Fast-moving consumer goods
Fast-moving consumer goods, also known as consumer packaged goods, are products that are sold quickly and at a relatively low cost. Examples include non-durable household goods such as packaged foods, beverages, toiletries, candies, cosmetics, over-the-counter drugs, dry goods, and other consumables
Fast moving consumer goods have a high inventory turnover and are contrasted with specialty items which have lower sales and higher carrying charges.
Many retailers carry only FMCG's, particularly hypermarkets,big-box stores and warehouse club stores. Small convenience stores also stock fast moving goods; the limited shelf space is filled with higher turnover items.
Consumers in rural areas typically purchase goods from nearby towns and villages. Recently, there has been a shift in consumer purchase behavior towards purchasing locally that has prompted the need for better local promotional efforts to generate brand awareness in small towns. FMCG's play a large part in the economy, as they are inelastic products that touch every part of consumer life. Businesses that supply FMCG's to a rural community can help provide employment opportunities and drive down the cost of such products in those rural areas. For instance, FMCG's represent the fourth-largest sector in the Indian economy and generate employment for more than three million people in downstream activities.