Concept
Fast-moving consumer goods (FMCG), also known as consumer packaged goods (CPG), are products that are sold quickly and at a relatively low cost. Examples include non-durable household goods such as packaged foods, beverages, toiletries, candies, cosmetics, over-the-counter drugs, dry goods, and other consumables. Fast moving consumer goods have a high inventory turnover and are contrasted with specialty items which have lower sales and higher carrying charges. Many retailers carry only FMCGs; particularly hypermarkets, big box stores and warehouse club stores. Small convenience stores also stock fast moving goods; the limited shelf space is filled with higher turnover items. The following are the main characteristics of FMCGs: From the consumer perspective Frequent purchases Low engagement (little or no effort to choose the item) Low prices Short shelf life Rapid consumption From the marketer perspective High volumes Low contribution margins Extensive distribution High inventory turnover The following are well-known Consumer Packaged Goods (CPG) manufacturing companies Nestlé Procter & Gamble PepsiCo Unilever AB InBev L’Oréal Coca-Cola Mondelez International Kraft Heinz Heineken Kellogg's Consumers in rural areas typically purchase goods from nearby towns and villages. Recently, there has been a shift in consumer purchase behavior toward purchasing locally that has prompted the need for better local promotional efforts to generate brand awareness in small towns. FMCGs play a large part in the economy, as they are inelastic products that touch every part of consumer life. Businesses that supply FMCGs to a rural community can help provide employment opportunities and drive down the cost of such products in those rural areas. For instance, FMCGs represent the fourth-largest sector in the Indian economy and generate employment for more than three million people in downstream activities. The retail market for FMCGs includes businesses in the following International Standard Industrial Classification (ISIC) (Revision
