BLOGMind your Es(eCommerce)...

Mind your Es(eCommerce) and Fs(FMCG)…

The F here stands for FMCG and E for eCommerce…

FMCG, this term is being bandied about relentlessly these days. Fast Moving Consumer Goods or FMCG, as they are known by business insiders, are an imperative part of any industry all over the world. These are products that are sold quickly and at a relatively low cost.

Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products is very large.

Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, light bulbs, batteries, paper products and plastic goods. The very basic goods that are required in our day to day life, for good hygiene and survival are all a part of the FMCG industry.

These products are in used daily and are in demand constantly. Some of the companies that sell FMCGs include Unilever, Procter and Gamble, Coca-Cola, Nestle, Colgate-Palmolive, etc.

The fast moving consumer goods (FMCG) segment is the fourth largest sector in the Indian economy. According to, total consumption expenditure of the Indian FMCG market is set to reach nearly USD 3600 Bn in 2020, from USD 991 Bn in 2010.

The FMCG sector in India generated revenues worth US$ 34.8 billion in 2011, a growth of 15.2 per cent as compared to the previous year. Over 2006-11, the sector’s revenues posted a compound annual growth rate (CAGR) of 17.3 per cent. Food products are the leading segment, accounting for 43 per cent of the overall market. Personal care (22 per cent) and fabric care (12 per cent) are the other leading segments.

It wasn’t very long ago when ordering beauty products or household goods online was considered strange. But now, according to a recent survey by the Grocery Manufacturers Association, 40% of member companies within the association are expected to sell direct-to-consumer online in the future, up from 24% last year.

As eCommerce has evolved, so have the expectations of consumers to not only find but also order products online. With growing popularity of e-commerce and shopping portals, many FMCG retail companies are launching their Websites to sell products.

The Indian online retail sector is expected to expand to Rs.7, 000 crores by 2015 as more consumers are buying online due to rising Internet penetration and dependence on technology, according to Assocham.

Last year, Dabur, set up its online shopping portal for beauty products range offering Uveda range of skincare items. Retailers like Pantaloon, Westside, Shoppers Stop, etc are all entering the ecommerce boom by selling their products online.

At IntelligenceNODE, we believe that the time is ripe for the FMCG industry to jump on the ecommerce bandwagon and make profits…