Paving the way for online FMCG sales growth

According to Nielsen’ ‘What’s Next in E-commerce’ study, which analyses the latest online consumption trends in the FMCG sector, while total FMCG sales are increasing by 4 percent a year, in e-commerce FMCG sales are growing by an annual 20 percent. By 2020 sales revenue in the retail sector is expected to increase by USD 2.1 trillion. Prashant Singh, e-commerce lead of Nielsen for global growth markets, opines that as FMCG sales growth is shifting to the online channels, retailers and manufacturers ought to understand the fundamental driving forces and influencing factors, in order to be able to form a successful digital strategy. The director reckons that there are four factors which influence global growth trends in e-commerce:

1. E-commerce is growing fast, but behind this trend we find more driving forces – data available at relatively low prices, online connection, the spreading of smartphone use, cultural factors. 2. The driving forces and hindering factors are similar, but there is one exception – online sales are growing because it is comfortable to buy on the internet (the USA is an exception, where promotions motivate for buying online the most); there are three things which hinder online sales growth: shoppers want to take the products in their hands before buying, they doubt product freshness, they think the products might be of lower quality. 3. For online shops the key to success is conquering the shopping basket. 4. Convincing multichannel shoppers to buy more online. //