Term Paper on Indian Fmcg Market
A Foray into Indian FMCG Industry
Wrote by : Saraswat Bhattacharya MBA 090093 Amrita school of business
1. What is FMCG? Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. These include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other nondurables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate bars.
2.1
Overview of the industry:
The FMCG industry is volume driven and is characterized by strong MNC presence, a well established distribution network, low penetration level, low margin, low operating cost, and intense competition between organized and unorganized segment. The products are generally branded and backed by marketing, heavy advertising, slick packaging and strong distribution networks. But despite the strong presence of MNC players, the unorganised sector has a significant presence in this industry. In most categories, the unorganised sector is almost as big as the organised sector, if not bigger. Its strong distribution network and deep penetration in regional market, high reach, lower price than branded products and higher margin to distributors and retailers is eating away the market. India‟s FMCG sector is the fourth largest sector in the economy and creates employment for more than three million people in downstream activities. The Indian FMCG sector, with a market size of US$ 25 billion (2007–08 retail sales), constitutes 2.15 per cent of India‟s GDP. The industry is poised to grow between 10 to 12 per cent annually. Its principle constituents are Household Product, Personal Care, and Food & beverages. It is currently growing at a double digit growth rate.
Wrote by : Saraswat Bhattacharya MBA 090093 Amrita school of business
1. What is FMCG? Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. These include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other nondurables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate bars.
2.1
Overview of the industry:
The FMCG industry is volume driven and is characterized by strong MNC presence, a well established distribution network, low penetration level, low margin, low operating cost, and intense competition between organized and unorganized segment. The products are generally branded and backed by marketing, heavy advertising, slick packaging and strong distribution networks. But despite the strong presence of MNC players, the unorganised sector has a significant presence in this industry. In most categories, the unorganised sector is almost as big as the organised sector, if not bigger. Its strong distribution network and deep penetration in regional market, high reach, lower price than branded products and higher margin to distributors and retailers is eating away the market. India‟s FMCG sector is the fourth largest sector in the economy and creates employment for more than three million people in downstream activities. The Indian FMCG sector, with a market size of US$ 25 billion (2007–08 retail sales), constitutes 2.15 per cent of India‟s GDP. The industry is poised to grow between 10 to 12 per cent annually. Its principle constituents are Household Product, Personal Care, and Food & beverages. It is currently growing at a double digit growth rate.