The growth of online sales of FMCG products is outpacing sales at retail outlets, according to the latest report from Nielsen Global Performance Research and Measurement. FMCG's online sales will surpass sales at retail outlets over the next five years.
Nielsen's Follow-Up to Ecommerce Statement shows the latest trends in online consumer purchasing (FMCG) and emphasizes growth drivers in the eCommerce industry. Use and spend online worldwide. The report also contains factual evidence that despite the fact that the FMCG industry now occupies more categories such as electronics, mobile phones and travel when it comes to online spending, this trend will be change in the coming years.
When retailers and manufacturers invest to address the many barriers that exist to the development of e-commerce, such as retail and supply chain infrastructure, the environment and literary elements. These are the preconditions for the growth of the FMCG industry on the e-commerce channel, as are risks associated with the use of credit cards and forwarding operations. These growth factors are compounded by an increase in consumer demand for convenience in shopping anywhere and anytime.
While the growth of total retail FMCG retail sales is currently around 4% per year, the total retail sales of e-commerce channels is expected to increase by 20%, or 2.1%. trillion dollars by 2020 [i].
"The FMCG sector has been leveling off for the past few years or not even growing at a global scale, but now we are seeing signs of strong growth in the region mostly due to e-commerce. ", said Prashant Singh, Director of E-Commerce, in charge of Nielsen's Emerging Markets Group. "And as the development of the FMCG industry continues to shift to online channels, understanding the underlying dynamics and the factors that influence the development of a comprehensive and successful digital strategy is It is imperative for retailers as well as manufacturers. "
According to Singh, there are four main factors that significantly influence the trend of e-commerce growth worldwide:
"The retail industry is experiencing a repetition of the " Kodak moment . " The shift of the balance between shopping carts for high margin products to online shopping carts has a low profit margin. Now, for those willing to take a calculated risk, rewards come in handy in the coming years as growth continues. tilted toward online channels, "Singh concluded.
[i] Worldwide Retail Ecommerce Sales: The eMarketer Forecast for 2016 , e-Marketer, 2016