ITC Sees Soaring Online Sales in 2022-23, Capitalizing on E-commerce Boom

ITC, a major consumer goods company, experienced a significant increase in online sales during the financial year 2022-23. This growth was supported by strong e-commerce platforms and the increasing trend of online purchases following the Covid-19 pandemic. 

Recent data from ITC's annual report reveals that its sales through online channels grew much faster than the average market rate. According to the company, their e-commerce sales expanded rapidly and reached approximately five times the levels observed in the fiscal year 2019-2020. Consequently, online sales accounted for more than 10 percent of ITC's packaged food and personal care product sales during the year.

ITC highlighted that its partnerships with popular e-commerce platforms have played a crucial role in boosting its online sales. These collaborations cover various aspects of operations, such as developing product categories, marketing, managing the supply chain, and attracting new customers.

 Additionally, ITC has focused on creating special and relevant product assortments, prioritizing digital-first brands, and working with the platforms to promote its products through joint campaigns. The company also emphasized the importance of close coordination with e-commerce platforms in creating and executing business plans, which have contributed to strengthening ITC's position in the online market.

In urban areas, more and more consumers have been shifting towards modern trade (such as supermarkets) and e-commerce platforms, leading to increased growth in sales from these channels. On the other hand, in rural areas, ITC has been implementing targeted strategies to expand its direct presence based on factors like socio-economic indicators and the market's potential. This means that the company is focusing on reaching rural customers directly in a way that suits their specific needs and circumstances.

In order to strengthen its presence in local kirana stores and other general trade outlets, ITC increased its network of rural stockists by 20 percent year-on-year during the fiscal year 2022-23. Over the past five years, the company has experienced significant growth in market coverage by 350 percent and outlet coverage by 150 percent.

During the same period, the network of stockists has expanded by 8.3 times. As a result, ITC's market coverage in the fiscal year 2022-23 has doubled compared to pre-pandemic levels. Currently, ITC's products are available in nearly seven million retail outlets, and more than 33 percent of these outlets are directly serviced by the company.