ITC to expand its online store offerings
Building on increased online sales, diversified conglomerate ITC Ltd will step up direct-to-consumer gaming through its own online store. More than 800 products have been listed on the “ITC Online Store” in 45 categories and the company plans to expand its distribution to 14 cities in the coming quarters, up from 11 currently.
Digital launches and personalization features are reviewed where possible.
In FY21, e-commerce accounted for approximately 5% of portfolio sales of fast moving consumer goods other than cigarettes. Bigger packs, bundles and exclusive launches have driven the numbers up, especially in optional items like shower gels, snacks and juices.
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As online sales gained traction through listings on Amazon and others, ITC decided to expand the reach of its own online store, sources said. He first piloted the online store with employees in 2019 and rolled it out at D2C level in October 2020 to meet emerging consumer needs. Launches started with the subways before moving to level 1 cities.
The main purpose of the platform was to showcase and offer ITC’s full range of differentiated products under one roof.
For the June quarter, e-com channel sales more than doubled year-on-year, bringing their share to 8% of “segment revenue” (FMCG-other). It recorded a growth of 3.7% in the same year. -There is a period.
In the first quarter of fiscal 22, “FMCG-others” reported a 10.4% year-over-year increase in revenue to reach 3,726 crore.
Anticipate customer preferences
According to B Sumant, executive director, ITC Ltd anticipated an increase in consumer preference for contactless shopping and home delivery. It “proactively engaged with e-com platforms” and “aligned the supply chain” to meet emerging demand.
“We have worked extensively with all ecommerce partners and ensured robust category planning and marketing mix improvements across all platforms. Our first direct-to-consumer ITC e-Store platform was also enhanced with 800 differentiated products in over 45 categories ”.
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The availability of offers such as Aashirvaad’s value-added portfolio, such as organic and multi-grain atta, Aashirvaad Svasti Ghee, ITC Master Chef frozen snacks and pasta, luxury Fabelle chocolates, products Savlon hygiene, among others, has been enhanced in the ITC online store. in recent quarters.
The company has partnered with the Dunzo micro-delivery platform, the Bigbasket grocer and even ‘Wow! Momo ‘will provide disinfectants and groceries during the first wave of the Covid pandemic.
Subsequently, ITC leveraged other digital technologies to increase productivity, including eB2B application platforms and virtual vendors that facilitate digital orders.
In the direct-to-consumer segment, it introduced the WhatsApp-based chatbot (ITC Storelocator) to allow easier access. Alternative delivery models and the use of other channels (ITC Store-on-Wheels) were executed, the company said in a presentation to investors. ‘Store-on-Wheels’ reached 900 residential complexes in 13 cities in the past year.
According to industry sources, sales through the company’s online portal and other non-cigarette consumer product platforms rose 20.1% for the “top six metropolitan cities in April-May this year. “.
“The strength of ITC’s FMCG strategy is evident in the substantial expansion of the 640 basis point margin in segment EBITDA (from FMCG-others) over the past four years,” the company said in its annual report.