Assistant Professor, Institute of Management Studies and Research, Maharishi Dayananda University, Rohtak
Online published on 18 April, 2014.
The Indian Fast Moving Consumer Goods (FMCG) industry began to shape during the last fifty odd years. The FMCG sector is a corner stone of the Indian economy. This sector touches every aspect of human life. Indian FMCG market has been divided for a long time between the organized sector and the unorganized sector. Unlike the US market for FMCG which is dominated by a handful of global players, India's Rs. 460 billion FMCG market remains highly fragmented with roughly half the market going to unbranded, unpackaged home-made products. This presents a tremendous opportunity for makers of branded products who can persuade consumers to buy branded products. Globally, the FMCG sector has been successful in selling products to the lower and middle income groups, and the same is true in India. Over 70 percent of sales are made to middle class households today and over 50 percent is in rural India. The sector is excited about a burgeoning rural population whose income is rising and which is willing to spend on goods designed to improve lifestyle. Also with a near saturation and cut throat competition in urban India, many producers of FMCGs are driven to chalk out bold new strategies for targeting the rural consumer in a big way.
Fast moving consumer goods, Customers, Consumer goods, consumption