FMCG Full Form stands for Fast-Moving Consumer Goods, which are also known as consumer packed goods (CPD). These goods refer to the products that are sold quickly and generally non-durable. It is also known as Consumer Packaged Goods (CPG). Examples of FMCG products are soft drinks, processed foods, cosmetics like lip balm, eyeliner, deodorants, soaps, general using products like toilet paper, face towel, shower cap, toilet soaps, and over-the-counter drugs, etc.
What is FMCG & FMCG Full Form?
The full form of FMCG is Fast Moving Consumer Goods. CPG is a type of marketplace where consumers buy a wide variety of products in one place. And they are fast-moving consumer goods. These products such as tea, coffee, filter coffee, biscuits, soft drinks, shampoo, washing powder, toothpaste, shaving soap, detergent, cleaning goods, hair care, etc., are commonly referred to as FMCG products. History of FMCG The CPG market started in the 18th century with handmade goods like shaving soap, candles, matches, etc. Fast-moving consumer goods (FMCG) came into the picture at the beginning of the 20th century, when Lever Brothers introduced their razors and blades, which grew in popularity. The Rise of CPG Lever’s direct competition in the market was Colgate. L.C. Lever introduced pasteurized milk.
Different types of FMCG products
The FMCG products have been divided into three types: Agriculture Products Medicinal and Beauty products Convenience products. Some examples of FMCG products Coke Pepsi Nestle Kraft Mondelez Church and Dwight Soap Energizer Hudco Bosch Grupo Bimbo Sameer FMCG companies There are three major FMCG companies viz. Hindustan Unilever Limited (HUL), Britannia Industries Limited (BRITNA) and ITC Limited. The production of FMCG products Types of FMCG products includes Wash soap, Washing powder, Chocolate, cakes and snacks, Cosmetics Prescription drugs, Soaps Snacks, Fruits, vegetables and frozen food Live products Various other types of FMCG products Some of the companies manufacturing FMCG products Yum! Brands, Inc. PepsiCo, Inc.
Characteristics of FMCG products
1) From the consumers’ perspective
- Mandatory use
- Frequent purchase
- Low cost
- No effort to choose
- Comes in wide range
2) From the marketers’ perspective
- Low margin
- A high distribution network needed
- Daily delivery
What are the examples of FMCG companies?
The world’s largest retailer, Walmart (Walmart Stores Inc.), is a CPG company. Other big companies include Coca-Cola (Coca-Cola Co.), Procter and Gamble (P&G), Nestle, Unilever (Dove), Mars Inc., and PepsiCo (PepsiCo). However, some well-known FMCG companies that started their operation in India are Lipton and Ovaltine, and TCS PepsiCo (PepsiCo). This FMCG company is an American multinational beverage and food company headquartered in Purchase, New York. It was founded in 1897 by two brothers, Benjamin and John Taylor. Its products include Pepsi, Frito-Lay, Gatorade, Quaker Oats, Tropicana juices, Aquafina bottled water, and Tropicana low-fat dairy products.
Top Indian FMCG Companies
- Hindustan Unilever
- Amul
- Pidilite Industries
- Dabur India Ltd.
- Emami
- Britannia
- Parle Agro
- Colgate Palmolive India Ltd.
- Nirma
- Himalaya Healthcare Ltd.
- Haldiram’s
- Bikanervala
- Zydus Wellness
- CavinKare
- Marico etc.
Advantages of FMCG
FMCG is a convenient source of income and a valuable source for countries that are not importing commodities but using commodities as raw materials to produce FMCG products. Also, FMCG products can easily be transported with speed due to low transportation cost. FMCG products are similar to commodities but have different product packaging. Most FMCG products are targeted at higher-end consumers. Nowadays, companies are trying to benefit from FMCG by using science to make FMCG products more efficient and unique than commodity products. These products are almost prepared and sold in an organised manner. These companies are currently adopting novel and efficient marketing strategies to expand the market of FMCG products.
Disadvantages of FMCG
High cost is the essential drawback of the FMCG sector. The very first step for a consumer is picking up a branded FMCG product. The market here is flooded with them, and they all sell at a very high price. The most common question is, what does a consumer get for the high price? These are usually small, minimum quantity, and generic products. The discount retailers like E-Commerce portals provide products at a lesser price than the FMCG retailers. The critical disadvantage of the FMCG companies is that they lose money on every sale. This section will help you to understand how the FMCG sector is a complete form of industry. Types of FMCG The following are the types of FMCG: Fruits and Vegetables Fruits and vegetables are the most demanded FMCG products.
Conclusion
FMCG industry plays a pivotal role in the growth of any economy by driving demand for the products and generating employment opportunities. The middle class consumes more than 60% of the FMCG products. The retail sector, including FMCG companies, contributes about 25-25% of the country’s gross domestic product (GDP). Therefore, the industry contributes immensely to the GDP. Market Classification: The FMCG industry has many sub-segments; the market is divided into nine sub-segments, which are industry, product type, and geography. Industry: FMCG industry is divided into three major segments that are industry, product type, and geography. FMCG Industry Product Types: The market is divided into three types of product types, which are food & beverages, personal care, and home care.
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A Quick FAQ to FMCG
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What is the full form of FMCG?
The full form of FMCG is Fast Moving Consumer Goods.
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What comes under FMCG products?
Fast-moving consumer goods include packaged food, toiletries, beverages, stationery, over-the-counter medicines, cleaning and laundry products, plastic goods, personal care products, as well as less expensive consumer electronics, such as mobile phones and headphones.
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What are the types of FMCG?
The following are examples of FMCG product types
1. Processed Foods. Processed foods such as breakfast cereal
2. Beverages. Packaged beverages such as fruit juice and bottled water
3. Dry Goods. Dry goods include things such as coffee, tea, sugar, and beans
4. Prepared Meals
5. Cosmetics
6. Toiletries
7. Over-the-counter Medications
8. Candy -
What is the biggest FMCG company?
In that year, Unilever was ranked as fourth largest consumer goods company worldwide with net sales of about 58.21 billion U.S. dollars.
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Which are the top 5 FMCG companies in India?
Today, we take a look at the top 5 FMCG companies in India that are responsible for keeping over 1.3 billion Indians on their feet every day.
1. Hindustan Unilever Limited (HUL).HUL was set up in 1931 as Hindustan Vanaspati Manufacturing Co.
2. ITC Limited
3. Nestle India
4. Britannia Industries
5. Marico