Technology and the Internet have transformed (and disrupted) virtually every industry around us. It has redefined how we, as consumers, purchase goods, the speed at which deliveries are made, and the choices available to us. There was a time when having a bottle of Canadian maple syrup at the breakfast table in India depended on a relative arriving from abroad. When it came to toothpaste, our choice was limited to Binaca, and then later Colgate.
Will the fast moving consumer goods or FMCG industry be spared the technology disruption? Considered a relatively stable and high-moat business, where large advertising budgets, massive distribution networks and store access have ensured that the moat remains deep. But for how much longer?
With the markets opening up to foreign goods, and e-commerce companies setting up shop in the Indian markets, consumers today are spoilt for choice. One of the biggest enablers of this is the logistics and supply chain sector. Although marred by inefficiencies, this sector is on a growth trajectory in India.
Do read our case study on how we helped an FMCG company expand their presence in the e-commerce space.
|E-commerce business models in the FMCG sector
A leading FMCG company in India wanted to expand their presence in the e-commerce space, and hence wanted to
– establish the business models of successful e-tailers
– and the role played by each player in the supply chain
In-depth interviews with accomplished and upcoming e-tailers helped map the supply-chain of the sector, and provided insights on how other FMCG firms were approaching e-commerce.
Information about the competitors’ sales structure, business model, revenue sources, cost structures & profitability, and growth projections was captured.
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