FMCG Firms Hop on E-Commerce Bandwagon: Marico, ITC and Dabur Get Moving
FMCG Firms Hop on E-Commerce Bandwagon: Marico, ITC and Dabur Get Moving
FMCG firms are now moving onto the e-commerce space for retail. Marico has developed plans to retail niche brands through online shipping. Dabur is also broad-basing its offerings through the platform by means of extending it to include personal care products and beverages by the end of the year.
Dabur is currently only selling healthcare brands online. Bisleri International is also making rapid forays into the online space in the coming year. ITC Foods is also planning to sell premium offering Dark Fantasy as well as Farmlite and Kitchens of India through e-commerce channels in the coming months. ITC Foods sells only premium brands on its websites.
Based on the plans of the company, Ramesh Chauhan who is the chairman of Bisleri International indicated that plans are in place to sell the brand on the web by 2015. The work for this is currently in progress, as the significance of e-commerce is on the rise.
A recent report by KPMG and Internet & Mobile Association of India cited by a prominent media group also indicates that the e-commerce space in India has witnessed an incredible growth of over 150% rising from $3.8 billion or 19,249 crores in 2009 to $9.5 bullion or 47,349 crores in the year 2012.
The e-commerce industry will now contribute to around 4% GDP by the year 2020. The idea behind broad-basing offerings online, according to Sunil Duggal who is the CEO of Dabur India is that certain products are not available in retail outlets across the country. This has to be rectified by selling brands online by the end of the year.
Along with e-commerce activity, Marico is also setting up e-clinics for the facilitation of consumer engagement. Sameer Satpathy who is the VP and business head of Marico has been cited by media as saying that the company's main strategy is to sell niche brands such as Saffola Masala Oats and Setwet on the web. The aim is also to engage consumers on social media platforms.
The group will also launch Parachute Advansed e-clinics to engage with customers. Marico is presently selling its brands on portals such as Flipkart and Amazon. Such niche brands on the website are going to be followed by the sale of ITC products in other websites as well. Chitranjar Dar who is the CEO of ITC Foods has indicated that they will be present on the web to sell their products. Worldwide, their Kitchens of India brands are being sold on Amazon.com.
With all the companies logging online to establish a presence on the web, there will now be more opportunities and options for the customer online. Online stores are the top choice for consumers who value the ease and convenience of this type of shopping. With their horizons set to expand, Dabur, Marico and ITC look forward to new innings on the online space.
