These goods are an essential part of our daily lives , encompassing a wide range of items such as packaged foods ,beverages ,toiletries, cleaning products and more.
FMCG products are characterised by their low shelf life and consumer demand, making them a fundamental aspect of our daily routines..
The Rise of E-commerce in India--
Indian ecommerce expected to grow cagr of 27% almost three times of retail market by 2026..
Indian E-commerce market is growing at exponential rate..
In recent years , india has witnessed a significant surge in e-commerce , driven by increased internet penetration, smartphone usage , and changing consumer preferences..
Indian Consumers to shop for a wide variety of products, including FMCG items. This shift in opening landscape but has also brought about several noteworthy changes and challenges within the FMCG industry..
The indian market size is likely to increase over 300 billion U.S doller by 2030.
Competition from E-commerce Giants: One of the significant challenges for FMCG brands entering the e-commerce space is competing with giants like Amazon and Walmart-owned Flipkart in India. These platforms have a massive customer base, logistics infrastructure, and extensive product offerings. For instance, when FMCG brands launch their products on these platforms, they often have to compete with numerous other brands offering similar products.
Supply Chain and Logistics: Managing efficient supply chain and logistics for FMCG products in e-commerce can be complex. Ensuring products are delivered promptly, especially perishable goods, can be challenging. For example, during India's Big Billion Days sale, e-commerce companies face logistical nightmares to ensure timely delivery.
Opprotunities--
1. Direct to consumer (D2C) sales:-
FMCG brands can establish their own online stores or websites to sell directly to consumers. A notable example is Patanjali, an Indian FMCG brand that has successfully embraced the D2C model. They offer a wide range of products, including Ayurvedic medicines and natural food products, directly through their website.
2. Subscription Model:-
Some FMCG brands have adopted subscription-based models, offering regular deliveries of essential products. For example, brands like Nestlé have introduced subscription services for products like baby formula, allowing parents to receive regular supplies at their doorstep.
3.Cross promotion and Bundling:-
E-commerce enables FMCG brands to reach niche or specialty markets more effectively. Brands like Organic India, which specializes in organic and Ayurvedic products, have gained a following through e-commerce platforms by targeting health-conscious consumers.
4.Niche and speciality Products:-E-commerce enables FMCG brands to reach niche or specialty markets more effectively. Brands like Organic India, which specializes in organic and Ayurvedic products, have gained a following through e-commerce platforms by targeting health-conscious consumers.
