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What Are Fast-Moving Consumer Goods (FMCG)?

Fast-moving consumer goods are products that sell quickly at relatively low cost. These
goods are also called consumer packaged goods.

FMCGs have a short shelf life because of high consumer demand (e.g., soft drinks and
confections) or because they are perishable (e.g., meat, dairy products, and baked goods).
These goods are purchased frequently, are consumed rapidly, are priced low, and are sold
in large quantities. They also have a high turnover when they're on the shelf at the store.

Understanding Fast-Moving Consumer Goods (FMCG)


Consumer goods are products purchased for consumption by the average consumer. They
are divided into three different categories: durable, nondurable goods, and services. Durable
goods have a shelf life of three years or more while nondurable goods have a shelf life of
less than one year. Fast-moving consumer goods are the largest segment of consumer
goods. They fall into the nondurable category, as they are consumed immediately and have
a short shelf life.

Nearly everyone in the world uses fast-moving consumer goods (FMCG) every day. They
are the small-scale consumer purchases we make at the produce stand, grocery store,
supermarket, and warehouse outlet. Examples include milk, gum, fruit and vegetables, toilet
paper, soda, beer, and over-the-counter drugs like aspirin.

FMCGs account for more than half of all consumer spending, but they tend to be low-
involvement purchases. Consumers are more likely to show off a durable good such as a
new car or beautifully designed smartphone than a new energy drink they picked up for
$2.50 at the convenience store.

Types of Fast-Moving Consumer Goods


As mentioned above, fast-moving consumer goods are nondurable goods, or goods that
have a short lifespan, and are consumed at a rapid or fast pace.

FMCGs can be divided into several different categories including:1

 Processed foods: Cheese products, cereals, and boxed pasta


 Prepared meals: Ready-to-eat meals
 Beverages: Bottled water, energy drinks, and juices
 Baked goods: Cookies, croissants, and bagels
 Fresh, frozen foods, and dry goods: Fruits, vegetables, frozen peas and carrots,
and raisins and nuts
 Medicines: Aspirin, pain relievers, and other medication that can be purchased
without a prescription
 Cleaning products: Baking soda, oven cleaner, and window and glass cleaner
 Cosmetics and toiletries: Hair care products, concealers, toothpaste, and soap
 Office supplies: Pens, pencils, and markers
 What are Fast-Moving Consumer Goods (FMCG)?
 Fast-moving consumer goods (FMCG), also called consumer packaged goods
(CPG), refer to products that are highly in-demand, sold quickly, and affordable.
Such items are considered “fast-moving” as they are quick to leave the shelves of
a store or supermarket because consumers use them on a regular basis.

 Examples of Fast-Moving Consumer Goods

 Fast-moving consumer goods include packaged food, toiletries, beverages,


stationery, over-the-counter medicines, cleaning and laundry products, plastic
goods, personal care products, as well as less expensive consumer electronics, such
as mobile phones and headphones.

 Some fast-moving consumer goods are highly perishable, such as meat, dairy
products, baked goods, fruits, and vegetables. Sales of FMCG are usually affected
by discounts being offered by the stores, and by holidays and other seasonal
periods.

Fast moving consumer goods (= FMCG meaning) refer to products that are sold at a low cost and
relatively fast. These goods are also referred to as consumer packaged goods (abbreviated CPG).
Examples of FMCG include non-durable products, such as toiletries, over the counter
medications, and packaged foods. These products have a short shelf life as a result of high
demand or because they quickly deteriorate.

Fast moving consumer goods refer to consumer products that sell fast and have a relatively low
price. Virtually everyone in developed countries, as well as developing countries, use fast moving
consumer goods on a daily basis. These goods are purchased on a small scale and are usually
made at grocery stores, produce stands, drug stores, discount department stores, and warehouse
outlets, for example.

What Are Fast Moving Consumer Goods ( FMCG meaning )?


Fast-moving consumer goods are goods that are often found in a supermarket or even in
convenience stores and are sold and replenished very quickly. These are the essential goods that
people are always buying. Toilet paper is the perfect example of a fast-moving consumer good.
However, it is certainly not the only example. There are many items out there the people tend to buy
over and over and over again; and there are stores that are specifically set up to sell those goods.

The difference between fast-moving consumer goods and other types of products this how regularly
you buy them after the previous purchase. Of course, there is no hard-and-fast rule because some
of these items have longer shelf lives than others do, and some people tend to buy in bulk. For
example, Household A might buy toilet paper weekly at the grocery store, while household B goes
to Costco and buys it just four times a year in giant bulk containers.

One of the other things that can identify fast moving consumer goods is whether or not they are
expensive. Most of the fast-moving consumer goods out there are only a couple of dollars and they
are definitely consumable. For example, there is a major difference between a bottle of soda that
you get at the gas station and a blender that you use to make beverages at home.

Fast Moving Consumer Goods Examples


To further explain, fast moving consumer goods are non-durable products. They have a short
shelf life, either because they are purchased so quickly or because they deteriorate rapidly.
Examples of fast moving consumer goods include:

 Milk
 Vegetables
 Fruit
 Meat
 Soda
 Bottled water
 Beer
 Toilet paper
 Paper towels
 Tissues
 Feminine hygiene products
 Over the counter medications, such as aspirin and cold remedies
 Baked goods

Items that are highly perishable are considered fast moving consumer goods because their very
nature means that they cannot stay on shelves for a long period of time. Other goods, like soft
drinks, pre-packaged foods, toiletries, cleaning products, tissues, and toilet paper are considered
fast moving consumer goods because their turnover rate is very high. Sales of these types of
products are often influenced by specific seasons and holidays.

These products are purchased wide-scale and on a daily basis. The profit margin for individual
sales of FMCG is relatively low; however, because they are purchased at such a large volume, their
collective profit margin is high.

In the retail business, companies generally sell goods that span a range of product types, prices
and profit margins. Fast moving consumer goods, also known as consumer packaged goods, are
items that usually sell quickly and for a relatively low price. While FMCGs/CPGs are easy to
dismiss, they still play vital roles in how retail businesses operate.

Cumulative Profits
For a retailer's bottom line, the key benefit of CPGs/FMCGs is the cumulative profit they provide.
CPGs/FMCGs have low profit margins, which means that a small percentage of each each unit
sale represents profit. However, CPGs/FMCGs also sell in very high quantities. This means that
those small profits add up and can form a significant portion of a retailer's total profits for a fiscal
period. This profit serve any number of financial purposes in the business.

Cross Merchandising Opportunities


Retailers thrive when customers buy multiple items on each visit. CPGs/FMCGs provide
opportunities for cross merchandising, which occurs when a business places two products from
different categories close to one another in a strategic arrangement. For example, an electronics
retailer may sell remote controls that have high profit margins but don't fall into the CPG/FMCG
category. A shelf of batteries (which are CPGs/FMCGs) next to those remotes provides a chance
to boost sales and earn profit on two items when customers choose to buy the batteries they will
need to operate their new remotes at the same time.

Brand Appeal
When a retailer offers CPGs/FMCGs, it can rely on the brand appeal that they generate to drive
sales. Most CPGs/FMCGs come from brands that advertise heavily. This means that when
customers see CPGs/FMCGs on store shelves they have pre-existing emotional relationships with
those brands, which may not be true of the other items that the retailer sells. Seeing recognizable
brands may build trust between the customer and retailer or lead to an additional purchase based
on brand awareness, with no special effort from the retailer.

Diversification
Selling CPGs/FMCGs spreads a retailer's revenue sources over a broader spectrum of goods.
The profits can help offset slow sales for other products during seasonal dips in demand or
periods of reduced consumer confidence. In the category of CPGs/FMCGs, retailers can choose
from among an almost unlimited range of product types including pharmaceuticals, food items,
beverages, household products and disposable items. The range is so broad that some retailers,
such as grocery stores and convenience markets, stay in business selling them exclusively.