Home / Companies / News /  ITC e-store can help push entire range of FMCG products: report

NEW DELHI: ITC’s e-store or its own e-commerce platform can help the company promote its entire range of packaged goods that shoppers might not be able to find in physical stores or online marketplaces, a research by brokerage Edelweiss Securities noted.

ITC piloted its e-commerce platform in 2019. It helps that ITC’s FMCG portfolio comprises staples such as flour and spices apart from personal care brands such as Fiama, personal hygiene brand Savlon apart from packaged foods such as cookies, chips and frozen foods. This can be a draw for consumers looking at fulfilling orders across categories.

“Launch of ITC’s e-store, we believe, has come at an opportune time given the revival of lockdowns. This will help the company offer customers its entire basket of FMCG, which are not easily available in mom-and-pop shops and even on big e-commerce sites," brokerage Edelweiss Securities said in a note released 16 April.

It however added that historically the entry of FMCG companies into e-commerce has been more of a marketing strategy rather than a big contributor to sales. Especially, as established sites such as Jiomart, Flipkart, Amazon and others pose credible competition to direct to consumer channels.

The acceptance of online grocery channels in the aftermath of India’s lockdown has prompted more companies to expand their reach online. Marico Ltd, too launched its own e-store—Saffola stores last year. However, scale can be a challenge as consumers typically buy across a range of brands and categories and prefer channels where they can find multiple offerings.

ITC is incentivising bigger purchases by giving 10% off on orders above 1,500 on its own portal. Also, there are surprise offers at the checkout stage incentivising conversions, the report said.

It however added that ITC will have to drive enough traffic to its portal in order to make it meaningful via heavy ads and attractive offers to keep up with the competitive pricing of existing players.

On the plus side, the ITC portal explains all its brands and offerings, with complete control over the display and messaging, particularly for new products, which might not always get the prominence in a traditional channel or when placed on another e-commerce portal, the note said.

ITC could also likely pick on demand trends through its own portal.

“FMCG companies make considerable effort in garnering data and marketing insights on consumers. Usually, they rely on feedback from distributors or buy data from other sources. But ITC will now be able to gather data on consumer preferences and behaviour across all its products, directly from consumers…" the report said.

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