FMCG an Overview

FMCG an Overview

Fast Moving Consumer Goods (FMCG) is referred to products that have very less shelf life and need to be transported from the manufacturer to the consumer quickly. Hence the name - Fast Moving. These products sell rapidly at a relatively low cost. Some common examples of FMCG are fruit and vegetables, milk, curd, bakery products, ready-made food, soda, beer, etc. These products get spoiled very quickly if kept for some time and hence need to be consumed fast. In contrast to this, furniture, electronic goods, etc. are considered Slow Moving Consumer Goods(SMCG) since they have a very long shelf life.

These products are not bought in bulk. Instead, they are bought and manufactured frequently, almost daily. You must have noticed the dairy cart which delivers milk and dairy products to the shop every day. You can also look up the expiry date of these products, it tends to be very less. The majority of FMCG is food-related products. They are bought in large quantities unlike other products like a mobile phone or furniture. They have a very less profit margin per piece or per packet; sellers make a profit on large quantities. Fast-moving consumer goods are not very durable. Even after a lot of research work, the shelf life of these products has not risen much.

FMCG Products

As discussed earlier, FMCG is nondurable and has a very less shelf life. Below mentioned are the most common FMCG products used in our day-to-day life.

• Food Item: Almost every food product is an FMCG. Name a food product, it surely does not have a very long shelf life. They include dairy products like cheese, milk, and curd; beverages like packaged water, soda, and beer; prepared meals; bakery products like cake and cookies; fresh food like fruits and vegetables; dry fruits; nonveg food like chicken and meat; packaged food like chips, chocolate, candy, biscuits, and pasta.

• Medicine: The majority of medicines are FMCG. The easy-to-get medicine which can be bought without prescription like Aspirin and pain killers have even lower shelf life because they are fast-selling products.

• Cosmetics: Make-up products like cream, foundation, lipstick, powder, eyeliners; perfumes; etc. are all included under FMCG.
• Other Products: Other FMCG products are those which are nondurable like pens, pencils, markers, etc. Baby diapers are also a Fast moving consumer good.

FMCG Companies in India

The Fast-moving consumer goods sector is the fourth largest industry sector in India. It contributes nearly 20% to the Gross Domestic Product(GDP) of India. Many top companies in India are from the FMCG sector. Although these goods don't have much profit margin per product, the large selling quantities help companies make a lot of money. Since they are daily used products, their demand never perishes even under the difficult financial situation. You would have heard the names of these companies as they produce daily use products, it is hard not to remember these companies. In many parts of India, the company name Maggi stands for noodles; similarly, toothpaste is known by the name Colgate.

Some top companies in the FMCG sector in India are:

• Hindustan Unilever Ltd

• ITC Limited

• Britannia Industries Limited

• Dabur India Ltd

• Nestle India Ltd

• Emami Ltd

• Godrej Consumer Products Ltd

• Colgate-Palmolive

• Patanjali Ayurved Limited

• Parle Products

There are much more large, medium, and small-sized companies in this sector. Because of the large number of companies, it is impossible to even list all Large companies.