Snapdeal Bets Big on FMCG

The Economic Times - - Business Of Brands -

Wri­tankar Mukher­jee & Ratna Bhushan

Kolkata | New Delhi: Ecom­merce mar­ket­place Snapdeal is bet­ting big on FMCG prod­ucts to drive re­cur­rent pur­chase from shop­pers, and has started fourhour as­sured de­liv­ery of th­ese prod­ucts in Gur­gaon as a pi­lot.

Snapdeal plans to en­ter into all house­hold goods and con­sum­ables, ex­cept fresh pro­duce like veg­eta­bles and fruits, and take fourhour de­liv­ery to other big cities.

“Since we have set a tar­get of 20 mil­lion consumer trans­ac­tions ev­ery­day by 2020, we have to make Snapdeal a sin­gle habit app for all con­sump­tion needs. Herein FMCG will play a big role and for this we would have to com­pete against the lo­cal ki­ranas,” said Rahul Taneja, vice-pres­i­dent (cat­e­gory man­age­ment) at Snapdeal. He added that there is de­mand for pre­mium FMCG prod­ucts and large packs, es­pe­cially in tier II and III mar­kets with con­sump­tion power. “We are try­ing to ex­pand the ac­cess of goods and not un­der­take any dis­tri­bu­tion ar­bi­trage. In fact, we share data with FMCG com­pa­nies on pock­ets of de­mand,” he said.

Tony Navin, se­nior vice pres­i­dent (part­ner­ships and strate­gic ini­tia­tives) at Snapdeal, said a lot of com­pa­nies do sam­pling through the plat­form, which at­tracts re­peat pur­chases.

Snapdeal has inked di­rect rela- tion­ship with most FMCG ma­jors in­clud­ing Hin­dus­tan Unilever, Nes­tle, P&G and Reckitt Benckiser. On Tues­day, Nes­tle launched its Maggi veg­etable atta and oats noo­dles for an exclusive pre­view sale on Snapdeal. The com­pany, which bought a stake in hy­per­local gro­cery de­liv­ery ser­vice Pep­perTap, said it will con­tinue the mar­ket­place model for FMCG.

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