Sreejita Talukdar, Content Writer, Siliconindia

Among the most profitable sectors in business arena, Fast Moving Consumer Goods or FMCG is the most crucial component of business. In India, FMCG is regarded as the 4th largest sector and it is continuing to be profitable at a healthy rate over the years due to some prospective factors like rising disposable income, a rising youth population, and rising brand awareness among consumers.

A country like India where the middle class population is greater than the total population of US, no prominent player of FMCG can afford to neglect. One of the main and most crucial factors of the rising demand of this sector is that the products belongs to FMCG are non-durable and low cost. It has short life span because of its high consumer demand. The urban segment of the society contributes the highest part in terms of revenue generation. But, the recent decades have witnessed a revolution of this industry by embracing the blessing of digitization. Significant parts of rural India and semi urban segment of society has started contributing rapidly and accounted 50 percent of the total revenue generation while the urban area contributes 65 percent of it.

Various Components of FMCG Market

The digital shift in the FMCG landscape holds particular significance, reshaping consumer interactions, and market dynamics. This blending helps to magnify the critical role of embracing digital technologies for brands in achieving market relevance and competitiveness. Food producers, bakeries, local fresh produce shops, drugstores, and office supply providers cover a small part of the different companies that generate more than 1 billion dollar.

Understanding and distinguishing Business-to-Consumer (B2C) and Direct-to-Consumer (D2C) models is crucial in the FMCG sector. B2C primarily relies on conventional retail channels, whereas D2C emphasizes a direct link between brands and consumers. Few prominent FMCG categories are processed foods, ready-to-eat meals, canned beverages, baked items like cookies, croissants, and bagels, fruits, vegetables, nuts, fish, meat, over-the-counter medicine, cosmetics, and toiletries.

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Blending of B2C & D2C in FMCG Sector

The B2C segment in the country involves the traditional retail channels and on the other hand, D2C is regarded as the direct connection between brands and consumers. The homogenous blending of different channels of digital marketing FMCG sector has started growing with a rocket speed. With 190 million of digital shoppers, India has declared as the third largest online shopping base across the world. Brands like Nykaa beauty, Licious, Blinkit, Purple, and Zepto are few of the burning examples of the proper implementation of B2C and D2C channels. These channels became so flourishing that already established brands like VLCC has acquired D2C brand USTRAA, ITC acquired Yoga Bar, Hindustan Unilever acquired health & wellness brand Oziva.