SUMMARY
Leading fast moving consumer goods company Marico Limited has integrated its Saffola Store with the network-enabler platform
While ONDC has been receiving a lot of traction in the food ordering space due to discounts, it has been lagging behind in the grocery delivery segment
The move is expected to give a further boost to ONDC in the grocery delivery space
In a boost to the Open Network for Digital Commerce, fast moving consumer goods (FMCG) company Marico has integrated its Saffola Store with the platform.
Marico is one of India’s leading consumer products companies which houses brands such as Parachute, Saffola, Parachute Advansed, Nihar Naturals, Mediker, among others.
In a statement on the integration with ONDC, the company said, “Through this integration, Marico is committed to delivering unparalleled benefits to its stakeholders, including distributors, retailers, suppliers, and consumers.”
According to Sanjay Mishra, COO India Business and CEO New Business at Marico, while the ecommerce market in India has grown at an exponential pace over the past decade, online FMCG retail is yet to make significant inroads into rural and semi-urban markets.
Tech-led interventions such as ONDC mark a sustained effort to bring together various stakeholders within the FMCG and retail value chain to solve this challenge, he added.
“With Saffola Store integration with ONDC at such a formative stage, we look forward to collaborating with stakeholders to explore the different ways in which we can use technology to unlock and maximise its value and impact,” Mishra said.
The FMCG sector in India has witnessed remarkable transformation over the last decade due to changing consumer behaviour, urbanisation, rising disposable incomes, among others. With more and more shoppers adopting online sales across the country, ecommerce has brought new growth opportunities for FMCG players.
As per a report, the contribution of ecommerce to total FMCG sales is expected to go up to 11% by 2030. For Marico, modern trade and e-commerce grew in double digits in Q4 FY23.
ONDC, a private non-profit company backed by the Department for Promotion of Industry and Internal Trade (DPIIT), aims to further increase the ecommerce penetration in the country and democratise the space.
ONDC currently offers services in the grocery, food, fashion, electronics, and mobility segments. Its daily transaction jumped to 25,000 orders in May from 50 in January this year.
Inc42 earlier reported about the stark price differences between food orders placed on ONDC and foodtech giants like Swiggy and Zomato. However, the network has yet to do some work when it comes to grocery services. The integration of Saffola Store seems to be a step towards this.
