The FMCG also known as Fast Moving Consumer Goods is a huge industry that manufactures and markets the products that are consumed or used within a short period of time. The manufacturers take a small profit on each product but the selling number is huge. That means that even with a small profit, they make great earnings. This is how the industry operates and the manufacturers make the profit.
It is unlike the other industries where the products are made and a huge profit is taken on each such item. Such products have a life span of over a year at least where as the products that the fmcg industry provides to the wholesalers have normally a life span under an year. These products generally have a span of few days or a month.
The fmcg products include the cosmetics, soap, toiletries, shaving equipment, teeth cleaning equipment, detergents etc. You can easily get all these fmcg products at cash and carry stores. The distributors make a good profit as well because the products sell in a great number daily and the accumulative profit is large.
The fmcg products do not last long and the demand for them stays almost the same at all times. The larger fmcg companies are manufacturing a variety of such products and they create a competition within themselves. An fmcg company that manufactures shampoo would also be manufacturing the conditioners, soaps, facial and hair creams, detergents and shaving equipment.
The Fast Moving Consumer Electronics is also a subset of fmcg. These include the fashionable mp3 players, mobile phones, digital cameras, laptop computers and digital GPS systems. These are considered a subset of fmcg because they are also replaced within a short period of time instead of being more durable and having a larger life span.
Article 2: FMCG products and the healthy advertising competitions:
The fmcg products are Fast Moving Consumer Goods and they come at a relatively low price as compared to the other types of goods such as durables and major appliances. The fmcg products are manufacturers favorite because their sale is always on a high and the profit though small on each item, becomes great when the larger picture is seen. The fmcg products are promoted more than the other durable and major goods.
The reasons behind the heavy promotional campaigns of the fmcg products are various. They are promoted because the manufacturers do not only promote them but the wholesalers and distributors also promote them. This makes them the market favorite and the advertisement world makes a lot of money only because of the fmcg products. They are heavily promoted because they are sold in a huge quantity everyday and the consumers only think a little while purchasing these goods. The whole process of decision making takes a little while and the consumer does not think critically. This actually helps the fmcg promoters because this way they can easily influence the mind of the consumer and that creates the advertisement wars.
The fmcg products are sold at the grocery stores and the supermarkets as well as at the general stores. Because of the local sale, the different distributors also enter the competition and they also advertise the fmcg products locally and personally to get their benefit from the increased number of sales.
Fmcg products offer a healthy competition for advertisers and the wholesalers and distributors. They make sure that there product is best represented and it has something extra that makes it the best in the market. This also puts the pressure on the manufacturers and they also feel their responsibility towards the quality and uniqueness of the product. This competition also helps the consumers because at the end of the day they will be the ones who will be getting better products.
Article 3: FMCG products-achieving high level of distribution
The fmcg products are meant for short term usage. They are consumed over a shorter period of time and that makes them sell a lot. Most of the fmcg products are used by most of the people all around the world. They are most used every day and their average life span is one month. Certain fmcg products are consumed in a period of one year but they do not generally go beyond that.
The manufacturers try to establish the band strength and this way they try to achieve a high number of sales. The fmcg industry can only survive if the products are consumed and purchased consistently and in huge quantities. This encourages the distributors and wholesalers to promote the products locally. They create their own private label brands to increase the sales and to stay in the competition.
The fmcg products have achieved a high level of distribution over the years. All the parties have played their role to achieve this. The advertisers, the marketers, the wholesalers, the manufacturers and the distributors have worked equally hard to get the high level of distribution.
The fmcg products can be categorized into electronics and other products. The other products include the products that are sold at groceries and supermarkets. The fmcg products like soap, shampoos, cosmetics, shaving equipment etc will fall into the other products category while the mp3 players, mobiles phones etc will come under the electronics.
The fmcg products need high level of distribution to strengthen the brand. These means that every one needs to play his role including the wholesalers and the manufacturers. The retailers have also helped to as they have been working on the private label brand creations.
The fmcg brands are not only sold well because everyone needs them but the retailers and the manufacturers create a need. The need is created by using the media. They try to find a problem that the society is facing and then they show the people that their product will help them find a solution to their problem.
Article 4: FMCG and the importance of supple chain.
The fmcg products need a powerful supply chain in order to attain a high number of sales. These products are heavily advertised and they are promoted using all the available advertisement means and they rely on the supple chain. Every one uses Fmcg products and they are consumed over a very short period. This means that the end consumer needs to have the product available at the very next store or shop to him. If the supply is not right, the fmcg product will lose its customers and any other similar product will replace it.
The important thing that the manufacturers need to implement is the consistent supply. The fmcg industry can not survive if the products are not available easily and at the place where the customer needs them. This means that the retailers and the wholesalers also need to play their role effectively. These products should not only be available at every cash and carry but they should be found everywhere and at all the times.
There are two major reasons why the supply of the fmcg products plays the most important role in the process of brand strengthening. Firstly, every such product has various replacements and the customer will purchase any one of them if he can’t find the one he is looking for. Secondly, the fmcg products are not extremely essential-not most of them. If the product availability is not guaranteed, the customers will not feel the need for it after some time. Although there are products that are extremely necessary like soap and detergents but there are many other products which are not considered necessary by the customers until the need for them is created.
So the care that the distributors and the wholesalers need to take is that they can ensure the supply before they create the need for the product. Once the need is created and the customer does not find the product, he will not get in to a habit of using the product.
