12 Feb FMCG sales: 5% to be online by 2020
There has been an increase in people searching for fast-moving consumable goods (FMCG) resulting in a possible influence from the Internet of over a third of total sales in that field by 2020.
The statistic by Google and Bain & Company also claimed that online sales would constitute USD 5 billion.
Vikas Agnihotri, Industry Director of Google India said, “The influence of the Internet will impact USD 35 billion worth of FMCG sales in the country by 2020, as more and more users go online to research for FMCG products. Total FMCG sales are expected to be around USD 100 billion by then.”
He continued on to say that USD 5 billion or 5% of total FMCG sales will be online by 2020, a huge increase from the present level of 0.3% now.
The growth of online user population sees a prospect of over 650 million Internet users in five years time, more than twice the amount of the 300 million in the previous year.
The report also claimed that 100 million women will be online shopping by 2020 also.
The survey had been conducted among 1,600 online users, both male and female, across 13 different cities and covering eight of the FMCG categories such as hair, skin, home, infant and oral care, male grooming, food and beverages.
Vikas mentioned that the rural markets would be contributors to the online growth and vernacular content would play quite a significant role in pushing sales.
He said, “A couple of changes are definitely going to happen. You will see a lot more Hindi and vernacular content going up. People feel more comfortable in their mother tongue and about 500 million people speak Hindi. It’s logical that the next move will be from English to Hindi and other vernacular stuff will actually happen.”
Shown on the study was a statistic of 35% of men and 22% of women research online prior to buying, claiming, “The Internet influence differed by category of products with maximum influence on purchase decisions noticed in male grooming (39%), skin care (26%), infant care (24%) and hair care (24%) products.” The study added that online searches for beauty products were increasing at over 100%.