The Indian consumer goods and retail industry is estimated to witness its online sales growing by 40 per cent till 2019, which is the fastest among the emerging markets, while store-based sales will grow by just 10 per cent, according to a report.
As per the report by EY and the Consumer Goods Forum on global consumer goods and retail omni-channel supply chain, online sales to be witnessed in Indian consumer goods and retail industry will be the second fastest globally after Nigeria at 79 per cent.
In India, growth in store-based sales is expected to be at 10 per cent, vis-a-vis 40 per cent growth in Internet sales, the report said. During 2014-19 period, global online sales for the consumer goods and retail industry would grow by 15 per cent, while the traditional set up would have a growth of 5 per cent only.
"In emerging markets, the gap between store-based and online growth will be even greater," the report added. In the emerging markets category, India is followed by its arch-rival China with an expected online sales growth of 21 per cent and 8 per cent from traditional establishments during the period.
Recommended: Gift Smartphone This Valentine: 10 Best Online Deals
Highlighting the need to build a more responsive, integrated supply chain and improve consumer visibility, the report said omni-channel is fast becoming the key driver for consumer products and retail sector growth, but few can make it profitable using the traditional supply chain.
Commenting on the findings, EY's Global Supply Chain and Operations Leader Andrew Caveney said: "Reengineering the omni-channel supply chain must be a priority for consumer goods companies and retailers if they are going to remain relevant to both the consumer and their shareholders."
Interestingly, online sales growth in developed markets like the US and the UK are estimated to be only 12 per cent, which are below than the global average of 15 per cent. Similarly, France and Germany would have 13 per cent and 14 per gent online growth, respectively, for consumer goods and retail industry.
As for store-based sales growth, France and the UK would have a growth of 2 per cent, Germany and the US at 3 per cent and 4 per cent, respectively, during 2014-19, which is again below than global average of 5 per cent.