Online "Kirana" Stores Are Gaining Traction in India.


BENGALURU: Before we realized, the E-Commerce market in India has entered our homes and plays a vital role among the Indian middle class. The Smartphone market in India, made it easy for the common man to access e online shopping sites which offer such attractive sales, that people are now purchasing their daily products online.

India’s e-commerce market is currently dominated by electronics, books and fashion. But Economic Times Bureau reports that even fast moving Consumer Goods (FMCG) have been gaining traction lately. Even the big national brands are trying their luck through their online stores. Everyday consumer products like toiletries, cosmetics and snacks are being ordered online.

Amazon India spokesperson noticed a five times growth in online sales in skin care, baby nursing and grooming products. The growth in sales is higher in companies which are weak on distribution muscle like Khadi, Patanjali, Park Avenue and the like. Considering the boom in Indian E-Commerce market, Snapdeal anticipates a 50 times growth in coming years. E-commerce giants like Flipkart and eBay have started selling hair oil, shampoos and soaps as well.

Globally, online shopping for groceries and personal care products is on the rise. In a fast moving world people find it easier to shop online with excellent delivery and return facilities. Kantar Worldpanel, an international company dealing in consumer knowledge predicted that e-commerce for FMCG globally will increase 47 percent to $53 billion by 2016, up from $36 billion in 2014.

For instance big industries like Britannia and Dabur are the latest entrants into the online market. Varun Berry, MD at Britannia Industries says, "Modern trade has not taken off the way it should have, and so we are leapfrogging to online, which is expected to do very well because of cost savings."

Brittania recently launched its Good Day Chunkies, a super-premium chocolate chip cookie, exclusively on Amazon. While Britannia sells directly on big online marketplaces and through its distributors on smaller ones, most others are encouraging a switch to online stores from brick-and-mortar distribution.

A look at the recent Google’s Great Online Shopping will prove how E-commerce firms are leaving the customers spell bound. Google’s three day long fest witnessed 80 lakh visitors. FMCG companies including Hindustan Unilever, Johnson and Johnson, Lakme, P&G have given away their sample products to a large set of customers during the fest.

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