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 good (economics), goods and product (business), products used within households. They are the tangible property, tangible and movable personal property placed in the rooms of a house, such as a bed or refrigerator. Economic ro ...

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 ...

s, beverages, toiletries, candies, cosmetics, over-the-counter drugs, dry goods, and other consumables. 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 ...

s, big box stores 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 ** 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 Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector of the economy. The term may refer to a range ...

Nestlé Nestlé S.A. (; ; ) is a Switzerland, 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 me ...

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 PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manuf ...

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 drink, t ...

* AB InBev * 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 corporation, multinational confectionery, food industry, food, holding and drink industry, beverage and snack food company based in Chicago. Mondelez has an ...

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 *

Kellogg's The Kellogg Company, doing business as Kellogg's, is an American multinational food manufacturing company headquartered in Battle Creek, Michigan, United States. Kellogg's produces cereal and convenience foods, including crackers and toaste ...

Rural consumers

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.

ISIC definition

The retail market for FMCGs includes businesses in the following International Standard Industrial Classification (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 ...

s, MP3 players,

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 Digital usually refers to something using discrete digits, often binary digits. Technology and computing Hardware *Digital electronics, electronic circuits which operate using digital signals **Digital camera, which captures and stores digital i ...

disposable cameras.

References