Ecom share on fast track for FMCG majors

Ecommerce is increasingly turning out to be serious business for fast-moving consumer goods (FMCG) players despite the stress in urban consumption.

- Sharleen D'Souza & Shivani Shinde

Ecommerce is increasingly turning out to be serious business for fast-moving consumer goods (FMCG) players despite the stress in urban consumption. FMCG majors including Hindustan Unilever, Nestle India and Tata Consumer Products are all witnessing a significant uptick in sales through their ecommerce channels and are targeting an even more robust online business in near term.

"We are at about 7-8 per cent ecommerce contribution or thereabouts, growing of course faster than the average of our total business and that would go to 15 per cent in the next few years," Rohit Jawa, managing director and chief executive officer at HUL, told analysts during an earnings call after the company's Q4 results last week. Quick commerce contribution to its revenue stands at about 2 per cent or a third of its ecommerce business. The management pointed out that while the contribution of quick commerce is still in low single digits, it is growing at a rapid pace.