Fast Moving Consumer Goods (FMCG)

The FMCG (Fast Moving Consumer Goods) industry is also known as the industry for consumer packed goods (CPG). These products are known to be at a relatively low cost and are sold very quickly. Examples of FMCG goods include various kinds of consumables, dry goods, over the counter drugs, candles, cosmetics, packed foods, toiletries, beverages, and many such items. 

The FMCG goods are known to have a very high turnover for the inventory. These goods have higher charges for carrying and depict low sales sometimes. The retailers who are known to sell the FMCG are normally the big box stores, hypermarkets, warehouse club stores, and others. There are various kinds of convenience stores that are known to take limited shelf space and which depict a high turnover. 

The main characteristics of FMCGs are known well from both the marketer as well as the consumer perspective. From the perspective of the marketer, these goods have high inventory turnover, extensive distribution, low contribution margins and high volumes. From the perspective of the consumer, these goods have rapid consumption levels, short shelf life. Low prices, low engagement and frequent purchases. 

Also, it needs to be understood well that consumers in the rural areas, towns and villages depict good purchase of goods. There has been a shift in the consumer behaviour for local purchasing of goods. The promotional efforts have led to generation of brand awareness amongst the people. These products are known to be inelastic as they touch base the life of the consumer. The FMCGs are known to represent a major sector in the economy of the country (India). This sector is also known to generate much employment for various kinds of downstream activities  for more than 3 million people. 

The FMCG products are actually the non-durable products that have a low cost and sell quickly. These products are known to have low profit margins. These products are known to account for much of the consumer spending. There are many examples of FMCG goods and these are milk, gum, soda, beer, toilet paper, fruits and vegetables, and so on. 

The FMCG product industry is known to be highly competitive and fast-paced in nature. These products are brought in on a frequent basis moving from the consumer to the retailer and vice versa. These goods are known to be sold out quickly. There are various initiatives taken by the government for development of the FMCG sector. 

The leaders in the FMCG space all across the world well understand the business fundamentals. Every FMCG company is known to have a dedicated space and team of experts to boost their product space and understanding the precise requirements of the brand. The FMCG industry is known to have various sub verticals such as – consumer packaging, tissue and hygiene paper, home care, personal care, food, beverages, tobacco, cosmetics,