Here’s How E-Commerce Is Contributing To Sales For Large FMCG Companies
New Delhi: The pandemic has boosted demand for online groceries, helping manufacturers of rapidly evolving consumer goods (FMCGs) increase their share of sales through online sales channels over the past year.
While for some companies e-commerce share remains below 5%, for Mumbai-based Marico Ltd, e-commerce sales contributed 8% of revenue for the quarter ended March 31, 2021, the reports said. ICICI Securities analysts in a note. on the company released Sunday.
The report also compared the importance of e-commerce to other businesses.
Dabur India and Tata Consumer Products Ltd derive more than 5% of their sales from e-commerce.
While for Hindustan Unilever Ltd, the contribution of e-commerce to company sales is between 5 and 6%. âE-commerce has become the channel of choice for many consumers. The emphasis placed on building a portfolio suited to this channel, capacity building and the conduct of excellent day-to-day execution made it possible to double the growth rate and the contribution of this channel from one year to the next. ‘other,’ company management said in a March quarter. call for results for the period ended March 31, 2021.
Meanwhile, for ITC, sales through the e-commerce channel have more than doubled over the past year, increasing their importance to more than 5% of segment revenue (FMCG-other), the company said in its annual report for the last financial year. Its brands include Aashirvaad flour, Bingo! chips, Yeh! noodles, Sunfeast and Savlon cookies.
Dabur said e-commerce continues to outperform with growth through the doubling channel. âThis channel now represents approximately 5% to 6% of our sales,â the company’s senior management said on the March quarterly earnings conference call.
Mumbai-based Godrej Consumer Products Ltd makes just over 4% of its sales through e-commerce. Soap maker Cinthol said the chain was going to be “important” not just today, but for many years to come.
Meanwhile, Britannia Industries and Jyothy Labs Ltd see a significantly lower importance of sales through e-commerce, accounting for between 1 and 2% of sales through online marketplaces and online grocery sites.
For Emami Ltd and Colgate Palmolive India, e-commerce sales remain below 3%, which represents a contribution to overall sales.
In the March quarter, NestlÃ© India said e-commerce continued to show strong performance and grew 66% for noodle maker Maggi. At the end of March, the contribution of e-commerce to national affairs stood at 3.8%, the company said at the time.
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