Online FMCG sales to touch $5 billion by 2020: Google-Bain study

The joint report released by Google and Bain & Co predicts that $5 billion worth of FMCG products will be sold online by 2020 following 50 times the growth from the current level.
Online FMCG sales to touch $5 billion by 2020: Google-Bain study

New Delhi: Online sales in FMCG's categories, such as male grooming, beauty, food and beverages, and infant care are expected to reach $5 billion (Rs 30,000 crore) by 2020, says a study.

The internet will influence a third of the total sales in the FMCG sector in the next five years, according to the report. The internet will influence $35 billion worth of FMCG sales in India, by 2020, according to the Google & Bain study.

‘With more consumers moving to digital and spending more time online, FMCG companies will need to prepare themselves for this digital future,' Vikas Agnihotri, Industry Director, Google India, said.

'Categories such as male grooming and infant care would see as much as 25 per cent of purchases coming through the internet, while beauty would see about eight-10 per cent of purchases online,' he added.

The report concluded that there will be over 650 million Internet users by 2020. Online shopping will continue to see rapid growth and over 250 million users will shop online by 2020.

'Companies need to uncover the digital potential for different categories and align their growth trajectory with changing consumer behaviour,' Nikhil Prasad Ojha, partner, Bain & Company, said.

According to the study, 35 per cent of men are influenced by digital platform for purchases, while the number for women is 22 per cent.

Digital platforms impacted product purchases the most in categories such as male grooming (39 per cent), skin care (26 per cent), infant care (24 per cent) and hair care (24 per cent).

Image: Corbis

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