FMCG Characteristics

Features of Fast Moving Consumer Goods. 

1.It is a daily use  product .

Each and every individual  use these product on daily basis . Early in the morning when we get up to late night sleeping ,FMCG is a must product . Interestingly we start our day with toothpaste  and before going to bed we drink a glass of milk. We cannot live without FMCG products. 

                                                                              

 2. Economic slow down   can’t hamper too much. 

As I  explained in point no 1, that FMCG are daily using product and people will not stop buying these only because of recession .Nobody will stop using toothpaste or eating biscuit or using soap because  of recession.                                 

3.Lion’s share of family budget.

Characteristics FMCG Industry

All FMCG put together in our daily life it contributes 95% of our monthly budget. If we aggregate all the FMCG product we use , it will contribute appx. 95% of our monthly budget. From early in the morning we start using these product and frequently in day time we use these FMCG product. So putting them into one basket it will be 95% of our monthly budget.

4.Quick buying decision.   

 People do not spends too much time while purchasing FMCG product. Quick buying decision is a beauty of FMCG product. People do not think too much while purchasing these product. As these are low price product instant buying decision increase sales of these industry.

4.Employment generator.

This industry gives a huge opportunity for employment ( it may be as a job or as a channel partner of any brand).  Large numbers of retailer , wholesaler, distributor or warehousing and logistics gives a huge opportunity for employment. 

5.Low price products.  

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Millions of transaction happens every day only because it’s low price. People need not to spend too much money from their pocket while purchasing FMCG product. (Even anyone can purchase some FMCG product for Rs1/= only).Consumer base of FMCG industry is  also huge because it is a low Price product 

                                                                                                                                                         6. Low retailer margin.   

                                                                                               

One major thing is that FMCG margin for retailer is very low in comparison to other industry. It ranges from 10 % for reputed brands to 20 % for some low reputed brands.  Also one thing I should mention that, low retailer margin does not mean earning for retailer is low. Because of high transaction retailer can earn a decent profit volume .

                                                                                                                                      

 7.High transaction.  

                                                                                                 

Millions of transaction happens every day. Because of its necessity all of us purchase these product several times in a day. From the trader side unlimited customer/consumer purchase from their shop. High transaction or rotation  gives a good business and profit volume to the business community. 

                                  

 8.Extensive distribution network.  

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Whether it is a town ,colony or any village, every where we find FMCG selling outlet.  People around the world need FMCG product. Without extensive distribution network it impossible for any company to sell their product. These products are basically non durable ,consumer don’t like to purchase and carry from long distance. Every household purchase from their nearby market or nearby shop. In any area there  are large numbers of retailer or wholesaler are selling FMCG product every day .

                                                                                                                                                 

 9. Large numbers of buyer and seller.      

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This is the most important feature of FMCG sector , every day millions of consumer/retailer or wholesaler  purchase  or sell  this product. It may be rural or urban area  every where we can find this character. Even  within a same household there may be different types of consumer, somebody may purchase grocery or somebody may purchase cosmetics or snacks item.    

So friends I have tried to explain about "Features of FMCG product". I hope  you will enjoy reading this.

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