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Why are FMCG companies turning to e-commerce portals for product launches?

FMCG experts said it is a go-to-market strategy for these companies to promote their products first on an e-commerce portal to create the buzz about the product and judge customer behaviour

November 26, 2018 / 04:04 PM IST
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Be it a chocolate, chips or your favourite noodles, you will be able to find it on an e-commerce portal before it hits the supermarket shelves near you.

FMCG companies are looking at exclusive tie-ups for a limited period to launch their products on e-commerce portals first before taking it to the mass markets.

Last week, FMCG major ITC tied up with Bigbasket for selling YiPPee's My range noodles. The products were available on Bigbasket for one week, following which it was distributed to all modern format and general trade stores across India.

“Digital e-commerce is an important opportunity area. The digital world, including e-commerce platforms, are effective tools to strengthen the brand’s visibility and build a consumer franchise, ”Hemant Malik, Divisional Chief Executive-Foods Division of ITC, said, adding that over the last few years the e-commerce segment is growing at over 120 percent for ITC.