Trends Study - FMCG, India & Digital.

Google and Bain Consulting's recently released report on the impact of digital and ecom on the FMCG brands was extensively covered.

Of the multiple aspects of the report the two that leaped out for attention were:

50x projected growth in about 5 years - with about 5% of the sales being online.

 The other was that in 5 years 35% (35 Bn USD), would be digitally influenced sales.










The critical role of "digital" for FMCG brands is clearly established. Fun times ahead.

Bing's Image Widget.

Thought this was interesting enough to share. Bing Image Widget. Try it here

John Oliver on Native Advertising

That's not bullshit. It's re-purposed bovine waste!! Epic :-)

State of Grocery Home Delivery Report : India

As part of our constant endevour to understand the evolving trends & shopping behavior of grocery

consumers, AaramShop undertook an exhaustive research across 150 stores in the Delhi & NCR. The core objective was to understand the entire scope of "home delivery" within the FMCG segment and its current and future impact on brands. 

The research results are in and they indicate that Home Orders at the neighborhood retail stores are starting to become very significant indeed.  This, of course, has significant implications for brands from the following points:

a.    How to influence the customer when she is planning her monthly purchase

b.    How to influence her when she is placing the order

c.    How to influence her when she is getting the delivery

We found that 60% of the shops surveyed had more than 40% of their business coming from the Home Orders. Y-axis represents the % of business via home orders.

If you are interested to get hold of the full report, please send me an email or a tweet.

Related articles

• The changing profile of Indian retailers & AaramShop.
• Point of Sale has moved - from the store to the consumers' home.
• Mobile Disrupting Path to Purchase.
• Simplified Online Plan for FMCG brands in India.

The "gross margin negative business model".

The recent article in ET on "How success of e-commerce start-ups are making traditional retailers rethink their model" was interesting reading, however, what was more interesting was the view of Mr. Biyani. On this one (the two points he makes) I agree with him.

The darling of everybody at this point in time is "the great ecom experience", however, the business viability & margins on transactions are the elephants in the room that are getting ignored. The gross margin negative businesses are not sustainable and are completely dependent on the VC funds for survival - a fact validated by a number of business leaders who were unable to raise a 2nd or a 3rd round and ended up shutting the once 'viable ecom' business.

Another article worth reading on the subject is Issues with Inventory models .  

Looking forward to see how the category progresses and the models that will finally sustain.  

Related articles

• From the web to the consumers' doorstep; enabled commerce for FMCG brands.
• The changing profile of Indian retailers & AaramShop.
• The truth vs hype of big retail.
• The future of commerce is a hybrid model with (entertaining) showrooms + online fullfillment