FMCG companies are betting on online-only brands

New Delhi: Large, traditional fast-moving consumer goods (FMCG) companies such as Nestle India, Reckitt Benckiser, Wipro Consumer Care, Marico and Tata Consumer said they are intensifying focus on online-only brands and businesses. They are either setting up dedicated venture funds or investing in smaller startups that sell through online channels to consumers in response to e-commerce sales doubling and niche, evolving categories that emerged amid the pandemic. Nestle India is actively exploring online-only opportunities, said Suresh Narayanan, chairman of India’s largest packaged foods company. “The direct-to-consumer space is interesting—we are actively evaluating this space and looking to unlock new avenues of growth,” Narayanan said. Last month, the maker of Nescafe coffee and KitKat chocolates acquired SimplyCook, an online-only recipe kit company in the UK focused on household nutrition. 81302139Wipro Consumer Care Ventures is looking to make more investments in this area this year.“Our focus is on digital-led consumer companies which have been able to find white spaces in a competitive industry, particularly in nutraceuticals, wellness and beauty products,” said Sumit Keshan, managing partner.The ₹200-crore venture capital fund of Wipro Consumer Care and Lighting, Wipro Consumer Care Ventures—which invested in grooming start up LetsShave just before the coronavirus outbreak and in consumer healthcare brand Onelife last month—said its focus will be on the startup ecosystem with companies that have been able to create clear consumer-focused niches. The online-only—or direct-to-consumer—segment will be a $100 billion market by 2025, according to a recent report by Avendus Capital.

from Economic Times https://ift.tt/3e5cnsi