Fast-Moving Consumer Goods or Consumer Packaged Goods are products that are sold quickly and
at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, Over-the-counter
drugs, toys, processed foods and many other consumables. Though the profit margin made
on FMCG products is relatively small, they are generally sold in large quantities; thus,
the cumulative profit on such products can be substantial. FMCG is probably the most
classic case of low margin and high volume business.
Fast-moving consumer electronics are a type of FMCG and are typically low priced generic
or easily substitutable consumer electronics, including mobile phones, MP3 players, game
players, and digital cameras which are of disposable nature.
Scope 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
Low price
From the marketers' angle: High volumes
Low contribution margins Extensive distribution networks
High stock turnover
ISIC definition The retail market for FMCGs includes businesses
in the following International Standard Industrial Classification 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 ISIC 5269 whole sale priscriable
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.
See also Trade promotion management
Category management Mass production
List of Indian FMCG companies References
^ a b Ramanuj Majumdar. Product Management in India. PHI Learning. pp. 26–27. ISBN 978-81-203-1252-4.
Retrieved 2010-06-19. ^ Sean Brierley. The advertising handbook
By Sean Brierley. Routledge. p. 14. ISBN 978-0-415-24391-9. ^ Aydın Çelen; Tarkan Erdoğan and Erol
Taymaz. Fast Moving Consumer Goods Competitive Conditions and Policies. Economic Research
Center, Middle East Technical University. Retrieved 2007-07-09. , p.2
^ Aydın Çelen; Tarkan Erdoğan and Erol Taymaz. Fast Moving Consumer Goods Competitive
Conditions and Policies. Economic Research Center, Middle East Technical University.
Retrieved 2007-07-09. , p.3-4 External links
The FMCG landscape: an infographic