Online Sales in Fast-Moving Consumer Goods Would Reach a Value Of US$5 billion by 2020
Published By : 11 Feb 2015 | Published By : QYRESEARCH
A research report by Google, the technology organization and Bain & Company, a consultancy firm, stated that online sales in fast-moving consumer goods, that is, FMCG’s segments, such as beauty, male grooming, food and beverages, and infant care would reach a value of US$5 billion by 2020. This would make up to 5% of total FMCG sales, expected to reach a value of US$100 billion by 2020, the study said.
The chairperson of Bain & Company, Mr. Nikhil Prasad Ojha stated that the present FMCG market size is US$50 billion. Of this, online FMCG sales account for 0.3% only. The increment in the next five years is considerable and tells about the rapid digital migration of customers in the time-frame that is under review.
The market study, the conclusions of which were gathered after three months of extensive research in the previous year that involved 1,600 internet users across thirteen cities, noted that one third of the FMCG market would be inclined in some form or other by the digital medium in five years.
Mr. Ojha also stated that most FMCG enterprises in India had underrated the effect of the internet on their business and they were struggling to get a digital road map for their products. Companies require uncovering the digital potential for various categories and aligning their growth route with changing customer behavior he said.