CleanupBot at 08:38, 12 August 2021

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{{redirect-distinguish|FMCG|Freeport-McMoRan}}
{{refimprove|date=August 2018}}
[[File:Supermarket full of goods.jpg|thumb|right|Store aisle of fast moving consumer goods]]
[[File:Inside Costco Perth.jpg|thumb|Warehouse club store]]
[[File:Soft drink shelf 2.jpg|thumb|right|Soft drinks are FMCGs]]
'''Fast-moving consumer goods''' ('''FMCG'''), also known as '''consumer packaged goods''' ('''CPG'''), are products that are sold quickly and at a relatively [[low cost]]. Examples include non-durable [[household goods]] such as [[packaged food]]s, [[beverage]]s, [[toiletries]], candies, cosmetics, [[over-the-counter drug]]s, dry goods, and other [[consumables]].<ref name="Ramanuj_Majumdar">{{cite book |title=Product Management in India |author=Ramanuj Majumdar |publisher=PHI Learning |year=2004 |isbn=978-81-203-1252-4 |pages=26–27 |url=https://books.google.com/books?id=ESJzaCJE3fQC&q=what%20is%20fmcg&pg=PA26 |access-date=2010-06-19 }}</ref><ref>{{cite book |title=The Advertising Handbook |author=Sean Brierley |publisher=Routledge |edition=2nd, illustrated |year=2002 |page=14 |isbn=978-0-415-24391-9 }}</ref>

Fast moving consumer goods have a high [[inventory turnover]] and are contrasted with specialty items which have lower sales and higher carrying charges. Many retailers carry only FMCGs particularly [[hypermarket]]s, [[big box store]]s and [[warehouse club]] stores. Small [[convenience store]]s also stock fast moving goods; the limited shelf space is filled with higher turnover items.

== Characteristics ==

The following are the main characteristics of FMCGs:<ref name="Ramanuj_Majumdar"/>

* '''From the consumer perspective'''
** Frequent purchases
** Low engagement (little or no effort to choose the item)
** Low prices
** Short [[shelf life]]
** Rapid consumption

* '''From the marketer perspective'''
** High volumes
** Low [[contribution margin]]s
** Extensive [[distribution (business)|distribution]]
** High [[inventory turnover]]

== Rural consumers ==
[[Consumer]]s in rural areas typically purchase goods from nearby towns and villages. Recently, there has been a shift in consumer purchase behavior toward [[Local purchasing|purchasing locally]] that has prompted the need for better local promotional efforts to generate brand awareness in small towns. FMCGs play a large part in the economy, as they are inelastic products that touch every part of consumer life. Businesses that supply FMCGs to a rural community can help provide employment opportunities and drive down the cost of such products in those rural areas. For instance, FMCGs represent the fourth-largest sector in the Indian economy<ref>{{Cite web|url=https://www.ibef.org/industry/Fmcg-presentation|title=Indian FMCG Industry Analysis|website=www.ibef.org|access-date=2020-02-25}}</ref> and generate employment for more than three million people in downstream activities.<ref>{{Cite web|url=https://www.journalijdr.com/sites/default/files/issue-pdf/Download%201068.pdf|title=Rural Consumer Behaviour on Fast Moving Consumer Goods|last=Singaravelu|first=Dr. K.|date=October 2013}}</ref>

== ISIC definition ==

The retail market for FMCGs includes businesses in the following [[International Standard Industrial Classification]] (ISIC) (Revision 3) categories:<ref name="Aydin2005">{{cite document |author=Aydın Çelen |author2=Tarkan Erdoğan |author3=Erol Taymaz |title= Fast Moving Consumer Goods Competitive Conditions and Policies |publisher=Economic Research Center, Middle East Technical University |date=June 2005 |url=http://www.erc.metu.edu.tr/menu/series05/0503.pdf |access-date=2007-07-09 }}, p.2-4</ref>

{{columns-list|
* ISIC 5211 retail sales in non-specialized stores
* ISIC 5219 other retail sales in non-specialized stores
* ISIC 5220 retail sales of food, beverages and tobacco in specialized stores
* ISIC 5231 retail sales of pharmaceutical and medical goods, cosmetic and toilet articles
* ISIC 5251 retail sales via mail order houses
* ISIC 5252 retail sales via stalls and markets
* ISIC 5259 wholesale goods
* ISIC 5269 wholesale medical prescriptions
}}

Supplier industries for FMCGs include:

{{columns-list|* 1511 meat and meat products
* 1512 fish and fish products
* 1513 fruit and vegetables
* 1514 vegetable and animal oils and fats
* 1520 dairy products
* 1531 grain mill products
* 1532 starches and starch products
* 1533 animal feeds
* 1541 bakery products
* 1542 sugar
* 1543 cocoa, chocolate and sugar confectionery
* 1544 macaroni, noodles, couscous
* 1549 other food products
* 1551 spirits, ethyl alcohol
* 1552 wines
* 1553 malt liquors and malt
* 1554 soft drinks, mineral waters
* 1600 tobacco products
* 2101 pulp, paper and paperboard
* 2102 corrugated paper, containers
* 2109 other articles of paper and paperboard
* 2424 soap and detergents, cleaning preparations, perfumes
* 2430 men's and women's inner garments, shaving gels, deodorants, personal care, home care
}}

== Fast-moving consumer electronics ==

Fast-moving consumer electronics are typically low-priced generic items with many comparable alternatives offering similar functionality. Examples of [[consumer electronics]] include [[mobile phone]]s, [[Portable media player|MP3 players]], [[Handheld video games|game players]], earphones, [[headphones]], [[USB On-The-Go|OTG cables]] and [[digital marketing|digital]] [[disposable camera]]s.

== See also ==
* [[Category management]]
* [[Mass production]]
* [[Trade promotion management]]
* [[Shelf-ready packaging]]

== References ==
{{Reflist}}

{{Portal bar|Business and economics}}

[[Category:Manufactured goods]]
[[Category:Retail packaging]]
[[de:Warenrotation#Schnelldreher]]

Fast-moving consumer goods - Revision history

CleanupBot at 08:38, 12 August 2021