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Fast moving consumer goods ( FMCG )
The document discusses the fast moving consumer goods (FMCG) industry in India. It provides an overview of the industry, including key details about its size and growth prospects. The FMCG market in India is over Rs. 86,000 crores in size and is growing at 20-30% annually. Major drivers of growth include India's growing economy, large population and changing demographics. The document also outlines the industry segmentation, key players, distribution channels, job opportunities and potential projects.
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Fast moving consumer goods ( FMCG )
- 1. FAST MOVING CONSUMERGOODSFAST MOVING CONSUMER GOODS (FMCG)(FMCG) SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 2. The focus ofthis presentation is to discuss… Introduction Industry Overview Distribution in FMCG Key players Job Opportunities Possible Projects & How to do them?? Questions?? SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 3. Questions???Questions??? 1. What isFMCG? Define. 2. Difference between FMCG & Consumer Durables? 3. What are the characteristics of FMCG? SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 4. FMCG IndustryFMCG Industry Fast Moving Consumer Goods (FMCG) are those consumables that have a quick turnover, and relatively low cost. FMCG industry, alternatively called as CPG (Consumer packaged goods). FMCG is characterized by strong presence of MNC and well established distribution network. The intense competition between the organized and unorganized segments operating at low operational cost.. IntroductionIntroduction SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 5. The Indian FMCGSector can be segmented into three key groups- House Hold Care Personal Care Food & Beverages Fabric Wash Household Cleaners Air Fresheners Insecticides & Mosquito repellents Metal Polish Furniture Polish Oral Care Hair Care Skin Care Personal Wash (soaps) Cosmetics Toiletries Deodorants & Perfumes Feminine hygiene Paper products Health Beverages Soft Drinks, juices Staples/Cereals Bakery Products Snack Food Chocolates, Ice cream Tea, Coffee, Soft Drinks, Processed fruits & vegetables Dairy Products Bottled water Branded Flour etc IntroductionIntroduction SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 6. EXAMPLE-EXAMPLE- SUNAINA SAMRIDDHIFOUNDATION – Empowering for Better..
- 7. Market Segment– Premium& MassMarket Segment– Premium & Mass Example: SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 8. The focus ofthis presentation is to discuss… Introduction Industry Overview Distribution in FMCG Key players Job Opportunities Possible Projects & How to do them?? Questions?? SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 9. Industry AnalysisIndustry Analysis SIZE Growth FutureThreats/Risk IndustryOverview SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 10. India's FMCGsector is the fourth largest sector in the economy. Total FMCG market is in excess of Rs.86000 crores. Creates employment for more than three million people in downstream activities. Most of the FMCG companies saw the average growth in net sales stand at 14 per cent in Q3 of 2009, while net profit posted 24 per cent growth. Market SizeMarket Size Industry Overview As per FICCI, the FMCG industry is set to grow 20-30% in 2009-10 SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 11. Growth ProspectsGrowth Prospects GrowingEconomy Large Market Changing Demographics & Indian Opportunities Industry Overview SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 12. Growth ProspectsGrowth Prospects Indiarecorded a gross domestic product (GDP) growth rate of 6.7 per cent in rupee terms during the year 2008–09. The general index of industrial production (IIP) is projected to reach 275.4 for the year 2008–09 (base: 1993– 94 = 100). The fast pace of GDP growth is, in turn, driving Indian consumerism, with Indian consumers today more confident and willing to splurge. A vibrant economy and growth of youngA vibrant economy and growth of young India…Growing economyIndia…Growing economy SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 13. Large MarketLarge Market Indiais second largest Country in terms of Population Growth Growth ProspectsGrowth Prospects SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 14. 2/3rd Population belowage of 35 Population to grow wealthier Changing Demographics & Indian OpportunityChanging Demographics & Indian Opportunity SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 15. Changing Demographics &Indian OpportunityChanging Demographics & Indian Opportunity Steady increase in Urbanization Favourable consumption pattern SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 16. Emerging Trends…Emerging Trends… WHOWHO •CONSUMERS •CUSTOMERS •COMPETITION •SOCIETY/ ENVIRONMENT TRENDS •More Affluence •Changing Attitudes •Hybrid Trade •Intense •More Conscious •Only sustainable business models will survive SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
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- 18. Change in IndianConsumer ProfileChange in Indian Consumer Profile Consumer mind set changed towards “Money for Value” from “Value for Money” Survey by A. C. Nielsen shows about 71 per cent of Indian take notice of pack-aged goods' labels containing nutritional information compared to two years ago which was only 59 per cent Growth ProspectsGrowth Prospects SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 19. Year Modern TradeGeneral Trade 2007 5% 95% 2010 10% 90% 2025 25% 75% Modern TradeModern Trade General TradeGeneral Trade Evolving Trade StructureEvolving Trade Structure SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 20. FutureFuture Market Overview India'sFMCG sector is poised to reach US$ 43 billion by 2013 and US$ 74 billion by 2018. India will become the world's fifth largest consumer market by 2025, Over 300 million people would move up from the category of rural poor to rural lower middle class between 2005 and 2025 Rural consumption levels are expected to rise to current urban levels by 2017 Source: FICCI Report, Mc Kinsey Survey, Mart Rural Solution SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 21. Threats/ RisksThreats/ Risks Cut throat Competition Logistics Problem Problems in Rural markets- Acute dependence on the vagaries of the monsoon, Seasonal consumption Poor roads and power problem. Once the product fails its not easy to revive it back. Hoping of customers "Me-too" products which illegally mimic the labels and brands of the established brandsSUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 22. Hopping NatureHopping Nature CustomerLoyalty The major issue with this sector is the 80% of the customers are Fence Sitter. Hopping from one product to another is too high , due to very large pool of products. Die Hard Loyalist Die Hard Opponent Switchers SwitchersFence Sitters SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 23. The focus ofthis presentation is to discuss… Introduction Industry Overview Distribution in FMCG Key players Job Opportunities Possible Projects & How to do them?? Questions?? SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 24. Sales/ Distribution ProcessSales/Distribution Process C&F- Carrying & Forwarding agents SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
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- 28. Example- HULExample- HUL SUNAINASAMRIDDHI FOUNDATION – Empowering for Better..
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- 30. Project ShaktiProject Shakti SUNAINASAMRIDDHI FOUNDATION – Empowering for Better..
- 31. Project StreamlineProject Streamline SUNAINASAMRIDDHI FOUNDATION – Empowering for Better..
- 32. Example- ITCExample- ITC Procurement: cost & quality optimization • strategic sourcing support to the Foods business (support creation of verticals in wheat, soya, corn, potato etc.) • cost-effective sourcing for exports/domestic external business Rural Distribution • ‘last mile connectivity’: 100 partnering companies • diverse range of goods/services: FMCG, consumer durables, agri-inputs, paid extension services etc. Financial Services • insurance (focus: weather) • credit (focus: Kisan credit card scheme) Rural retail • 24 Choupal Saagars operational E-Choupal SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 33. The focus ofthis presentation is to discuss… Introduction Industry Overview Distribution in FMCG Key players Job Opportunities Possible Projects & How to do them?? Questions?? SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 34. 1. Hindustan UnileverLtd. 2. ITC (Indian Tobacco Company) 3. Nestlé India 4. GCMMF (AMUL) 5. Dabur India 6. Asian Paints (India) 7. Cadbury India 8. Britannia Industries 9. Procter & Gamble Hygiene and Health Care 10. Marico Industries Several global players are well established in the Consumer Durables sector in India, with competition from strong Indian players. Some of the key players in the sector in India include- SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 35. Job OpportunitiesJob Opportunities •Marketing • Finance • HR • IT • Operations • Supply Chain Management • Sales • Customer Development • R&D SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
- 36. Possible ProjectPossible Project SUNAINASAMRIDDHI FOUNDATION – Empowering for Better..
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Editor's Notes
- #11 is responsible for 5% of the total factory employment in India Market size-86000 crores
- #21 Implementation of the proposed Goods and Services Tax (GST) and the opening of Foreign Direct Investment (FDI) are expected to raise the industry's size to US$ 47 billion by 2013 and US$ 95 billion by 2018. According to a study by the McKinsey Global Institute (MGI), India will become the world's fifth largest consumer market by 2025, moving up from its 2007 position as the world's 12th largest consumer market.
- #22 When the company launches a new product its competitor will also launch the new product in the same line, within the short span. Due to cut throat competition there is severe pressure on margin for the manufacturers of FMCG products. The rural and semi urban population is growing but the problem faced by the FMCG manufacturers is the logistics
- #27 7,500 distributors serve – 4,000 Redistribution stockists • 35 C&FAs in the country • 40 manufacturing plants - 2 million square miles territory • 6.3 million retail outlets • About 250 million rural consumers
- #30 Rural India is spread across 627,000 villages and possesses a serious distribution challenge for FMCG Cos.
- #31 HLL has come up with a unique and successful initiative wherein the women from the rural sector market HLL products, and hence, are able to reach the same wavelength as of the common man in village.
- #32 HUL initiated a Streamline initiative in 1997- cater to the needs of the inaccessible market • Focuses on extending distribution to villages with less than 2000 people RS INITIATIVE • Launched in 2001 • Connecting Redistribution Stockists (RSs) through an internet based system • Account for about 80% of the company's turnover • RS Net is one of the largest B2B ecommerce initiatives ever undertaken in India. • The IT‐powered system has been implemented to supply stocks to redistribution stockists on a continuous replenishment basis Go to Market • Kick started at Mumbai last June • Uses concept of JIT • 42 cities and towns across India by the end of 2009 • In hands with Mahindra Logistics • Cost cutting and restructuring Initiative