blog




  • Essay / Indian FMCG Sector - 993

    The fourth largest sector of the Indian economy is expected to grow at 16% during 2008-09, from a base of Rs. 4,000,000. 85,470 crores, as predicted by FICCI. In future, as predicted by CRISIL, the FMCG sector will reach around Rs. 9,00,000. 140,000 crore by 2015 ($33.4 billion). This article will present some growth indicators in the FMCG sector and will be updated with contemporary trends in the category. Growth drivers: FMCG1 sector. Disposable Income: There is an increase in disposable income, observed among both rural and urban consumers, giving many rural consumers the opportunity to shift from traditional unorganized and unbranded products to branded FMCG and fraternity urban to splurge on value-added and lifestyle products. The increase in salaries, along with the upward trend in employee benefits in the corporate sector at regular intervals, has increased the purchasing power of citizens. According to some research, there is a strong correlation between disposables per capita and HPC per capita.2. Organized Retail: The emergence of organized retail has led to a greater variety of browsing, the ability to compare with different products within a category, a single destination (entertainment, food and shopping), etc. , which plays an important role in the growth of retail trade. the Indian consumer goods market. Currently, modern commerce occupies 5% of the total retail area, and this share will increase to 10% and 25% in 2010 and 2025, respectively. Moreover, as the trend towards credit cards and retail organized becomes more pronounced, people will not think much when they buy and buy more. Depth of Distribution – Rural Penetration: There are 5,500 towns and 6.38 villages in Lacs with 2.5 million and 5 million outlets respectively. Due to saturation and cut-throat competition in urban India, many FMCG companies are devising strategies to target rural consumers in a big way. Many FMCG companies focus on increasing their distribution network to penetrate with a step-by-step plan. This is the reason why the size of the urban FMCG market has fallen from 50% to 29% in the last 5 years. The FMCG market size for the semi-urban and rural segments was 19% and 52% respectively for the year 2006-07. According to FICCI, the FMCG market size for urban, semi-urban and rural areas for the year 2007-08 was expected to be 57%, 21% and 22%, which clearly shows that the rural market is the growth engine of FMCG growth. Even if urban markets are also developing, the progressive increase in the number of consumer households is located much more in rural areas than in urban markets. Planned development of roads, ports, railways and airports will increase FMCG penetration in the long term..