Introduction to fast moving consumer goods (FMCGs)
FMCG products, or merely fast moving consumer goods, are non-durable products that need to be sold, usually at a low cost, and consumed within a set duration. FMCG products are perishable and highly demanded, so they are produced and sold in large quantities. Examples of these goods include processed, baked, frozen and fresh food, beverages and confectionery, toiletries, over-the-counter medications etc.
Understanding Fast Moving Consumer Goods Products (FMCG)
FMCG products are goods that are meant for immediate consumption by the average consumer. They are day-to-day items that are purchased recurrently by consumers. It is an industry where competitiveness is one way to thrive, by offering various alternatives and choices for the consumer to choose from.
As a result, the turnover rate for this industry is also high, crediting the high volume production and equally high purchases.
Packaging plays a major role in the operations, not only for identification, but to also provide any possible extension to and efficacy to the mostly perishable goods in this segment.
These goods are often divided into categories, owing to their shelf-life. They include processed goods like cheese, cereals etc. and prepared meals that are ready to eat and/or frozen food that is heated at the time of consumption. Beverages, baked goods, cleaning products and prescriptionless medications, stationery etc.
Highlights of Fast Moving Consumer Goods Products (FMCG)
FMCG products have inelastic demand i.e. despite the change in factors of demand, the demand for them is loosely affected.
The recent shift in consumer perspective to purchase and support local brands increased the importance and brought local contributions in the FMCG industry to light. Local consumption reduces costs in marketing, packaging and transportation, while also making it convenient for the consumer to procure their products.
FMCG products make up more than a half of the entire consumer spending segment. It also is the largest employing industry, often providing jobs in many rural and urban areas.
