E-Retail in Fmcg - a Study

E-Retail in FMCG : A Study

A Project Report submitted in partial fulfilment of the requirements for the Degree of

Master of Business Administration (MBA)

Under the guidance of:

Dr. Amit Bardhan

Professor

Submitted by:

Mohd Shuaib

Roll No. F-131

Area Code: MKT

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Faculty of Management Studies

University of Delhi

Delhi – 110007

January, 2016

Acknowledgement

I express my sincere thanks to my project guide Prof. Amit Bardhan for providing me an opportunity to work under his guidance and tireless support during the course of this project. His continued co-operation, encouragement and uninhibited support at various stages helped me in preparation of this research study.

I would also like to take this opportunity to thank all the learned professors of the Faculty of Management studies, who while doing the course of this journey guided me in all my endeavors and kindled in me a thirst for knowledge, it would be also appropriate to thank the staff of the library, computer lab and the administrative section for their whole hearted cooperation and support during the last two years.

I would also like to express my gratitude to my family members for their continuous support, which enabled me to take up the MBA (Full Time) course.

Certificate

This is to certify that the project titled “E-retail in FMCG : A Study submitted in partial fulfillment for the degree of Masters of Business Administration at the Faculty of Management Studies, University of Delhi is my bona-fide work. Any references have been duly acknowledged.

Student

Mohd Shuaib

Roll Number: F-131

MBA (FT), 2016

This is to certify that the above mentioned project titled “E-Retail in FMCG : A Study” submitted by Mohd Shuaib, MBA (FT) – Batch of 2016, Roll no. 131, has been carried out under my supervision.

[Project Guide]

Prof. Amit Bardhan

Faculty of Management Studies

University of Delhi

Contents

Acknowledgement        

Certificate        

Abstract        

Rationale of the study        

1. Introduction        

2. Literature review        

2.1 Digital Retail leaders at the Tipping point        

2.2 Online and upcoming- The internet’s impact on India        

3. E-Retail in India: Growth, challenges and scope        

3.1 Growth Drivers        

3.2 Online retail Vs Rest of Ecommerce        

3.3 The online consumer        

3.4 Online consumer behavior        

3.5 Scope and Challenges for FMCG in E-retail        

3.6 Industry speaks: FMCG and Online players        

4. Research Methodology        

4.1 Analysis and Discussion        

4.2 Focus Group Study: Observation and Analysis        

5. Conclusion        

5.1 Recommendations for E-retail companies looking to enter FMCG space        

5.2 Limitations of the Survey        

References        

Appendix        

Abstract

The focus of this dissertation is to study the scope of online retail for FMCG products in India and come up with suggestions regarding its future. Online retail especially for FMCG products is at a very nascent stage in India. However with the number of internet Users in India increasing exponentially, changing trends and investments from various venture capitalists, the sector is expected to see huge growth over the coming years. The research conclusions can be used by companies to facilitate management decisions regarding their online presence and explore the possibility of their own e-retail or tie-ups in an extensive manner with popular existing retail sites.

The research methodology includes secondary research from sources like internet, literature review and company reports to gauge an understanding of the current scenario. It includes conversation with brand managers of top FMCG companies to understand the way ahead for the FMCG giant as far as adding another channel to their existing channels is concerned and the extent of potential they perceive in the online retail space for FMCG products. The main research question is how consumers behave while shopping online in general and for FMCG products. Primary data was collected through the questionnaire to understand the online FMCG products buying trends and the expectations of consumers to come up with feasible suggestions regarding the future. The motivation behind the study was to understand the shopper conduct in web shopping of FMCG items in India. The response of the survey were analyzed and interpreted. The results have been depicted in form of pictorial charts and graphs.

Thus by speaking to managers in top FMCG companies as well as by conducting focus group studies in addition to the survey, the study tries to paint a picture of consumer expectations as well as the way ahead as the FMCG companies see it, for online retail in FMCG.

Rationale of the study

The motivation for choosing this topic is in the fact that technological advancement has touched upon every possible industry/sector. Recently, we all have seen the rising trend of online shopping, be it electronic items, apparel or FMCG. However, there are certain reasons as to why certain products have picked up on e-retail and some haven’t. One such category is FMCG products. They are not as widespread a concept as they should be, given the population base of India.