Fmcg Sector

In: Business and Management

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Fast moving consumer goods (FMCG) companies are among the most visible across the world. Who has not heard of Nestle or Unilever or of Dabur or Parle? The FMCG companies may go global, with operations around the world or may operate only in India. They have one common feature and that is ownership of powerful brands.
Fast Moving Consumer Goods (FMCG), are products that are sold quickly at relatively low cost. Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be large. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, light bulbs, batteries, paper products and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products and drinks, although these are often categorized separately.
FMCG products contrast with durable goods or major appliances such as kitchen appliances, which are generally replaced less than once a year. In Britain, "white goods" in FMCG refers to large household electronic items such as refrigerators. Smaller items such as TV sets and stereo systems are sometimes termed "brown goods".
Some of the best known examples of Fast Moving Consumer Goods companies include Colgate-Palmolive, General Mills, H. J. Heinz, Cadbury's, Nestlé, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kimberly-Clark, Kraft, Pepsi, Wipro Consumer Care, Barilla Group, Mars and Red Bull Energy Drink.
A brand evokes distinct associations, stands for certain personality traits and carries emotional attachments. A brand inspires trust. As the economist has put it so well: “in pre-industrial days, people knew exactly what went…...

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