E-commerce just got bigger: FMCG brands like ITC, Amul, Nestle lead the way

FMCG giants like ITC, Nestle, Amul, and Dabur are expanding their e-commerce platforms across cities, offering up to 30 per cent discounts, aiming to boost customer base and direct sales

Packaged food companies such as ITC, Nestle, Amul, Dabur, and Marico are making significant strides in expanding their e-commerce platforms across multiple cities. These companies are leveraging the growing trend of online shopping to enhance their customer base by offering up to 30 per cent discounts on their products, according to a report by The Economic Times.

 

The report quoted a senior executive from a listed consumer company as saying that these initiatives are not aimed at competing with quick commerce or traditional e-commerce giants but are primarily focused on acquiring new customers. These are more about bringing subscription models and offering direct-to-consumer discounts, as it helps save on distributor and retailer margins by selling directly, the executive said.

 

Owning their own online platforms allows these companies to stock their entire product portfolio, which they cannot do on larger e-commerce platforms like Amazon or Blinkit, the executive further added.

ITC, Nestle’s strategic partnerships

ITC, known for its wide range of products from soaps to staples, has partnered with SwopStore, a rewards and incentives platform, to drive customer acquisition. Nestle, the maker of Nescafe and Cerelac, has enlisted logistics provider Delhivery to help expand its reach and improve delivery capabilities. After initially launching in Delhi-NCR and Bengaluru, Nestle has now extended its e-store operations to Mumbai.

 

A spokesperson from Nestle said that digital transformation remains a vital growth driver, particularly in strengthening their direct-to-consumer (D2C) efforts. Nestle’s e-store also offers a variety of product bundles, recipes, gifts, subscriptions, and even nutrition counselling services.  ALSO READ: Pockets and packets shrink as urban consumers face budget squeeze

Dabur and Amul: Launching new initiatives

Dabur, the maker of Vatika and honey products, has ramped up its delivery capacity, now offering services to 19,000 pin codes, compared to 16,000 last year. Meanwhile, Amul is planning to launch its own quick commerce delivery service, using its extensive network of outlets as the delivery backend.

 

The report quoted Jayen Mehta, managing director of the Gujarat Co-operative Milk Marketing Federation, which owns Amul, as saying that their D2C portal is central to their value-added business, focusing on minimising delivery times and offering special discounts to increase foot traffic during festive seasons.

Evolving e-commerce platforms

What started as platforms for testing new product launches is now evolving into full-fledged e-commerce initiatives as consumer behaviour increasingly shifts toward online shopping. Executives across these companies agree that having their own websites provides a valuable channel to sell their entire product range, unlike e-commerce platforms or traditional retail, which only stock fast-moving products, the news report said.

 

As these FMCG giants continue to scale up their e-commerce platforms, they are positioning themselves for greater market share by meeting the growing demand for online shopping.