The FMCG industry primarily involves the production and marketing operations of fast moving consumer goods.…
consolidation. Remember the day in 2004 when P&G and HLL slashed the price of their core detergent brands by almost 40 percent? A business weekly wrote, "Many brands will perish or never be so profitable again." But such pessimists were wrong. Anyone who invested every year since 2004 in the top 10 consumer goods companies (minus HLL which has under gone a massive restructuring) received a 12 percent…
The consumer products or the Fast Moving Consumer goods (FMCG) sector is valued at Rs 1.6 trillion. The industry is urban-centric with 66% share of the goods being consumed by urban India. Metropolitan cities & small towns have been driving the FMCG consumption in urban India since 2002. In fact middle India, comprising of the small towns and consuming 20% of overall FMCG sales, has been growing the fastest across rural and urban segments. As per Nielsen, the FMCG market size of middle India is set to expand from Rs…
A strong MNC presence in the FMCG (Fast Moving Consumer Goods) sector, the existence of a wide distribution network, intense competition, the availability of key raw materials, lower labour costs, and a presence across the entire value chain have resulted in a thriving market for FMCG companies. The sector will grow by over 50 percent in rural and semi-urban India by 2010. With the opening up of the Indian market to foreign players, Indian companies have increased their use of IT as a business tool. Indeed, it has become an essential element for these companies to understand the needs of their customers and handle their employees.…
FMCGs, or Fast Moving Consumer Goods, are any type of commercial products that are produced at a low unit cost and tend to sell quickly. Typically, a lower amount of profit is made on each individual FMCG that is sold, but the constant demand helps to produce volume sales that help to create a healthy cumulative profit on all units sold within a given period. There are a number of retail products that fit this basic profile, with many of the items found in just about every home around the world.…
Influence of Packaging on Base of the Pyramid consumers with reference to FMCG industry in India…
The FMCG major plans to increase retail reach by 30% as the distribution has always been their weak spot. Despite of strong hold in east and south, they still need to catch up a lot with other companies in north and west for newer categories like noodles, biscuits and toothpaste. They hope to accomplish this task with their project canvas. They also have big plans for the rural consumers which are expected to extend to 40-45% of market coverage increasing from 30% presently. Also for high end…
ITC leveraged it traditional businesses to develop new brands for new segments. For example, ITC used its experience of transporting and distributing tobacco products to remote and distant parts of India to the advantage of its FMCG products. ITC master chefs from its hotel chain are often asked to develop new food concepts for its FMCG business.…
Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Alwyn, and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the major share of the consumer durables market. Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players were entering in the market with the increase in income levels, easy availability of finance, increase in consumer awareness, and introduction of new models, the demand for consumer durables has increased significantly. Products like washing machines, air conditioners, microwave ovens, color televisions (C-TV) were no longer considered luxury items. However, there were still very few players in categories like vacuum cleaners, and dishwashers Consumer durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and intense competition. The market share of MNCs in consumer…
The report also include the distinguish feature of FMCG as compared to other sector and a well-defined conclusion…
FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarily deals with the production, distribution and marketing of consumer packaged goods. The Fast Moving Consumer Goods (FMCG) are those consumables which are normally consumed by the consumers at a regular interval. Some of the prime activities of FMCG industry are selling, marketing, financing, purchasing, etc. The industry also engaged in operations, supply chain, production and general management.…
FMCG (fast moving consumer goods) is a term that is used to refer to those goods which are sold through retail stores. These goods have a short period of shelf life and as such are used up within days, weeks, or months. At the most it lasts for a year. However there are also durable goods which people replace after using the same for many years. For example we can cite kitchen or other household appliances.…
Sector’s outlook 5-7 7. Scope of FMCG 8 8. Growth prospects 8-11 9. Top players in FMCG sector 11 10. Secondary players 12 11.Review of literature 12-14 12.…
Financial Health: P&G is a stable company operating in a very mature and stable steady growth industry. It has an average Return on Assets of 12.5% and a high average Return on Equity of 43%. It turns its Inventory around 12 times a year, which is also an industry average .…
FMCG refers to consumer non-durable goods required for daily or frequent use. Typically, a consumer buys these goods at least once a month. FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarily deals with the production, distribution and marketing of consumer packaged goods. The Fast Moving Consumer Goods (FMCG) is those consumables which are normally consumed by the consumers at a regular interval. Some of the prime activities of FMCG industry are selling, marketing, financing, purchasing, etc. The industry also engaged in operations, supply chain, production and general management.…