Globalization Of FMCG Industry

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Introduction The Indian Fast Moving Consumer Goods (FMCG) industry began to take shape during the last five decades. The FMCG sector is a keystone of the Indian economy as it touches every aspect of human life. The FMCG companies are now drawing benefits from that opportunity. In rural India, the income of the consumers is increasing and the lifestyles are changing. There are as many middle-income households in the rural areas as there are in the urban area. Thus rural marketing has been growing steadily over the years and is now bigger than the urban market for FMCGs. With the increase in the rural literacy levels and the exposure to media, people in rural area are also becoming conscious about their buying decisions like their urban counterparts.…show more content…
In West, FMCG is also called consumer packaged goods. Any product that is used very frequently, sometimes daily and move relatively faster at the retailer end can be classified as FMCG. Examples are soap, toothpaste, batteries, beverages, cigarettes etc. Thus, FMCGs are essential, low priced goods which get repeat sales. FMCGs are also termed as non-durable goods – a tangible item that is quickly consumed, worn out or out dated and consumed in single use or few uses (Majumder, 1998). Consumer products used for personal, family or household use are further classified as three types: convenience, shopping and specialty categories. FMCG are also called as „consumables‟ that are consumed by the consumer, typically sold in packaged form and generally branded. With respect to consumer behaviour towards this category, consumers tend to spend minimum effort in comparison and buying them. But much of astute marketing activities have evolved from these products, where consumers show low involvement, get wider choice and are allured by a host of inducements (Majumdar, 1998) Characteristics of FMCG • FMCG industry is characterized by a few distinct factors: • The sector touches every aspect of human life, looks to hygiene to palate. • This industry is characterized by a strong focus on the four Ps : Product, Pricing, Place and Promotion. • It is a high volume, low value driven industry in most categories. • It is brand driven, rather than product driven. • The capital investment required in plant and machinery is not high and any reasonably sized industrial house can enter the industry in manufacturing. • The major area in the area of marketing: brand building and
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