is hard to ignore the social and strategic value of having agricultural self-sufficiency. By working directly with farmers, Just Organik helps ensure that more agricultural practices are aligned with maintaining the long-term quality of natural resources, thereby reducing Scope 3 emissions related to the food supply chain.
The Path Forward
‘Sustainability’ is not just a buzzword – it is now necessary for businesses that want to ensure long-term success and thrive. The startups highlighted in this blog are a few of many of the companies that are leading the fight against climate change. This is done by integrating sustainable practices into operations or helping customers and clients reduce their environmental impact.
As India moves towards a net-zero economy, the future belongs to startups of today that are willing to adapt, innovate, and contribute to a cleaner and greener world. Sustainability is not just the right choice – it is one of the deciding factors for long-term success!
As the world is continuously scouting for other sustainable forms of energy, India is also shifting from fossil fuel to renewable energy. According to a report in Invest India, the National Investment Promotion and Facilitation Agency, The REN21 Renewables 2022 Global Status Report ranks India as the fourth largest installed renewable energy capacity worldwide, considering both large hydro and solar power. The country also ranks fourth in wind power and solar power. At COP26, the country increased its initial goal to 500 GW of energy derived from sources other than fossil fuels by 2030. A fundamental promise under the Panchamrit has been this. When it comes to sustainable energy, this is the granddaddy of them all.
As of November 2023, India’s installed non-fossil fuel capacity—which includes large hydro and nuclear—was over 179.57 GW, or 42% of the country’s total capacity, a growth of 396% in the past 8.5 years. In 2022, renewable energy additions in India increased by 9.83% year-on-year, the greatest growth rate. With a 30x increase in the past nine years, the installed solar energy capacity reached 74.30 GW in January 2024. According to the National Institute of Solar Energy (NISE), India’s solar power capacity might reach 748 GWp. Since 2014, there has been an approximately 128% growth in the installed capacity of renewable energy sources, including big hydro.
In its consolidated report, IBEF, an arm of the Department of Commerce, Ministry of Commerce and Industry, Government of India, India, is anticipated to experience the highest increase in energy demand over the next several decades due to its massive size and immense potential for development and progress. Hence, renewable, low-carbon energy sources must account for this additional demand. The statement by India that it plans to reach zero net carbon emissions by 2070 and get half of its power from renewable sources by 2030 is a watershed moment in the fight against climate change.
The sector is now more appealing to investors thanks to the government’s enhanced backing and better economics. With an anticipated energy demand of 15,820 TWh by 2040, India is determined to meet its energy needs independently. Renewable energy sources are poised to play a significant role in this endeavour.
How India’s Largest Solar Park Will Power The Entire World!
Government Pushing The Innovation
Achieve net-zero carbon emissions by 2070; decrease the carbon intensity of the nation’s economy by 45 per cent by the end of the decade; and cut India’s total projected carbon emissions by 1 billion metric tonnes by 2030. These are a few set goals that the current government is working on. Apart from these, Solar City plans to install 57 solar parks with a combined capacity of 39.28 GW around the country, another mega project in the pipeline.
Flexing its innovative muscle, the centre also supports floating PV projects, giving the entire solar concept a technological twist. With an initial budget of 19,744 Cr (INR 17,490 Cr for the SIGHT programme, 1,466 Cr for pilot projects, 400 Cr for research and development, and 388 Cr for other components of the Mission), The National Green Hydrogen Mission was approved by the Union Cabinet. The respective medium- and long-term objectives aim to increase offshore wind power capacity by 5 GW by 2022 and 30 GW by 2030.
To better use transmission infrastructure and land, the government adopted policies in 2018 to encourage a large-scale grid-connected wind-solar PV hybrid system. Combining renewable energy sources like solar and wind can improve grid stability and mitigate the issue of intermittent power generation. With this, you can mix and match wind and solar power in a hybrid project, but remember that each resource’s capacity needs to be at least 25% of the total rated power.
Floating PV Panels to Enhance Renewable Energy Production
Though this concept is not new, it is catching up in India. One kind of solar power generator that may be placed on the water is floatovoltaics, which is another name for floating solar. On a solid base, they stand. Pontoons, capable of floating while carrying huge loads, serve as floats for the floating PV system, which differs from those used in solar PV plants. Floating floatovoltaics systems rely on several components—modules, converters, cables, anchoring systems, and more—to ensure proper operation.
Floatovoltaics provides a broader variety of energy savings than solar PV systems. This is because the water beneath the floating PV is a cooling device. The theory goes that keeping the water beneath the floats from evaporating too much will lessen the likelihood of a drought in that region. Small bodies of water are generally underutilised, but this helps to change that. Because algae can be toxic to aquatic life, this helps bring the algae levels down in bodies of water.
Floating PV plants allow for better water and land management than solar PV plants. When considering how to make the most of limited resources, FPV is an excellent option. In the right hands, it can also positively impact the environment. When harnessing the sun’s energy, it also outperforms solar PV plants.
Solar Energy Capacity in India
National Green Hydrogen Mission Acting as A Catalyst
At now, India’s annual energy import expenditure exceeds $160 billion. These imports are projected to quadruple within fifteen years without corrective measures. India is poised to become a world leader in environmentally friendly hydrogen now that the National Hydrogen Mission has been approved. An initial budget of 19,744 crore rupees will cover the Mission’s various components, with 17,490 crores going towards The Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, 1,466 crores towards pilot projects, 400 crores towards research and development, and 388 crores towards other costs. The Ministry of New and Renewable Energy (MNRE) will create the scheme’s implementation instructions for each component.
Hydrogen, an element with applications in the electrical, thermal, and nuclear domains, is among the most abundant in nature. Different kinds of hydrogen energy exist, such as grey and blue. However, “Green Hydrogen Production” refers to making hydrogen energy using renewable energy sources and water sourced sustainably. Green hydrogen has swiftly gained favour due to its ability to emit negligible amounts of greenhouse gases.
Given the current climate, India may become an important export hub for environmentally friendly hydrogen products. The nation has a lot going for it when it comes to renewable energy: plenty of area to spread it out, a trained workforce, and cheap power. This sets it apart from many industrialised economies.
India may earn much money from its green hydrogen derivatives if it sells them abroad at reasonable prices. This will eventually make it easier to build up green hydrogen infrastructure. Establishing internationally accepted standards for the export of green hydrogen derivatives could guarantee that buyers get high-quality goods. Stakeholders can exploit India’s export potential by building bunkering facilities and port infrastructure and negotiating bilateral arrangements with countries that could import goods.
What renewable energy sources are leading India’s growth?
Solar power is leading the way, with a 30x increase in installed capacity in the past nine years. Wind power is also significant, and India ranks fourth globally in solar and wind power capacity.
How is the government supporting the growth of renewable energy?
The government provides financial backing, improved regulations, and missions like the Solar City plan to create large-scale solar parks.
What is India’s target for renewable energy capacity?
India aims to reach 500 GW of energy from non-fossil fuel sources by 2030. This ambitious target is part of the country’s commitment to fight climate change.
The Middle East or the Gulf region has been basking on the oil-rich economy for ages. Since the discovery of oil (around 1908) in the region, the entire province has gone rags to riches. This development did not happen over the night as the first motor vehicles didn’t roll off the assembly line until 1908. There was a dearth of vehicles on the highway. Many ships and power stations used coal. The Middle East’s transportation, water, and sewage infrastructure were severely lacking or nonexistent in 1945. Many roads were barely dirt trails, and there were no deep sea ports for ships to offload their cargo. Many Middle Eastern nations were able to afford better infrastructure thanks to the rising demand for oil. Because of hundreds of engineering projects that were completed in the 1950s and 1960s, entire populations’ lives were changed. This was reminiscent of the work done in the 19th century by British engineers known as the Victorians. But things are changing again now that everyone is aware that the globe will quickly reach day zero if oil consumption continues at its current rate. The whole globe is on the lookout for long-term alternatives to oil in order to fight this trend. The Middle Eastern countries are likewise racing to be the first to achieve a sustainable and environmentally friendly economy.
The oil and gas industry is seeking cleantech innovations to help them transition to the energy of the future, as governments around the world are aiming for reduced carbon emissions and a larger share of renewables in their energy mix. According to a report by the International Monetary Fund (IMF), an organization that works to achieve sustainable growth and prosperity for all of its 190 member countries, It seems like major economies are dead set on finding alternatives to fossil fuels, and in response, major automakers have pledged to switch from gas-powered to electric vehicles in the not-too-distant future. An unstable adjustment may be in store for oil-dependent economies as a result of this change, which will bring the oil market in line with climate goals but may have far-reaching consequences that extend beyond their boundaries.
Mordor Intelligence projects a renewable energy industry in the Middle East with a yearly growth of 13.43% from 2023–2028. The use of more renewable energy sources is the goal of multiple government programmes. One example is the goal of the United Arab Emirates (UAE) to have half of its energy come from renewable sources by the year 2050.
Where the Black Gold Flows: Top 10 Oil-Rich Countries
MENA Region All Up For Energy Storage Race
The magnitude of the energy revolution necessitates massive quantities of raw materials such as copper, lithium, nickel, graphite, and others. Electric cars, wind turbines, solar panels, batteries, and other vital technologies that are reducing our reliance on fossil fuels need materials extracted from the Earth’s core.
Worldwide, nations are grappling with the issue of the supply of essential resources for the energy transition being woefully inadequate in comparison to the expected demand. The World Bank’s Climate-Smart Mining team predicts that the demand for lithium, cobalt, and graphite will climb by 500%, while the demand for nickel and copper will increase by 100% and 7%, respectively.
The energy system transformation is a worldwide undertaking. Substantially important materials for decarbonisation will come from Africa. Whatever the case may be, interest in potential new mining sites is on the rise due to the global quest for zero pollution.
Starting in western France and continuing eastward through the Middle East and “Daylighting” in Malaysia, the Tethyan mineral belt spans two continents and 33 nations, providing a geological basis. The area is rich in base metals. Regardless, a lot of it has been under-investigated thus far, which makes it perfect for discovering anything new.
According to Quayle Resources’ MD Darryn Quayle, “The Belt” is a mostly uncharted region of the earth, in contrast to mining zones in Africa and the Rockies. Our research, however, points to the existence of substantial underground reserves of energy transition essentials like copper and lithium.
Leading Oil-Producing Countries Worldwide
The Domestic Impact Of The Climate Catastrophe Is Substantial
As reported by Deutsche Welle, Germany’s international broadcaster, keeping oil exports going will bring substantial money for the region, but it might endanger its very survival. Rising global temperatures are an inevitable consequence of other nations’ continued use of fossil fuels sourced by Saudi Arabia and its neighbours. Particularly hard hit will be the Gulf region.
Assuming a 1.5 °C (2.7 °F) increase on a worldwide scale by 2050, the Gulf region could see a 4 °C increase. Already, the area has experienced heat waves with temperatures above 50 degrees Celsius, and the average temperatures are significantly higher than the global average.
In certain climate change scenarios, the Gulf’s average summer maximum temperatures will surpass what is considered survivable. Dust storms will become more intense as a result of planetary heating, and low-lying regions may be impacted by higher sea levels.
You should know that the money tap will be turned off eventually. There are plans to develop new sources of income because the International Monetary Fund has warned that the region’s treasuries would be emptied in fifteen years due to falling oil demand.
The Saudi government is putting its money into green hydrogen production and, in tandem with the United Arab Emirates, is establishing a renewable energy industry to produce commodities like aluminium. Less environmentally friendly, it is also beginning to produce plastic and petrochemicals using its hydrocarbons.
There has been a lot of talk about the enormous economic potential of exporting solar power. Solar panels installed on one square metre of land in a Gulf country might replace 1.1 barrels of oil in annual energy production.
What is the Tethyan mineral belt, and how is it relevant?
This belt stretches from western France to Southeast Asia and is rich in base metals.
It’s a largely unexplored region with potential for new discoveries of minerals needed for the energy transition.
What are the challenges of the energy transition for the Middle East?
The region faces extreme heat and water scarcity, which could be exacerbated by climate change.
A rapid shift away from oil could cause economic instability.
Why is the Middle East looking to move away from oil?
The global push for reduced carbon emissions and a shift towards renewable energy sources is putting pressure on the Middle East to diversify its economy.
Declining demand for oil due to the rise of electric vehicles and alternative energy sources could lead to financial difficulties for oil-dependent economies.
This article has been contributed by Aman Mohunta, Co-Founder, Aminu Wellness.
Sustainability has become a crucial factor for the long-term survival and value creation of any brand, regardless of trends or profitability. Sustainability has emerged as a pivotal factor in influencing the long-term survival and value creation of brands. Today, not only is it strategically imperative but also commercially viable. In my opinion, two major factors have made sustainability a crucial business strategy – the increasing level of consumer consciousness and the constantly developing regulatory shifts.
Here are the reasons leading to the rise of conscious consumers:
Increasing Consumer Consciousness
Modern consumers are increasingly aware of the environmental impact of their lifestyle choices, and this consciousness extends to their consumption behaviour including beauty and skincare routines. The demand for transparency in product sourcing and manufacturing processes has led consumers to scrutinize labels and opt for brands that share their commitment to sustainability. As a living example, we have seen that brand values & practice of sustainability foster loyalty and trust among consumers, leading to repeat business and positive word-of-mouth marketing. Brands like Aminu have managed to differentiate themselves in this saturated industry with eco-friendly packaging, cruelty-free practices, and responsibly sourced ingredients.
Premium for Commitment to Stability
In a market saturated with skincare options, establishing a brand as a champion of sustainability has proven to be a powerful differentiator for brands like Aminu. Sustainable skincare products, characterized by eco-friendly packaging, cruelty-free practices, no use of micro-plastics and responsibly sourced ingredients, are gaining traction even in p markets such as India. Consumers today understand the importance of adopting more sustainable consumption choices and are increasingly willing to pay a premium for products that demonstrate a commitment to sustainability. This willingness signifies a tangible manifestation of this endorsement.
Loyalty and Positive Word of Mouth
Investing in eco-friendly practices can position a skincare brand as a conscientious choice, attracting consumers who prioritize ethical considerations in their purchasing decisions. What was once considered a niche market has soon become a thriving segment and businesses including Aminu skincare are finding that sustainability in skincare not only helps build a stronger relationship with the consumers and benefits the planet but also contributes to their bottom line. Investing in eco-friendly practices attracts consumers who prioritize ethical considerations in their purchases.
Consumer Education
This rise of consumer consciousness is intrinsically linked to increased education on environmental issues. If not learnt in school, consumer consciousness is built as and when people become more independent and start purchasing their products. As consumers become more informed about the consequences of their choices, they actively seek out brands that align with their values. Brands that invest in this consumer education as well as practicing what they preach, not only contribute to a more informed audience and potential customer base but also position themselves as frontrunners in the dynamic future of sustainability. Engaging with consumers on matters of sustainable improvement is integral, and incorporating their feedback is crucial. Open communication channels between a brand and its audience can build a sense of community as well as give the brand valuable insights for future sustainability strategies.
As global awareness of environmental issues grows, governments and regulatory bodies especially in North America & Europe are tightening standards and implementing stricter regulations. Skincare brands that proactively adopt sustainable practices position themselves for compliance with near-future regulations. This proactive approach not only mitigates the risk of becoming obsolete in these markets but also signals to consumers that the brand is committed to responsible and ethical business practices. While one might argue that such regulations are still decades away in India, I would disagree. Today India seeks a seat at the table of global superpowers and to do that it will have to show leadership in several spheres including leading the way in adopting sustainable practices sooner rather than later.
Leadership in Sustainable Practices
Future-proofing the business by embracing sustainability is not just about compliance; it’s about staying ahead of the curve. Brands that invest in sustainable practices today are better equipped to navigate future changes in regulations and consumer expectations, ensuring long-term viability in an evolving market.
Supply Chain Sustainability
Beyond end-product sustainability, every step of the production process should also reflect that same eco-friendly attitude. The sustainability of the entire supply chain is gaining prominence, with brands realising the importance of every step from production to distribution should adhere to sustainable practices. Not only would this ideally align with regulatory expectations but also serve as a comprehensive approach to sustainability.
Technological Innovations
While sustainable practices are constantly evolving, a lot of it is driven by technological advancements. Brands that invest in research and development to incorporate cutting-edge technologies and ingredients into their products and processes not only future-proof their operations but also contribute to overall sustainability in the industry. For example, curbing water & energy usage & wastage during the production process and the use of biodegradable or reusable materials in packaging reduces the carbon footprint of the company and of the industry as a whole if these methods are adopted by all.
Revenue of the Skin Care Market Worldwide From 2015 to 2028
Conclusion: A Sustainable Future for Skincare
In conclusion, the intersection of sustainability and skincare is proving to be a profitable venture for businesses willing to embrace responsible practices. From meeting consumer demand and building a positive brand reputation to market differentiation and cost efficiency, the benefits of sustainability in the skincare industry are multifaceted.
As the beauty and skincare landscape continues to evolve, brands that prioritize sustainability position themselves not only as contributors to a healthier planet but also as leaders in an industry undergoing a transformative shift and becoming future-proof. The profitable pursuit of sustainability in skincare is not just a trend; it’s a strategic choice that can lead to long-term success in an environmentally aware market.
During the celebration of India’s Republic Day, we feel a strong sense of unity and democracy. While the parade theme may change every year, the essence of honoring India as a democratic motherland remains the same.
As we prepare to celebrate this special 75th Republic Day 2024, StartupTalky spotlights the efforts of industry leaders who are driving sustainable development in India through inclusive innovation. We’ve asked these entrepreneurs how their companies contribute to sustainable development, illuminating a path for positive change. They share insights into their innovative approaches, reflecting the principles of both sustainability and democratic values.
Sustainable Development Through Inclusive Projects
“At Nahar Group, we weave sustainability and inclusivity into the very fabric of our development projects. We believe innovation isn’t just about technology, but about empowering diverse communities,” remarked Ms. Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra.
Ms. Yagnik further added, “One such example is our Nahar Amrit Shakti project. We transformed a barren plot into a thriving urban forest, creating over 10,000 trees and a 25-acre biodiversity park. This wasn’t just environmental regeneration; it became a haven for local communities, providing recreational spaces, promoting fitness, and fostering social connections.
Through rainwater harvesting and water-efficient landscaping, we reduced water consumption by 50%, a boon for the water-stressed city. The project also created local jobs, empowered women through self-help groups managing the park, and instilled environmental awareness in school children through educational programs.
Nahar Amrit Shakti is a testament to how inclusive innovation can illuminate a path of positive change, addressing environmental concerns, empowering communities, and upholding democratic values. It’s a model we’re replicating across our projects, building a more sustainable and equitable India, brick by green brick.”
Pioneering Solutions for Air Pollution
Nirvana Being pioneers solution for air pollution and ecosystem restoration, prioritizing the environment. Elaborating this, Mr. Jai Dhar Gupta, Founder of Nirvana Being said, “We leverage science and sustainability to develop innovative Clean Air technology, ensuring health and safety in our air-challenged environment. Everyone, after all, breathes, making this a shared responsibility.
Beyond clean air, we’re actively restoring ecosystems. Our Rajaji Raghati Biosphere initiative purchases land near national parks and forests, rewilding them to expand our green cover and create vital carbon sinks. This initiative, a model for private-sector ecological restoration, directly impacts the Van Gujjars and countless others as we strive to plant and grow new forests year after year.
At Nirvana Being, we’re not just counter-cyclical in our approach; we view human progress through a different lens, one that prioritizes environmental stewardship and the well-being of all.”
Chetan Kasim, Co-Founder and CEO at Sustainext, emphasized, “Sustainext is revolutionizing corporate sustainability in India. Our innovative platform simplifies ESG data management, fostering efficient and intelligent decision-making. We’re helping companies understand how to shift ESG from compliance to a core business imperative. We’re charting the path to decarbonization and helping companies achieve their net-zero goals. Our combination of automated data collection, expert consulting, and specialized modules elevates ESG performance. Plus, our intuitive and clean interface is a game-changer in the sustainability arena.”
Dedication to Sustainable Solutions
TreadBinary is dedicated to fostering sustainable development in India, reducing metal wastage, digitizing operations, and optimizing supply chains.
Darshil Shah, Founder and Director of TreadBinary, stated, “TreadBinary is dedicated to fostering sustainable development in India and has a profound commitment towards it, which goes beyond a mere corporate responsibility. We have developed an in-house patent application “hac”, which reduces the metal scrap by 80%, curbing metal wastage through unnecessary scrap production. Lower scrap means fewer resources wasted to produce them thereby considerably reducing the carbon footprint of our customers.
We contribute significantly to digitizing and automating paper-centric operations for our clients, which helps in reducing paper usage, aligning with the global go-green initiative. Additionally, our proprietary product optimizes supply chain planning, diminishing inventory quantities which helps the sustainability initiative on multiple levels like- resources consumed towards logistics, stocking packaging, and scrapping.”
Democratizing Access to Credit
“Lentra’s transformative digital lending platform is democratizing access to credit, empowering individuals and businesses across sectors,” highlighted Kiran Moras, EVP of Products and Implementations at Lentra.
He explained, “In a bid to contribute significantly to sustainable development in India, Lentra has embarked on a transformative journey guided by its visionary mission statement, which underscores the establishment of a lending platform designed to foster inclusive development through the democratization of credit. Acknowledging that timely access to credit is pivotal for the sustainable growth of both individuals and businesses, Lentra has positioned itself as a catalyst for positive change.
Lentra’s digital lending platform facilitates established financial entities such as banks, NBFCs (Non-Banking Financial Companies), and microfinance companies, and addresses the unique financial needs of a broad spectrum of end customers. This encompasses farmers seeking loans for crop cultivation, dairy cattle, horticulture, fisheries, agri equipment finance, and various other agricultural purposes. By enabling lenders to extend credit to these crucial sectors, Lentra plays a vital role in empowering individuals and businesses engaged in agriculture, contributing directly to the sustainable development of rural communities.
Lentra’s innovative lending platform has manifested a transformative impact on a diverse range of stakeholders, embodying the principles of sustainability and democratic values. The platform, designed to support lending across retail, consumer finance, agriculture, and the MSME sectors, has seamlessly addressed the varied financial needs of consumers and businesses in these crucial areas.
A remarkable feat achieved by Lentra is the delivery of loans to farmers at their doorsteps, a process that involves a thorough evaluation of the farmers’ requirements and leveraging the latest technologies. Lentra integrates digital verification of land records, weather data, crop information, and irrigation data to provide real-time decisions on loans to farmers. This groundbreaking approach has significantly reduced the time from loan sourcing to disbursal, ensuring that farmers in deep rural areas have access to credit within 30 minutes. By employing such efficient and technology-driven methods, Lentra has democratized access to credit for rural customers, fostering sustainability in agriculture.
In summary, Lentra’s lending platform has demonstrated a tangible and positive impact on diverse stakeholders, reflecting the core principles of sustainability and democratic values. By revolutionizing access to credit in agriculture and the MSME sector, Lentra has not only empowered individuals but has also created a model for inclusive innovation that resonates with the broader goals of sustainable development.”
“Sid’s Farm is committed to producing milk free from harmful additives, promoting ethical dairying practices, and raising awareness about milk quality,” said Dr. Kishore Indukuri, Founder of Sid’s Farm Private Limited.
He explained, “Sid’s Farm’s commitment to sustainable development is deeply ingrained in our journey. We are committed to producing milk that is free from antibiotics, synthetic hormones, and adulterants. Our fair payment to farmers and extensive efforts towards screening of milk through 45+ tests on every can helps us make more farmers adopt ethical dairying practices, while at the same time, helping them increase their income. We also encourage customers to question the milk they are consuming. On our platform called Milkology, we raise awareness among students on adulteration. Hopefully, this will lead to a revolution in improving India’s milk quality.”
Promoting Circular Economy
“ReCircle works with stakeholders to promote circularity, facilitating sustainable waste management solutions,” emphasised Rahul Nainani, CEO and Co-Founder of ReCircle.
“We see waste as an opportunity and work closely with all stakeholders in the ecosystem (consumers, collectors, processors, informal waste workers, and businesses) so we can create a more meaningful impact towards circularity. We enable industry giants such as HUL, UNDP India, Hindustan Coca-Cola Beverages, Mondelez, Tata Starbucks, etc. aiding them in accomplishing their sustainability objectives such as EPR compliance and plastic neutrality.
ClimaOne, our tech-enabled platform, addresses existing challenges via its unified, transparent platform that provides real-time tracking, backed by data analytics, and facilitates connectivity among plastic waste collectors, processors & businesses. It also promotes traceability & sustainable consumption of resources resulting in an ethical and fair supply chain,” said Mr. Nainani.
Shweta Tare Sarwate, COO of Utopian Smoothies, affirmed that Utopian Smoothies promotes health and sustainability through preservative-free smoothies and eco-friendly practices.
She said, “Utopian Smoothies, as a healthy smoothies’ brand, has been rooted in a deep commitment to health, authenticity, and societal well-being. Our commitment extends to a preservative-free approach, providing 100% plant-based smoothies enriched with superfoods. Also, shifting from single-use plastics, the brand opts for eco-friendly alternatives like durable PP bottles and encourages reusable containers, reducing packaging waste. Eco-conscious delivery is ensured with canvas bags and repurposed cartons. Beyond smoothies, we strive to instill healthy habits, targeting the youth for a future where health is paramount. We actively contribute to a transformative journey, shaping a sustainable and health-focused tomorrow.
Our innovation has had a positive long-lasting impact on both our internal and external stakeholders. Particularly in the local communities in Pune and Nashik it truly reflects the principles of both sustainability and democratic values.
The collaboration with local farmers has led to innovation, growth of the brand and job creation within the local community. We obtain our fruits, vegetables, and supplies from local communities around Pune and Nashik, promoting local produce and organic farming methods. This approach supports India’s agricultural heritage and environmental health and also reduces logistics costs.”
“At Utopian Smoothies, we believe in Sustainable Sourcing Practices, Environmentally Conscious Production, Innovative Packaging Solutions, Community Engagement and Empowerment and Educational Initiatives for Healthy Living – Promoting Indian Superfoods that influence both our internal and external stakeholders. Our collective commitment to wellness and sustainability paves the way for a healthier, more sustainable India” added Sarwate.
As we celebrate Republic Day, let’s draw inspiration from these remarkable leaders who are shaping a brighter future for India. Together, their efforts pave the way for a more sustainable and inclusive path ahead.
Both are multinational consumer goods companies. Both operate in the FMCG (Fast Moving Consumer Goods) industry. Both companies have a strong legacy and a long history and enjoy a great reputation in the market. Both their product repertoire includes household and personal care items, food and beverage products, and beauty and personal care products. Both are publicly traded companies. One is American, while the other is British. These companies are Procter & Gamble Company and Unilever.
A comparison between these two giants is inevitable. However, it is imperative to understand the origins and the growth trajectory of both these companies.
Candlemaker William Procter and soapmaker James Gamble founded this company in the year 1837 which is headquartered in Cincinnati, Ohio. Within a couple of decades, Procter and Gamble’s sales reached USD 1 million. The company gained immensely during the American Civil War as it won contracts to supply the Union Army with soaps and candles. This also helped in increasing awareness for the company and its products as military contracts introduced P&G products to soldiers from all over the country.
By the year 1887, William Arnett Procter, William Procter’s grandson, who was leading the company, began a profit-sharing program for the company’s workforce which proved to be immensely successful and contributed to its growth and expansion. Its product demands grew exponentially resulting in P&G beginning to build factories in other locations within the US. During this time, it also diversified its products and in the year 1911, began producing Crisco, a shortening made of vegetable oils rather than animal fat.
By the year 1930, P&G expanded its footprint internationally by acquiring the England-based firm Thomas Hedley Co. From here on, there was no stopping their growth and expansion. P&G, over the years and through various acquisitions as well as product growth and new product introductions further penetrated international markets. By the year 2014, the company had more than 160 products on its brochure when it announced a restructuring. It dropped around 100 products from its repertoire citing sluggish sales and concentrated on the remaining 65 products which were bringing in almost 95% of the company’s profits. By the year 2018, it simplified its corporate structure with six business units.
P&G – Products
Unilever
It was in London; England and the year was 1929 when Unilever was formed as a result of a merger of Dutch Margarine Unie and British soap maker Lever Brothers. Over the next decade, the business grew and expanded into Africa and Latin America. Due to the Nazi occupation of Europe during the second world war, Unilever, unable to reinvest in Europe, expanded its presence in the United Kingdom and the US. Over the next few years, Unilever expanded its product portfolio through its efforts and various mergers and acquisitions. By the mid-1960s, Unilever products laundry soaps, and edible fats contributed to almost half of the company’s profits. However, markets for yellow fats were stagnating and the company was facing increasing competition from Procter & Gamble. In response, Unilever diversified its product portfolio and acquired British-based Lipton Ltd., from Allied Suppliers in the year 1971. By the end of that decade, Unilever had gained 30% of the Western European ice cream market through various acquisitions. This became the turning point for the company as by the year 1982, it repositioned itself as a company more concentrated on fast-moving consumer goods.
Unilever – Products
Over the years, Unilever strengthened its product portfolio, merged with and acquired many other brands and companies, and expanded its global footprint by establishing business operations across many countries. Currently, Unilever’s global brand portfolio boasts 400 different brands.
Despite a difference of more than 90 years between these two FMCG titans, traditionally both have battled for supremacy in several household goods and personal care products ranging from laundry detergents to shampoo. However, the key difference between these two companies is their geographical focus. P&G, originally from the US, has a highly concentrated presence in the developed markets, more specifically in North America and Europe. Unilever, on the other hand, has a diverse global presence with high-volume sales originating from Asia, Africa, and Latin America. Even so, there are a few parameters on which these companies can be compared.
Financials
Procter & Gamble, on average, houses stronger brands and has a more efficient business operation. These have resulted in the company having a better operating margin. The company also delivers higher returns on capital employed. Unilever, on the other hand, even though it has a global footprint has witnessed a deterioration in its return on capital employed.
Growth & Expansion
By December 2022, P&G had posted an annual revenue of USD 80 billion and Unilever had posted an annual revenue of USD 62 billion. However, the last decade has not seen any significant revenue growth in both companies. The main reason being cited for this is that both companies have been selling some of their low-performing brands, streamlining and restructuring business operations.
P&G By the Numbers – 2022
Sustainability & Social Responsibility
Both companies are vastly different in addressing this issue. While Unilever enjoys a strong reputation for its efforts in reducing environmental impact while simultaneously striving to improve the lives of the communities in which it operates, P&G is less focused on sustainability in comparison.
Unilever Sustainable Living Plan
Valuation
The price-to-earnings ratio shows P&G with a higher value than Unilever. However, Unilever’s valuation is a lot less demanding. This also results in Unilever shares yielding a higher dividend. However, P&G has consistently delivered increasing dividends for the last 66 years. So, investors looking for dividend growth might prefer P&G shares while investors looking for a higher starting yield might prefer Unilever.
Competition
As big as both these companies are in terms of business operations and as famous as their various brands are, significant competition exists for them from supermarket private label brands and startups aiming to conquer specific niches. Also, both these giants are also facing increasing threats with innovative startups targeting a specific operating niche like products in the natural and eco-friendly space.
Unilever vs. P&G: How CPG Giants Fight Competition from Innovative Startups
Conclusion
It is extremely difficult to choose one company over the other, especially with these two FMCG giants. In recent times, P&G has already successfully implemented its restructuring while Unilever is yet in its early phases of business transformation. Both of them are facing a similar scenario when it comes to competition so it will be interesting to see how they both fare in the future.
FAQs
When was Procter & Gamble founded?
Candlemaker William Procter and soapmaker James Gamble founded P&G in the year 1837.
When was Unilever formed?
Unilever was formed as a result of a merger of Dutch Margarine Unie and British soap maker Lever Brothers in 1929.
Tommy Hilfiger is a well-known fashion brand that has been a leader in the industry since its start in 1985. The brand is famous for its classic American style and takes great pride in making high-quality products while also pushing the boundaries with new and innovative designs. One of the most recognizable aspects of Tommy Hilfiger is its red, white, and blue logo which represents its preppy look. The brand’s attention to detail and timeless designs have earned it a huge following around the world, and it’s a favorite among both fashion enthusiasts and celebrities. The clothes have an effortless style that captures the spirit of contemporary American fashion.
Tommy Hilfiger, founded by renowned designer Thomas Hilfiger, has become a global sensation.Tommy Hilfiger offers a wide range of products, from apparel, eyewear, accessories, bags, fragrances, furniture, and more for men, women, and kids. With over 1400 outlets in 90 countries, it’s no wonder the brand has become a household name!
Tommy Hilfiger has a significant presence across the globe, with over 1,400 retail stores in 90 countries, as well as a strong online presence. The brand has a wide distribution network and is available in department stores, specialty stores, and its own standalone stores. It also has a strong presence in the e-commerce market, with its products being sold on its own website as well as other online retailers. It has also made its mark in the fashion industry by sponsoring events and collaborating with prominent celebrities, further enhancing its global reach and influence.
Tommy Hilfiger is a global fashion brand that primarily targets young adults, specifically those in the age range of 18 to 34. The brand caters to both men and women who are interested in preppy, classic American style with a modern twist.
The Tommy Hilfiger brand is known for its high-quality, fashionable clothing, accessories, and footwear that appeal to customers who want to look stylish and confident. The brand’s target audience is also characterized by their active lifestyle, and they are often interested in sports, music, and entertainment.
Tommy Hilfiger has also made an effort to be more inclusive and diverse in their marketing campaigns, expanding their target audience to include people of different ethnicities, body types, and gender identities. The brand’s core values of inclusivity, sustainability, and innovation have resonated with younger generations, making Tommy Hilfiger a popular choice among millennials and GenZ.
Tommy Hilfiger’s Marketing Mix
One of the reasons for the success of Tommy Hilfiger is its strong marketing mix. The marketing mix is a set of tools that a company uses to promote its brand and products. It includes product, price, promotion, and place. Let’s analyze the marketing mix of Tommy Hilfiger and how it has helped the company to become one of the leading fashion brands in the world.
Product Mix
The product mix of Tommy Hilfiger includes a wide range of clothing and accessories for men, women, and children. The brand is known for its preppy, classic American style and has built a strong reputation around its signature red, white, and blue logo. Some of the products that Tommy Hilfiger offers include:
Clothing
Tommy Hilfiger offers a range of clothing items, including shirts, pants, dresses, skirts, blazers, outerwear, and more. The brand’s clothing is known for its classic, timeless designs that appeal to a broad range of consumers.
Tommy Hilfiger Clothing Items
Accessories
Tommy Hilfiger’s accessory line includes items such as watches, sunglasses, handbags, belts, hats, and scarves. These items often feature the brand’s signature colors and logo and are designed to complement the clothing line.
Tommy Hilfiger Accessories
Footwear
The brand’s footwear line includes sneakers, loafers, boots, and sandals for both men and women. Like the clothing and accessories, Tommy Hilfiger’s footwear is designed with a classic, timeless aesthetic.
Tommy Hilfiger Shoes
Fragrances
Tommy Hilfiger has a range of fragrances for men and women that are sold under the Tommy Hilfiger brand name. The fragrances often feature fresh, clean scents that are consistent with the brand’s classic American style.
The product mix of Tommy Hilfiger is designed to appeal to a broad range of consumers who are looking for classic, timeless fashion pieces that are both stylish and functional.
Price Mix
Tommy Hilfiger’s price mix is designed to position the brand as a premium fashion label while still remaining accessible to a wide range of consumers. The brand’s pricing strategy is based on the value it offers to its customers, which includes quality, design, and brand recognition.
Tommy Hilfiger’s clothing, accessories, and footwear are priced at a premium level when compared to other mid-range fashion brands. However, the brand offers regular sales and promotions that make its products more affordable for price-sensitive consumers.
Additionally, Tommy Hilfiger has introduced a diffusion line called “Tommy Jeans” which offers a more affordable and casual option for younger consumers. This line includes denim, t-shirts, and other items that are priced lower than the main Tommy Hilfiger line.
Tommy Hilfiger’s pricing strategy is aimed at creating a perception of exclusivity and quality while still catering to a broad range of consumers through sales and promotions. The brand’s premium positioning and value proposition are key to its success in the fashion industry.
Place Mix
Tommy Hilfiger’s place mix includes physical stores, e-commerce, wholesale, pop-up stores, and social media. With over 1,600 physical stores worldwide, the brand has a significant presence in major cities and shopping centers. The online store provides easy access to the entire range of products, while wholesale channels allow the brand to reach a broader customer base. Pop-up stores are opened in trendy locations to create excitement around new products or collections. Social media platforms like Instagram, Facebook, and Twitter are also used to promote the brand, engage with customers, and showcase its products.
Promotion Mix
Tommy Hilfiger’s promotion mix consists of advertising through print ads, television commercials, and online ads; sales promotions such as discounts and seasonal sales; personal selling through retail stores and dealers; and public relations efforts through sponsorships, collaborations with celebrities and influencers, and supporting causes. The brand’s goal is to create a strong brand image and drive sales through a combination of traditional and digital marketing strategies.
Tommy Hilfiger is one of the most recognizable fashion brands in the world, known for its classic American style and bold designs. Tommy Hilfiger has consistently stayed ahead of the curve in terms of marketing strategies, leveraging innovative techniques to engage with its target audience and drive sales.
Let’s take a closer look at some of the marketing strategies that have helped Tommy Hilfiger become a household name, from its use of influencer marketing to its pioneering approach to experiential marketing. Whether you’re a marketer looking to learn from a leading brand or simply a fan of Tommy Hilfiger, this blog will provide valuable insights into the company’s marketing success.
Brand Image
Tommy Hilfiger has built a strong brand image through its distinctive logo, iconic colors, and classic American style. The brand is associated with quality, style, and sophistication.
Sponsorships and Collaborations
Tommy Hilfiger has collaborated with a number of celebrities and artists over the years, including Beyoncé, Gigi Hadid, and Lewis Hamilton. These partnerships have helped to increase the brand’s visibility and appeal to a wider audience.
Gigi Hadid in “The Girl” by Tommy Hilfiger
Digital Marketing
Tommy Hilfiger has a strong online presence and has leveraged digital marketing channels such as social media, email marketing, and influencer marketing to reach customers. The company also invests in search engine optimization (SEO) to ensure that its website ranks highly in search results.
Retail Experience
Tommy Hilfiger stores are designed to provide a premium shopping experience, with attention to detail in-store design and visual merchandising. The brand also hosts exclusive events and offers personalized styling services to enhance the customer experience.
Sustainability
Tommy Hilfiger has made a commitment to sustainability and has launched several initiatives to reduce its environmental impact. This includes using eco-friendly materials, reducing waste, and promoting circular fashion.
Tommy Hilfiger’s marketing strategies have helped the brand to establish a strong identity and build a loyal customer base. By staying true to its core values and evolving with the times, the brand continues to be a major player in the fashion industry.
Tommy Hilfiger’s marketing strategies offer some game-changing insights that every brand should aspire to. The first key lesson is the undeniable power of building an iconic brand image and identity that exudes quality and sophistication. Secondly, their strategic collaborations and sponsorships with celebrities and artists have helped to expand their reach and appeal to a broader audience. Thirdly, Tommy Hilfiger’s digital marketing tactics, including social media, email marketing, and influencer partnerships, have played an indispensable role in propelling its success. Lastly, by prioritizing sustainability and ethical business practices, Tommy Hilfiger showcases how marketing can be leveraged to advance social and environmental causes while remaining profitable and relevant. These powerful strategies exemplify how to elevate your brand to the top of its game.
Take action now, study their tactics, and start implementing them in your own business to achieve your goals and take your brand to the next level!
FAQs
What is the target audience of Tommy Hilfiger?
Tommy Hilfiger is a global fashion brand that primarily targets young adults, specifically those in the age range of 18 to 34. The brand caters to both men and women who are interested in classic American style with a modern twist.
What are the marketing strategies followed by Tommy Hilfiger that made it one of the most recognizable fashion brands in the world?
Below are a few marketing strategies followed by Tommy Hilfiger-
