Fast-moving consumer goods

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Soft drinks are FMCGs

Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, over-the-counter drugs, toys, processed foods and many other consumables.[1][2] In contrast, durable goods or major appliances such as kitchen appliances are generally replaced over a period of several years. The term was coined by Neil H. Borden in 'The Concept of the Marketing Mix' in 1965.(1996 ,Prentice-Hall, Inc.)

FMCG have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Some FMCGs—such as meat, fruits and vegetables, dairy products, and baked goods—are highly perishable. Other goods such as alcohol, toiletries, pre-packaged foods, soft drinks, and cleaning products have high turnover rates.

Though the profit margin made on FMCG products is relatively small (more so for retailers than the producers/suppliers), they are generally sold in large quantities; thus, the cumulative profit on such products can be substantial. FMCG is probably the most classic case of low margin and high volume business.

Characteristics[edit]

The following are the main characteristics of FMCGs:[1]

ISIC definition[edit]

The retail market for FMCGs includes businesses in the following International Standard Industrial Classification (ISIC) (Revision 3) categories:[3]

Supplier industries for FMCGs include:

Fast-moving consumer electronics[edit]

Fast-moving consumer electronics are typically low-priced generic or easily substitutable consumer electronics, including mobile phones, MP3 players, game players, and digital cameras which are of disposable nature.

See also[edit]

References[edit]

  1. ^ a b Ramanuj Majumdar (2004). Product Management in India. PHI Learning. pp. 26–27. ISBN 978-81-203-1252-4. Retrieved 2010-06-19. 
  2. ^ Sean Brierley (2002). The advertising handbook By Sean Brierley (2, illustrated ed.). Routledge. p. 14. ISBN 978-0-415-24391-9. 
  3. ^ Aydın Çelen; Tarkan Erdoğan and Erol Taymaz (June 2005). "Fast Moving Consumer Goods Competitive Conditions and Policies" (PDF). Economic Research Center, Middle East Technical University. Retrieved 2007-07-09.  , p.2-4

External links[edit]