B2B E-commerce Websites Paving the Future of FMCG Retail

According to a recent report, the movement of FMCG products online has seen a 46 percent year-on-year rise
B2B E-commerce Websites Paving the Future of FMCG Retail

Today, businesses that were once exclusively physical retail are now continuously transitioning into the e-commerce space. In recent times, switching from physical stores to e-commerce platforms has become more about survival than innovative business and profitable decisions.

With smartphones available in India for a min price of Rs 10,000, the customer base has seen a tremendous shift in shopping habits. The advancement of technology, coupled with a growing number of businesses in India, has given rise to the online marketplace that caters to an aggressively evolving customer base, who prefer shopping in an environment tailored for them. In fact, there has been a comprehensive FMCG demand growth witnessed in the B2B trading space on account of the rising digital innovation. 

Initially, online shopping was for businesses that sold books, electronics, supplies, clothing apparel, etc. But, given the shift in customer preferences, it has broadened to selling everything from food, groceries, prescribed spectacles, etc. During the global pandemic, essentials and other products that one would typically purchase in supermarkets or hypermarkets have transitioned to e-commerce platforms. Prominent online platforms like Amazon, Myntra, Flipkart, BigBasket, etc., began selling fast-moving consumer goods (FMCG). 

This has made purchases safer, and door-step delivery options made the shopping experience seamless. To accommodate the changing market ecosystem, many support businesses began transitioning online to accommodate optimized supply chains, implementing cost-effective resources, and implementing logistics tailored for online business. This growing demand created the ideal platform for B2B businesses to expand their online presence.

Presently, B2B businesses are the epitome of symbiotic professional growth. B2B businesses grow by supporting other businesses. With retail inching its way through online platforms, the B2B ecosystem has also adapted to the new online market trends. Much like how physical retail shops that sell FMCGs rely on vendor support, wholesale trade, and other support functions, online businesses are now completely reliant on B2B e-commerce platforms. 

According to a recent report, the movement of FMCG products online has seen a 46 percent year-on-year rise. Interestingly, the pandemic was an essential factor behind this sudden boom. A number of prospective entrepreneurs and business consultants view the pandemic as a catalyst for the sudden increase in FMCG trade online.

How B2B E-commerce Platform Meets Growing Demand of FMCG Retail

Survival of Mom-and-Pop Stores: Before the pandemic struck, gentrification did a lot of damage to regional businesses. Though vital for the progress of a country, rapid urbanization put the regional MSMEs responsible for the sale of FMCGs in a deadlock. With gentrification, many supermarkets and hypermarkets with huge ‘SALE’ signs diverted a loyal customer base away from mom & pop stores. But e-commerce provided them with a cost-effective platform that transcended the standard customer approach. 

B2B e-commerce platforms connected these mom-and-pop stores with reliable vendor communities to satisfy this growing need. The service offered here provided businesses with the same hassle-free experience that their customers benefited from. With a cost-effective and dependable supply of FMCGs, regional businesses continued to survive and, over time, thrive in the newfound ecosystem.

Enable Sustainable Business Models: Conventional models are no longer viable options. The customers have migrated to a more comfort-oriented trend, and the FMCG businesses have to adapt. According to a recent survey, the FMCG and e-commerce segment will comprise more than 50 percent of the entire market in the next few years. The smooth transition of the physical business to online retail was possible due to the efforts of reliable B2B e-commerce platforms. B2B e-commerce business models promote sustainability in the online market.

Growing Support for Agri-tech: Agriculture produce is one of the biggest and always on-demand FMCGs. B2B e-commerce platforms ensure that all retail stores that have online platforms have access to rice, pulses, and other packaged agro-based FMCGs.  When physical ‘mandis’ or other conventional trading grounds were closed due to government restrictions, it was B2B e-commerce that propped up Agro businesses and ensured their survival and business continuity. Moreover, B2B e-commerce platforms introduced a competitive edge that was long missing in conventional trade. This prompts healthy business development and also ensures that produce is purchased at satisfactory prices.

Prompting The Next Natural Step: By 2025, the food and grocery retail market is estimated to be $1.1 trillion. Even if it is 15 percent that will be online-based, the market can be valued at $950 billion. This translates to a goldmine of an opportunity for B2B e-commerce platforms. Progress has always been about forwarding momentum. Taking the next evolving leap to adapt to new customer demands can be a daunting task for businesses. But B2B e-commerce platforms ensure that the leap is justified and the business ecosystem is well supported. As aforementioned, the pandemic acted as a catalyst and brought the B2B e-commerce boom much sooner than expected. Regardless, the time to capitalize on this sector and ensure sustainability is now.

FMCG are products that will never run out of demand. From the boom of retail and affordable produce to the present, where customers hold a reasonable expectation of finding and buying everything online, it has been made possible because of the support provided by B2B communities. A number of tech-enabled B2B e-commerce platforms have propelled and ensured that the online business ecosystem thrives and sustains. 

To conclude, the future of businesses is online, and B2B e-commerce platforms are the same entity that will bolster trade and ensure prosperous business continuity in the coming times.
 

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