Consumer / FMCG Domain
A consumer is a person or group of people that are the final users of products and or services generated within a social system. A consumer may be a person or group, such as a household. The concept of a consumer may vary significantly by context but here in this section we will discuss both durable and non-durable goods.
Highly durable goods such as refrigerators, cars, or mobile phones usually continue to be useful for three or more years of use, and hence durable goods are typically characterized by long periods between successive purchases. These durable goods are referred to as Consumer Durables and examples of consumer durable goods include cars, household goods (home appliances, consumer electronics, furniture, etc.), sports equipment, and toys. As the second purchase for durable goods lags time difference, generally they are sold on a higher margin.
Non-Durable or Fast-Moving Consumer Goods (FMCG):
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, and grocery items. They generally sell in large quantities, so the cumulative profit on such products can be substantial and these industries often operate on thin margins.
The term FMCG refers to those retail goods that are generally replaced or fully used up over a short period of days, weeks, or months, and within one year. This contrasts with durable goods or major appliances such as kitchen appliances, which are generally replaced over a period of several years.
Understand the meaning and categories of consumer durable goods followed by a short discussion on performance of consumer durable industry in past and its outlook for future. Understand the key challenges that are faced by companies operating in consumer durable industry.