Sunday, June 19, 2011

Hoping Good Response in Emerging Categories of e-retail- FMCG

Now buy FMCG products online
Online Retail in India moving towards High Risk High potential categories like FMCG. Though Categories like Apparel & electronics struggling for survival but still companies like Dabur, Himalaya Herbal Healthcare, Neutrogena, Oriflame, Amul, Future Group, Aditya Birla Retail, REI Agro and Carrefour, have a strong belief they will be able to expand their reach through the internet.  Dabur already have started selling personal care products from their online site- http://www.uveda.retailmart.com

"FMCG companies and retailers have started using the online medium not only for brand promotion but also for sales. It is a difficult category to break into in terms of online sales, but many players are making aggressive efforts to do so," Wirefoot India Technology (an online retail consultancy firm) MD and CEO Ankur Dinesh Garg shared his view in his recent interview.

FutureBazaar.com is selling personal care & child care products online. "We are experimenting at the moment with a limited number of FMCGs. The category offers a good opportunity in terms of consumer’s frequency and repeat orders online," FutureBazaar.Com President Kashyap Deorah said in an interview.

In India internet industry contributes 3.2% to GDP which is almost equal to world’s average, but if you look at fraction to online retail out of it, it lowest in the world. In such scenario categories like electronics and apparel not able to give the sustainable boost to business, I will be big challenge to make their way categories like FMCG.

At the same time the way online retail is growing in India, it will definitely give some positive result 2 years down line. Big companies investing big to develop online channel to reach their consumers and it’s been a right time to do so. Once FDI will be open in multi brand retail this channel would become more lucrative and sustainable.


Nikhil Kunwar


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