Fast Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) sector has been experiencing a phenomenal pace of growth since last decade in India, owing to increasing consumer incomes and rapidly changing consumer tastes and preferences. FMCG companies bestow us with our everyday needs other than grocery like dairy products, cooking oil, bread, butter, beverages, pharmaceuticals, confectionery, biscuits, stationary items, watches, toiletries, detergents, shampoos, skin care products, cosmetics, toothpaste, dish washing liquid, shaving cream, razor, batteries, shoe polish, energy drinks, soft drinks, clothing, furniture, household accessories and many more. On the other hand, Fast Moving Consumer Electronics or FMCE include electronic goods like cell phones, laptops, computers, digital cameras etc.
At present Indian FMCG sector is worth Rs. 1300 billion and expected to be around a whopping value of Rs. 4000 to Rs. 6000 billion by 2020. Thus, FMCG and its closest companion Retail sector, both are likely to create most of the jobs in India in the coming years primarily in functions like marketing, sales, advertising, supply chain, logistics, human resources, product packaging and development, finance, operations, general management and supervisory. Despite high cost and profit margins affected by inflationary pressures, FMCG sector in India has performed better than expected due to the economic slowdown, this year also. Indian Tobacco Company Limited (ITC), Nestle India, Dabur and Hindustan Unilever Limited have outshined other leaders in the list of top FMCG houses in India this time as well, like before. Even Marico and Asian Paints have also performed extremely well.
Modern retailing strategies, brand positioning and maintenance of intense distribution network have given Indian FMCG companies an edge over others in performing exceptionally well even in this phase of economic downturn. FMCG is the fourth largest industry in India presently and strongly believed to flourish continuously not only in the domestic market, but globally. As the demand for FMCGs that fulfill the basic necessities is hard to decline, FMCG companies should continue following competent marketing and innovative product promotion strategies to keep their position intact in the market and combat the severe blows of recession and inflationary pressures astutely.