The Fast-moving consumer goods are the 3rd largest industry in the Indian economy. That is to say, the product which moves fast from shop shelves are called FMCG products. Some of the products are Personal care products, eatable products, and home care products. The consumer packaged products are sold quickly at a low cost.
FMCG market has a huge opportunity in rural India accounting, so its called “BOTTOM OF THE PYRAMID”. In rural India, the FMCG market has grown in fastest and largest networks compared to urban areas. So the marketing in urban areas requires new strategies. These products are non-durable goods also. For example meats, fruits, vegetables, dairy products, baked goods, food ingredients. In FMCG market food & beverages sector accounted for the largest share in India.
In India the companies like ITC, Hindustan Unilever Ltd, Nestle India, Dabur India, Asian paints, Cadbury India, Britannia Industries, Marico Industries, Amul India, Gillette India Ltd, Wipro, Colgate Palmolive India Pvt Ltd are the top most dominant force in FMCG sector. The major purpose of this PhD Research Trends is to analyze the new market value for the FMCG sector.
Characteristics of FMCG
- Distribution networks
- Contract manufacturing
Creating a strong branding strategy is the most important for FMCG companies and dedicates considerable money and their efforts for developing the brands. Promotion is concerned with branding and marketing communications. The FMCG companies require increasing the distributive networks to achieve the maximum level of urban and rural markets penetration. If once create a strong distribution network, it provides significant advantages over its competitors. FMCG companies mostly concentrate the brand building, product development and creating distribution networks. Although, they outsource their production requirements to third party manufactures.
The contribution of FMCG is the main impact on the growth of India’s GDP. In India, the retail market will expect to grow 840 billion-US$ 1.1 trillion from 2017-2020, CAGR value nearly 21%. Also, modern trade expected to grow at 20 %- 25% per annum. The Government allows Foreign Direct Investment (FDI) in food processing and multi-brand retail. Certainly, the sector supported FDI inflows of US$ 14.67 billion from April 2000 to March 2019. The finance minister established Goods and Services Tax (GST) on April 2014. Similarly, the Goods and Services Tax (GST) is one of the important benefits for many products of Soap, Toothpaste and Hair oil. These products come under 18% against the previous 24%. The contribution of FMCG is the high impact on the overall growth of India’s GDP. Therefore, the FMCG sector will witness more than 60 percent growth in rural and semi-urban India by 2018.
The FMCG Industry includes food and non-food everyday consumer products. It is mainly based on powerful branding and high level of distribution. In addition, the FMCG sector is the high impact of the Indian economy. Based on the PhD Research of FMCG Industry, it reached $ 52.75 bn in FY18, and are estimated to reach $ 103.7 bn in 2020. Government of India provides various initiatives to promote the sector. In India, the FMCG market is predicted to grow at a significantly high CAGR during the forecast period and is expected to cross USD100 billion mark by 2020. Finally, this research concludes as we can say FMCG company has been riding the waves of growth in the last 20 years and it won’t be any different in the future. Further more details about Scientific Research Papers.
– Sathya priya shanmugam