Marico, a prominent fast-moving consumer goods (FMCG) company in India, has announced the integration of its Saffola Store with the Open Network for Digital Commerce (ONDC), providing a significant boost to the platform.
Marico, known for its renowned brands such as Parachute, Saffola, Parachute Advansed, Nihar Naturals, and Mediker, aims to deliver unparalleled benefits to its stakeholders, including distributors, retailers, suppliers, and consumers through this integration.
Sanjay Mishra, COO India Business and CEO New Business at Marico, highlighted the slow progress of online FMCG retail in rural and semi-urban markets despite the exponential growth of the e-commerce market in India over the past decade. Mishra emphasized that tech-led interventions like ONDC play a crucial role in bringing together various stakeholders within the FMCG and retail value chain to address this challenge.
The integration of Saffola Store with ONDC opens up opportunities for collaboration with stakeholders to leverage technology in unlocking and maximizing value and impact, according to Mishra.
The FMCG sector in India has undergone significant transformation in recent years, driven by changing consumer behavior, urbanization, and rising disposable incomes. The increasing adoption of online sales across the country has created new growth prospects for FMCG players. A report suggests that the contribution of e-commerce to total FMCG sales is projected to reach 11% by 2030. Marico itself experienced double-digit growth in modern trade and e-commerce in Q4 FY23.
ONDC, a private non-profit company supported by the Department for Promotion of Industry and Internal Trade (DPIIT), aims to enhance e-commerce penetration in the country and democratize the space. Currently, ONDC offers services in grocery, food, fashion, electronics, and mobility segments. The platform’s daily transaction volume has seen remarkable growth, increasing from 50 orders in January this year to 25,000 orders in May.
The integration of the Saffola Store with ONDC signifies a step forward for the network in the grocery services sector. While ONDC had previously faced criticism regarding price differences compared to food delivery giants like Swiggy and Zomato, the platform continues to evolve and expand its offerings to meet the diverse needs of consumers and businesses in the digital commerce landscape.
