FMCG companies
Index
FMCG Industry
FMCG stands for Fast Moving Consumer Goods. FMCG products are also known as consumer packaged goods. These goods are generally replaced within a year.
This sector is the fourth largest sector in the economy and contributes to 3 million employment opportunities. This industry is characterised by well established distribution network, high penetration levels, low per capita consumption and intense competition between organised and unorganised segments.
The total FMCG market is around Rs.85,000 crores.
The characteristics of FMCG include:
From the consumer’s perspective
Frequent purchase
Low involvement (little or no effort to choose the item)
Low price
From the marketer’s angle
High volumes
Low contribution margins
Extensive distribution networks
High stock turnover.
The FMCG sector is generally divided into four major segments:
Household care
Personal care
Food and beverages
Health care
Notable trends in the FMCG sector
In the recent past, there has been a sense of renaissance in the market, especially in the FMCG sector. The trends that we see, tell us the factors which are responsible for doing so.
Indian business companies are presently busy expanding their current business portfolios. ITC introducing the dark fantasy range in biscuits to compete with Britannia forcing it to revamp Pure Magic and Bourbon.
Product innovation taken by the FMCG companies has put their competitors to think and do something similar to hold a safe place in the market. We have seen in the recent past how Knorr soup of the HUL had captured the market, with introducing soups that could just be made by adding hot water. This also forced Nestle to do the same in India.
There has been an immense focus on the rural market because of the increase in demand and also because that market is yet to be tapped. The rural market is having a good growth rate and currently has a market share of 33% of the total FMCG markets.
Third party manufacturing has
FMCG Industry
FMCG stands for Fast Moving Consumer Goods. FMCG products are also known as consumer packaged goods. These goods are generally replaced within a year.
This sector is the fourth largest sector in the economy and contributes to 3 million employment opportunities. This industry is characterised by well established distribution network, high penetration levels, low per capita consumption and intense competition between organised and unorganised segments.
The total FMCG market is around Rs.85,000 crores.
The characteristics of FMCG include:
From the consumer’s perspective
Frequent purchase
Low involvement (little or no effort to choose the item)
Low price
From the marketer’s angle
High volumes
Low contribution margins
Extensive distribution networks
High stock turnover.
The FMCG sector is generally divided into four major segments:
Household care
Personal care
Food and beverages
Health care
Notable trends in the FMCG sector
In the recent past, there has been a sense of renaissance in the market, especially in the FMCG sector. The trends that we see, tell us the factors which are responsible for doing so.
Indian business companies are presently busy expanding their current business portfolios. ITC introducing the dark fantasy range in biscuits to compete with Britannia forcing it to revamp Pure Magic and Bourbon.
Product innovation taken by the FMCG companies has put their competitors to think and do something similar to hold a safe place in the market. We have seen in the recent past how Knorr soup of the HUL had captured the market, with introducing soups that could just be made by adding hot water. This also forced Nestle to do the same in India.
There has been an immense focus on the rural market because of the increase in demand and also because that market is yet to be tapped. The rural market is having a good growth rate and currently has a market share of 33% of the total FMCG markets.
Third party manufacturing has