FMCG (from English fast moving consumer goods) is a general name for consumer goods. These include many products from the light and food industries.
Types of FMCG goods
The distinctive features of FMCG products are cheapness and speed of sale. Such products are used for a limited time period, therefore, the frequency of their purchases is higher. The relative profit from the sale of FMCGs is not high, but due to their mass character, they guarantee a high turnover for sellers.
The definition of FMCG as "high demand goods" is incorrect, since demand for certain goods is temporarily increased, while for FMCG goods it is constant.
Shopping for FMCG goods is everyday, for the purpose of receiving guests and with a supply. Among the FMCG products are:
- hygiene items, toothpaste;
- detergents and cleaners;
- cosmetic products;
- dishes, batteries, light bulbs;
- cigarettes, alcohol, carbonated drinks;
- medicines.
Such products are less prone to sales downturns during periods of crisis.
Consumer goods are different from durable goods. For example, consumer electronics and appliances, usually such goods are changed no more often than once every 1-2 years. They should also be distinguished from basic food products, including bread, milk, butter, etc.
Features of the FMCG market
The FMCG market is characterized by a high level of competition, as well as the frequent appearance of new brands and products. The main factors in maintaining the competitiveness of FMCG companies are the breadth of the assortment, affordable prices, and regional coverage. To maintain their own place in the market, companies need to constantly rotate brands of goods and introduce new products to the market.
The list of the largest FMCG companies includes Unilever, Colgate, Procter & Gamble, Henkel, Danone, Coca-Cola, Kraft, PepsiCo, Nestle, Heinz.
The marketing policy of the companies is aimed at working with the target audience to form the needs for the product, a constant increase in turnover, as well as ensuring customer loyalty to the brand.
An important factor in the growth of sales is effective merchandising, because in many ways it is the place and location of the goods in the supermarket that determines its sales.
All FMCG companies can be divided into several groups, depending on the number of brands represented in the product portfolio:
- mono-brand - representing products from one category (for example, Coca-Cola);
- offering 2-3 products - for example, juices and dairy products (Wimm Bill Dann), drinks and pastries (Cadbury Schweppes);
- multi-product - Procter & Gamble, Nestle, Unilever.
The Russian FMCG market is at the stage of active development, the demand for everyday goods is growing every year, new brands and goods are constantly appearing on the market.
