Now, niche FMCG brands go web first to test the market

The power of the Web is enticing FMCG and consumer durables companies to pre-launch niche and premium products on ecommerce sites before they hit retail shelves.

This helps test the acceptability of their products in the marketplace.

Marico chose the e-commerce model for brands such as Set Wet and Livon.

Britannia wanted to launch its chocolate chip brand Good Day Chunkies, and decided to use Amazon to gauge the acceptance of the product.

“We sold Chunkies exclusively on Amazon last month for about 15 days. Through such initial online trials, we are reaching out to our target audience,” says Ali Harris Shere, Director Marketing, Britannia Industries.

Chunkies is a premium cookie brand, and the biscuit major felt selling on Amazon would reveal the target audience for its niche product.

Besides, e-commerce sites also double as an additional distribution platform for such FMCG companies.

As Shere says: “With the help of e-commerce sites we can reach out to places as far flung as Andaman & Nicobar to the North Eastern states. Such sites serve as a new distribution channel for us.’’

Marico decided to pre-launch hair wax Set Wet purely through e-commerce sites almost six weeks ahead of its formal launch. According to Sameer Satpathy, EVP & Business Head, Marico India: “E-commerce sites are a great way to figure out if the product is going to work. We want to put this channel to work and create a new business.”

For Marico, e-commerce is seen as an additional distribution arm, which is imperative for FMCG companies with a limited reach. As Satpathy says: “There may be consumers in places like Guwahati who want to try our niche brand like Livon hair gain but may not be able to buy it due to inadequate distribution.

“For such products, e-commerce works as it does not entail the scattered conventional distribution model.”

In fact, a “pre-launch” strategy is also applicable to the consumer durables category, whereby the new product whets the appetite of consumers before going in for a “burst” sale. Home-grown brand Vu Televisions decided to sell its 32-inch android television model exclusively through Flipkart this Diwali, about ten days ahead of its store launch.

“The concept of pre-launch works beautifully in the online space for niche products as it helps consumers experience the product before buying it, and this is known as a “burst” sale,” says Devita R Saraf, CEO and Design Head, Vu Technologies.

Besides, getting the right audience for the niche products is also easier through such sites.

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