FMCGs turn to online distribution as Covid forces kiranas to down shutters

Online as a percentage of sales for FMCG companies has touched 8-9 per cent for some firms versus 5-6 per cent a few months ago.

Fast-moving consumer goods (FMCG) companies are switching to online distribution as kirana stores bear the brunt of Covid-19. Nearly 13 per cent of kiranas were shut in April over March, the data from retail intelligence platform Bizom shows.

The trend is expected to be no better in May, as the combined problem of a liquidity and supply crunch as well as kirana employees suffering from coronavirus hurt business badly. India saw a sharp surge in Covid-19 cases in April and May as the country was hit by a second wave of infections.

Most in the frontline of operations, including retailers