FMCG Distributorship
FMCG Products Distributorship
FMCG Products Distributorship Opportunities: FMCGs have a short shelf life because of high consumer demand (e.g., soft drinks and confections) or because they are perishable (e.g., meat, dairy products, and baked goods). These goods are purchased frequently, are consumed rapidly, are priced low, and are sold in large quantities. They also have a high turnover when they're on the shelf at the store. Fmcg Distributorship
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FMCG Market Overview:
- With a market size of US$ 25 billion (2007–08 retail sales), the Indian FMCG industry accounts for 2.15% of India's GDP.
- The industry is expected to grow from 10 to 12 percent per year.
- The key characteristics of this sector are a well-established distribution network distributed over six million retail outlets (including two million in 5,160 towns and four million in 627,000 villages), low penetration rates, low operating costs, and intense competition between organized and unorganized segments.
- The Indian retail market size is estimated at US$ 350.2 billion and is projected to grow to US$ 590 billion by 2011–12 at 13 percent per annum.
- The current organized retail share is estimated at 4-5% and is expected to rise by 14-18% by 2020.
- Organized retail, through various retail formats such as department stores, hypermarkets, supermarkets, and specialty stores, has created new outlets for FMCG players.
- With organized retailing largely emerging across the country, FMCG company's revenues are expected to rise.
FMCG Business Opportunities:
- There are a lot of companies looking for distributors in India.
- Most of the FMCG companies looking for super stockist in India
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Market Segments of FMCG Products:
- Food products is India's largest category of consumption, accounting for almost 21% of the country's GDP.
- British Industries Ltd, Dabur India Ltd, Glaxo Smith Kline Consumer Healthcare India Ltd and the Gujarat Cooperative Milk Marketing Federation (GCMMF) are some of the leading players in this market.
FMCG Opportunities:
- There is a significant demand for lifestyle and high-end products with rapidly evolving lifestyles and the growing disposable income of urban consumers.
- The rural market will be a key growth driver for FMCG majors planning to expand their domestic business with more than 33 percent of the Indian consumer base present in rural areas.
- Indian customers are highly adaptable to goods that are new and innovative. For example, consumer adoption of men's fairness creams clearly demonstrates an opportunity for companies to offer new products that target specific segments of consumers.
- Indian and multinational FMCG players can leverage India for their international markets as a strategic source for cost-competitive product development and production.
FMCG Distributorship Market in India 2023
Numerous new trends and significant demographic changes will influence the direction of the consumer products business in India in the future. While digital marketing, e-commerce, direct-to-consumer brands, and data analytics are creating new opportunities for consumer goods businesses in India, the emergence of new rivals is reshaping the structure of the sector as a whole.
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Consumer behavior changes and channel adjustments are also forcing Indian consumer packaged goods companies to adjust their business plans in order to maintain market dominance. The FMCG industry in India is one of the few that has been able to survive the last two years unharmed. During COVID, consumer demand for discretionary items such as beauty and personal care products and everyday necessities such as health and hygiene products surged.
In 2023, the FMCG Distributorship sector will also be dealing with ongoing inflation and a short- to medium-term decline in demand. While dealing with the immediate issues, FMCG companies must also be aware of the long-term trends influencing the sector in a post-pandemic environment. On the one hand, consumers have developed new habits and tastes; on the other, the competition in the consumer products business is only intensifying, with new competitors appearing and implementing aggressive measures to weaken the market leaders.
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