Internet is expected to influence close to US$ 11 billion out of the total sales in the FMCG sector for beauty and hygiene products by 2020, according to a recently released report from Google and Bain & Co. This study further said that the projection represents two-third of the total sales in the beauty and hygiene sector of US$ 17 billion in 2020. It is important to note here that with an estimated 130 million Indians expected to shop online by 2020, internet is expected to turn out as a prominent sales channel forming 20 per cent of total sales estimated to reach US$ 3 billion.
Considering how digital is expected to play an integral role in the growth of the overall FMCG sector, the FMCG companies in India need to start thinking of digital as a more strategic medium and chart out a digital growth path for their products. Experts believe that the adoption of highly consumed product categories in beauty and hygiene category is almost double in digital households compared to non-digital households and even the penetration of emerging product categories is up to three times higher in digital households making the digital audience an extremely important audience for the industry.
With 30 per cent of women population in India expected be online by 2020 reaching 200 million, the internet can be expected to become the primary channel for manufacturers of beauty and hygiene products in the country to communicate and connect with the target audience.