“E-commerce penetration quintupled during Covid”

NEW DELHI : The covid pandemic has pushed online sales of consumer goods faster, with around 10.7 million households buying such products between April 2020 and March 2022, according to data from Kantar Worldpanel.

However, the frequency of purchase, as well as the number of categories purchased, varied across consumer segments.

“The pandemic has propelled FMCG’s footprint on the e-com platform. E-commerce penetration has soared to 5 times the pre-covid level. retention, e-commerce has soared,” said the company, which tracks household consumption.

In fact, of those surveyed, 31% of people said they had shopped online in the past year. Of these, 28% purchased groceries, including fresh vegetables, fruits, poultry, grains and pulses, online.

Grocery is one of the top three segments purchased online.

Kantar surveyed socioeconomic consumers A and B for this data.

Penetration of FMCG as a category in e-commerce stood at 15.6% for the 12 months to April 2022, up from 10% a year earlier.

In fact, that figure was 3.6% in the 12-month period ending April 2020. The data shows a significant increase in adoption of the online category.

The pandemic prompted new shoppers to purchase goods online as mobility remained restricted and stores worked under restricted hours.

As a result, new consumers emerged online and existing shoppers tried to buy from more categories and shop from more online platforms.

“Currently for e-commerce the base is very small, but the growth will definitely continue. We are talking about a large country of ours, where we have only a small number of commerce buyers So from that perspective, it’s poised to grow for a while,” said K. Ramakrishnan, General Manager, South Asia, Worldpanel Division.

Kantar categorized buyers into advanced e-commerce buyers and inbound.

Indeed, among advanced buyers, e-commerce contributes 17% of FMCG consumption against 3% among entrants.

In the 24 months ending March 2022, advanced buyers spent on average 5,620 on the online purchase of fast-moving consumer goods; on the other hand, entrants spent 1,164.

Advanced e-commerce shoppers, despite representing only 13% of total households that purchased FMCG products online between April 2020 and March 2022, contributed 59% of spending on these products. Advanced Buyers also tend to buy a wider variety of categories at around 10, while Entrants buy 2.7.

As expected, the most advanced e-commerce consumers are affluent shoppers in major metropolises.

Buyers of everyday items tend to purchase larger packs through e-commerce, which delays their buying cycle. They also tend to experiment with variations. This is why niche segments and categories, for example, have better traction online.

“Personal hygiene categories and some staple food categories are the top e-commerce recruiting categories. However, as e-commerce shoppers evolve, they are expanding their repertoire of e-commerce purchased categories,” the report states.

When it comes to platform preference, advanced shoppers prefer specialty grocery platforms such as Big Basket and Grofers (now called Blinkit). However, entrants tend to favor trusted e-commerce platforms such as Amazon and Flipkart and discount platforms such as Jio Mart and Dmart.

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