Fast moving consumer goods are non-durable products that are sold quickly and at relatively low cost. The products are sold in large quantities, so the cumulative profit on such products can be large. This leads to a recurrent cycle of consumption that makes it feasible to mass produce the goods.
Thus Fast Moving Consumer Goods (FMCG), are the products that are sold quickly at relatively low cost. Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be large. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, light bulbs, batteries, paper products and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products and drinks, although these are often categorized separately.
FMCG products are generally replaced or fully used up over a short period, usually a few days or weeks, or months, but within one year. This contrasts with with durable goods or major appliances such as kitchen appliances, which are generally replaced over a period of several years. Global leaders in the FMCG segment are Anheuser-Busch InBev, Nestlé, ITC, Hindustan Unilever Limited, Reckitt Benckiser, Unilever, Procter & Gamble, L'Oréal, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi, Gillette etc.
Companies that work with FMCG are the companies that will always stay strong during financial and economical dips because because there is always a constant need for their items that will never decline in popularity.
Main Characteristics of FMCG are :
From the consumers' perspective:
• Frequent purchase
• Low involvement (little or no effort to choose the item – products with strong brand loyalty are exceptions to this rule) • Low price...
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