ITC, a leading FMCG giant, has shuttered its standalone e-commerce platform, ITC Store, stating that it has “served its purpose.” The platform was launched during the peak of the COVID-19 pandemic to cater to the growing demand for online shopping. However, with the pandemic wave subsiding, ITC has shifted its focus to a multi-platform digital distribution strategy, which includes e-commerce, quick-commerce, and modern trade.
The company’s products are now widely available on popular e-commerce platforms such as Swiggy Instamart, Zepto, BigBasket, Blinkit, Amazon, and Flipkart. ITC has reported a significant growth of over 50% in these channels, with its brands experiencing an appreciable increase in sales. The company’s decision to exit its centralized online store is part of its strategic endeavor to enhance its omnichannel reach and strengthen its trade, marketing, and distribution infrastructure across physical and online channels.
Meanwhile, ITC continues to invest in its own direct-to-consumer (D2C) websites, such as classmateshop.com, dermafique.in, and fabelle.in, which offer personalized and premium products that are not typically available on mass e-commerce platforms. This shift in strategy comes at a time when digital sales are revolutionizing FMCG distribution, with over 60% of FMCG companies viewing e-commerce as their most critical sales channel.
ITC’s financial performance has been robust, with a four-fold increase in standalone net profit to ₹19,561.57 crore for the quarter ended March 31, 2025. Revenue from operations rose 9% year-on-year to ₹18,494.06 crore, driven by growth in the cigarette and agri businesses. The non-cigarette FMCG segment clocked ₹5,494.63 crore in revenue during the quarter, marking a modest 3.67% year-on-year growth. However, the segment’s operating profit fell 27.73% to ₹344.89 crore, due to cost pressures, which were partially mitigated through focused cost management initiatives, portfolio premiumization, and calibrated pricing actions.
Overall, ITC’s decision to exit its standalone e-commerce platform and focus on a multi-platform digital distribution strategy is a strategic move to stay competitive in the rapidly evolving FMCG landscape. By leveraging popular e-commerce platforms and investing in its own D2C websites, ITC aims to enhance its omnichannel reach and drive growth in its FMCG business.