ITC ramps up digital presence for its chocolate brand; focuses on expanding reach

By: |
November 24, 2020 8:00 AM

Apart from traditional e-commerce channels, the company has partnered with luxury gifting portals such as Indian Gifts Portal alongside emerging channels such as EasyDiner, Dunzo among others

As per industry estimates, of the Rs 11,000 crore chocolate market, luxury amounts to about Rs 150 crore excluding duty freeAs per industry estimates, of the Rs 11,000 crore chocolate market, luxury amounts to about Rs 150 crore excluding duty free

In an effort to reach out to a larger consumer base, ITC Fabelle, a premium chocolate brand from the house of FMCG company ITC, claims to have ramped up its digital presence to expand its reach. “In the current scenario, digital platforms have become the catalyst to drive luxury business. The confluence of convenience and last-mile delivery expertise has enabled us to deliver chocolates to consumers in an hour’s time,” Anuj Rustagi, chief operating officer, Chocolate, Coffee, Confectionery and New Category Development – Foods Division, ITC Ltd, told BrandWagon Online. The company claims that online contributes to 20-30% of the sale, currently. Prior to the lockdown, online’s contribution was just two-three percent of the overall sales, said the firm. It currently sells in two-three ranges — under premium, mass premium and mass.

Apart from traditional e-commerce channels such as Amazon, Flipkart and Big Basket and food delivery partners such as Zomato and Swiggy, the company has partnered with luxury gifting portals such as Indian Gifts Portal, alongside emerging channels such as EasyDiner, Dunzo among others. Additionally it claims to expand through its own direct-to-consumer (D2C) channel. This largely consists of a takeaway menu, ITC eStore, ITC Hotels App and ITC Store on Wheels. “E-commerce, alongwith takeaways, stores on wheels with gifting portals today have helped us go back to almost the same levels of turnover pre-Covid. These currently account for 60-70% of the channel sales,” Rustagi added.

The company which entered the mass segment with the launch of Fabelle Choco Deck and Fabelle Soft Centres in 2018, expects it to pick up in terms of generating higher sales compared to luxury. As per industry estimates, of the Rs 11,000 crore chocolate market, luxury amounts to about Rs 150 crore excluding duty free. The company which has already begun to promote its products currently relies more on digital. “Over time, we will increase marketing spends across other platforms as we add to the number of franchises. Right now, our primary channel is digital because that gives us the right consumer segment as we are present only in the six metros,” Rustagi explained.

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