Mumbai: ITC In the last annual report, for FY2024, said that the share of modern trade and e-commerce routes for its FMCG portfolio has grown to 31 percent in the last year.
This, in comparison to the industry average of 15-20 percent, is way higher than the other leading FMCG players in the country. Around 80-85 percent of their sales come from the general trade channel comprising traditional kirana stores and other such physical outlets.
According to ITC management, the surge in internet usage particularly through smartphones, widespread adoption of digital payments, a wide assortment of products, and faster deliveries continue to drive the rising salience of e-commerce channels.
The increase was enhanced by the creation of unique pack selections, business strategies tailored to specific channels, and brands prioritizing digital platforms. ITC stated that its market position in this channel has been strengthened by implementing Joint Business Plans along with e-commerce platforms and agile supply chain initiatives. It is clear that the share of e-commerce and modern trade channels in ITC's FMCG sales has significantly increased, with their combined contribution at 17 percent in FY2020, compared to four years ago.
Although the modern trade sector saw impressive growth, it was mainly due to the opening of stores in tier 2 and tier 3 cities. Having a presence in various channels in urban areas allowed for faster growth, and using insights from shopper marketing and agile supply chain capabilities improved operational efficiencies.
To increase its visibility in the latest channels, ITC concentrated on developing an internal omnichannel network, which included 'ITC e-Store' as its direct-to-consumer platform. During the year, ITC's eB2B platform UNNATI has quickly expanded, reaching almost seven lakh outlets as many retailers now place orders directly on the platform.
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