linkedin
BROUGHT TO YOU BY
Exclusive Access, Inclusive Growth

WELCOME TO ET PRIME

BROUGTH TO YOU BY
Exclusive Access, Inclusive Growth
ET Prime
FMCG

A stopgap amid the pandemic: why D2C sales can never match the scale of India’s general trade

Selling direct to consumers online during the pandemic has been hailed as a great solution, but the format has limitations. First, D2C cannot run at scale, especially in India where 90% of FMCG demand is still met via general trade. Second, for an established brand to get into the D2C space is a lot harder than it seems.
font size
FONT SIZE
save
SAVE
saved
SAVED
Gift this article
GIFT ARTICLE
soumyagupta
13 Aug 2020 10 Mins Read 0 comment
Concept by Muhabit ul haq and Soumya Gupta Getty Images
Concept by Muhabit ul haq and Soumya Gupta
There is a breathless frenzy around selling direct to consumers (D2C) since the pandemic hit India and disrupted the country’s supply chain and distribution. But D2C has always been the buzzword among challenger brands. Only this time, established FMCG names in the food-and-beverage (F&B) business are also taking this space more seriously. The reason: as cities go into successive
the relatively lower cost structure that a brand with some established market share can take advantage of. But it isn’t a sales panacea. And using it to its full benefit needs a more dramatic change than some FMCG behemoths can afford to make in already difficult times. ( With inputs from Shabori Das) (Graphics by Sadhana Saxena)
There is a breathless frenzy around selling direct to consumers (D2C) since the pandemic hit India and disrupted the country’s supply chain and distribution. But D2C has always been the buzzword among challenger brands. Only this time, established FMCG names in the food-and-beverage (F&B) business are also taking this space more seriously. The reason: as cities go into successive the relatively lower cost structure that a brand with some established market share can take advantage of. But it isn’t a sales panacea. And using it to its full benefit needs a more dramatic change than some FMCG behemoths can afford to make in already difficult times. ( With inputs from Shabori Das) (Graphics by Sadhana Saxena)

The latest from ET Prime is now on Telegram. To subscribe to our Telegram newsletter click here.

Gift this story

YOU CAN GIFT 0 MORE STORIES THIS MONTH

Maximum 10 Email IDs allowed

300 characters remaining

Gift Sent Successfully

Limit Reached
Limit Reached

You’ve gifted all the 0 articles from your monthly gift bucket!

Please come back next month.

0 more articles will be waiting for you in your gift bucket.

Current Edition

Message from Planet Labs’ eye in the sky: India is a medieval knight in the age of modern warfare
Space

Message from Planet Labs’ eye in the sky: India is a medieval knight in the age of modern warfare

Satellite pictures of the Galwan valley region shared by US-based Planet Labs exposed China backtracking on the agreement with India to disengage. While the images did help India foster its case in shaping global opinion, it also exposes the country’s unpreparedness in advanced technologies. The episode underlines the urgent need to nurture companies in satellite imaging and space technology.

[[^message]]

Result

[[/message]] [[#message]]

[[message]]

[[/message]]