Video

FMCG Industry and Digitization

In the Coming Years, Online Channels Are Expected to See Significant Growth
Vaidyanath Subbaraman, director/global head - technology, Unilever

The fast-moving consumer goods (FMCG) sector is one of the largest sectors of the Indian economy and a key contributor to it. It is characterized by a high turnover of non-durable consumer packaged goods, that is, goods that are produced, distributed, marketed and consumed within a short span of time. Although the urban sector contributed the majority share, semi-urban and rural segments have witnessed significant growth in the last decade.

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The household and personal care segment made up the largest share of the industry, with healthcare and food and beverages segments accounting for the remainder of the market. However, the first and second waves of the COVID-19 pandemic that occurred in 2020 and 2021, respectively, impacted non-essential segments of the industry, much like the rest of the world, resulting in reduced demand. In the coming years, while offline purchases will remain fundamental, online channels are expected to see significant growth. Online portals from established players have started to play a pivotal role in providing cheaper and more fitting modes of purchase for consumers. According to a report released by Google India and Boston Consulting Group (BCG), the online FMCG market in the country is estimated to reach about $45 billion in 2020.

In this interview, Vaidyanath Subbaraman, director/global head - technology, Unilever, discusses the increased importance of digital transformation and e-commerce in the changing times in the FMCG sector.

Subbaraman is a technologist at the core, with expertise in FMCG and retail industry across sales, route to market, B2B e-commerce, retail distribution, supply chain, enterprise resource planning, etc. He has experience in leading global programs across geographies such as Africa, Russia and the Middle East - with long-term stints in South East Asia (Vietnam) and South Asia.

This article was previously published on the DynamicCIO website on May 31, 2021.


About the Author

Smruti Gandhi

Smruti Gandhi

Executive Editor, ISMG

Gandhi has more than a decade of experience in community engagement and incubating industry events. She is extremely proactive in building engagements with communities including CEO, CFOs and CIOs. Prior to joining ISMG, she worked with Dun & Bradstreet and Great Place to Work.




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