The Impact of FMCG Industry in India

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     The Impact of FMCG Industry in India 

-By Richa Christopher



Fast Consumer Goods (FMCG), also known as Consolidated Consumer Goods (CPG) are products with immediate profitability and very low cost. Consumers often put less thought into buying FMCG than they do for other products.

The Indian FMCG industry saw a dramatic change during the 1990's. Many players have been facing serious problems due to increased competition for junior and regional players and slow growth at all stages of their production. As a result, many companies were forced to revamp their product, marketing, distribution and customer strategies to strengthen their position in the market.

By the end of the 20th century, the face of the Indian FMCG industry had changed dramatically. With the ease and growth of the economy, the Indian customer saw the growing availability of new domestic and international products through various media outlets, such as television and the Internet. Apart from this, social changes such as the increase in the number of nuclear families and the growing number of working couples which has led to an increase in energy consumption have also contributed to the increase in human consumption by Indian consumers. Achieving increasing customer awareness and the need to meet changing needs and preferences as a result of lifestyle changes requires FMCG-producing companies to develop customer-focused strategies. These changes have a positive impact, leading to rapid growth in the FMCG industry. Increased access to retail space, rapid urbanization and skilled workers have also boosted the growth of the organized retail sector.

HUL has led the way in transforming the product, market, distribution and services of the FMCG sector with a focus on local markets, direct distribution, new product creation, distribution and service facilities. The FMCG sector also gained momentum through government-led programs in the 2003 budget such as setting up tax-free zones in various parts of the country that saw companies shifting from commercial to industrial production and investment.

Although the total profits made from FMCG products are very small, they usually sell at high prices and therefore the profits made from such products can be huge. Unlike other industries, such as cars, computers and FMCG aircraft are not subject to mass demolition as the economy begins to recover. One can procrastinate buying a car but will not put aside eating dinner.

Unlike other sectors of the economy, FMCG shares the float consistently regardless of the global market diploma, because it usually satisfies the basics, as opposed to luxurious needs. The 9% FMCG sector, which is growing at a rate of 9%, is the fourth largest sector in the Indian economy and is worth $ 93000 crores. The largest donor, accounting for 32% of the sector, is a region in southern India. It is predicted that in 2010, the FMCG sector will cost 1443000 crores crores. The sector is one of the largest sectors of the Indian economy providing up to four million jobs.

The FMCG category consists of the following categories:

Personal care - Oral care, hair care, washing (soap), cosmetics and toilets, fragrances and perfumes, paper products (tissues, diapers, hygiene products) and foot care; major players have Hindustan Uni-liver Limited, Godrej Soaps, Colgate, Marico, Dabur and Procter & Gamble.

Housekeeping - Washing detergents (laundry detergent and detergents), household cleaners (Containers / utensils / floor / toilets), Air cleaners, Inseticides and mosquito repellent, Metal polish and Furniture polish; major players are Hinduatn Uni-liver Limited, Nirma and Ricket Colman.

Food & Beverages & Drinks - Healthy Beverages, Cold Drinks, Cereals / Cereals, Bakery Products (Biscuits, Breads, Cakes), Breakfast, Chocolate, Ice Cream, Tea, Coffee, Processed Fruits, Vegetables used meat, branded flour, bottled water, branded rice, branded sugar, juices; The main players were Hindustan Uni-liver Limited, Nestle, Coca-Cola, Cadbury, Pepsi and Dabur.

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