In the trade sphere and economy, many terms and abbreviations are used, for example, it is necessary to understand, FMCG – what is it and what value is a concept has in trade. It has some features, positive and negative sides.
What is it FMCG in trade?
In this abbreviation such words – fast moving consumer goods are encrypted. This concept is meant as goods of a rapid turnover, that is products which is sold every day. If you do not know what convenience goods are, then as an example it is possible to cite food, household chemicals, clothes and so on. Everything that is used constantly and without what the person does not represent life, it belongs to these goods.
Finding out that it is sale FMCG, we will notice that earlier the similar products were called goods widely of consumption, or for short – consumer goods. It can be found in any shop, the highest concentration – markets. Such goods belong to food and light industry more. The price of them low, and demand – is huge. It is possible to refer to obvious lines of FMCG of goods also that they have the same style and do not differ in features of design.
That it is FMCG segment?
Here the direction of sales of products which do not lie too long on shelves in retail shops means. Describing, FMCG – what is it, we will notice that carefully thought over marketing, regular carrying out advertizing campaigns and the organization of merchandising is important for success of the company in this sphere. There are certain features of sales in FMCG segment:
- consumer goods are bought quickly without thoughts;
- decisions are made spontaneously on the basis of momentary desires;
- not the seasonality is characteristic of all goods;
- formation of concrete model of consumption;
- great demand and competition;
- goods are replaced easily and cost not much.
That it is distribution of FMCG?
Distribution understand an indicator of distribution of goods or services as the term in the concrete territory or on a sales channel. Finding out, what does it mean distribution of FMCG, it is necessary to specify stages of its development: formation, stabilization, development, final formation and subsequent its preservation. There is a simple scheme in which it is possible to see the simplified internal logic of development of a system of sales of FMCG. In its analysis it is possible to reveal tasks which need to be solved at development of regional sales. Distribution includes stages:
- increase in sales volume;
- quantitative distribution, that is goods has to get on a regiment;
- high-quality distribution – fight for the shelf;
- safety of a share of the market, that is management of the shelf.
That it is retail trade of FMCG?
The market where quickly wrapped goods are implemented, is one of the most competitive and long ago existing. It is possible to give the market of food as an example, household chemicals, toys, cosmetics, clothes and so on. Fierce competition is characteristic of such retail trade therefore to create and introduce new brands which will be profitable – a difficult task.
Describing, what is it the market of FMCG, it is worth stopping on its features:
- high turnover of goods;
- great demand;
- low level of net profit;
- minimum involvement of the consumer;
- it is easy to replace goods.
That it is the supervisor of FMCG?
In the companies which are engaged in sale of goods of daily use in most cases understand the head of group of sales representatives who are engaged in sale in the concrete territory as the supervisor. This position is the lowest administrative link which is engaged in the organization and control of work of group of workers, for example, in sellers, sales representatives and others.
It is difficult to present commodity market of daily demand without supervisors whose duties can change depending on specifics of work of the concrete company. Carry to the main tasks:
- selection and training of people;
- distribution of tasks between personnel;
- negotiation with contractors and partners;
- work quality control;
- drawing up report on work of subordinates.
What is it FMCG companies?
Today many companies which are engaged in production of convenience goods are known. It is possible to distinguish such from the most known: Procter&Gamble, L’Oreal, PepsiCo, Coca Cola. Explaining, what does it mean the market of FMCG and what the companies are engaged in, It should be noted that such brands are faced by a difficult task: to hold a huge flow of clients and to constantly increase the amount of profit, attracting new consumers.
Such brands have to introduce regularly new innovations and apply the non-standard ideas to the solution of the arising tasks. It in many respects depends on abilities and competence of personnel. Understanding a subject, FMCG – what is it, it is worth specifying that all companies which are engaged in trade of popular goods can be divided into several groups:
- monobranded – offer goods of one category;
- the brands offering from two to three products;
- multigrocery – the offering different convenience goods.
Future FMCG
All directions of trade constantly develop, and the segment of FMCG is not an exception. If in the 90th active distribution different stalls and the markets, then today at the peak of popularity had supermarkets, large shops and shopping centers. Knowing that it is goods of FMCG, we will notice that the future behind large networks as they not only satisfy requirements of a large number of people, but also is reduced by the prices of rather small producers. It is possible to tell with confidence that the leading role in the market will be occupied by the global FMCG companies.
Describing, FMCG – what is it, we will note that in the next years the rotation of brands of goods, increase in the range and development of revolutionary marketing decisions will be observed. Experts consider that such trends will be shortly observed:
- expansion of quantity of formats of retail chain stores;
- reduction of a share of supermarkets;
- increase in number of outlets within walking distance;
- increase in number of discounters;
- growth of tax burden of the FMCG companies;
- strengthening of state regulation of the market.