Due to stagnation, a lot of FMGC’s had been suffering. However, recently, the consumer goods (FMCG) companies that have for years built a countrywide distribution network through Kirana stores and supermarkets said the lockdowns have boosted online sales in a short span of time as shoppers stuck at home turned to buy household essentials on the Internet.
“Increasing e-commerce trend”
The trend of online shopping has only shot up during this period allowing a better avenue for FMGCs to function as consumers prefer the contact-less delivery options being provided following the proper safety methods and guidelines. For Bengaluru-based MTR Foods,
e-commerce sales have risen from 2.2% pre-COVID to 4-5% currently.
Companies such as Swiggy, Amazon, and Flipkart have given access to companies to continue their businesses and ensure that the consumers are at ease.
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“Better business for companies”
“People who were fence-sitters to e-commerce have changed their behaviour,” said Sunny Bhasin, marketing head at MTR that makes a variety of packaged food products. “We have seen our e-commerce business double up—we have done tie-ups and extended our own
e-commerce play (own website) to more cities.”
Several other companies have begun increasing their businesses in the e-commerce field. Beverage company Parle Agro—that sells the Frooti and Appy Fizz brands—has seen its online sales jump manifold. “We have already seen a 300% increase in sales on the e-commerce
platform in the last month. With an increase in the number of partner platforms, we are targeting a ten-fold growth,” said Nadia Chauhan, joint managing director, and CMO, Parle Agro. The company has also lined up specific stock-keeping units and brands for e-commerce as it hopes to grow the contribution from online sales to 15%.
To be sure, the share of e-commerce in India’s FMCG market is still marginal with traditional retail including neighbourhood stores having a more than 85% share. However, the likelihood of an increase in this percentage is huge as delivery services continue to expand their incentives.