We use a variety of miscellaneous products in our day to day life. Some of them are durable products while the rest are non-durable products. Durable products are those that get replaced after a period of several years (the chairs placed in your dining room might be a good example), while non-durable products are those goods which need to be bought every so often as their shelf life is small. This brings us to the question of FMCGs.
What are FMCGs?
FMCG products are durable products that have a short shelf life due to their perishable nature or high volume of sales. These products are often sold at a low cost and also go by the name of Consumer Packaged Goods (CPI). These Fast Moving Consumer Goods (FMCGs) can be broken down into two categories:
- The Perishable Variety – Examples of such goods are dairy products, fruit and meat. These foodstuffs have a relatively short shelf life, when not used or consumed within a stipulated time period, often perish and cannot be used further.
- The High Sales Volume Variety – Alcohols, chocolates, soft drinks and toiletries often attract a large number of buyers, ensuring a great turnover. Consequently, the high consumer demand keeps their shelf life small. The increased sale of some of these products may occur due to the change in season or the arrival of the holidays.
The FMCG products are often sold at a low price from the retailers’ perspective. Nonetheless, they are bought so abundantly and in such huge quantities that the end result is a massive turnover. The cumulative profit margins (for branded products) could be staggering. These goods are perfect examples of low profit margin (per product) and high volume sales.
How does Market Quotient step in?
Research is important at each stage of the product cycle, whether it be the incubation stage or the production stage (where setting appropriate pricing policies are taken into consideration). In the retail and FMCG sector, business research is very important as it helps one reach appropriate decisions on how best to sustain a particular product in the market or how to launch new products.
Market Quotient could provide invaluable information to a firm by performing business research in local or international markets so as to reach an appropriate conclusion about the strategy formulation and implementation to be adopted by the FMCG or retail firm.
Furthermore, we come armed with a pool of knowledgeable professionals who know their work well and have gathered several years of specialized experience, therefore they are well equipped to work with any kind of project.