Disadvantages of FMCG
Challenges FMCG fmcg sales e book 1.High Competition. As the FMCG sector is a low capital intensive sector and basic technology are easily available, new players can enter easily . For example in India Pepsico is the market leader in Potato Chips category. But in recent years some new small players like Njoy chips, Kishlay chips etc are giving tough competition in different small area. Even within a district or state (Province) there are multiple small players and gaining market share. During last 5 to 7 years , in snacks category there are more than 100 of small players entered in Indian market and giving competition to big brands like Pepsico, Parle , ITC etc. Small players operates in a small geography , so their transportation and labour cost are very low . So they can give more margin to trade channel . Also some brands don’t have proper distribution system , they sell directly to wholesaler, as a result they save cost on di...