TAILIEUCHUNG - FMCG (Fast Moving Consumer Goods) Sector

Within this setting of a dynamic, private marketing system, the role of the Federal Government is to help keep the marketing of agricultural commodities flowing in an orderly and efficient manner, to promote effective distribution, to eliminate speculation and waste, and to stabilize the marketing of agricultural commodities. A brief summary of current programs and activities is given below. However, it must be realized that as the marketing system continues to evolve, there will be corresponding changes in the programs, services or activities of the Federal Government. . | FMCG Fast Moving Consumer Goods Sector he Indian FMCG sector is the fourth largest sector in the economy with an T estimated size of 300 billion. The sector has shown an average annual growth of about 11 per annum over the last decade. Unlike the developed markets which are prominently dominated by few large players India s FMCG market is highly fragmented and a considerable part of the market comprises of unorganized players selling unbranded and unpackaged products. There are approximately 12-13 million retail stores in India out of which 9 million are FMCG kirana stores. India FMCG sectors significant characteristics can be listed as strong MNC presence well established distribution network intense competition between the organised and unorganised players and low operational cost. Easy availability of important raw materials cheaper labor costs and presence across the entire value chain gives India a competitive advantage. Products which have a swift turnover and relatively low cost are known as Fast Moving Consumer Goods FMCG . FMCG items are those which generally get replaced within a year. Examples of FMCG commonly include a wide range of repeatedly purchased consumer products such as toiletries soap cosmetics oral care products shaving products and detergents as well as other non-durables such as glassware bulbs batteries paper products and plastic goods. FMCG may also include pharmaceuticals consumer electronics packaged food products etc. Penetration level and per capita consumption in many product categories is very low compared to world average standards representing the unexploited market potential. Mushrooming Indian population particularly the middle class and the rural segments presents the huge untapped opportunity to FMCG players. Growth is also likely to come from consumer upgrading in the matured product categories like processed and packaged food mouth wash etc. A distinct feature of the FMCG industry is the presence of international .

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