Online Only FMCG Brand!

With interesting e-commerce/ online startups springing everywhere, I wonder why nobody is thinking of online only FMCG brand.

Cracking the distribution has always been a strong entry barrier for a new FMCG player in the country. The distribution model favours the existing large players and only helps them diversify the product range.

For a new entrant, online only strategy can help in dis-inter-mediating the entire distribution channel, and also targeting the audience through digital marketing vs. spending crores of rupees on TV and print.

It is far more easier to create product differentiation in FMCG compared to clothes etc.. where we already have internet only brands like Zovi… Then why is nobody thinking of launching internet only FMCG brand.. I would think that packaged food is a right candidate for the same.

Shipping cost is ofcourse a concern, but can be accommodated in high value-low volume product… ex. packaged sweets, packaged namkeens etc..