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Dabur is planning for a major expansion in the e-commerce segment

India: Dabur has ventured into online cosmetics and beauty products through NewU, which is run by its wholly-owned subsidiary H&B Stores. The company has also started to work on another platform to improve its presence in the e-commerce space.

On account of rising number of e-commerce websites, growing internet penetration, and increasing sophistication and diversification of small businesses, India’s e-commerce market is forecast to grow exponentially. Although, the e-commerce is growing at a very fast pace the online FMCG segment is in its initial phase and the contribution of online sales in the FMCG segment is relatively very low.

According to TechSci Research, the company’s move to expand in the e-commerce segment is a very good strategy given the fact that the company can penetrate the market with only a few major FMCG companies operating in the e-commerce sector. If the company implements successful strategies in the FMCG segment, it could capture the market share in a very less span of time.

According to recent report published by TechSci Research, “India E-Commerce Market Forecast and Opportunities, 2020”, the country’s e-commerce market is projected to grow at a CAGR of more than 36% during 2015-2020. E-services segment, which comprises online travel, online payments, online classifieds, etc., is expected to continue its domination through 2020. However, the e-tail segment that includes electronics, apparels & accessories, health and personal care, etc., is expected to witness significantly higher market growth compared to e-services segment over the next five years. During 2015-20, the western region is expected to remain the largest e-commerce market in the country. Major players operating in India’s e-tail market include Flipkart, Snapdeal and Amazon. 

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