Fast-Moving Consumer Good
A Fast-Moving Consumer Good is a non-durable good that is a low cost product.
- AKA: Consumer Packaged Good, CPG, FMCG.
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- Example(s):
- Soft Drink, Toiletries, Cigarettes, ...
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- Counter-Example(s):
- See: Impulse Buy, Inventory Turnover, Low Cost, Consumables, Shelf Life, Low-Margin Business.
References
2015
- (Wikipedia, 2015) ⇒ http://en.wikipedia.org/wiki/fast-moving_consumer_goods Retrieved:2015-6-30.
- Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, over-the-counter drugs, toys, processed foods and many other consumables. In contrast, durable goods or major appliances such as kitchen appliances are generally replaced over a period of several years. The term was coined by Neil H. Borden in 'The Concept of the Marketing Mix' in 1965.（1996，Prentice-Hall, Inc.)
FMCG have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Some FMCGs — such as meat, fruits and vegetables, dairy products, and baked goods — are highly perishable. Other goods such as alcohol, toiletries, pre-packaged foods, soft drinks, and cleaning products have high turnover rates.
Though the profit margin made on FMCG products is relatively small (more so for retailers than the producers/suppliers), they are generally sold in large quantities; thus, the cumulative profit on such products can be substantial. FMCG is probably the most classic case of low margin and high volume business.
- Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, over-the-counter drugs, toys, processed foods and many other consumables. In contrast, durable goods or major appliances such as kitchen appliances are generally replaced over a period of several years. The term was coined by Neil H. Borden in 'The Concept of the Marketing Mix' in 1965.（1996，Prentice-Hall, Inc.)