What is the basic consumption unit for most consumer goods?
Answers
Answered by
1
Consumer goods are goods which are intended for everyday private consumption. They cover a large product portfolio including food and non-food categories in order to meet consumer demand. They are further classified in fast moving consumer goods (FMCG) and slow moving consumer goods (SMCG). The definitions are based on how fast products are sold to the customer, a determining factor in the rotation of goods.
FMCG are goods with a useful life shorter than a year and include product categories such as food and beverages, personal care, household and cleaning products, apparel and footwear, tobacco and pet food/pet care which are products bought relatively frequently with recurring expenditure.
SMCG are goods with a useful life longer than a year comprising items such as household appliances, furniture and home improvement products. These items have a lower sales frequency and are not rotating as rapidly as FMCG.
The competitive landscape of the consumer packaged goods (CPG) industry is shaped by global leading CPG companies such as US-based Procter & Gamble (P&G), Unilever, L’Oréal and Nestlé. Many companies invest large amounts of money for the development of new products in accordance with recent market trends and the latest research findings. As many manufacturers operate globally, product packaging and labeling regulations have to be fulfilled in order to meet the country-specific requirements. In addition, product formulas may have to be adapted to suit different consumer tastes.
FMCG are goods with a useful life shorter than a year and include product categories such as food and beverages, personal care, household and cleaning products, apparel and footwear, tobacco and pet food/pet care which are products bought relatively frequently with recurring expenditure.
SMCG are goods with a useful life longer than a year comprising items such as household appliances, furniture and home improvement products. These items have a lower sales frequency and are not rotating as rapidly as FMCG.
The competitive landscape of the consumer packaged goods (CPG) industry is shaped by global leading CPG companies such as US-based Procter & Gamble (P&G), Unilever, L’Oréal and Nestlé. Many companies invest large amounts of money for the development of new products in accordance with recent market trends and the latest research findings. As many manufacturers operate globally, product packaging and labeling regulations have to be fulfilled in order to meet the country-specific requirements. In addition, product formulas may have to be adapted to suit different consumer tastes.
Similar questions