Most FMCG companies sell their products on partner e-tail sites like Amazon and Flipkart. But, ITC does not want to be ‘most FMCG companies!’ The brand is gearing up to launch its own e-commerce website that will house its FMCG offerings. With online sales in India slowly becoming the norm and growing at a substantial 51% annual rate, there’s no secret why ITC wants to emerge as a big player in the same. The online sales market in India is also estimated to touch 200 Billion USD by 2030, which means that there’s plenty of potential revenue for e-commerce sites that market themselves well.
What is ITC India’s Game plan?
Nielsen reports indicate that 98% of Indian consumers who have working internet and smartphones have made online purchases. These are the same consumers who are gaining access to a host of lifestyle content and information. As a result of this, more and more people are interested in experimenting with gourmet products and high-end FMCGs. ITC plans to capture this market by launching its own e-commerce website in order to ensure that consumers buy their products straight from the source. This website will include both, food products and non-food related FMCGs.
As of now, ITC is being very careful with this launch. They only want their services to be available in key metro cities that have already proven their penchant for online shopping. As a result, the first few cities to gain access to their services will be Delhi, Mumbai, Hyderabad, Kolkatta, and Chennai. Based on the response they garner from these cities, the brand will decide when and how to expand into other regions in India.
An Extensive Product Catalogue
As of now, the website has been launched as a part of their pilot test plan, which includes only selling gourmet chocolate. ITC will soon sell high-end skin care products by the brand Dermafique, ghee, rice, blended Aashirwad Aata, Sunbeam gourmet coffee, health food, and functional food. So far, they’ve revealed that they plan to work with a logistics distributor to help facilitate their orders across these cities.
Don’t they already have an online presence?
ITC has been selling its FMCGs through e-commerce websites such as Amazon, Flipkart, Big Basket, and Grofers. In an effort to reach more customers and ensure that they never face situations where the desired product is out of stock, ITC plans to launch its own e-commerce site. They’ve taken measures to ensure that their website or its products do not clash with India’s new e-commerce policies in any way.
How are ITC products performing in the Indian market?
ITC is one of the biggest brands when it comes to FMCGs. As per reports, they already enjoy a revenue of over 1 Lakh Crore INR from their packaged goods, stationery, and personal care products. Their total business profit in 2017-18 was 164 Crore INR, which is more than enough to justify a separate platform that only offers one brand’s products.
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