Making career in FMCG industry is an ideal dream hence, MBA Aspirants are expected to know and understand FMCG sector. This general awareness will help you in WAT/Essay/GD and PI also.
Read: Excellent Career in FMCG Industry
Fast Moving Consumer Goods (FMCG) sector is characterized by strong MNC presence and a well established distribution network. In India the easy availability of raw materials as well as cheap labor makes it an ideal destination for this sector. There is also intense competition between the organized and unorganized segments and the fight to keep operational costs low.
Due to this intense competition coupled with good enough growth in the sector, it requires huge number of human resource year on year.
Fast Moving Consumer Goods (FMCG) goods are all consumable items (other than groceries/pulses) that one needs to buy at regular intervals. These are items which are used daily, and so have a quick rate of consumption, and a high return. FMCG can broadly be categorized into three segments which are:
• Household items as soaps, detergents, household accessories, etc,
• Personal care items as shampoos, toothpaste, shaving products, etc and finally
• Food and Beverages as snacks, processed foods, tea, coffee, edible oils, soft drinks etc.
Global leaders in the FMCG segment are Nestlé, ITC, Hindustan Unilever Limited, Reckitt Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi, Gillette etc.
The burgeoning middle class Indian population, as well as the rural sector, presents a huge potential for this sector. The FMCG sector in India is at present, the fourth largest sector with a total market size in excess of USD 13 billion as of 2012. This sector is expected to grow to a USD 33 billion industry by 2015 and to a whooping USD 100 billion by the year 2025.
Growing awareness, easier access, and changing lifestyles have been the key growth drivers for the sector. Rural demand is set to rise with rising incomes and greater awareness of brands.
There are number of factors that will drive future growth in this sector. Increasing rate of urbanization, expected to see major growth in coming years will give a big push to this sector. Moreover, rise in disposable incomes, will lead to premium brands having faster growth and deeper penetration.
Innovative and stronger channels of distribution to the rural segments are also giving a big push to this sector in terms of deeper penetration. Moreover, the icing on the cake is the increase in rural non-agricultural income and benefits from government welfare programmes resulting in increased purchasing power.
Innovation in FMCG is a wide concept which aside from creating, launching and marketing new products also includes improving shopping processes, providing consumers with a range of tools to purchase products as also ensuring that the entire organization is focused on the singular goal of improving the customer’s overall experience. Therefore, in all functions like marketing, Finance, HR, IT, operations and strategy, there is a demand for talent by FMCG companies.
As Indian consumers become more global in their aspirations and desires, as they travel abroad and are exposed to global products, their appetite to consume products in their home market will only increase. To meet this demand, FMCG companies need to focus on R&D and innovation as a means to grow the business. At the same time, product lifecycles are shrinking, companies across categories are launching new products, and the pressure to market new products, quickly, is strong.
Due to these factors, FMCG companies recruit people at all levels including freshers from B-schools. As innovation becomes critical to the sector’s growth story, there is more demand for freshers as companies want to capitalize on their fresh ideas.