Fast-moving consumer goods



Fast-moving consumer goods (FMCG), also known as consumer packaged goods (CPG), are products that are sold quickly and at a relatively low cost. Examples include non-durable household goods such as packaged foods, beverages, toiletries, candies, cosmetics, over-the-counter drugs, dry goods, and other consumables.

Fast-moving consumer goods have a high inventory turnover and are contrasted with specialty items which have lower sales and higher carrying charges. Many retailers carry only FMCGs; particularly hypermarkets, big box stores and warehouse club stores. Small convenience stores also stock fast-moving goods; the limited shelf space is filled with higher turnover items.

Characteristics
The following are the main characteristics of FMCGs:


 * From the consumer perspective
 * Frequent purchases
 * Low engagement (little or no effort to choose the item)
 * Low prices
 * Short shelf life
 * Rapid consumption


 * From the marketer perspective
 * High volumes
 * Low contribution margins
 * Extensive distribution
 * High inventory turnover

Consumer packaged goods companies
Well-known CPG manufacturing companies include:


 * Nestlé
 * Procter & Gamble
 * PepsiCo
 * Unilever
 * AB InBev
 * L’Oréal
 * Coca-Cola
 * Mondelez International
 * Kraft Heinz
 * Heineken
 * Kellogg's

Rural consumers
Consumers in rural areas typically purchase goods from nearby towns and villages. Recently, there has been a shift in consumer purchase behavior toward purchasing locally that has prompted the need for better local promotional efforts to generate brand awareness in small towns. FMCGs play a large part in the economy, as they are inelastic products that touch every part of consumer life. Businesses that supply FMCGs to a rural community can help provide employment opportunities and drive down the cost of such products in those rural areas. For instance, FMCGs represent the fourth-largest sector in the Indian economy and generate employment for more than three million people in downstream activities.

ISIC definition
The retail market for FMCGs includes businesses in the following International Standard Industrial Classification (ISIC) (Revision 3) categories:

• ISIC 5211 retail sales in non-specialized stores

• ISIC 5219 other retail sales in non-specialized stores

• ISIC 5220 retail sales of food, beverages and tobacco in specialized stores

• ISIC 5231 retail sales of pharmaceutical and medical goods, cosmetic and toilet articles

• ISIC 5251 retail sales via mail order houses

• ISIC 5252 retail sales via stalls and markets

• ISIC 5259 wholesale goods

• ISIC 5269 wholesale medical prescriptions

Supplier industries for FMCGs include:

• 1511 meat and meat products

• 1512 fish and fish products

• 1513 fruit and vegetables

• 1514 vegetable and animal oils and fats

• 1520 dairy products

• 1531 grain mill products

• 1532 starches and starch products

• 1533 animal feeds

• 1541 bakery products

• 1542 sugar

• 1543 cocoa, chocolate and sugar confectionery

• 1544 macaroni, noodles, couscous

• 1549 other food products

• 1551 spirits, ethyl alcohol

• 1552 wines

• 1553 malt liquors and malt

• 1554 soft drinks, mineral waters

• 1600 tobacco products

• 2101 pulp, paper and paperboard

• 2102 corrugated paper, containers

• 2109 other articles of paper and paperboard

• 2424 soap and detergents, cleaning preparations, perfumes

• 2430 men's and women's inner garments, shaving gels, deodorants, personal care, home care