INTRODUCTION
Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged goods. Items in this category include all consumables (other than groceries/pulses) people buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and extends to certain electronic goods.
These items are meant for daily of frequent consumption and have a high return. The Indian
FMCG sector is the fourth largest sector in the economy with a total market size in excess of
US$ 13.1 billion. It has a strong MNC presence and is characterized by a well established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage.
The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015.
If you are thinking, how the FMCG Sector can grow in such a volatile economy, think about this. "Right from the moment you wake up to the time you go to bed, you use some or the other FMCG product. Toothpaste, Mouthwash, Soap, Shampoo, Deodorant, Mosquito
Repellent etc." The list is endless. With growing populations in India as well as around the globe, do you really think the demand for FMCG products will come down??
Exports
India is one of the world‘s largest producer for a FMCG products but its FMCG exports are languishing at around 1,000 crore only. There is noteworthy potential for increasing exports but there are certain factors inhibiting this, Small-scale sector reservations bound ability to invest in expertise and quality up gradation to achieve economies of scale. Moreover lower volume of higher value added products reduce scope for export to developing countries.
1
Product characteristics
Products belonging to FMCG sector generally
Bibliography: http://journal.asci.org.in/Vol.41(2011-12)/41_1_Deepmala%20Baghel.pdf Case Study: