Taking a cue from their counterparts in mobile handset and consumer electronics industry, fast moving consumer goods (FMCG) companies in India are warming up to the idea of taking the limited period, e-commerce exclusive approach to launch some of their products.
Taking a cue from their counterparts in mobile handset and consumer electronics industry, fast moving consumer goods (FMCG) companies in India are warming up to the idea of taking the limited period, e-commerce exclusive approach to launch some of their products. Aerated beverage players viz. Coca-Cola and PepsiCo had experimented with this strategy in some of the international markets four years ago. In fact, Coke Zero was a limited period online exclusive offering when introduced in India back in 2014. Just last week, the branded packaged food division of diversified conglomerate ITC launched a limited period e-commerce exclusive noodle range in partnership with Big Basket.
Accordingly, the Yippee! My range noodles are being exclusively sold across the country on bigbasket.com for a period of one week and will be available across retail stores nationwide thereafter. “We believe a lot in the e-commerce space as it is growing over 120% for us in the last couple of years. It’s a very crucial part of our portfolio and this channel can deliver much more for certain categories. We will be frequently tapping this limited period e-commerce exclusive strategy going forward,” Malik said.
The one-off cases are set to become mainstream with online shopping for food and grocery items fast gaining acceptability among Indian consumers. Players like Amazon and Flipkart joining the likes of Big Basket and Gofers has boosted the consumer confidence for online food and grocery shopping. This coupled with a huge improvement in internet speeds, logistics infrastructure and road connectivity, presents a huge opportunity for FMCG firms to adopt this strategy for their new launches in coming years.
The owner of Kisses, Jolly Rancher and Sofit brands, Hershey India doesn’t have an e-commerce exclusive offering as yet. However, Herjit S Bhalla, managing director, Hershey India, sees potential in this strategy going forward.
As the market opens up to this idea, he doesn’t rule out the possibilities of an e-commerce exclusive product from Hershey in the future.