FMCG e-commerce projected to become $4 billion business by 2022

Nielsen India expects the fast-moving consumer goods sales coming from the E-Commerce channel to grow to $4 billion by 2022. The channel contributes 2% to the current FMCG market. These are insights from Nielsen’s recently launched E-Trak Index – a measurement solution that tracks the FMCG E-Comm industry.

India’s first such solution is created using aggregated ePOS (electronic point of sale) data from cooperating E-commerce players and data science backed estimation for non-cooperating E-commerce players in India. The index adds a crucial element to the Retail Measurement Services that Nielsen provides by adding a view of the FMCG E-Comm space for All India Metros currently – with monthly read for Total FMCG, Super-categories, Category level for about 20 categories and for 11 categories at a top manufacturer level. Manufacturers and marketers get data, information and insights that can be further used to hone their E-Comm channel sales strategy to help shape a smarter market.

Nitya Bhalla, Head- Data Science, South Asia, Nielsen Global Connect said “Given the significance of the channel from both a current as well as future perspective, Nielsen has built a unique state of the art hybrid model for estimating this dynamic and growing channel. The methodology involves leveraging data from key collaborating E-tailers in the FMCG space. We then use crowd sourced data coupled with machine learning techniques from a panel of 200K+ consumers to estimate the Ecommerce sales for FMCG products.”

Metros lead the E-Comm FMCG race with a 6% contribution from the channel to total FMCG sales. Amongst these, Foods is the biggest contributor with 44%; then it is personal care (40%) and household care (13%). Narrowing in on the value contribution of E-Comm to Metro sales categories with the channel, Diapers contribute 26% to the sales; followed by skin creams (12%) and shampoo (10%).

Spread the love

Related posts

Leave a Comment