The fast-moving consumer goods (FMCG) industry has seen some big changes lately, mainly due to the rise of e-commerce giants like Amazon and new delivery platforms like Zepto.
As things change, ITC Limited, a key player in the FMCG space, has been playing to its strengths and trying out new strategies to keep its market position strong and reach more customers. This article explores how ITC Limited, a leading player in the FMCG Sector, is capitalizing on its strengths and implementing strategies to stay competitive in the digital marketplace.
What Sets ITC Apart from Its Competitors?
ITC has several strategies which makes it a step ahead of its competitors. Let’s look at some of them.
Strong Financial Performance
ITC Ltd’s operating revenue increased by 7% to Rs 18,220 crore in Q1FY25, compared to Rs 16,995 crore in Q1FY24. This growth is reflected in the ITC share price which is at present around Rs. 500+. This can be attributed to several strategic initiatives that have strengthened the company’s position in the market.
This growth reflects ITC’s ability to manage cost pressure while still expanding its market share on the digital platform.
ITC has swiftly adjusted by ensuring its products are accessible on top e-commerce and quick-commerce platforms. The company has also invested in its direct-to-consumer platforms, such as ITC e-Store, providing a broad selection of products straight to consumers.
ITC has been heavily investing in advanced technology and focusing on consumer insights to better understand how people shop online. This helps ITC tailor its products, pricing, and marketing to meet the needs of customers online and strengthen its bottom line.
Product Diversification and Innovation
E-commerce platforms such as Amazon act as a tough competitor to ITC due to their extensive product range and outstanding logistics. To stand out, ITC leverages its strengths such as well-known brands and a broad distribution network, to gain an edge.
ITC offers a diverse range of brands in multiple categories, including major market players like Aashirvaad, Sunfeast, and Bingo! To compete with quick delivery offerings from peers like Zepto, ITC has been focusing on launching new products tailored to online consumers. This strategy supports its position in the Nifty index stock price.
Building Strong Partnerships
To compete with quick commerce companies with Zepto, ITC has teamed up with several e-commerce platforms to increase its product visibility and reach. Their partnership with Flipkart for exclusive product launches has helped them connect with its large customer base.
ITC has also partnered with hyperlocal delivery services like Shiprocket to improve their last-mile delivery. It ensures that products are easily available to customers in different regions, including smaller towns and cities.
Competing on Pricing and Promotions
To stay competitive against Amazon and Zepto, ITC has been competitive with its pricing. They frequently offer discounts and promotions on e-commerce platforms to attract budget-conscious shoppers.
ITC also uses its scale to negotiate better deals with suppliers and logistics partners, which allows them to pass on savings to customers with lower prices.
Comparative Edge
While ITC continues to strengthen its market position through these strategies, it’s essential to compare these approaches with those of Amazon and Zepto.
Amazon’s extensive product range and superior logistics present a formidable challenge, while Zepto’s quick-commerce model with a hyper-local focus adds another layer of competition.
ITC’s ability to leverage its strengths in product diversification, data insights, partnerships, and competitive pricing allows it to stay resilient in this rapidly evolving landscape.
Conclusion
ITC is handling a challenging online market by focusing on its strengths and embracing innovation. As e-commerce evolves, ITC’s emphasis on adaptation and strategic execution will be important in maintaining its growth and staying ahead of competitors such as Amazon and Zepto.
