A detailed report about FMCG Industry:
During my MBA i came to know many Industries, here is one of them, hope it will help all:
WHAT IS FMCG?
FMCG industry, alternatively called as CPG(Consumer Packaged Goods).
Those consumables which are normallyconsumed by the consumers at a marketing, financing, purchasing, etc is calledFMCG.
ABOUT FMCG-
Starting from one cup of coffee in themorning right up to that relaxing malt beverage at night, we rely heavily onFMCG.
Everything from toothpaste to processedfoods and health drinks to body care products comes from FMCG.
Common FMCG Product:
Some common FMCG product categories food and dairy products,
Glassware
PaperProducts
Pharmaceuticals
ConsumerElectronics
PackagedFood products
PlasticGoods
Printingand Stationery
HouseholdProducts
Photography
Drinketc.
Coffee
Tea
Dry cells
Greeting cards
Gifts
Detergents
Tobacco
Cigarettes
Watches
Soaps etc.
Analysis of FMCG Sector
Strengths:
- Low operational cost.
- Presence of established distribution in both urban and rural areas.
- Presence of well known brands in FMCG sector.
- Weaknesses:
- 1. Lower scope of investing in technology.
- 2. Low exports levels.
- 3. “Me-too” products, which illegally mimic the levels of the established brands.
Weaknesses:
1. Lower scope of investing in technology.
2. Low exports levels.
3. “Mee-too”products, which illegally mimic the levels of the established brands.
Opportunities:
- Untapped rural market.
- Raising income levels.
- Large domestic market.
- Export potential.
- High consumer goods spending.
Threats:
- Removal of import restrictions resulting in replacing of domestic brands.
- Slow down in rural demand.
Scope of the Sector
TheIndian FMCG sector with a market size of US$ 13.1 billion in the fourth largestsector in the economy.
FMCGsector is expected to grow by over 60% by 2010.
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