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Glossary – FMCG (fast moving consumer goods)

FMCG (fast moving consumer goods)

Nikiforov Alexander
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Definition of FMCG

FMCG (Fast-Moving Consumer Goods) refers to products that consumers regularly purchase and actively use in their daily lives. These goods are aimed at a wide range of buyers, making them accessible to all. Some of the largest brands in the FMCG segment include companies like Procter & Gamble, Johnson & Johnson, L’Oréal, Colgate, Coca-Cola, Pepsi, and Nestlé, which offer a variety of products ranging from personal care items to food.

Types of FMCG Products

Fast-moving consumer goods are divided into four main categories:

Everyday Goods

These are food and beverages with a short shelf life, such as dairy products, meat, fish, and baked goods. For example, sour cream can be stored unopened for up to two weeks, but only a few days after opening.

Durable Goods

This category includes products with a long shelf life, such as salt, sugar, canned goods, and cosmetics. For instance, an unopened can of food can be stored for up to two years.

Holiday Goods

Disposable tableware and other holiday attributes also fall into this category. For example, inexpensive paper napkins in various colors and designs can be found on marketplaces.

Seasonal Goods

Some products become particularly popular during certain seasons. For instance, demand for stationery increases before the school year, while ice cream and soft drinks are more popular in the summer.

Features of the FMCG Market

The FMCG market has its unique characteristics:

  • High Demand: FMCG products are constantly needed, leading to frequent purchases.
  • Fast Turnover: Products sell out quickly, and stock is regularly replenished.
  • Short Shelf Life: Products are consumed in a short time, for example, food in a day, and cosmetics in a few weeks.
  • Low Prices and Impulsive Purchases: Unpretentious prices encourage spontaneous buying decisions.
  • Wide Variety and High Competition: There are always many similar products on the shelves, creating a competitive environment.

Structure of the FMCG Market

The FMCG market consists of four levels, each adding its markup to the product:

First Level

At this level are manufacturers and importers who create and produce products while determining distribution channels.

Second Level

Here, wholesalers operate, purchasing goods in bulk and distributing them to retail stores.

Third Level

At this level, products reach retail stores, including supermarkets and online shops, where they are purchased by end consumers.

Fourth Level

This level consists of the buyers themselves, who purchase goods to meet their daily needs. Sometimes, products can go directly from the manufacturer to the consumer, bypassing intermediaries.

How to Sell FMCG Products

Selling FMCG products is characterized by its spontaneity and ease. For example, on a hot day, a customer may enter the nearest store without considering alternatives. Therefore, distribution plays a key role in marketing these products. If a product is unavailable, the buyer will simply choose a similar product from a competitor.

Marketing Strategies for FMCG

To successfully promote FMCG products, it is important to consider several key aspects:

  • Create Quality Advertising: Advertising campaigns should reach a wide audience and highlight the product's benefits.
  • Focus on Emotions: Emotional associations often influence the buyer's choice.
  • Pay Attention to Packaging: Packaging should be appealing and stand out from competitors.
  • Set Affordable Prices: This ensures product accessibility for a wide audience.
  • Work on Brand Recognition: Regular promotions and advertising will help build trust in your product.