Digitalization's Effects on India's Fast-Moving Consumer Goods Sector
N. Madhusudhan Reddy
Dr. Neeradi Karthik
ABSTRACT
Everyone shops for food every day, while some people only shop once a week to stock up. However, everyone has to buy food. Products that are cheap, in high demand and sell out quickly are referred to as "fast moving consumer goods" (FMCG). Retailers and supermarkets refer to these items as "fast moving" because consumers buy and use them frequently and stocks run out quickly. FMCG is a major economic engine in India. The fast-moving consumer goods (FMCG) sector, the fourth largest in the economy, consists primarily of household and personal care items. Rising earnings, better access, greater knowledge and evolving lifestyles have been the main drivers of the fast-moving consumer goods (FMCG) industry. December 2022 saw the FMCG market worth $56.8 billion. The FMCG market is expected to generate total revenue of around USD 615.87 billion between 2021 and 2027, growing at a compound annual growth rate (CAGR) of 27.9%.
The study shows that there are different views on digitization and that it is a complex topic. But the technologies and processes that support online grocery sales are usually the first things that come to mind when people think of digitization in the FMCG industry, especially in the food sector. On the contrary, the reason for the current rise is that consumers are demanding this feature for their grocery shopping as well, as they are increasingly used to shopping online. Customers are the most important stakeholders in the food sector, so companies cannot avoid considering digitization in response to their demands for digital solutions. According to today's literature, e-commerce or e-commerce allows buyers to purchase goods anytime, anywhere, thereby opening up a global market and freeing sellers from certain availability constraints.
The food industry has a number of specific problems due to large temperature changes and the limited shelf life of many products. When it comes to delivery, this presents both an opportunity and a barrier for online food suppliers. As all parties involved in the industry are aware of this, they are all trying to find solutions for delivery. However, whether e-commerce can remain a successful and profitable business model for businesses depends on how much the food industry as a whole grows. The digital FMCG market is included in this.
Keywords: FMCG, Digitalization, E-Commerce, Consumers.
