Tag: fmcg

Fast-moving consumer goods (FMCG).

\KEY TAKEAWAYS

  • Fast-moving consumers goods are non-durable products that sell quickly at relatively low cost.
  • FMCGs have low-profit margins.
  • Examples of FMCGs are Milk, gum, fruit and vegetables, toilet paper, soda, beer, and over-the-counter drugs like paracetamol and digene.

What are Fast-moving consumer goods (FMCG)?

The products that are always in demand, easy to buy, and sold quickly are called Fast-moving consumer goods (FMCG). FMCG products principally have meager profit margins, but they do wonders in the business sectors due to their higher demand. FMCGs generally spend less time on the shelves of the stores mainly due to two reasons firstly, higher in requests and secondly quick putrefaction. All the items in your nearby supermarket fall in the FMCGs sector.

Some common Fast-moving consumer goods are:

Fruits and vegetables, eggs, fish and meat, soft drinks, Dairy products, toiletries, bread, other baked items, grooming products, and some of the medications are some of the Fast-moving consumer goods.

Most of the time, FMCGs are sold in massive proportions at low prices. If the prices are set higher, FMCGs like fruits and vegetables, fish, meats, or dairy products can remain unsold as they forfeit their freshness shortly.

HOW DOES FMCG RUN?

FMCG category has a powerful present and future as this sector provides relief to people’s daily necessities effortlessly at affordable prices. For illustration, the office employees who have to rush in the morning prefer ready to make food or packed food to avoid delay reaching their offices. Likewise, the industry makes itself capable of providing medicines, personal grooming commodities, and many other daily requirements effortlessly. FMCGs require a dominant distribution system as this industry promises not to let the shelves of the marts be vacated. 

Practically, the distribution system consists of two parts. The marketing happens between the manufacturers and consumers and where manufacturers trade the products through some third party.

CLASSIFICATIONS OF FMCG.

1.Durable products.

Durable products last on the shelves for a long time, i.e., for at least 3-4 years. Some of these products are home appliances, electronics items, furniture, tools, and stationery.

2. Non-durable products.

Non-durable products last on the shelves for a short duration, i.e., less than a year from their manufacturing date. Some of these products are food, beverages, cosmetics, and drugs.

STRUGGLES FOR FMCG COMPANIES.

FMCG products have low-profit margins and limited shelf existence. So to maintain fluency in the market, FMCG companies have to sell a large number of products with intelligent marketing and keeping high-quality products at a lower cost to gain permanent consumers.

Other struggles for FMCG are:

  • Delaying the expiration of perishable products (meats and dairy products). 
  • Keeping a pocket-friendly price because consumers are becoming price-sensitive due to the increase of E-Commerce.
  • Producing products and packaging that are favorable to the environment.

TOP 5 FMCG COMPANIES IN INDIA.

1. Hindustan Unilever Limited.

According to a survey, HUL products are found in almost every household. Assimilated on 17th October 1993, HUL is India’s largest FMCG company because of its substantial brand value and quality. Top brands like Clinic plus, Glow and lovely, Surf Excel, Rin, Pond’s, and Vaseline are produced by Hindustan Unilever Limited.

Corporate Office: Mumbai, Maharashtra.

Employees: 17,000+

Turnover: 4.2 Billion dollars.

2. Colgate-Palmolive.

Colgate-Palmolive is solely based on health care products. Top brands like Colgate toothpaste, Halo shampoo, Palmolive Natural Soap, Colgate Plax active Salt Mouthwash, and many more are produced by Colgate-Palmolive. 

Corporate Office: New York, USA.

Employees: 38000+

Turnover: 17.5 Billion dollars.

3. ITC Limited.

It is one of the broadest FMCG companies in India. Popular products like Savlon, Yippee noodles, Classmate, Bingo, Sunfeast, Fiama, Ashirvaad lie under ITC Limited. Varying from Hotels, Agri businesses, Packaged foods, and confectionery to Safety Matches and Tabacco products, ITC has a varied brand portfolio.

Corporate Office: Kolkata, West Bengal.

Employees: 29000+

Turnover: 7.2 Billion Dollars.

4. Nestle India Limited.

Nestle is India’s most famous FMCG company, producing Milk and nutrition, prepared food, chocolates, Infant cereals, Pasta, and Noodles. Nestle India Ltd. has top brands like Maggi, Milkybar, Kit Kat and Nescafe.

Corporate Office: Vevey, Switzerland.

Employees: 330000+

Turnover: 87.2 Billion Dollars.

5. Parle Agro India Limited.

Solely based in India since 1985, Parle agro India Ltd. is India’s vastest beverage company. Top brands like Frooti, Appy Fizz, Appy Bailey, and Bailey soda are produced by Parle Agro India Ltd.

Corporate Office: Mumbai, Maharashtra.

Employees: 2700+

Turnover: 1 Billion Dollars.

HOW CAN SOMEONE JOIN THE FMCG SECTOR?

FMCG has good career opportunities. Some of the jobs one can pursue in FMCG companies are-

A. Product control executive.

B. Sales executive.

C. Procurement Assistant.

WHAT ARE THE MAJOR SKILLS FOR A CAREER IN FMCG SALES?

People willing to work in this sector should be good travelers. Why? Meeting existing customers and making new customers is the primary goal required. They will need to know about the product’s data in detail to convince their clients with ease. To be recognized in this sector, one has to be optimistic, generous, and have excellent communication and presentation skills.

However, one should be aware of fake job calls that claim to be from India’s top companies. 

FMCGs AND E-COMMERCE.

Nowadays, people are rapidly shifting from offline stores to online stores because of the price-sensitive offers and door-to-door delivery. Even offline stores give incredible suggestions to bring the consumers to their stores to compete with the online stores. 

FMCG PRODUCTS.

  • Toiletries.
  • Food products.
  • Self-care products.
  • Herbal products.
  • Dairy products.
  • Home Appliances.
  • Electrical products.
  • Stationery.
  • Ayurvedic Products.

FMCGs can be divided into various categories, including-

  • Processed foods: Cheese products, cereals, and boxed pasta
  • Prepared meals : Ready-to-eat meals.
  • Beverages : Bottled water, energy drinks, and juices
  • Baked goods: Cookies, croissants, and bagels
  • Fresh, frozen foods, and dry goods: Fruits, vegetables, frozen peas and carrots, and raisins and nuts
  • Medicines: Aspirin, pain relievers, and other medication that are bought without doctor’s consultants.
  • Cleaning products : Baking soda, oven cleaner, and window and glass cleaner
  • Cosmetics and toiletries: Haircare products, concealers, toothpaste, and soap
  • Office supplies : Pens, pencils, staplers, and other products.

Thanks for reading.

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Excellent Career in FMCG (Fast Moving Consumer Goods) Industry

Fast Moving Consumer Goods (FMCG) sector is characterized by strong MNC presence and a well established distribution network. In India the easy availability of raw materials as well as cheap labor makes it an ideal destination for this sector. There is also intense competition between the organized and unorganized segments and the fight to keep operational costs low. Due to this intense competition coupled with good enough growth in the sector, it requires huge number of human resource year on year. Fast Moving Consumer Goods (FMCG) goods are all consumable items (other than groceries/pulses) that one needs to buy at regular intervals. These are items which are used daily, and so have a quick rate of consumption, and a high return.  

FMCG can broadly be categorized into three segments which are :  

• Household items as soaps, detergents, household accessories, etc,

• Personal care items as shampoos, toothpaste, shaving products, etc and finally

• Food and Beverages as snacks, processed foods, tea, coffee, edible oils, soft drinks etc.  

Global leaders in the FMCG segment are Nestlé, ITC, Hindustan Unilever Limited, Reckitt Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi, Gillette etc. The burgeoning middle class Indian population, as well as the rural sector, presents a huge potential for this sector. The FMCG sector in India is at present, the fourth largest sector with a total market size in excess of USD 13 billion as of 2012. This sector is expected to grow to a USD 33 billion industry by 2015 and to a whooping USD 100 billion by the year 2025. Growing awareness, easier access, and changing lifestyles have been the key growth drivers for the sector. Rural demand is set to rise with rising incomes and greater awareness of brands. There are number of factors that will drive future growth in this sector. Increasing rate of urbanization, expected to see major growth in coming years will give a big push to this sector.

Moreover, rise in disposable incomes, will lead to premium brands having faster growth and deeper penetration. ​​​​​​​   Innovative and stronger channels of distribution to the rural segments are also giving a big push to this sector in terms of deeper penetration. Moreover, the icing on the cake is the increase in rural non-agricultural income and benefits from government welfare programmes resulting in increased purchasing power. Innovation in FMCG is a wide concept which aside from creating, launching and marketing new products also includes improving shopping processes, providing consumers with a range of tools to purchase products as also ensuring that the entire organization is focused on the singular goal of improving the customer’s overall experience. Therefore, in all functions like marketing, Finance, HR, IT, operations and strategy, there is a demand for talent by FMCG companies.  

As Indian consumers become more global in their aspirations and desires, as they travel abroad and are exposed to global products, their appetite to consume products in their home market will only increase. To meet this demand, FMCG companies need to focus on R&D and innovation as a means to grow the business. At the same time, product lifecycles are shrinking, companies across categories are launching new products, and the pressure to market new products, quickly, is strong. Due to these factors, FMCG companies recruit people at all levels including freshers from B-schools. As innovation becomes critical to the sector’s growth story, there is more demand for freshers as companies want to capitalize on their fresh ideas.

Working in FMCG gives you a chance to work with the biggest brands

A big benefit of working in the FMCG industry is that it is home for many of the world’s largest brands. Some that you might recognize and even have in your home include Heinz, Unilever, Procter and Gamble, Coca-Cola and Nestle. And so are their products. Having the opportunity to work for a brand that you like and use on a regularly basis can increase your job satisfaction and make you enjoy your work more.

Most of the job openings are from industry giants. Therefore, you have a great chance to enter one of the world’s largest companies. Whether you have always wanted the prestige of working for a market leader or you are just attracted to the perks of being employed by one of the world’s industry giants, FMCG can open those doors to you.

FMCG offers opportunities to have a global career

Most industries are concentrated in capitals and big cities. However, FMCG offers opportunities all over the globe for those who are interested. Not only does doing a traineeship in FMCG take you to at least two countries over the course of a year, but having a real job in FMCG can take you anywhere you want. FMCG companies are scattered worldwide and depending on the skills you would like to gain and the job you have, you can land anywhere between Sydney, Hong Kong, Berlin and New York.