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Internet to influence $35 billion of FMCG sales in India by 2020: Google

Livemint:  February 11, 2015

Mumbai: The influence of Internet will impact purchasing decisions worth $35 billion of products in the fast-moving consumer goods (FMCG) segment by the year 2020, according to a report released on Tuesday by Google Inc. and consulting firm Bain & Co., signifying the growing importance of Internet as a medium to reach consumers.

According to the report, in the next five years, Internet will influence almost one-third of all purchasing decisions of FMCG products.

The number of online shoppers will increase rapidly to more than 250 million by 2020, while the total number of Internet users will cross 650 million, the report said.

“This dramatic rise in the online shopper base in India, will contribute $5 billion worth of FMCG sales through online channel, growing 50 times from the current level contributing 5% of total sales from the current 0.3% share by 2020,” according to the report.

Categories such as male grooming, infant care products and beauty products will be the most impacted by the rapid growth in online shoppers and influence of Internet on purchase decisions. For male grooming products, 25-30% purchases will happen online, 20% to 25% for infant care products and around 8% to 10% of all beauty products will be bought online by 2020, the report said.

The findings were derived by studying a sample of 1,600 Internet users (male and female) across 13 cities including metros and non-metros and across eight FMCG categories—skin care, hair care, oral care, home care, infant care, male grooming, beverages and food.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

x IBEF : India Brand Equity Foundation