As the world moves beyond COVID-19, fast-moving consumer goods (FMCG) brands must navigate a reality in which e-commerce growth has slowed dramatically from the lofty heights of the pandemic. Using insights obtained from Euromonitor International’s new Passport: E-Commerce system, this briefing provides guidance for brands on which retailers they should prioritise partnering with in order to boost digital sales across beauty and personal care, food and beverages, and home products categories.
This report comes in PPT.
Fast-moving consumer goods (FMCG) brands must continue to deal with one of the pandemic’s lasting legacies - a permanently elevated rate of e-commerce penetration. As e-commerce sales growth begins to normalise in the wake of the pandemic, however, it is more important than ever that brands look to grow their digital sales partnerships with retailers that understand the online space and can present their products to the largest possible number of consumers.
Online marketplace giant Amazon has established itself as the benchmark for all other retailers in the beauty and personal care e-commerce space. Yet, despite Amazon’s near-dominant position, opportunities exist for other retailers to increase their online beauty and personal care sales, as well - particularly beauty specialists, such as Nykaa in India and Douglas in Germany, that succeed due to their unique understanding of local tastes in their home markets.
Although Amazon is the leading retailer in online sales across most FMCG industries, in food and beverages, it is eclipsed by Walmart, the world’s leading grocery retailer. Walmart leverages it vast network of brick-and-mortar stores to fulfil click-and-collect orders of perishable items that are ill-suited for home delivery - underscoring the advantage that physical outlets provide to legacy grocers looking to expand online food and beverages sales.
Digitally-native pet specialists, such as Chewy in the US and ZooPlus in Europe, have shown that specialist retailers can compete with, and even surpass, online marketplace operators in the realm of pet care e-commerce. In doing so, they have created a model that other specialist retailers in the home products e-commerce space can follow - a model built around customer loyalty and hassle-free, automated re-ordering of regularly purchased items.
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
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