FMCG IN INDIA
SANCHITA RATTAN
WHAT IS FMCG ?
FAST-MOVING CONSUMER GOODS
Frequently purchased goods
Relatively low cost
Replaced within a year
Quick turnover
Also known as Consumer Packaged Goods(CPG)
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CHARACTERISTICS
CONSUMER’S PERSPECTIVE MARKETER’S PERSPECTIVE
LOW INVOLVEMENT LOW CONTRIBUTION
MARGIN
SHORT SHELF LIFE EXTENSIVE DISTRIBUTION
NETWORK
MUST USE FOR DAILY
CONSUMPTION
HIGH STOCK TURNOVER
RATIO
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EVOLUTION OF FMCG SECTOR
1950-1980 1980-1990 1990-2016
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SEGMENTS OF FMCG
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SECTORAL COMPOSITION
RURAL SECTOR
 Expected growth – US $ 20 billion by 2018
 CAGR - 13.2 % to US$ 100 billion
 Rural Electrification- consumer electronic goods
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SHARES IN MARKET IN INDIA
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SHARES IN MARKET IN INDIA
URBAN SECTOR
 Two-thirds of total sales
 Holds 67% of total revenues
 Increase in demand – Wellness & Beauty Products
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MAJOR PLAYERS
 HINDUSTAN UNILEVER LIMITED
 COLGATE - PALMOLIVE
 ITC LIMITED
 NESTLE INDIA
 PARLE AGRO
CHALLENGES OF FMCG
COMPANIES
 Branding and Innovation
 Intense competition
 Abundance of counterfeit goods
 Increasing consumer awareness
 Environment issues
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GOVERNMENT INITIATIVES
 100% FDI in the electronics hardware
 51% FDI in multi-brand retail
 100 % FDI in single-brand retail
 Direct Transfer of Subsidies
 Implementation of GST Bill
THANK YOU

Fmcg