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  • The Omnichannel Phenomenon

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    Deep Vashi
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    The document discusses the growth of omnichannel shopping in India. Some key points: - Omnichannel shoppers spend 3 times more than single-channel customers. Over 50% of companies now use at least 8 marketing channels. - Quick commerce players are focusing on tier 2 cities for expansion and profitability. D'Mart has expanded to 7 new cities. - General trade remains the key outlet for FMCG, but e-commerce and modern trade are growing rapidly. Omnichannel households have grown 2.1x in urban India over the last 2 years. - The west is the fastest growing region for omnichannel shopping, with household growth of 144% compared to the

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    The document discusses the growth of omnichannel shopping in India. Some key points: - Omnichannel shoppers spend 3 times more than single-channel customers. Over 50% of companies now use at least 8 marketing channels. - Quick commerce players are focusing on tier 2 cities for expansion and profitability. D'Mart has expanded to 7 new cities. - General trade remains the key outlet for FMCG, but e-commerce and modern trade are growing rapidly. Omnichannel households have grown 2.1x in urban India over the last 2 years. - The west is the fastest growing region for omnichannel shopping, with household growth of 144% compared to the

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    © All Rights Reserved
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    3 views13 pages

    The Omnichannel Phenomenon

    Uploaded by

    Deep Vashi
    The document discusses the growth of omnichannel shopping in India. Some key points: - Omnichannel shoppers spend 3 times more than single-channel customers. Over 50% of companies now use at least 8 marketing channels. - Quick commerce players are focusing on tier 2 cities for expansion and profitability. D'Mart has expanded to 7 new cities. - General trade remains the key outlet for FMCG, but e-commerce and modern trade are growing rapidly. Omnichannel households have grown 2.1x in urban India over the last 2 years. - The west is the fastest growing region for omnichannel shopping, with household growth of 144% compared to the

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 13

    The Omnichannel

    Phenomenon

    Consumer Connections 2023

    Ramya, Shruti and Romil


    27th July 2023
    Multi-channel Flipkart: 40% of new At least eight
    shoppers spend sellers coming from marketing channels
    three times more tier-2 or smaller are used by 51%
    than single-channel cities in 2022 of companies
    customers (-Bain&Co.) (-Aberdeen Group)
    (-invesp)

    Lack of understanding Quick commerce D’Mart Ready has


    of how to develop a players focus on expanded to 7 new
    multi-channel profitability, cities– Bhopal, Indore,
    marketing campaign expansion in Tier 2 Kolhapur, Nagpur,
    prevents 21% of cities Surat, Vadodara and
    marketers from (-The Hindu)
    Vizag
    implementing it (-News18)
    (-NGDATA)

    2
    While Ecom & Modern Trade boom, General Trade remains the key outlet

    FMCG Penetration (%) Incremental HHs in Mns)

    +9 6.6
    +15
    29.7
    28.3
    5.1
    25.4

    +15
    +65
    9.6
    8.6
    5.4

    MAT May'21 MAT May'22 MAT May'23


    MAT May'23 vs 21
    MT ECOM
    MT ECOM

    Gr%: MAT May’23 vs 21


    3
    All India Urban
    In last 2 years, Omnichannel has seen 2X growth in Urban India

    FMCG 2021 FMCG 2023


    105 Mn HHs 112 Mn HHs

    GT GT
    GT+MT GT+ECOM GT+MT GT+ECOM
    23.4 2.5 26.8 4.2
    3.08 6.45
    MT ECOM (GT+MT MT ECOM
    Grown 2.1x +ECOM)

    MT+ECOM MT+ECOM

    Omni /
    GT+MT+ECOM GT+MT GT+ECOM
    Multichannel

    Growth 2.1 x 1.1 x 1.7 x

    Gr: MAT May’23 vs 21


    HH in ‘Mns 4
    All India Urban
    West is the key and fastest growing region for Omnichannel

    FMCG – HH Contr% HH GROWTH

    39%

    32%
    30%
    27% +144 West
    24%
    20%
    Omnichannel HHs (in Mn)

    14% 14%
    +129 South

    +95 East
    1.3 0.9 2.5 1.7

    North Zone East Zone South Zone West Zone +55 North
    Overall Buyers Omni Buyers

    MAT May’23; HH Share%


    HH Gr%: MAT May’23 vs 21 5
    All India Urban
    Entry of MT and Ecom in smaller towns drives the Omnichannel behaviour

    FMCG BY NCCS- 2023 FMCG BY TCL - 2023


    75%
    65%

    53%

    41%

    29%
    25%
    21%
    18% 18% 18%
    16% 14%
    5% 2%
    +97 +165 +139 +130 +132 +69 +84

    NCCS: A NCCS: B NCCS: C NCCS: D/E TCL: 40 L+ TCL: 10-40 L TCL: <10 L

    Overall Buyers Omni Buyers Overall Buyers Omni Buyers

    MAT May’23: HH Share%


    HH Gr%: MAT May’23 vs 21 6
    All India Urban
    Staples, Snacking, Personal Hygiene are leading sub-categories

    Categories that added more than 3 Mn incremental


    Omnichannel HHs households to omnichannel

    6.5

    4.0 4.1

    3.1
    2.3 FOOD & BEVERAGES PERSONAL CARE HOUSEHOLD CARE
    1.7 1.8
    1.0 Edible oil Toothpaste Washing Powder

    (110) (134) (132) (134)


    Spices Bar soaps Utensil Cleaner

    FMCG F&B PC HC Noodles Liq. Shampoo

    MAT May 21 MAT May 23 Biscuits/Cookies

    Gr%: MAT May’23 vs 21


    HH in ‘Mns 7
    All India Urban
    Why Omnichannel??
    The shift to Omnichannel has resulted in – 1. Increased spends..

    Avg. Spends (Delta)

    2510

    1055 978
    824
    658 671
    484 443 515
    186 96
    -99 33 70

    BARS BRANDED ATTA L. SHAMPOO SPICES WASHING POWDER EDIBLE OIL FACEWASH

    GT'21 to GT'23 GT'21 to OMNI'23

    GT buyers in 2021 shifting to Omnichannel in 2023 vs remain GT buyers in 2023

    Average Spends Rs. /HH


    NMV: Noodles/Macroni/Vermicelli
    9
    Measure: Difference in Avg spent in MAT May’23 and MAT Mat’21
    All India Urban
    2. Higher experimentation..

    Avg. Number Of Brands

    8.5

    7.1
    6.0
    5.7

    4.4 4.4
    4.0 3.8 3.8 3.9
    3.6
    3.1 3.3

    1.7

    BARS NMV SPICES TOOTH PASTE EDIBLE OIL TRADITIONAL FACEWASH


    SNACKS

    GT'21 to GT'23 GT'21 to OMNI'23

    GT buyers in 2021 shifting to Omnichannel in 2023 vs remain GT buyers in 2023

    MAT May’23
    NMV: Noodles/Macroni/Vermicelli 10
    All India Urban
    3. Increased pack size

    Avg. Pack Size (Delta)

    630

    226

    36 52 30 39 36 37
    8 -121 -6 0 -12 -6 -34 1
    BARS BRANDED ATTA DETERGENT L. SHAMPOO NMV TOOTH PASTE WASHING HAIR OIL
    BARS POWDER

    GT'21 to GT'23 GT'21 to OMNI'23

    GT buyers in 2021 shifting to Omnichannel in 2023 vs remain GT buyers in 2023

    Liq. Shampoo and Hair oil in ml/HH and rest in Gms/HH


    NMV: Noodles/Macroni/Vermicelli
    11
    Measure: Difference in Avg pack size in MAT May’23 and MAT Mat’21
    All India Urban
    BE THE DRIVER OF OMNICHANNEL BEHAVIOR

    QR CODE CAMPAIGN DISCOUNTS ON ECOM AND MT CHANNEL EXPANSION

    Physical Outlets
    Available in quick commerce
    platforms
    Rewards Points –
    through its own app

    DON’T WAIT FOR CONSUMERS!!!


    12
    Thank you

    13

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