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Scope: FMCG Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) Are

FMCG, or Fast-Moving Consumer Goods, are non-durable goods that are sold quickly and at low prices, such as soft drinks, toiletries, over-the-counter drugs, toys, and processed foods. Though the profit margin on individual FMCG products is low, large quantities are sold, resulting in substantial cumulative profits. FMCGs have short shelf lives due to high demand or rapid deterioration. They are characterized by frequent purchases by consumers at low prices and involvement, high volumes and stock turnover, and low margins for marketers, who rely on extensive distribution networks.

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65 views

Scope: FMCG Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) Are

FMCG, or Fast-Moving Consumer Goods, are non-durable goods that are sold quickly and at low prices, such as soft drinks, toiletries, over-the-counter drugs, toys, and processed foods. Though the profit margin on individual FMCG products is low, large quantities are sold, resulting in substantial cumulative profits. FMCGs have short shelf lives due to high demand or rapid deterioration. They are characterized by frequent purchases by consumers at low prices and involvement, high volumes and stock turnover, and low margins for marketers, who rely on extensive distribution networks.

Uploaded by

PRAKYKRISH
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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FMCG

Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) are


products that are sold quickly and at relatively low cost. Examples include non-durable
goods such as soft drinks, toiletries, Over-the-counter drugs, toys, processed foods and
many otherconsumables.
[1][2]
Though the profit margin made on FMCG products is
relatively small (more so for retailers than the producers/suppliers), they are generally
sold in large quantities; thus, the cumulative profit on such products can be substantial.
FMCG is probably the most classic case of low margin and high volume business.
Fast-moving consumer electronics are a type of FMCG and are typically low priced
generic or easily substitutable consumer electronics, including mobile phones, MP3
players, game players, and digital cameras which are of disposable nature.

Scope
FMCG have a short shelf life, either as a result of high consumer demand or because
the product deteriorates rapidly. Some FMCGssuch as meat, fruits and vegetables,
dairy products, and baked goodsare highly perishable. Other goods such as alcohol,
toiletries, pre-packaged foods, soft drinks, and cleaning products have
high turnover rates. An excellent example is a newspaperevery day's newspaper
carries different content, making one useless just one day later, necessitating a new
purchase every day.
The following are the main characteristics of FMCGs:
[1]

From the consumers' perspective:
Frequent purchase
Low involvement (little or no effort to choose the item products with
strong brand loyalty are exceptions to this rule)
Low price
From the marketers' angle:
High volumes
Low contribution margins
Extensive distribution networks
High stock turnover

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