FMCGs are Fast Moving Consumer Goods. These are the daily-use consumables that are sold quickly and must be replenished regularly. These products include non-durable goods like packaged foods, beverages, over-the-counter drugs, or personal care products. These goods are purchased by the customer regularly and hence marketing for FMCG is easy and less expensive.
Best FMCG products to sell:
FMCG goods include both perishable goods which have a relatively low shelf period nonperishable goods which have a relatively high shelf period. It also includes personal care products low-cost electronic gadgets and beverages. Listed below are the FMCG examples.
- Milk, butter, curd, and other dairy products
- Bakery products such as cakes and cookies
- Packed foods
- Fruits and vegetables
- Dry fruits like cashews and almonds
- Frozen food products
These goods are generally sold in bakeries, supermarkets, and other retail outlets.
- It includes cleaning lotions, laundry detergent, paper products, dishwashing detergents, washing powder, floor cleaning detergents, toilet fresheners, and so on.
Personal care products
- They are personal hygiene and grooming products such as soap, shampoo, toothpaste, and cosmetics. These goods are relatively sold in supermarkets, pharmacies, and other retail outlets.
- It includes a brewery, soft drinks, bottled water, etc.
- Electronic gadgets which are less expensive but have very high demand in the market such as mobile phones, headsets, batteries, etc.
Strategies for FMCG
FMCG strategies are focused on selling a very high volume at a very low-profit margin. This way they sell all the stock before it becomes obsolete. Another FMCG strategies is to increase the demand for FMCG. Expanding the extensive distribution network is also a proven FMCG strategies used by marketers.
Listed below are the strategies for FMCG which a marketing company typically uses to increase sales and their market share.
- Introducing innovative products is one of the best FMCG strategies a seller can use. This will take care of changing consumer preferences and needs.
- Entering a new market or expanding distribution to a new geographical area is another FMCG strategy every seller should try.
Mergers and acquisitions:
- Expanding the market is time-consuming and challenging. To overcome this, many marketing companies buy small business outlets that are relatively popular in a particular area. Through them, they can sell their FMCG products without wasting time on the market expansion. Mergers seem the best strategies for FMCG sellers.
- Expiry dates are very important for FMCG products, particularly for perishable goods. To sell them before expiry, companies offer huge discounts as FMCG strategies before it becomes obsolete.
Creative and innovative.
- Most FMCG companies are multinationals. They envisage creative and innovative strategies for FMCG making it more affordable and amplifying the demand in the market. They bring in FMCG products from other countries and give publicity through social media platforms. Examples of this are the foreign fruits that we are getting in supermarkets that are grown in other geographical areas.
- Reduced price is always a better tool to attract new markets particularly if it’s perishable goods. Since the sellers handle bulk quantities of sale, it is an affordable FMCG strategies for many multinationals to expand their market share.
- To reduce the risk of loss, diversification becomes the best tool to employ. It reduces too much reliance on a single product or market. Entering a new market or introducing new products reduces their risk of loss and increases their customer base.
- Adopting digital technologies is the key to success and good FMCG strategies. Today is the internet era and hence using digital technologies such as e-commerce, social media, data analytics, etc can drastically improve customers and brand identity.
Advantages of running FMCG in India
FMCG is the fastest-growing industry in India. Marketing of FMCG products today is very competitive with many national and international brands competing to get maximum market share. Though the profit margin here is very low, FMCG retailers have got many advantages. Some of them are as follows.
High turnover and steady cash flow:
- FMCG products are traded in bulk and hence strategies for FMCG should be to increase the turnover rate. India is a large country with 130 crores of population. FMCG deals mostly with unavoidable daily products. So, there will not be any dip in demand. Another advantage is that they are sold out quickly. So, the investment done by the business house will not get stagnated at any point in time. The invested amount quickly reaches the seller to reinvest. It helps companies to maintain a steady cash flow.
Huge customer base:
- FMCG products will have a wide range of customer bases starting from dairy products to beauty products have a huge customer base, both rural and urban.
Low Marketing cost:
- FMCG spending on marketing is limited. FMCG marketing strategies do not require expensive marketing and sales promotions. This is because these are consumer essentials and hence there will not be any dip in demand.
Consistent demand and Economics of Scale.
- FMCG sales will not have any dip in demand as people always require these products. This helps the producers produce a large volume of products. This reduces their production cost and brings the economics of scale.
- From a retailer's point of view, the shelves that house FMCG product categories become empty quickly compared to other products. When one cycle of selling is happening to other products, the sale of FMCG will have completed manifold. Though the margin of profit is low, repeated sales give the retailer more returns to FMCG businesses.
FMCG as a wholesaler:
- Since big FMCG companies deal with bulk quantities, they can also be Wholesale grocery suppliers to many retail outlets. They purchase the products directly from the factory and avoid intermediaries making their selling price to retailers better than traditional wholesalers.
Few words about Qwipo
Qwipo is a tech-based marketing of FMCG products. We are the web-based Wholesale Grocery Supplier and B2B suppliers in India who deliver quality products at amazing speed using the latest technology that is used by major multinationals. As a result, the company has achieved increased confidence amongst retailers across Telangana and Andhra Pradesh. We have a vibrant online portal to support wholesale grocery online in India.