According to a recent report by Nielsen, ecommerce is expected to contribute at least 5 per cent to fast moving goods market and the treble sales are likely to touch the mark of $4 million by 2022. Currently, online sales account for two per cent of FMCG sales and while the market
analyst anticipates the channels to grow, the general trade contribution is expected to go down by 400 basis points.
In the present time, most of the consumers in metropolitan cities are buying high-priced groceries through online channels. For example, if a person is spending four rupees on diapers, one rupee in that is spent online and controls almost 12 per cent of skin cream spends. As per the study, food accounts for 44 per cent of online sales followed by personal care sales at 40 per cent. On the other hand, the leaders in utensil cleaners, packaged tea and toothpaste segments witnessed a fall in their share of online sales during April-August, when compared to the same time period last year.
With India’s online sales contribution being same as that of developed markets of Canada, Scandinavia and Western Europe, the markets of China and South Korea have a higher ecommerce contribution of 17 per cent and 20 per cent each.