ADVENT OF FMCG INDUSTRY
Presented by:
Surya Pratap SinghTanmay AwasthySiddharth SaxenaJyoti ChaudharyTarandeep SinghShivangee
FAST MOVING CONSUMER GOODS
WHAT IS FMCG
AKA Consumer Packaged Goods
4th Largest sector in India
From Household Product to food and beverages
3 Million employment opportunity
Quick turnover
Relatively low cost
“LACKLUTER” Stage
1950’s – 1970’s
“RURAL SENSITIZATION
” Stage1970’s – 1990’s
“LIBERALIZATION BOOM and
STABLIZATION” Stage
1991 – 2000
“DROP” Stage2000 – 2005
EVOLUTION OF FMCG
Increased disposable incomeOrganized retail boomIncreased rural penetration
BOOM REVISITED2005 Onwards
Due to:
PREDICTING THE FUTURE…
Increased Competition
Micro Segmentation
Growth of Under- penetrated categoriesChange in consumer behaviour
Organized retail
JOB OPPORTUNITIES
NEVER A DULL MOMENT AROUND 13 MILLION JOB OPPORTUNITIES EMPLOYEE INVESTMENT IS A BIG PART DIRECT EMPLOYMENT IS APPROXIMATELY 6% OF TURNOVER I.E. RS. 7,000 CRORES
WHAT THEY LOOK FOR
COMMUNICATION SKILLS PASSION WILLINGNESS TO TRAVEL COMPETITIVE ATTITUDE BACKGROUND BODY LANGUAGE SMARTNESS NEGOTIATION SKILLS
CHANGE IN WORKFORCE DEMOGRAPHIC
Indian culture, social & life styles are changing
drasticallyEntry of women in paid
workforce20-30 productive years of life beyond conventional
retirement age
EFFECT ON EDUCATION
INCREASED LEVEL OF OVERALL EDUCATION. CSR PROGRAMMES LIKE P&G’S SHIKSHA AND ITC E-CHOUPAL HAVE SIGNIFICANTLY INCREASED IN NUMBER.
CHANGES IN TECHNOLOGY AND MANUFACTURING
DIGITALIZATION OF THE ECONOMY
$377 million in 2009, went up to $673 million in 2013
Market sentiment very favourable towards e commerce
361 million users on the internet right now
BUT THAT WAS NOT ALL TECH HAD TO OFFER
BPOs in India helped Companies push a lot of business This in turn led to technology shifting from manufacturing to service Contributed a great deal to the economy
FUTURE OF FMCG IN INDIA
• BOOM INCREASE IN COMPETITION INNOVATION IN MARKET.• FURTHER SEGMENTATION• MORE BENEFIT FOR THE CONSUMERS.• MODERN RETAIL FORMAT
FORECAST AND PROSPECTS
7% 2014 10%2015 12%2016
In 2013 est. sales were 37 billion and in 2016 it is expected to be at 49 billion sales.
PROSPECTS
Example Anti Ageing Skincare CategoryIt grew five times between 2007 to 2008
Last year, Rural penetration of shampoos increased to 46%Rural Market performed well in personal care, fabric care and hot beverages while urban did well in homecare, personal care, bakery, & dairy products.