Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged goods. Items in this category include all consumables (other than groceries/pulses) people buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and extends to certain electronic goods. These items are meant for daily of frequent consumption and have a high return.
Analysis of FMCG Sector
Strengths
1. Low operational costs
2. Presence of established distribution networks in both urban and rural areas
3. Presence of well-known brands in FMCG sector
Weaknesses
1. Lower scope of investing in technology and achieving economies of scale,
especially in small sectors
2. Low exports levels
3. Counterfeit Products. These products narrow the scope of FMCG products in rural
and semi-urban market.
Opportunities
1. Untapped rural market
2. Rising income levels, i.e. increase in purchasing power of consumers
3. Large domestic market- a population of over one billion.
4. Export potential
5. High consumer goods spending
Threats
1. Removal of import restrictions resulting in replacing of domestic brands
2. Slowdown in rural demand
3.Tax and regulatory structure
Major issues taken up by the FMCG SECTOR
GST
A C Nielsen
Environment Protection Act notification on use of plastics.
Sugar Representation
Cross Border Taxation
Competition Act