What is FMCG?
The full form of FMCG is fast moving consumer goods, also known as consumer packaged goods. They are one of the best-selling products in the market and are specially manufactured to meet people’s daily needs. Almost everyone on this planet uses consumer goods that are consumed regularly; therefore, consumers have to buy them often. Because of their short shelf life, they sell quickly and at low unit prices. In general, you will find sales offers and deep discounts on FMCG.
This is one of the largest market segments that will continue to grow. The key factor leading to its continuous growth is population growth. More population means more people, which leads to more consumption of consumer packaged goods. The FMCG market is estimated to grow at an annual rate of 14.9%. Let us break down the meaning of FMCG and understand its key characteristics in the following section.
What are the characteristics of FMCG?
Durability:
There are two types of consumer goods, durable and non-durable. Durable goods are also known as non-durable goods. The shelf life of durable goods is at least 3 years. FMCG products are non-perishable and need to be consumed immediately.
Frequently bought:
We cannot function properly without FMCG. These goods serve to satisfy the daily needs of consumers. From toothpaste to your delicious pasta, it all comes under FMCG. They are consumed regularly and therefore consumers buy them frequently.
Lots of options:
There are many products available in one FMCG category. For example, different brands make shampoos. The consumer has many options in the market.
Easily accessible:
A robust distribution channel makes consumer goods readily available. You can easily find them in supermarkets, hypermarkets and grocery stores and you can easily place orders on e-commerce websites.
Features of the FMCG industry
High turnover:
Due to the frequent use and short shelf life of FMCG, the turnover rate of the industry is high. These goods are manufactured and produced in large quantities and sold in large volumes.
Attractive packaging:
Packaging plays an important role. Manufacturers create attractive and attractive packaging to stand out in the market. Good and robust packaging also helps to protect products with a short shelf life. Goods delivered to the customer must be properly packed to avoid damage during transport.
Offers and discounts:
Vendors provide various offers and discounts to attract customers. The main focus is bulk sales. Bulk sales ensure huge revenue even if the profit margin is low.
Competitive Market:
The FMCG market is large. The key players in the market are leading companies such as Coca-cola, Nestlé and Unilever. Besides manufacturers, there are also wholesale and distribution options in FMCG. The industry is huge in manufacturing, distribution and retail.
