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New-age channels make ITC step up tailor-made offerings

The ITC has co-operation plans with great fast trade and e-commerce platforms.

In addition, the company used private market and exit strategies to benefit from the growth from these channels, as mentioned in the annual report of the company.

“When the rapid growth of modern trade, e-commerce and rapid trade channels was combined with the emergence of several new players, it required the deployment of the special market and exit strategies to capture developing opportunities.” He said.

Digitally active sales have seen rapid growth and when combined with modern trade, it represents 31% of the FMCG portfolio of ITC from 17% in the 2019-20 fiscal year.

In general, the peer Hul works 7-8% produced from e-commerce.

The increase in internet usage, the widespread adoption of digital payments and faster deliveries continue to increase e-commerce sales, especially for premium products.

The ITC e-liğazası was started after the pandemi (especially to meet the demand for the required demand) and the company stopped by saying that they no longer needed the e-bond because it fulfilled its purpose.

It has enabled ITC to significantly increase sales in all aspects of operations such as cooperation, category development, supply chain, consumer offers and customer acquisition with E-Commerce and Fast Trade Platforms.

“This has been increased with the development of special package types, channel-specific business plans and ‘first’ digital ‘brands. In coordination with these platforms, common business plans, which are combined with agile supply chain initiatives, further strengthened your company’s launch in e-commerce and fast trade channels.”

Lock Inferences

  • E-commerce, rapid trade and modern trade now contribute to 31% of the FMCG portfolio of ITC, increasing 17% in the FY20 and indicates a major shift in consumer recruitment behavior and ITC’s private, channel-specific strategies.
  • In order to increase the visibility and sales of the first products and sales of the first products, ITC has established a partnership with e-commerce and fast trade platforms through common business plans, special product types and agile supply chains.
  • The emergence of new retail formats and various consumer profiles makes FMCG distribution more complex.
  • The wider FMCG market witnesses a shift, especially in the subway organized and online trade.
  • The ITC strengthens its FMCG portfolio through strategic acquisitions, including 24 mantra organic (Sresta), mother Sparsh and large foods (Prasum, Meatigo) and expands its presence in health, healthy living and premium food segments.

The company said that the rapid acceleration in the new generation channels is combined with various demographic profiles, making FMCG distribution more complicated.

“Proactive interventions continue to be made to address the rapid growth of new generation channels and demand for increasing demand for premium products,” he said.

Change channels

The ITC’s comments are compatible with a wider company trend that emphasizes that there is a change in demand for online sales channels. In the meantime, new pharmacies and special beauty stores emerge and organized trade in urban India is strengthening.

Last month, Hindustan Unilever Ltd (Hul) announced that it has expanded sales channels in a way that includes more health and healthy living stores, premium beauty sales points and fast trade.

India’s fast -moving consumer goods market has not been largely organized by millions of small “Mother and Pop” stores. However, the market has changed visible. While more wealthy consumers prefer air -conditioned markets, those in large metropolises are increasingly preferred to deliver the same day that affects smaller retailers.

Companies are taking steps to reduce the negative effects on non -online retailers.

Last month, Dabur India confirmed its commitment to the general trade partners with All India Consumer Products Distributors (AICPDF) with consumption models and pressure from online sales.

Other companies also increase e-commerce-specific launch to distinguish between channels, as reported.Mint.

Online sales make up less than 10% for most large companies, while the share of rapid trade is rapidly increasing. According to Nielsen IQ data, e-commerce, increasing online shopping penetration, more purchasing occasion and larger basket dimensions due to the end of the 12 months on March 31, the first eight subway received a value of 13%.

ITC’s products reach approximately seven million retail sales points and more than one third of them serve directly. The market scope has increased more than twice compared to pre -pandemic levels.

In the General Trade channel, the ITC performed “flexible” through differentiated product types, including a focused market approach and premiumization measures. In March quarter, the company’s basic FMCG segment (smoking and other FMCG products) contributed La14,732 CRORE, LaA year ago 13,996 Crore.

“Throughout the year, urban markets have witnessed the increasing competitive intensity from regional local players and channel shift with the increasing notice of modern trade, e-commerce and rapid trade. He said.

India Economy

2024-25 financial year, ITC’s gross income and EBITDA La73.464.55 Crore and La24,024.83 Crore, respectively. Post -tax profit increased by 0.9% La20.091.85 Crore. The company operates in various businesses such as cigarettes, agricultural products, paper and packaging and fast -moving consumer goods.

Earlier this year, ITC acquired Sresta Natural Biopructs (24 Mantra Organic Food), Increased Mother Sparsh Baby Care (Main Sparsh) shares and acquired wide food (Prasuma and Meatigo) in February.

Commenting on a wider economy, ITC said that the cumulative effect of increasing capital expenditures in 2024-25 financially and state capital expenditures loaded forward in the 2025-26 fiscal year, as well as interest rates from India Reserve Bank (RBI) and liquidity support will support growth.

“India’s macroeconomic variables are expected to remain stable in the next year, the GDP growth is expected to be approximately 6.5%for the 2025-26 fiscal year. Consumption expenditures are supported by a good Monsoon, with the support of urban demand, with the support of the impaired improvement in a union budget, the increasing improvement of the inflation and the tax. Regarding the disclosure of deductions ”.

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