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Indian Brands Go Digital for Faster Growth
22 Apr
Summary
- Legacy brands and startups use online platforms for accelerated volume expansion.
- Acquiring digital-native brands boosts growth for major FMCG players.
- Online-only strategies help brands connect directly with consumers.
In India, both established consumer goods companies and emerging startups are capitalizing on online platforms to accelerate their volume expansion. This digital shift allows these businesses to grow faster than through conventional retail methods.
Major FMCG players like Hindustan Unilever, ITC, and Marico are actively acquiring or investing in digital-native brands. These acquisitions are strategic, focusing on acquiring capabilities such as rapid innovation cycles, precise consumer targeting, and premium market positioning. For instance, HUL's digital-first brands experienced substantial volume growth in MAT '25.
Startups and legacy brands alike are finding success by adopting online-first strategies. Cipla Health's online-only approach for its skincare and hair-care products exemplifies how direct engagement with customers fosters brand familiarity and drives volume. This digital ecosystem serves as a crucial testing and scaling ground for new innovations within the FMCG sector.
