As internet penetration holds the key influencing factor among all types of consumers, especially for B2C, FMCG industries need to gear up to cater to a new set of population.
The swift in the generation is already underway: millennial, Generation Z (born after 1995) and women are digital savvy. Being digital is something that comes with them as a kind of inheritance. They are heavily dependent on internet for almost everything. Their source of information, pictures, reviews, etc. all is routed via online. Though they may not be purchasing everything online but still internet casts an ineffaceable influence on their daily chores, shopping patterns, and the way of thinking and lifestyle.
As going by stats – over 40 percent population of India lives in the top 30-40 cities – and generally they all use internet. Because of this reason, the trend of e-commerce is catching up. Major E-commerce companies of India are witnessing a surge of traffic from Tier I & II cities, a significant move from offline to online. Being digital is thriving like never before.
Considering the rural population and emergence of Tier I & II cities, clearly, there is a strong need for rural e-commerce, which will definitely change the business landscape of FMCG companies. If they aren’t online, they aren’t getting sold that good.
Rural population is over 60 percent. That’s why E-tailers are falling back on this set of population, which further is fueled by the availability of the telecom technology (2G, 3G, 4G) that works best for using apps and browsing website. Unarguably, in the times to come, the e-commerce orientation will be revamped or reshaped by this population.
Apart from population composition factor, the buyer dynamism is another aspect that impacts the market and provides a scope for product innovation. In India, working population, educated women, students, and other young population is always short on cooking time; hence, they rely on shortcut ways to better up their lifestyle. Also awareness related to food and lifestyle is handy online, thus people either order products online instantly or make note of the information. Either ways internet is influencing them. E-tailers are becoming their preferred choice because of ‘Home Delivery’ concept.
Digital wallets, demonetization and govt. steps towards cashless economy has given momentum to people to buy commodities where physical cash is not involved, for this situation shopping online serves them best and unhesitatingly, unlike local stores that sustain on cash transaction.
In all likelihood, E-commerce deals with standardized and packed products – a credibility factor that helps in boosting the sales. Feedback and sampling and testing system embedded with E-commerce improves the product.
In a nutshell, FMCG industry has to focus on the emerging generations’ shopping and exploring behavior for a serious swift of business.