That makes fast-moving consumer goods a major opportunity for CPG startups, if your brand can leverage sales data effectively. Fast-moving consumer goods , or FMCG, is a category of retail products that are sold quickly, usually at low cost. The term can be applied across a variety of categories, but typically addresses consumables and non-durable household goods.
Some common examples include packaged foods and beverages, toiletries, and over-the-counter drugs. FMCGs typically have a short shelf life, due either to their high turnover or fast deterioration. For example, pre-packaged food, soft drinks, and toiletries are purchased frequently, thus increasing their sales velocity. Meanwhile, FMCGs like meats, fruits, vegetables, dairy, or baked items are perishable — they lose their freshness relatively quickly if unsold.
While FMCG products are part of the standard retail distribution market, there are practical distinctions that set them apart from general CPG categories. At their core, FMCG products will be used far more frequently than standard products — often daily. Working from Home Jobs. Popular Job Locations. Staffing Needs. Submit a Job Click Here. Help For Job Seekers. Contractors Graduates Brexit Advice. Useful Links. Key Industry Sectors.
Medical Devices. Niche Skill Sets. Clinical Research. Qualified Persons QP. Quality Assurance. Regulatory Affairs RA. Data management and Analysis. Data Programming. Data Science. Data and Information Security. About Hyper Recruitment Solutions. Latest News Link To Us. From packaged daily necessities that can be easily grabbed from a store to ready-to-make food, the fast-moving consumer goods industry provides affordable solutions to everyday problems.
For example, hostel students prefer packaged food like instant noodles as it does not require elaborate cooking. Packaged food helps individuals who live alone and cannot arrange for home-cooked meals.
Likewise, the industry has been helping consumers by providing medicines, masks, cosmetics, personal care, and hygiene products. Asia is one of the largest markets for these products. Many studies have found that FMCG brands have succeeded using innovation, localization, value-oriented products, better customer targeting and product diversification Product Diversification Product diversification is a business strategy that involves developing and selling a new line of products, services, or a service division that uses the same or completely different sets of knowledge, skills, machinery, etc.
A strong distribution channel plays a crucial role in the FMCG industry as it ensures that the products are delivered to the stores on time. An expensive supply chain will also add to the cost. As such, global brands try to find ways to source the resources locally.
For example, Nestle offered discounted coffee in China by saving on the cost using a local supply base in Yunnan. Moreover, t he distribution model is divided into two parts, one part is direct, and another part is indirect. In the direct state, the transaction occurs between the manufacturers and clients without the interference of the third party.
In the indirect state, the manufacturers sell the product through a distribution channel to its clients. Many channels were disrupted, leading to losses in the aftermath of the pandemic. At the same time, the companies had to buckle up to meet the increased demands of consumer goods due to panic buying. Another challenge for the FMCG industry has been the changing consumer preference towards healthier alternatives.
Moreover, the e-commerce boom has forced companies to offer their products using online platforms. Also, more and more consumers are turning price-sensitive. All these challenges have hurdled the growth of the sector. The fast-moving consumer goods are bought on a need basis and sold frequently. The classification of the FMCG industry is done primarily by product type.
Some of the types are listed below. They come in a package. Some serve as a cooking ingredient; some are ready-to-eat food, while some have nutritional value. For example, tinned vegetables, cereals, flavored yoghurt, cheese, tofu, canned beans, etc.
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