FMCG slowdown? More than 1 in every 2 items bought on Amazon, Flipkart is food, cosmetics, beverages

By: |
December 20, 2019 10:39 AM

Fast-moving consumer goods are the most sold items on e-commerce platforms with every one in two items purchased online belonging to the FMCG category.

On e-commerce platforms such as Amazon, Flipkart, Snapdeal and others, the highest volume of orders are for FMCG at 56%. (Image: Bloomberg)

Fast-moving consumer goods are the most sold items on e-commerce platforms with every one in two items purchased online belonging to the FMCG category. On e-commerce platforms such as Amazon, Flipkart, Snapdeal and others, the highest volume of orders are for FMCG at 56%, information, data and measurement firm Nielsen said in a report on Thursday. On the other hand, smartphones and feature phones contribute about 48% of e-commerce sales in terms of value, followed by fashion at 16% and FMCG by 11%, the report added. In apparel, footwear, luggage and accessories segment, men’s clothing drives the sales with 58% contribution. 

More and more customers are postponing their online purchases in anticipation of sale periods. “More than 84% of sales came from this period of ‘Big Day sales’ as against just 16% during non-sales days, complementing India’s festival season. Within this, high ticket categories such as electronics, large appliances, and home decor saw a 3-4 times jump in sales,” the report said. In the first week of festive season sales, from the 28th of September to 25th of October, online shopping peaked while it remained flat in the weeks leading up to that time. 

“The online shopper in Top 8 metros is expanding their basket including FMCG, home decor and electronics – evidence of an evolving relationship with the channel. Consumers in Tier 1 cities continue to use mobile phones as an entry point to the channel with half of the contribution coming from the category,” AJR Vasu, Executive Director, Sales Effectiveness, Nielsen, South Asia said in the statement.  

Meanwhile, the increasing mobile penetration in India is driving e-commerce and every second shopper on online platforms in a new shopper. Also, more consumers are choosing prime time or night time to make purchases with sales peaking at 11 pm. “This reinforces the consumer’s quest for convenience with anytime anywhere access to the shopping cart,” Kunal Gupta, Head E-Commerce, Nielsen, South Asia, said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Nestle India chief says 2022 going to be difficult year on higher commodity prices
2PNB earns Rs 170 crore in FY21 by levying charges on non-maintenance of minimum balance: RTI
3Leather exporters urge govt to extend PLI benefits to them