Impact Of E Commerce Of Fmcg Sector Essay - 1362 Words

Impact of E-commerce of FMCG Sector Grocery and FMCG sales together constitute approximately 62% of the Indian retail sales, both unorganized and organized (Modern retail and E-commerce) sectors combined. Organized retail in India is growing its share in India but modern trade has not taken off the way it should have because of various reasons very specific to India. Entire generation of Indian youth is thus directly leapfrogging to e-commerce from shopping in convenience ‘Mom Pop’ stores. Consequently, it can be concluded that e commerce will grow in India as Organized retail notches up its share but it will grow more at the expense of Modern trade. And as modern trade outlets and chains are important to FMCGs, they cannot remain oblivious to growing clout of ecommerce industry that can substantially impact their sales. With dropping Smartphone prices, current base of 213 million internet users is poised to grow fast, which in turn, will boost e-commerce cells. Worldwide, it is found that, Smartphone penetration and percentage of total FMCG sales through e-commerce platform are very strongly correlated. Country Smartphone Penetration % of FMCG sales through e-commerce South Korea 80% 10.2% Germany 50% 0.8% China 70% 0.9% (But growing very fast) Brazil 29% 0.1% India 10% ? India lags behind than most other developed or developing countries in terms of Smartphone penetration but it needs to be taken into cognizance that India has unparalleled demographic dividend unlikeShow MoreRelatedThe Impact Of The Gst System In India1131 Words   |  5 Pagesbehind the hitherto lead Sweden at 25%. These complete transformations of the tax regime system from July 1st is going to have a deep impact in supply chain in India like in other sectors: A. FMCG sector: The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. 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