FMCG: Fast-Moving Consumer Goods
FMCG stands for Fast-Moving Consumer Goods which are also known as consumer packed goods (CPD). These goods refer to the products that are sold quickly and generally non-durable. It is also known as Consumer Packaged Goods (CPG). The examples of FMCG products are soft drinks, processed foods, cosmetics like lip balm, eyeliner, deodorants, soaps, general using products like toilet paper, face towel, shower cap, toilet soaps and the over-the-counter drugs etc.
FMGC products have a short life and generally replaced or sold over a short period usually within a few days, few weeks, and few months. Although the profit margin in FMGC products is comparatively low but they generally sold in the large quantity thus, the cumulative profit is good. The success of FMCG products largely depends on the brand equity, marketing, distribution network and understanding of consumer behavior.
The FMCG industry is the fourth largest sector in the Indian economy and its size is estimated to grow from US$ 30 billion in 2011 to US$ 75 billion in 2018. It generates 5% of the total factory employment in India. The growing awareness, easy access to products, and changing lifestyles are considered the major factors for the growth of this sector.
Characteristics of FMCG products
1) From the consumers’ perspective:
- Mandatory use
- Frequent purchase
- Low cost
- No effort to choose
- Comes in wide range
2) From the marketers’ perspective:
- Low margin
- High distribution network needed
- Daily delivery
Top Indian FMCG Companies
- Hindustan Unilever
- Pidilite Industries
- Dabur India Ltd.
- Parle Agro
- Colgate Palmolive India Ltd.
- Himalaya Healthcare Ltd.
- Zydus Wellness
- Marico etc.