What is FMCG? Everything About FMCG!

FMCG, which stands for “Fast - Moving Consumer Goods”, is one of the most prominent market concepts today. This concept, defined as “Hızlı Tüketim Ürünleri” in Turkish, covers products that almost all of us consume every day, although its name is not widely heard. In this article, we have written all the details about FMCG for you, let's get started!

What is FMCG?

FMCG, in terms of its abbreviation, is the name given to fast-moving consumer products. The definition of this concept is extremely broad. Products that are ready for immediate consumption and offered at low prices can be analyzed within this scope.

There are many FMCG products in the supermarket in your neighborhood. The products of the relevant sector have basic characteristics shaped according to the producer and the consumer. In the eyes of the customer, the characteristics of products within this scope are as follows:

• Products in this group are easily accessible.

• Goods in this scope are purchased frequently.

• They are known to be sold at low prices.

• Products in this scope have a short shelf life.

• The fact that they are ready for immediate consumption is also a distinguishing nuance.

In addition to this, when looking at the products in this scope from the manufacturer's perspective, it is possible to mention the following characteristics:

• Low margin contribution

• High inventory turnover rate

• High volume production

• High distribution rate

The uninterrupted production and consumption stages and the provision of sufficient ground in the market area indicate that the relevant sector is profitable. This draws attention to the relevant sector and provides many opportunities in terms of career. FMCG is the sector with the lowest risk in terms of job loss compared to other sectors.

What is the FMCG Market?

This market, which covers fast-moving consumer goods, is extremely popular in a global sense. These products, such as food, beverages, and hygiene materials, which are used by everyone globally, meet basic needs.

FMCG products, which have a short shelf life and expiration dates, create a market that will almost never end. This market, which is carried out physically and virtually, gained great momentum in the e-commerce field with the 2020 Covid - 19 pandemic.

As of February 2020, moving sales in the food sector to the internet environment has enabled the expansion of the market area. In addition, it is known that Google searches for food worldwide reached record levels during the pandemic year.

FMCG Products: Which Products Are in This Category?

When answering what FMCG means, it is useful to give examples of these products. The most well-known products can be listed as follows;

• Pastry and bakery products

• Fruits and vegetables

• Delicatessen and meat products

• Dairy products

• Carbonated and canned drinks

• Alcohol and tobacco

• Confectionery and chocolates

• Cleaning and hygiene products

• Some dietary supplements

FMCG Sector in the World and Turkey

There is an expansion in the FMCG sector globally. Likewise, the volume of initiatives in this field is extremely high in our country. With the development of technology and the pandemic changing the whole world, it can be said that the FMCG field in the World and Turkey has moved more towards e-commerce.

In our country, the share of this sector in physical stores and e-commerce has entered a rapid rise, at least as much as in European countries. The companies that have a say in Fast-Moving Consumer Goods and have high net income in our country are as follows;

• ETİ

• Ülker

• Unilever

• PepsiCo

• Kimberly Clark Turkey

• Coca - Cola Turkey

When looking specifically at the United Kingdom, 7.6% of online sales consist of FMCG products. Likewise, online sales consist of fast-moving consumer goods in France at a rate of 6.2%. In South Korea, an Asian country, the rate of fast-moving consumer goods in the online market is 20.3%.

E-export with FMCG Products

The fact that e-commerce offers a personalized experience for consumers accelerated the emergence of Fast-Moving Consumer Goods in this field. Products sold at relatively lower costs at these points won the appreciation of those who are accustomed to the comfort of their homes.

In addition, when we look at 50% of the total retail sector, we can see fast-moving consumer goods. The increasing interest in FMCG day by day has also led many people to shift to the e-export field. E-export with FMCG products has many advantages such as brand awareness and profit margins. These advantages can be listed as follows:

• Reaching Wide Audiences: E-export offers an opportunity to reach billions of internet users worldwide. This can increase the reach of FMCG products to wider audiences and boost growth opportunities in international markets.

• Lower Cost: E-export can be less costly compared to traditional export methods. For example, it is possible to avoid costs such as renting physical stores and personnel expenses.

• Increasing Brand Awareness: E-export can be used as a more effective marketing tool to reach customers worldwide. This can create an opportunity to explore new markets by increasing brand awareness.

• Higher Profit Margins: E-export can have higher profit margins compared to traditional export methods. This allows sellers to earn more profit in international markets by offering more competitive prices.

You can check out Navlungo for your e-export and global logistics needs.

Why Are FMCG Products Important? How Do They Affect Consumer Behavior?

Consumer behavior is important in almost every sector. For FMCG companies, it carries extra importance. Looking at supermarkets, we know that customers mostly want to see products they actually won't buy and spend a lot of time wandering at the head of these aisles.

In purchasing behavior, it is obvious that customers want to head to a solution without searching for a SKU (stock keeping unit). Selling FMCG products online to customers is much easier. Because in such a shopping situation, users do not carry the products themselves. In addition, the cost of selling these products online is lower.

In physical shopping, consumers rather purchase products without planning ahead. However, they get the chance to check the freshness of the products while doing this. The possibility of checking the freshness of a vegetable bought online is lower.

When looking at Europe in general, the low online demand for fast-moving consumer goods is linked to deep-rooted habits of customers. In our country, considering that FMCG products include basic needs along with the deep-rooted shopping habits of Generation X, it can be said that online demand has not surpassed physical stores.

FMCG Sales Channels: Which Channels Are Used?

Sales channels for fast-moving consumer goods are very broad. You can set up your website for your own sales without any directing channels and sell from here. Likewise, you can use social media and digital marketing channels.

Social media networks such as Pinterest, Snapchat, Twitter, Instagram, and Facebook are among the best ways to promote FMCG products. Since these channels are spaces used by everyone from 7 to 70 today, you can clearly increase your sales revenues. If you feel the need to get professional support in this regard, you can contact Navlungo's experienced staff.

FMCG Manufacturers: Who Are They? Which Are the Largest FMCG Companies?

The prominent World and Turkish FMCG companies are as follows;

• Nestle

• Procter & Gamble Company

• PepsiCo

• Unilever

• JBS S.A.

• The Coca - Cola Company

• British American Tobacco

• L’Oréal

• Phlips Morris International

• Danone

The Future of the FMCG Sector

The future of the fast-moving consumer goods sector is more robust compared to many other fields. Moreover, the consumption and production volume of this sector is extremely high. Some research reveals that the FMCG sector is the most profitable and high-yielding sector in terms of investment. Consuming products quickly and healthily is almost every human's expectation. From this perspective, as long as humanity continues, the fast-moving consumer goods sector will also continue.