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,

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, smoothies ...

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, perfume, colognes, cotton swabs, cotton pads, deodorant, ...

, 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 presc ...

s, 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.

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 margins ** 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 varia ...

** High inventory turnover

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 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, sin ...

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 he ...

* 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 ...

* AB InBev * L’Oréal * Coca-Cola *

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 beverag ...

* Heineken * Kellogg's

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 Electronics, electronic (Analogue electronics, analog or digital electronics, digital) equipment intended for everyday use, typically in private homes. Consumer electronics include devices used for ...

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 telephone call, calls over a radio freq ...

s, MP3 players, game players, earphones, headphones, OTG cables and digital disposable cameras.

References