Qcom on rise, ITC devises bespoke strategy for distribution channels

As kirana stores grapple with increasing competition from quick commerce platforms, fast-moving consumer goods (FMCG) major, ITC, is tailoring assortments across distribution channels to ensure relevance and survival of each.

- ISHITA AYAN DUTT

In the second quarter of financial year 2024-2025 (Q2FY25), ITC's sales on quick commerce grew over 50 per cent year-on-year on a smaller base and accounted for 50 per cent of overall e-commerce sales. But for a firm that rolls out a stream of products every year, the touch-and-feel that brick and mortar formats lend to the consumer, is invaluable.

ITC executive director, B Sumant, told Business Standard, that it has adopted an omnichannel strategy. "Our core objective is not to push one channel over another. So, we are defining the role of each channel in the consumer's life and aligning assortments accordingly."

The approach ensures that the traditional shops stay alive while helping customers seek out the channel most relevant to their needs. "Otherwise, the channels are going to cannibalise each other. And that doesn't benefit anyone," Sumant explained.