Fast Moving Consumer Goods (FMCG) Summit Issues and Opportunities - Industry Overview - Part - 1
Fast moving consumer goods ( FMCG )
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FAST MOVING CONSUMER GOODS FAST MOVING CONSUMER GOODS (FMCG) (FMCG) SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
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Transcript of Fast moving consumer goods ( FMCG )
FAST MOVING CONSUMER GOODS FAST MOVING CONSUMER GOODS (FMCG)(FMCG)
SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
The focus of this 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..
Questions???Questions???
1. What is FMCG? Define.
2. Difference between FMCG & Consumer Durables?
3. What are the characteristics of FMCG?
SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
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 wellestablished distribution network.
The intense competition between the organized and unorganized segments operating at low operational cost..
IntroductionIntroduction
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The Indian FMCG Sector can be segmented into three key groups-
House Hold Care Personal Care Food & BeveragesFabric WashHousehold CleanersAir FreshenersInsecticides & Mosquito repellentsMetal Polish Furniture Polish
Oral CareHair CareSkin CarePersonal Wash (soaps)CosmeticsToiletriesDeodorants & PerfumesFeminine hygienePaper products
Health BeveragesSoft Drinks, juicesStaples/CerealsBakery ProductsSnack FoodChocolates, Ice creamTea, Coffee, Soft Drinks,Processed fruits & vegetablesDairy ProductsBottled waterBranded Flour etc
IntroductionIntroduction
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EXAMPLE-EXAMPLE- SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
Market Segment– Premium & MassMarket Segment– Premium & Mass
Example:
SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
The focus of this 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..
Industry AnalysisIndustry Analysis
SIZE Growth
Future Threats/Risk
Industry Overview SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
India's FMCG sector 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 Size Market Size
Industry Overview
As per FICCI, the FMCG industry is set to grow 20-30% in 2009-10
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Growth Prospects Growth Prospects
Growing Economy
Large Market
Changing Demographics & Indian Opportunities
Industry Overview
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Growth ProspectsGrowth Prospects
India recorded 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 youngIndia…Growing economyIndia…Growing economy
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Large MarketLarge Market
India is second largest Country in terms of Population
Growth
Growth ProspectsGrowth Prospects
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2/3rd Population below age of 35 Population to grow wealthier
Changing Demographics & Indian OpportunityChanging Demographics & Indian Opportunity
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Changing Demographics & Indian OpportunityChanging Demographics & Indian Opportunity
Steady increase in Urbanization Favourable consumption pattern
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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
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SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
Change in Indian Consumer 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
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Year Modern Trade General Trade
2007 5% 95%2010 10% 90%2025 25% 75%
Modern TradeModern Trade General TradeGeneral Trade
Evolving Trade StructureEvolving Trade Structure
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Future Future Market Overview
India's FMCG 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..
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 brands
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Hopping Nature Hopping Nature
Customer Loyalty
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..
The focus of this 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..
Sales/ Distribution ProcessSales/ Distribution Process
C&F- Carrying & Forwarding agents
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SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
SUNAINA SAMRIDDHI FOUNDATION – Empowering for Better..
….Continued
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Example- HULExample- HUL
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Project ShaktiProject Shakti
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Project StreamlineProject Streamline
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Example- ITC Example- 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
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The focus of this 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..
1. Hindustan Unilever Ltd.
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-
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Job OpportunitiesJob Opportunities• Marketing• Finance• HR• IT• Operations• Supply Chain Management• Sales• Customer Development• R&D
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Possible ProjectPossible Project
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QUESTIONS???QUESTIONS???
Thank youThank you
