FMCGs are low-cost, non-durable products that sell quickly and generate profit through volume sales. Examples include prepackaged foods, toiletries, cleaning products, pharmaceuticals, and consumer electronics. There is some debate over what should be classified as an FMCG.
FMCGs, or fast-moving consumer goods, are any type of commercial product that is produced at a low cost per unit and tends to sell quickly. Typically, a smaller amount of profit is made on each individual FMCG sold, but consistent demand helps produce volume sales that help create a healthy cumulative profit on all units sold over a given period. There are a number of retail products that fit this basic profile, with many of the items found in nearly every home around the world.
One of the characteristics that define any type of product as a true FMCG is the fact that it is not durable. This leads to a continuous cycle of consumption which makes it possible to mass-produce goods. Prepackaged foods are a good example of this feature. Food is purchased, then consumed. When the food is gone, consumers return to a retail outlet to purchase more units of the prepackaged food.
Toiletries and personal hygiene products are also included in the FMCG classification. Soap, toothpaste, mouthwash and toilet paper are non-durable goods that need to be repurchased from time to time. Toilet paper is also one of the essential PMCG products found in most homes.
Household cleaning products such as bleach, detergent, dish soap and glass cleaner would also be identified as FMCG products. The same goes for carpet cleaners, furniture polishes, and foam cleaners for sinks and bathtubs.
Pharmaceuticals are also normally classified as consumer goods. This includes over-the-counter medications, creams, and muscle rubs, as well as any prescription medications. Non-traditional aids such as vitamin and herbal supplements would also be classified as FMCG.
Consumer electronics is considered a sub-classification of an FMCG. Known as Fast Consumer Electronics or FMCE, items such as digital cameras, laptops and notebooks, and cell phones are excellent examples of non-durable goods within this category. In each case, the FMCE is purchased, used for a period of time, and eventually replaced by another similar make and model or more technologically advanced unit.
There is some difference of opinion as to what type of commodity should be classified as a true FMCG. In the UK, it is not uncommon for fridges or ovens to be held up as an example of ‘good white’ FMCG. Smaller appliances are also part of the FMCG family and are identified as brown products. Items such as televisions or portable stereo systems are examples of what is meant by “brown good”.
Protect your devices with Threat Protection by NordVPN
