The rapid expansion and evolving nature of online marketplaces have positioned them as pivotal growth channels for FMCG brands. Although these platforms offer substantial opportunities, success hinges on understanding the nuanced dynamics to each subcategory. By proactively adapting strategies and leveraging marketplace-specific advantages, FMCG brands can unlock long-term value and foster resilience in uncertain times.
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In a dynamic digital playing field, marketplaces have risen as a dominant force for FMCG brands. FMCG e-commerce grew by 11% in 2024, with 36% of this value growth facilitated by marketplaces, as these platforms are the single largest channel, according to Euromonitor International’s E-Commerce research.
Marketplaces have been key in scaling e-commerce growth across FMCG categories, strengthening online penetration for many. However, significant nuances exist for different categories on these platforms. Understanding these nuances and developing tailored strategies is crucial to navigate effectively and succeed in the evolving online landscape.
Marketplaces are fundamentally different in how they can support FMCG brands for online growth. Shopping events with the best deals, optimising for price and packaging architecture, as well as cross-selling opportunities and last mile delivery services via marketplaces are not matched by other platform types.
The ease of setting up and managing seller presence has made marketplaces increasingly attractive for FMCG brands and third party sellers to expand distribution. This offers an infinite shelf of products, enhancing choice and curation, but at the same time, competition is fierce, while unauthorised sellers risk brand control, potentially leading to channel conflict.
Marketplaces in the future will embody a fully integrated commerce ecosystem that connects the entire FMCG value chain, from production to delivery. Tech-driven personalisation, dynamic pricing and intuitive shopping experiences achieved at scale and speed will make marketplaces critical partners in achieving e-commerce success for FMCG brands.
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
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