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 Household goods are goods and products used within households. They are the tangible and movable personal property placed in the rooms of a house, such as a bed or refrigerator. Economic role Businesses that produce household goods are catego ...

such as

packaged food Convenience food, also called tertiary processed food, is food that is commercially prepared (often through processing) to optimise ease of consumption. Such food is usually ready to eat without further preparation. It may also be easily por ...

beverage A drink or beverage is a liquid intended for human consumption. In addition to their basic function of satisfying thirst, drinks play important roles in human culture. Common types of drinks include plain drinking water, milk, juice, smoo ...

toiletries Personal care or toiletries are consumer products used in personal hygiene, personal grooming or for beautification. Products Personal care includes products as diverse as cleansing pads, colognes, cotton swabs, cotton pads, deodorant, eye li ...

, candies, cosmetics,

over-the-counter drug Over-the-counter (OTC) drugs are medicines sold directly to a consumer without a requirement for a prescription from a healthcare professional, as opposed to prescription drugs, which may be supplied only to consumers possessing a valid prescr ...

s, dry goods, and other

consumables Consumables (also known as consumable goods, non-durable goods, or soft goods) are goods that are intended to be consumed. People have, for example, always consumed food and water. Consumables are in contrast to durable goods. Disposable products ...

. Fast moving consumer goods have a high

inventory turnover In accounting, the inventory turnover is a measure of the number of times inventory is sold or used in a time period such as a year. It is calculated to see if a business has an excessive inventory in comparison to its sales level. The equation ...

and are contrasted with specialty items which have lower sales and higher carrying charges. Many retailers carry only FMCGs; particularly

hypermarket A hypermarket (sometimes called a hyperstore, supercentre or superstore) is a big-box store combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof, including ...

big box store A big-box store (also hyperstore, supercenter, superstore, or megastore) is a physically large retail establishment, usually part of a chain of stores. The term sometimes also refers, by extension, to the company that operates the store. The te ...

s and

warehouse club A warehouse club (or wholesale club) is a retail store, usually selling a wide variety of merchandise, in which customers may buy large, wholesale quantities of the store's products, which makes these clubs attractive to both bargain hunters ...

stores. Small

convenience store A convenience store, convenience shop, corner store or corner shop is a small retail business that stocks a range of everyday items such as coffee, groceries, snack foods, confectionery, soft drinks, ice creams, tobacco products, lottery ticket ...

s also stock fast moving goods; the limited shelf space is filled with higher turnover items.

Characteristics

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 Shelf life is the length of time that a commodity may be stored without becoming unfit for use, consumption, or sale. In other words, it might refer to whether a commodity should no longer be on a pantry shelf (unfit for use), or no longer on a ...

** Rapid consumption * From the marketer perspective ** High volumes ** Low

contribution margin Contribution margin (CM), or dollar contribution per unit, is the selling price per unit minus the variable cost per unit. "Contribution" represents the portion of sales revenue that is not consumed by variable costs and so contributes to the covera ...

s ** Extensive

distribution Distribution may refer to: Mathematics *Distribution (mathematics), generalized functions used to formulate solutions of partial differential equations * Probability distribution, the probability of a particular value or value range of a vari ...

** High

Consumer Packaged Goods Companies

The following are well known Consumer Packaged Goods (CPG) manufacturing companies *

Nestlé Nestlé S.A. (; ; ) is a Swiss multinational food and drink processing conglomerate corporation headquartered in Vevey, Vaud, Switzerland. It is the largest publicly held food company in the world, measured by revenue and other metrics, since ...

Procter & Gamble The Procter & Gamble Company (P&G) is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio, founded in 1837 by William Procter and James Gamble. It specializes in a wide range of personal health/consumer hea ...

* PepsiCo *

Unilever Unilever plc is a British multinational consumer goods company with headquarters in London, England. Unilever products include food, condiments, bottled water, baby food, soft drink, ice cream, instant coffee, cleaning agents, energy dri ...

AB InBev Anheuser-Busch InBev SA/NV, commonly known as AB InBev, is an American-Belgian multinational drink and brewing company based in Leuven, Belgium. AB InBev has a global functional management office in New York City, and regional headquarters ...

* L’Oréal *

Coca-Cola Coca-Cola, or Coke, is a carbonated soft drink manufactured by the Coca-Cola Company. Originally marketed as a temperance drink and intended as a patent medicine, it was invented in the late 19th century by John Stith Pemberton in Atlanta ...

Mondelez International Mondelez International, Inc. ( ), often styled Mondelēz, is an American multinational confectionery, food, holding and beverage and snack food company based in Chicago. Mondelez has an annual revenue of about $26 billion and operates in ...

Kraft Heinz The Kraft Heinz Company (KHC), commonly known as Kraft Heinz, is an American multinational food company formed by the merger of Kraft Foods and Heinz co-headquartered in Chicago and Pittsburgh. Kraft Heinz is the third-largest food and beverage ...

Heineken Heineken Lager Beer ( nl, Heineken Pilsener), or simply Heineken () is a pale lager beer with 5% alcohol by volume produced by the Dutch brewing company Heineken N.V. Heineken beer is sold in a green bottle with a red star. History On 15 Feb ...

* Kellogg's

Rural consumers

Consumers A consumer is a person or a group who intends to order, or uses purchased goods, products, or services primarily for personal, social, family, household and similar needs, who is not directly related to entrepreneurial or business activities. ...

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.

ISIC definition

The retail market for FMCGs includes businesses in the following

International Standard Industrial Classification The International Standard Industrial Classification of All Economic Activities (ISIC) is a United Nations industry classification system. Wide use has been made of ISIC in classifying data according to kind of economic activity in the fields of em ...

(ISIC) (Revision 3) categories:, p.2-4 Supplier industries for FMCGs include:

Fast-moving consumer electronics

Fast-moving consumer electronics are typically low-priced generic items with many comparable alternatives offering similar functionality. Examples of

consumer electronics Consumer electronics or home electronics are electronic (analog or digital) equipment intended for everyday use, typically in private homes. Consumer electronics include devices used for entertainment, communications and recreation. Usually r ...

include

mobile phone A mobile phone, cellular phone, cell phone, cellphone, handphone, hand phone or pocket phone, sometimes shortened to simply mobile, cell, or just phone, is a portable telephone that can make and receive calls over a radio frequency link whil ...

MP3 players A portable media player (PMP) (also including the related digital audio player (DAP)) is a portable consumer electronics device capable of storing and playing digital media such as audio, images, and video files. The data is typically stored o ...

game players ''Game Players'' is a defunct monthly video game magazine founded by Robert C. Lock in 1989 and originally published by Signal Research in Greensboro, North Carolina. The original publication began as ''Game Players Strategy to Nintendo Games'' ...

, earphones,

headphones Headphones are a pair of small loudspeaker drivers worn on or around the head over a user's ears. They are electroacoustic transducers, which convert an electrical signal to a corresponding sound. Headphones let a single user listen to an au ...

, OTG cables and digital

disposable camera A disposable or single-use camera is a simple box camera meant to be used once. Most use fixed-focus lenses. Some are equipped with an integrated flash unit, and there are even waterproof versions for underwater photography. Internally, the camera ...

References