30-06-2017, 11:30 AM
Fast moving consumer goods (FMCGs) are products that are sold quickly and at a relatively low cost. Examples of FMCG products are soft drinks, cigarettes, ketchups, instant noodles and other consumables. They also include beauty products. FMCG is a classic low-margin, high-volume business case. It is one of the fastest growing sectors in the Indian economy. It is the fourth largest sector of the Indian economy. It is estimated that the size of the Indian consumer market will grow from US $ 30 billion in 2011 to US $ 74 billion in 2018. Food products lead the segment with 43 percent of the total market, while care Staff (22 percent) (12 percent) comes in terms of market share. Changing lifestyles, growing awareness and rising incomes of middle-class families have been key factors in the growth of this industry.
Reasons for the growth of the consumer goods sector
The growth of fast moving consumer goods (FMCG) can be attributed mainly to the increase in purchasing power of the indigenous population and its considerable youth population. There has been an increase in disposable income both in urban cities as well as in rural India. Rural areas are expected to be the main driver of the consumer goods industry, with rural areas experiencing growth of 16 percent, compared to 12 percent in urban areas. The companies are working to create specific products especially aimed at the rural market. Rural demand will increase with increased incomes and increased awareness of brands. On the urban side there will also be an increase in consumer purchasing power. Therefore, consumer goods companies are looking at massive growth in their income. The growth of electronic commerce is also contributing greatly to its growth. All major e-commerce sites sell FMCG products and help build brand awareness.
E-commerce websites gives great discounts on products that acts as an incentive to buy from them products that they may not even need now, but discounts give us the impetus to buy the product. Categories like makeup, skin care, breastfeeding, deodorants and grooming products have grown more than five times in the past year, according to an Amazon India spokesman.