Q&A

What market risks are present in FMCG industry?

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What market risks are present in FMCG industry?

price fluctuations, changes in tastes and preferences of the consumers and changes in income, output or trade cycles, fluctuations in foreign exchanges, concentration of revenue, imports, etc.

What are the challenges faced by FMCG industry?

Lack of BI support Optimizing inventory and warehouse management. Utilizing the consumer’s purchasing preferences to make selling decisions. Personalizing the consumer experience. Leveraging automation to drive purchasing at different levels of the consumer’s journey – awareness, consideration, decision.

What are FMCG sectors?

The fast-moving consumer goods (FMCG) industry or consumer packaged goods (CPG) industry is mainly responsible for producing, distributing and marketing fast-moving consumer goods. The FMCG industry is the fourth largest sector in the Indian economy.

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How does FMCG sector work?

Fast-moving consumer goods are products that sell quickly at relatively low cost. These goods are also called consumer packaged goods. 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).

What are the current risks for FMCG in 2016?

2016 Risks for FMCG Emergence of fast evolving digital technologies, increased regulatory pressure and global economic uncertainty are key factors in the current risks landscape. KPMG Risk Consulting assists clients to develop robust risk mitigation methods by interpreting the underlying drivers of global risks.

Is big FMCG hurting your business in the long run?

Also, companies will be forced to spend aggressively on advertisement, which will only hurt the business in the long run. Big FMCG companies are often in a position to dictate prices through local sourcing from a fragmented group or key commodity suppliers.

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What are the characteristics of the FMCG sector?

Another important characteristic of the FMCG sector is that it generally does well in an economic downturn, with consumers rather cutting back on luxury products. Well known FMCG multinationals include Coca-Cola, Unilever, Procter & Gamble and Johnson & Johnson. The FMCG sector in Africa has significant scope to expand.

Will the FMCG industry continue to grow even if there is recession?

People will not stop having bath. Therefore, recession or no recession, this industry will grow. Currently it is growing at 12–15\%, which is good. FMCG sector is the 4th largest sector contributing to Indian GDP. Risk in terms of Employment?

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