Monday, August 29, 2011

Online FMCG / CPG Retailing – it’s challenges and opportunities

Online retailing of Fast Moving Consumer Goods (FMCG) / Consumer Packaged Goods (CPG) has not been caught up so far, not just in India, but also across the world. It is probably the last big segment / sector that is still largely out of the online commerce ambit and represents the next big challenge.

FMCG’s (grocery / household essentials) share of wallet is not only very high, but it is also very consistent and is rapidly growing over time, and therefore there is a lot of interest in wanting to address this market.

However, there are a number of challenges that traditional e-commerce models face when it comes to FMCG / CPG online retailing. The challenges are not just logistical, but also around the consumers’ buying behavior and service level expectations.

Also read the 4 reasons that make the opportunity of FMCG online retailing REAL, if done right.

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