Nielsen India launched E-Trak Index - a measurement solution that tracks the FMCG E-Comm industry
Nielsen India expects the fast-moving consumer goods sales coming from the e-Commerce channel to grow to $4 billion with a CAGR of 44 percent by 2022 . The channel contributes 2 percent to the current FMCG market.
These are insights from Nielsen’s recently-launched E-Trak Index - a measurement solution that tracks the FMCG E-Comm industry.
India's first such solution is created using aggregated ePOS (electronic point of sale) data from cooperating e-commerce players and data science-backed estimation for non-cooperating e-commerce players in India.
The index also reveals that metros lead the e-Comm FMCG race with a 6 percent contribution from the channel to total FMCG sales.
Amongst these, food is the biggest contributor with 44 percent; followed by personal care (40 percent) and household care (13 percent).
In terms of the value contribution of e-Comm to metro sales categories with the channel, diapers contribute 26 percent to the sales, followed by skin creams (12 percent) and shampoo (10 percent).
The index adds a view of the FMCG e-Comm space for All India Metros currently - with the monthly read for total FMCG, super-categories, category level for about 20 categories and for 11 categories at a top manufacturer level.
Announcing the launch of E-Trak Index, Prasun Basu, South Asia Zone President, Nielsen Global Connect, said, “India’s FMCG industry is now making its presence felt in the e-Comm channel - appealing to consumers’ need for convenience, and in sync with increasing smartphone and internet penetration. E-Trak index will now measure FMCG consumer offtake in the e-Comm space - marrying this with trends seen in modern and traditional trade to get a read on omnichannel in the country.”
Sharang Pant, Head-Retail Measurement Services and Retailer Vertical, South Asia, Nielsen Global Connect, says that E-Comm has seen a transformative journey and is now a $1.2Bn industry growing from 0.5 percent contribution in 2016 to a 2 percent contribution in 2019, and slated to be 5 percent in 2022. This is within half the time that brick and mortar retail took to evolve.
“The channels are not cannibalizing each other, and all continue to grow with E-Comm outpacing modern trade and traditional trade,” Pant added.LIVE NOW... Video series on How to Double Your Monthly Income... where Rahul Shah, Ex-Swiss Investment Banker and one of India's leading experts on wealth building, reveals his secret strategies for the first time ever. Register here to watch it for FREE.
First Published on Dec 4, 2019 03:25 pm