Fast-moving consumer goods
Fast-moving consumer goods (FMCG) – or consumer packaged goods (CPG) – are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, and grocery items.[1][2] 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 substantial.
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[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.
FMCG 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 main 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 contribution margins
- Extensive distribution networks
- High stock turnover
[edit] References
- ^ a b Ramanuj Majumdar (2004). Product Management in India. PHI Learning. pp. 26–28. ISBN 9788120312524. http://books.google.com/?id=ESJzaCJE3fQC&pg=PA26&dq=what+is+fmcg&q=what%20is%20fmcg. Retrieved 2010-06-19.
- ^ Sean Brierley (2002). The advertising handbook By Sean Brierley (2, illustrated ed.). Routledge. p. 14. ISBN 9780415243919.
[edit] See also
- Trade promotion management
- Category management
- Good (economics)
- Mass production
- Retailing
- Supermarket
- Consumerism
- The Story of Stuff
- Destination management company
