Weekly data on organised wholesale marketplace in India.
Almost 2.6% or 6800 Cr of CPG traditional trade offtake moves through organised wholesale.
Nielsen launches Scantrack Cash and Carry – the first ever service in India that provides insights into emerging organised wholesale in India.
The weekly service will help manufacturers understand the nearly Rs 6800 Crore CPG organized wholesale marketplace in India. This sector has been growing at 13% as of YTD June 2016. With 4 players and around 92 stores, almost 2.6% of CPG traditional trade retail offtake moves through organised wholesale. The service will report weekly data to manufacturers and retailers, and will be based on inputs from all the key players existing in organised wholesale in the country.
“It’s exciting for us to be launching this track in the India market – as a testament to our commitment to evolving client and market needs. All the banners in the organised wholesale sector operating in the country are on board and cooperating with this service, by supplying critical data for the track ”, said Vijay Udasi, senior vice president, Nielsen India “The channel may be considered relatively new in the country, but its contribution to all of CPG shows how critical it is from a measurement perspective . Insights from this service integrated with our proprietary retail data on consumer packaged goods has the potential to bring about shifts in planning and strategy by both manufacturers and retailers” he added.
With presence in 12 states in India the North, South & West regions see the highest concentration of channel outlets. North (36%), followed by South (33%), West (26%) account for the bulk of the value contribution to the channel. The key states Punjab, Andhra Pradesh and Maharashtra account for over 50% of sales.
Findings from the track indicate that while Soft Drinks (12%) dominate the channel in terms of value within the CPG space, Non-food categories such as Toilet Soaps (9%) & Washing Powder (8%) round up the 2nd & 3rd spots within the channel. This shows different dynamics than traditional retail where soft drinks (10%); biscuits (9%) and salty snacks (6%) form the top three.
In terms of manufacturers, only 3% of the Retail manufacturers leverage the cash and carry channel. The top 10 manufacturers account for 60% of the total C&C value sales. In contrast, the top 10 manufacturers account only for 38% of the total retail sales.
Access to Cash and Carry channel data will allow manufacturers and retailers to identify indirect reach for wider assortment, understand the competitive landscape within the channel and gain insights into competitions margin strategy.
“The Cash and Carry format has a critical role in the multi-layered distribution system predominant in India. It helps manufacturers supplement their own direct reach for better access in traditional retail, without relying on unorganised and fragmented indirect distribution system”, said Udasi, “Retailers can also benefit from economies of scale as well as a wider assortment to pick from to stock their shelves” he added.