Fast moving consumer goods

Fast Moving Consumer Goods (FMCG) are products that are sold quickly at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, grocery items etc.^[1] 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.

[edit] Scope

The term FMCG refers to those retail goods that are generally replaced or fully used up over a short period of days, weeks, or months, and within one year. This contrasts with durable goods or major appliances such as kitchen appliances, which are generally replaced over a period of several years.

FMCGs have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Some FMCGs – such as meat, fruits and vegetables, dairy products and baked goods – are highly perishable. Other goods such as alcohol, toiletries, pre-packaged foods, soft drinks and cleaning products have high turnover rates.

The following are the typical characteristics of FMCGs:^[1]

• 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
• From the marketers' angle:
  • High volumes
  • Low margins
  • Extensive distribution networks
  • High stock turnover

[edit] See also

• Category management
• Good (economics)
• Market segment
• Marketing strategy
• Mass production
• Retailing
• Supermarket
• Consumerism
• The Story of Stuff

[edit] References