FMCG, which stands for "Fast - Moving Consumer Goods", is one of the most prominent market concepts today. This concept, expressed as "Hızlı Tüketim Ürünleri" in Turkish, covers products that almost all of us consume nearly every day, even if its name is not widely heard. In this article, we have written all the details about FMCG for you, let's get started!
What is FMCG?
FMCG is the name given to fast-moving consumer goods by its definition. The definition of this concept is extremely broad. Products that are ready for immediate consumption and offered at low prices can be analyzed within this scope.
There are many FMCG products available in your local supermarket. The products of the relevant sector have basic features shaped according to the producer and consumer. In the eyes of the customer, the features of the products within this scope are as follows:
• Products in this group are easily accessible.
• Goods within this scope are frequently purchased.
• They are known to be sold at low prices.
• The shelf life of the products within this scope is short.
• Being ready for immediate consumption is also a distinguishing nuance.
In addition to this, when looking at the products within this scope from the manufacturer's perspective, it is possible to mention the following features:
• Low contribution margin
• High inventory turnover rate
• High-volume production
• High distribution rate
The fact that the production and consumption stages are not interrupted and the sufficient ground in the market area is provided indicates that the relevant sector is profitable. This draws attention to the relevant sector, providing many opportunities in terms of career. FMCG is the sector with the lowest risk in terms of job loss compared to other sectors.
What is the FMCG Market?
This market, which covers fast-moving consumer goods, is extremely popular globally. These products, such as food, beverages, and hygiene materials, which are used by everyone universally, meet basic needs.
FMCG products, which have a short shelf life and expiration dates, create a market that will almost never end. This market, carried out physically and virtually, gained great momentum in the field of e-commerce with the 2020 Covid-19 pandemic.
As of February 2020, moving sales in the food sector to the internet environment has enabled the market area to expand. In addition, it is known that Google searches for food worldwide reached record levels starting with the Pandemic year.
FMCG Products: Which Products Are in This Category?
While explaining the answer to the question of what FMCG means, it is useful to give examples of these products. The most well-known products can be listed as follows;
• Pastry and bakery products
• Fruits and vegetables
• Delicatessen and meat products
• Milk and dairy products
• Carbonated and canned drinks
• Alcohol and tobacco
• Confectionery and chocolates
• Cleaning and hygiene products
• Some dietary supplements
FMCG Sector in the World and Turkey
There is a development over the FMCG sector worldwide. Likewise, the volume of initiatives in this field in our country is extremely high. With the development of technology and the pandemic changing the whole world, it can be said that the FMCG field in the World and Turkey has mostly moved to e-commerce.
In our country, the share of this sector on physical stores and e-commerce has started to rise as fast as in European countries. The companies that have a say in Fast-Moving Consumer Goods and have high net incomes in our country are as follows;
• ETİ
• Ülker
• Unilever
• PepsiCo
• Kimberly Clark Turkey
• Coca - Cola Turkey
Looking specifically at the United Kingdom, 7.6% of online sales consist of FMCG products. Likewise, online sales make up 6.2% of fast-moving consumer goods in France. In South Korea, an Asian country, the rate of fast-moving consumer goods in the online market is 20.3%.
E-export with FMCG Products
The fact that e-commerce offers a personalized experience for consumers has accelerated the presence of Fast-Moving Consumer Goods in this area. Products sold at relatively lower costs in these areas have won the appreciation of those who are used to the comfort of their homes.
In addition to this, when we look at 50% of the total retail sector, we can see fast-moving consumer goods. The increasing interest in FMCG day by day has also enabled many people to shift to the field of e-export. E-export with FMCG products has many advantages such as brand awareness and profit margin. These advantages can be listed as follows:
• Reaching Wide Audiences: E-export offers an opportunity to reach billions of internet users worldwide. This can help FMCG products reach wider audiences and increase growth opportunities in international markets.
• Lower Cost: E-export can be lower cost compared to traditional export methods. For example, it is possible to avoid costs such as renting physical stores and staff expenses.
• Increasing Brand Awareness: E-export can be used as a more effective marketing tool to reach customers worldwide. This can create an opportunity to explore new markets by increasing brand awareness.
• Higher Profit Margins: E-export can have higher profit margins compared to traditional export methods. This allows sellers to offer more competitive prices and achieve higher profits in international markets.
You can examine Navlungo for your e-export and global logistics needs.
Why Are FMCG Products Important? How Do They Affect Consumer Behavior?
Consumer behavior is important in almost every sector. For FMCG companies, it carries extra importance. When we look at supermarkets, we know that customers mostly want to see products they wouldn't actually buy and spend a lot of time wandering at the head of them.
In purchasing behavior, it is obvious that customers want to find a solution without searching for an SKU (stock keeping unit). Selling FMCG products to customers online is much easier. Because users do not carry the products themselves in such a shopping situation. Also, selling these products online is lower in cost.
In physical shopping, consumers buy products mostly without planning. However, while doing this, they have the chance to check the freshness of the products. The possibility of checking the freshness of a vegetable bought from an online environment is lower.
Looking at Europe in general, the low online demand for fast-moving consumer goods is attributed to the deep-rooted habits of customers. When the basic needs covered by FMCG products in our country and the deep-rooted shopping habits of Generation X are evaluated together, it can be said that online demand has not surpassed physical stores.
FMCG Sales Channels: Which Channels Are Used?
Sales channels for fast-moving consumer goods are very wide. You can set up your website for your own sales without any directing channel and sell from there. In addition to this, you can use social media and digital marketing channels.
Social media networks such as Pinterest, Snapchat, Twitter, Instagram, and Facebook are among the best ways to announce FMCG products. Since these channels are nowadays used by everyone from 7 to 70, you can clearly increase your sales revenues. If you feel the need to get professional support in this regard, you can contact Navlungo's experienced team.
FMCG Manufacturers: Who Are They? Which Are the Largest FMCG Companies?
The prominent World and Turkish FMCG companies are as follows;
• Nestle
• Procter & Gamble Company
• PepsiCo
• Unilever
• JBS S.A.
• The Coca - Cola Company
• British American Tobacco
• L’Oréal
• Philips Morris International
• Danone
The Future of the FMCG Sector
The future of the fast-moving consumer goods sector is more robust compared to many other fields. Moreover, the consumption and production volume of this sector is extremely high. Some research reveals that the FMCG sector is the most lucrative and high-profit-yielding sector in terms of investment. Executing product consumption quickly and healthily is the expectation of almost every human being. From this perspective, as long as humanity continues, the fast-moving consumer goods sector will also continue.
