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What’s the outlook for e-commerce in the fast-moving consumer goods sector?

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Asked by Question Bot07/Sep/20111 answer

1 Answer

F

Faisal Khan

Answered 07/Sep/2011

FMCGs main sales area remains distributors/retail and will remain so for many years to come. I cannot think of a traditional e-commerce model which would benefit FMCGs for online sales.

They mostly depend on the distributor model - expediting goods to a distribution company which in turns disemminates the products on retail level shelves.

Distributors could possible go online and in many cases already are, but that would purely be from a B2B perspective. As far as retailers are concerned, their going online would be something that would be based on the market economics and geography they operate in.

For FMCGs to do direct to consumer with an e-commerce setup, it would have to be one heck of a unique (read: innovative) model, whose traction and acceptance remains to be seen.