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Fast moving consumer goods ▪ Sale

Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, and grocery items. Though the absolute profit made on FMCG products is relatively small, they are generally sold in large quantities, and so the cumulative profit on such products can be substantial.

Fast-moving consumer electronics are a type of FMCG and are typically low priced generic or easily substitutable consumer electronics, including lower end mobile phones, MP3 players, game players, and digital cameras, which have a short usage life, typically a year or less, and as such are disposable. Cheap FMCG electronics are often retained even after immediate failure, as the purchaser rationalizes the decision to not return the goods on the basis that the goods were cheap to begin with, and that the cost of return relative to the low cost of purchase is high. Thus low-quality electronic FMCG goods can be highly profitable for the vendors.

Global leaders in the FMCG segment are Anheuser-Busch InBev, Nestlé, ITC, Hindustan Unilever Limited, Reckitt Benckiser, Unilever, Procter & Gamble, L'Oréal, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi, Gillette etc.

Scope [edit]

The term FMCGs refers to those retail goods that are generally replaced or fully used up over a short period of days, weeks, or months, and within one year. This contrasts with durable goods or major appliances such as kitchen appliances, which are generally replaced over a period of several years.

FMCG have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Some FMCGs-such as meat, fruits and vegetables, dairy products, and baked goods-are highly perishable. Other goods such as alcohol, toiletries, pre-packaged foods, soft drinks, and cleaning products have high turnover rates. An excellent example is a newspaper-every day's newspaper carries different content, making one useless just one day later, necessitating a new purchase every day.

The following are the main characteristics of FMCGs:

• From the consumers' perspective:
  • Frequent purchase
  • Low involvement (little or no effort to choose the item – products with strong brand loyalty are exceptions to this rule)
  • Low price
• From the marketers' angle:
  • High volumes
  • Low contribution margins
  • Extensive distribution networks
  • High stock turnover

ISIC definition [edit]

The retail market for FMCGs includes businesses in the following International Standard Industrial Classification (ISIC) (Revision 3) categories

• ISIC 5211 retail sales in non-specialized stores
• ISIC 5219 other retail sale in non-specialized stores
• ISIC 5220 retail sale of food, beverages and tobacco in specialized stores
• ISIC 5231 retail sale of pharmaceutical and medical goods, cosmetic and toilet articles
• ISIC 5251 retail sale via mail order houses
• ISIC 5252 retail sale via stalls and markets
• ISIC 5259 whole sale goods

Supplier industries for FMCGs include

• 1511 meat and meat products
• 1512 fish and fish products
• 1513 fruit and vegetables
• 1514 vegetable and animal oils and fats
• 1520 dairy products
• 1531 grain mill products
• 1532 starches and starch products
• 1533 animal feeds
• 1541 bakery products
• 1542 sugar
• 1543 cocoa, chocolate and sugar confectionery
• 1544 macaroni, noodles, couscous
• 1549 other food products
• 1551 spirits; ethyl alcohol
• 1552 wines
• 1553 malt liquors and malt
• 1554 soft drinks, mineral waters
• 1600 tobacco products
• 2101 pulp, paper and paperboard
• 2102 corrugated paper, containers
• 2109 other articles of paper and paperboard
• 2424 soap and detergents, cleaning preparations, perfumes.like the big supermarkets

See also [edit]

• Trade promotion management
• Category management
• Good (economics)
• Mass production
• Towards the Circular Economy
• Retailing
• Supermarket
• Consumerism
• The Story of Stuff
• Destination management company
• List of Indian FMCG companies

References [edit]

v t e Consumer behaviour Concepts Consumption (economics) Consumer spending Autonomous consumption Induced consumption Consumer debt Consumer economy Consumer culture theory Research types Consumer behaviour Marketing research Consumer neuroscience Consumer choice Consumer product Consumer economics Consumer attributes Consumer confusion Consumer's risk Consumer confidence Consumer socialization Consumer ethnocentrism Cultural consumer Homo economicus Consumption function Processes Consumer cooperative Consumer-to-business Factory-to-consumer Consumer service Consumerization

External links [edit]

• Time To Move To A Circular Economy

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Information source: wikipedia.org

Do you want to know more? Look at the full version of the Fast moving consumer goods article.

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