According to a recent report by Nielsen, ecommerce is expected to contribute at least 5 percent to fast moving goods market and the treble sales are likely to touch the mark of $4 million by 2022. Currently, online sales account for two per cent of FMCG sales and while the market analyst anticipates the channels to

grow, the general trade contribution is expected to go down by 400 basis points.

In the present time, most of the consumers in metropolitan cities are buying highpriced groceries through online channels. For example, if a person is spending four rupees on diapers, one rupee in that is spent online and controls almost 12 percent of skin cream spends. As per the study, food accounts for 44 percent of online sales followed by personal care sales at 40percent. On the other hand, the leaders in utensil cleaners, packaged tea and toothpaste segments witnessed a fall in their share of online sales during April-August, when compared to the same time period last year.

With India’s online sales contribution being same as that of developed markets of Canada, Scandinavia and Western Europe, the markets of China and South Korea have a higher ecommerce contribution of 17 percent and 20 percent each.