Fast-moving consumer goods (FMCG) are products that are sold quickly and at a relatively low cost. Examples include non-durable household goods such as packaged foods, beverages, toiletries, over-the-counter drugs and other consumables.
Characteristics
The following are the main characteristics of FMCGs:
- From the consumer perspective
- Frequent purchases
- Low engagement (little or no effort to choose the item)
- Low prices
- Short shelf life
- Rapid consumption
- Price comparison over online purchase by customer
- From the marketer perspective
- High volumes
- Low contribution margins
- Extensive distribution
- High inventory turnover
Challenges for FMCG companies
There’s a lot of money to be made in the FMCG industry, but these goods tend to have a small profit margin and – in many cases – a short shelf life. This means that, in order to thrive, FMCG companies must strive to sell as many units as they can as quickly and as consistently as they can. This requires shrewd marketing (to get people to make an initial purchase) and high product quality (to keep people coming back for more purchases going forward).
Other challenges for FMCG companies include:
- Extending shelf life of perishable goods
- Reducing impact on the environment (e.g. from discarded packaging)
- Keeping costs low enough to compete on price
Common FMCGs include:
- Fruit and veg
- Meat
- Soft drinks
- Dairy products
- Bread and other baked goods
- Toiletries (e.g. toothpaste, deodorant)
- Alcohol and tobacco
- Confectionery
- Batteries
- Some forms of medication
Roles within the FMCG industry
The FMCG industry is very large and extremely varied, with all sorts of roles available for all sorts of different skill sets. Talented workers from STEM fields are highly sought-after in this sector, as these are the people who can help FMCG companies to:
- Improve product quality / effectiveness
- Drive down costs via technological advancements
- Boost shelf life by delaying product expiration
- Create more environmentally-friendly products and packaging solutions
The ingenuity, expertise and creativity of skilled scientists have long been crucial to the success of the world’s largest FMCG companies, and there’s no shortage of roles for gifted science/technology workers in this particular sector.
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