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FMCG : What are Fast-Moving Consumer Goods?
What is FMCG?
FMCG (Fast-Moving Consumer Goods) are goods that are sold quickly and at a low price. They are also known as Consumer-Packaged Goods (CPG). Many stores, such as supermarkets and hypermarkets, only carry FMCG products as they have a high inventory turnover.
As the items aren’t expensive, consumers don’t spend too much time deciding on a purchase of a FMCG product. They also use them up quickly and come back for more.
FMCG goods are an integral part of people’s everyday lives. Some examples are fresh fruit and vegetables, shampoo, milk, cereal, toothpaste, soap and detergent.
FMCG products have the following qualities:
· High demand, high consumption
· Bought often, consumed quickly
· Low price, low profit
· Easy to buy
· Non-durable (e.g. milk products have expiration dates)
· Similar products fall in the same price range
FMCG categories
FMCG products fall into several categories and include but are not limited to the following:
Food and drink
These include milk, soda, instant coffee, tea, cheese, bread, potato chips, processed food, etc.
Skin and hair care products
These include items such as shampoo, shaving cream, soap, makeup, etc.
Home Cleaning Products
These include laundry detergent, bathroom and window cleaners, soap, etc.
Personal Hygiene and Health Goods
These include toothpaste, sanitary napkins, diapers, over-the-counter medicine, etc.
Cosmetics
The wide range of make-up and skin care products are also FMCG goods.
People use FMCG products often in their everyday lives, thus they are a safe bet in terms of sales. Their profit margins are low, compared to luxury goods, but their high sales volume brings a return on investment.
Some FMCG brands will make higher priced goods to enhance their brand image and product line. Electric toothbrushes such as those by Oral-B below are an example. These higher end products make great displays as they can attract customers.
FMCG Marketing
There are many ways to market FMCG products, but packaging design and in-store designs play a key role in attracting consumers.
Retail Marketing
Whether the product is sold in a supermarket, hypermarket, or drug store, POSM designs are key to catch customer attention. These include shelving designs, floor displays, hanging displays, promotional POP, storefront posters, and more.
Sales Promotions
Special promotions, sales events and holiday gift packs are examples of promotions that can bring extra attention to products.
Media commercials
TV, YouTube, and print ads are all ways to promote FMCG brands.
Internet marketing
There are wide range of ways to market brands on the Internet. These include digital ads, social media marketing, SEO strategies, content marketing, e-newsletters, etc.
OMO
OMO or "online merged with online" integrates offline business with online retailing to create borderless marketing. It is the merging of both online and offline channels in the consumer’s experience with the brand.
FMCG Companies
FMCG companies carry a multitude of brands and products.
The following are some of the biggest FMCG companies in the world:
P&G is one of the largest and oldest FMCG companies in the world. It’s an American multinational company that was established in 1837. It carries over 60 brands ranging from products for skin care, hair care, baby care, personal grooming, home care and much more. Their brands include SK-II, Oil of Olay, Tide, Oral-B and Pampers.
2. Unilever
Unilever is a British multinational FMCG group that carries over 400 brands including products ranging from Ben & Jerry’s ice cream Hellmann’s mayonnaise, and personal care goods. It is the world’s largest producer of soap and owns Dove and Lux.
Nestlé is a Swiss company that is home to over 70 brands. It specializes in food and beverage products that include cereal, pet food, coffee, baby food, chocolate, and nutritional products.
L’Oréal is a French personal care company. It carries a wide range of cosmetic, skin care and personal care products.
PepsiCo is one of the world’s leading food and beverage companies. They make many famous snacks such as Lay’s, Doritos, Cheetos, as well as a wide variety of drinks.
Johnson & Johnson is a leading pharmaceutical and consumer package goods company that was founded in 1886. Their products include skin care and medicinal products like Tylenol, Listerine, and Neutrogena.
The Coca Cola Company is a beverage company that began at a soda fountain in Atlanta in 1886. It carries over 200 brands of beverages around the world.
FMCG Marketing and Design
The marketing of FMCG brands and products need innovative and effective designs. These include packaging design, graphic design, and POSM displays in stores.
Paradise Design is a top design firm that has served the world’s FMCG giants for the past 20 years. It is available to work with clients throughout the world. For a free consultation about your marketing and design needs, feel free to contact natalie@paradise-design.com.tw