FMCG- 4th Largest Sector In India; Description, Types

Yes FMCG sector is the 4th largest sector in our Indian Economy and it is growing very fastly.

Also, the Indian e-commerce market is expected to reach the US $ 84 billion by the end of 2021 which was the US $ 38.5 billion in 2017.

The report also says the Indian e-commerce market is expected to grow to US $ 200 billion by 2026.

What’s in it for me?

1. WHAT IS FMCG, FULL FORM AND IT’S TYPES.
2. WHAT IS FMCD? FULL FORM OF FMCD.
3. WHEN DID FMCG SECTOR START IN INDIA? 
   • EARLY DAYS OF FMCG SECTOR.
   • BETWEEN 1980 & 2000.
   • IN 21ST CENTURY.  
4. INTRODUCTION OF FMCG COMPANIES WITH THEIR ESTABLISHMENT DATE & PRODUCTS.
5. FREQUENTLY ASKED QUESTION ABOUT IT. 

WHAT IS FMCG, FULL FORM AND IT’S TYPES.

It is a type of industry. The full form of FMCG is “FAST-MOVING CONSUMER GOODS” & it is also known as CPG (CONSUMER PACKAGED GOODS).

By its name, we can understand the meaning of this industry, “fast-moving consumer goods’ ‘ means that the products are used by a customer very quickly. These are the products that are used in our daily life. It can be creams, oil, lotions, bread, wheat flour, coffee powder, milk or there are many other things that we use from getting up in the morning to work before sleeping at night.

So let’s now talk about the products that we use in our daily life and include in this industry. It is divided into 5 categories:

• HOME CARE – Dishwashing, Fabric Care, Surface Care, Home Insecticides, Air Care, Toilet Care.

• PERSONAL CARE – Hair Care, Soap & Bath, Skin Care Cosmetics, Oral Care, Baby Care.

• FOOD & BEVERAGES – Staple Food, Baked Foods, Convenience Food, Snacks, Dairy Products, Confectionery Foods, Fruit Drinks/Juices, Soft Drinks, Mineral Water, Tea/Coffee,  Health & Beverages.

• CIGARETTES & ALCOHOL – Beer, Wine, Indian Made Foreign Liquor ( Imfl ).

• OTC – Pain reliefs, Acidity medicines.

FOR DEEP CLASSIFICATION OF CATEGORIES, (READ THIS BLOG ALSO)

WHAT IS FMCD? full Form Of FMCD?

FMCD Stands for “fast moving consumer durable”.

FMCD and FMCG sectors both play a major role in the Indian economy. It is the 4th largest sector in our Indian economy.

FMCD is almost the same as the FMCG sector but the durability of FMCD products is higher as compared to FMCG products. Examples of FMCD products are watches, television, refrigerators, air conditioners, mobile phones, microwaves, washing machines, fans, e.t.c.

FMCD products are valuable for a long time and can be used for a long time. The durability of FMCG’s products is comparatively lower than that of fmcd. Most FMCG products have an expiry date, but FMCD products do not. As you may have seen, the expiry date of a tomato ketchup/sauce (FMCG) is about 18 to 24 months but you can use your wristwatch / mobile phone (fmcd) as long as you want.FMCD also is known as FMEG (Fast Moving Electrical Goods)

• BATTERIES – Eveready, Duracell, Panasonic.
• LIGHTING – Bajaj Electricals, Wipro Lighting, Havells, Phillips.

WHEN DID FMCG SECTOR START IN INDIA?

EARLY DAYS :  

After the independence of India, we can say this time between 1950 and 1980 where this sector was gradually starting in India. At that time, the majority of the population of India did not have much facility and knowledge, so they used to buy their very needy goods from the market, their purchasing power was too low.

But as technology and education expanded in India, the purchasing power of people started increasing in India and he started using most of the things that make his life easier. Due to which many industries started coming in this sector and started trying themselves. At that time, the industries had come to know that if the products are brought to solve the problem of the people, then their industries can have a good future.

Then many founders and workers of that time launched products in such a way that they could help the society and their price was kept in such a way that as much as the common man could take it. Due to which the demand for fast moving consumer goods industries started increasing gradually and this sector started playing its important role in India’s economy.

BETWEEN 1980 AND 2000 :

Then between 1980 and 1990, the demand for more products started increasing in the people and people were understanding that their time, energy are saving and their life is becoming easier day by day with these types of products.

When globalization and liberalization started taking place in India around 1990, international brands and foreign food products were not available in local markets and retailers were unable to provide service to local customers.

Then at that time the Indian government gave the opportunity to many companies to come and do business in India. Due to which a lot of employment started in India and helped to grow the economy of India.

The FMCG products were set such that they could reach even the poorest people and they could use them properly. At that time, local area stores were very helpful to deliver goods to each and every person because they used to capture almost every small market and the villages of India.

IN 21ST CENTURY & E-COMMERCE TREND :

Along with time, this sector is growing very fast in India because in the 21st century with the help of the internet, every person can get their favorite brand and product whenever they want from home.

Today there are many such supermarkets in India where you get every item you need under one roof (or in one place) due to which the purchasing power of people is increasing. Names of few supermarkets in India that are very popular all over the country are Reliance fresh, Big Bazar, Walmart, D-mart, Metro e.t.c.

As per the source, the Contribution of the e-commerce market to the fast-moving consumer goods sector will be 5% till 2022 which was 2% in 2019 and 0.5% in 2016. That’s why the market of the e-commerce industry is growing very fast due to which it is going to be the biggest marketplace for FMCG products in the coming years.

Because any product or brand that a person wants, he can buy it from any corner of the world to his location without any restrictions. India’s main E-commerce partner is Amazon, Flipkart, Myntra, Snapdeal e.t.c.

WANT TO KNOW MORE? WHY FMCG SECTOR IS GROWING IN INDIA TOO MUCH?

FMCG COMPANIES NAME, DATE, AND PRODUCTS :

FREQUENTLY ASKED QUESTION ABOUT IT.

Lakshya Goyal

MEDICAL STUDENT
DIGITAL MARKETER
HEALTH & FITNESS CONSCIOUS
AUTOIMMUNE PATIENT
FROM- GWALIOR, M.P