FMCG Full Form Explained!
|Commercial||Fast-Moving Consumer Goods|
Estimated reading time: 4 minutes
Fast-moving consumer goods are products that sell quickly at relatively low cost. These goods are also called consumer packaged goods. FMCGs are short-lived due to high consumer demand (e.g. soft drinks and confections). Or because they can be perishable (e.g. meat, dairy products and baked goods). These goods are often purchased, consumed quickly, have low prices, and are frequently sold in large quantities. These goods also have high turnover once they are on the shelves at the store.
Consumption goods are those products that are purchased for the common consumer. You can divide it inti three categories: durable goods, nondurable goods, or services. Nondurable goods can last for less than one year, while durable goods can last three years. The largest category of consumer goods is fast-moving goods. These goods fall under the nondurable category because they can be consumed right away and have a very short shelf life.
Fast-moving consumer goods (FMCGs) are used by nearly everyone around the globe every day. These are small-scale consumer goods that we purchase at the grocery store, supermarket, warehouse outlet, or produce stand. These include gum, milk, fruit and vegetable, toilet paper and over-the counter drugs such as aspirin.
FMCGs account for more than half of all consumer spending, but they tend to be low-involvement purchases. A durable product such as a brand new smartphone or car is more popular than an energy drink that they bought at a convenience store for Rs 100. (FMCG Full Form)
Types of FMCG
Fast-moving consumer goods are either nondurable or have a short life span. And people consume it quickly or at a fast pace.
FMCGs are of several different categories including:
- Processed foods: Boxed pasta, cereals and cheese products
- Pre-prepared meals: Ready-to-Eat Meals
- Beverages: Juices, energy drinks, and bottled water
- Baked goods: Cookies, bagels, and croissants
- Fresh and frozen food, as well as dry goods: You can find fruits, vegetables, frozen peas, carrots, raisins, and nuts here
- Medicines: You can buy aspirin, pain relief pills, and other medications without a prescription.
- Cleaning products: Baking soda, oven cleaner and window and glass cleaner
- Toxicology and cosmetics: Products, concealers, toothpaste, shampoo, and hair care products
- Office supplies: Pens, pencils and markers
About the Industry
The market for fast-moving consumer goods is very large because of its high turnover rate. It is also very competitive. Some of the largest companies in the world dominate this industry. Tyson Foods and Unilever are just a few examples.
These companies need to concentrate their marketing efforts on fast-moving consumer goods in order to attract and entice consumers to purchase their products.
Packaging is an important part of the production process. To maximize efficiency, logistics and distribution systems often need secondary and tertiary packing. For product protection and shelf-life, the primary packaging (or unit pack) is crucial. It provides consumers with information and incentives.
FCMGs are purchasable in large quantities. They are therefore a reliable source for revenue. This high volume of sales also offsets the low profit margins on individual sales as well.
FMCG stocks are generally low-growth investments. But they are safe bets with predictable margins, stable returns, and regular dividends. Read: PSI Full Form : Categories, Intro, Jobs, Powers And More
FMCG Full Form Facts
- The fourth-largest sector of the Indian economy is the FMCG industry.
- Its size will increase from US$ 30 Billion in 2011 to US$75 Billion in 2018.
- It accounts for 5% of India’s total factory employment.
- This sector will grow because of the increasing awareness, ease-of-use products and changes in lifestyles.
- FMGC products have a short life.
Also known as consumer packaged products, fast-moving goods are items that have low turnover rates, low prices and short shelf lives. Fast-moving consumer goods account to more than half the consumer spending. These items have low profit margins and high sales volumes. This group includes soft drinks, toilet papers, and dairy products.
There are broadly three types of consumer goods: durable goods, nondurable items, and services. Furniture and cars are durable goods that last at most three years. Economists often monitor durable goods spending to gauge the health of an economy. Nondurable goods are those that have a shorter shelf life and are used quickly. This category includes fast-moving consumer goods. Services include services that are not tangible products or services, such as haircuts and car washes.
FMCG or India’s fast-moving consumer goods companies sell packaged food, personal care products, and toiletries. The fourth largest sector in the Indian economy is consumer packaged goods, or fast moving consumer goods.
Packaged food, beverages, toiletries and stationery are all fast-moving consumer goods.