Saturday, May 15, 2010

>FAST MOVING CONSUMER GOODS INDUSTRY

Fast Moving Consumer Goods (FMCG) - alternatively known as consumer packaged goods (CPG) are products that are sold quickly and generally consumed at a regular basis, as opposed to durable goods such as kitchen appliances that are replaced over a period of years. The FMCG industry primarily engages in the production, distribution and marketing operations of CPG. FMCG product categories comprise of food and dairy products, pharmaceuticals, consumer
electronics, packaged food products, household products, drinks and others. Meanwhile, some common FMCG include coffee, tea, detergents, tobacco and cigarettes, soaps and others. The big names in this sector include Sara Lee, Nestle, Reckitt Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi, Mars and others.

FMCG in Vietnam urban area grew 19% in 2008 as a result of the rising number of young and sophisticated consumers. Approximately 50% of consumers in Vietnam are under the age of 30 and this figure is projected to increase to 70mn by 2018. In addition, the number of high income earners (from USD500 per month) has trebled over the past six years while the number of low income earners (under USD250 per month) decreased from 62% in 1999 to 9% in 2008 in major cities such as Hanoi and Ho Chi Minh City.

In China, statistics compiled by the China Chain Store and Franchise Association showed that 100 major FMCG firms reaped sales income of RMB530bn in 2006 after sound growth of 20% over figures obtained in the previous year. Sixteen out of the 100 examined firms are foreign-funded firms that garnered RMB168.8bn in sales volume. Improved efficiency also contributed significantly to average sales growth of 27% yoy. Meanwhile, the remaining 84 domestic firms reaped RMB360.8bn in sales after a 17% growth.

To read the full report: FMCG

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