Once the Indian consumers warmed up to the idea of buying books online, etailers started trying to woo them into buying other things online as well. Online selling of books extended to electronics, clothing, shoes and many other products. With the various options and services, consumers also accepted buying these online.
The past few months saw the introduction of FMCG products on a bigger scale as well. Today, consumer items like soap, shampoo, hair oil etc. and grocery, vegetables and packed foods are also being sold online.
The success and popularity of the e-commerce business has caught the eye of fast moving consumer goods (FMCG) companies as well. Biggies like Dabur, Marico, Bisleri and ITC have started selling their products online. While some have already launched their own portals, some are getting set to launch their own ecommerce stores.
“It would be a single digit, maybe two per cent or less of the total revenue of FMCG companies at the moment. However, this is set to multiply in the coming years. Online shopping offers convenience, and consumers can also get better prices. Some of the online FMCG retailers are getting into private labels, which could actually bring down the prices by up to 40 per cent,” said an analyst with an equity brokerage firm, explaining how revenue from online sales is still very low.
FCMG etailing is growing fast globally. According to a June report by Kantar Worldpanel, e-commerce is expected to account for $53 billion of global FMCG sales by 2016 – an increase of 47 per cent from the present level of $36 billion. The share of online sales will also increase to 5.2 per cent by 2016 from the present level of 3.7 per cent, it added.
Asia will witness the next big growth in the sales of FMCG products in the online space, led by South Korea. The highest across the world, 55 percent of South Koreans already buy FMCG products online.
The world over, FMCG products are seeing fast movement in the online space, although the current contribution to overall sales is quite small. But its better for retailers to see the bigger picture and bank on the available opportunities to broaden their target markets.
After dwindling with her family business, into travel and hospitality, for more than 3 years, Pooja Vishant found her true love in writing. Happy-go-lucky and cheerful, she loves pink; so pink is the way to go if you want to get into her good books. The Associate Editor keeps track of even a leaf that has moved in the ecommerce world!
Leave a Comment
