ITC Pulls The Plug On Its Online Store

SUMMARY

Launched at the height of Covid-19 pandemic in November 2020, “ITC Store” has now stopped taking orders

The company said the platform, which was launched to capitalise on the growing online shopping trend, has served its purpose

The development comes at a time when the Indian quick commerce has witnessed the entry of as many as 19 newcomers in the last few months

FMCG giant ITC has discontinued the operations of its online store, nearly five years after launching the digital marketplace.

Launched at the height of Covid-19 pandemic in November 2020 to capitalise on the surge in online shopping, “ITC Store” has now stopped taking orders. An ITC spokesperson told The Hindu businessline that the standalone ecommerce platform has “served its purpose”.

The FMCG major is reportedly now leaning into a multi-platform digital distribution strategy that spans ecommerce, quick commerce, and modern trade. As per the report, the company is also focussing on digitally-enabled sales and strengthening its presence in general trade.

Notably, ITC’s products are also available on ecommerce and quick commerce platforms like Amazon, Blinkit and Instamart. The company’s portfolio includes names such as Aashirvaad, Sunfeast, Bingo!, Fiama, Vivel, Classmate, among others, across categories such as food and personal care.

“The company has strengthened its mix and assortment on these platforms, leading to an appreciable growth of over 50% in these channels (ecommerce and quick commerce),” an ITC spokesperson told businessline.

Inc42 has reached out to the company for comments on the development. The story will be updated on receiving the response.

The development comes at a time when India’s urban milieu is rapidly embracing quick commerce, with the space witnessing the entry of as many as 19 newcomers in the last few months across various categories.

The popularity of quick commerce has also intensified competition and pushed established players like Zepto, Swiggy Instamart, and Zomato’s Blinkit to splurge heavily to offer discounts, broaden their offerings and scale their dark store network.