28 March 2014

FMCG Sector and its Scope

FMCG stands for "Fast Moving Consumer Goods" This is usually an everyday low priced and low risk product that requires very little thought when purchasing. Food Safety Promotion
Fast Moving Consumer Goods (FMCG): products with quick shelf turnover, low cost & don't require a lot of thought, time, and financial investment to purchase.
FMCG includes packaged food, beverages, toiletries, and tobacco. Examples of FMCG companies are Coty Manufacturing Ltd, Body Shop International Plc, and Colgate-Palmolive (UK) Ltd.
 FMCG (Fast moving consumer goods) are non-durable products that are sold quickly and at relatively low cost. The products are sold in large quantities, so the cumulative profit on such products can be large. This leads to a recurrent cycle of consumption that makes it feasible to mass produce the goods.

They are products that have a quick turnover and have a relatively low cost. Although the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large.
 Fast moving consumable goods are all consumable items (other than groceries/pulses)
That one needs to buy at regular intervals. These are items which are uses daily, and so have a
 Quick rate of consumption, and a high return.
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 FMCG can broadly be categorized into 3 segments which are:
·        Household items as soaps, detergents, household accessories etc.
·        Personal care items as shampoos, toothpaste, shaving products etc.
·        Food and beverages as snacks, processed foods, tea, coffee, edible oils, soft drinks etc.


This sector will continue to see growth as it depends on an ever increase market in internal market for consumption, and demand for these goods remains more/less constant, irrespective of  recession or inflation. Hence the sector will grow, though it may not be a smooth growth path due to present world-wide economic slowdown, rising inflation and fall of rupee. This sector will see good growth in the long run and hiring will remain robust.