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Last Updated : Dec 04, 2019 03:25 PM IST | Source: Moneycontrol.com

FMCG e-commerce to grow at 44% CAGR by 2022: Nielsen India

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.

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First Published on Dec 4, 2019 03:25 pm
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