Alibaba-backed online retailer Paytm Mall competes with the likes of Flipkart and Amazon in the Indian e-commerce segment. Paytm Mall is looking to expand its presence through the online-to-offline (O2O) model, to grab a larger share of the growing e-commerce market in the country.
In order to expand its presence, Paytm Mall is working with 100 FMCG brands including Marico and Hindustan Unilever, among others to drive sales through its O2O model.
The online retailer claims to have registered a 2x growth in FMCG items delivered in the first quarter of this year, with 70% orders fulfilled within 48 hours. FMCG is one of the largest segment by order volumes for Paytm Mall, contributing around 30-40% of overall orders on the platform.
Amit Sinha, Chief Operating Officer, Paytm Mall, said, “It is really encouraging to see the confidence that leading FMCG brands have entrusted in our O2O commerce. We have been doing various joint campaigns to take these products to the masses. Our Paytm Mall QR has played a pivotal role towards driving the consumer engagement and promoting product sales.”
The company claims to have spent more than $25 million in the first quarter of this year alone, on joint marketing activities with the FMCG brands, in order to drive sales.
In August 2018, Paytm Mall touched $3.5 billion annualised gross sales and it now has its eyes on $10 billion annualised gross sales by March 2019.
Paytm Mall O2O model will play a key role in helping the online retailer achieve its goals, as it competes with Amazon and Flipkart for the bigger market share.
India’s FMCG sector is pegged at $52.75 billion in FY2017-18 and it is further expected to reach $100 billion by 2020, growing at a Compound Annual Growth Rate (CAGR) of 27.86%. FMCG is already the fourth largest sector in the Indian economy.