Advent of FMCG industry.pptx
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Transcript of Advent of FMCG industry.pptx
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ADVENT OF FMCG INDUSTRY
Presented by:
Surya Pratap SinghTanmay AwasthySiddharth SaxenaJyoti ChaudharyTarandeep SinghShivangee
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FAST MOVING CONSUMER GOODS
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WHAT IS FMCG
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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
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“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
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Increased disposable incomeOrganized retail boomIncreased rural penetration
BOOM REVISITED2005 Onwards
Due to:
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PREDICTING THE FUTURE…
Increased Competition
Micro Segmentation
Growth of Under- penetrated categoriesChange in consumer behaviour
Organized retail
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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
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WHAT THEY LOOK FOR
COMMUNICATION SKILLS PASSION WILLINGNESS TO TRAVEL COMPETITIVE ATTITUDE BACKGROUND BODY LANGUAGE SMARTNESS NEGOTIATION SKILLS
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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
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EFFECT ON EDUCATION
INCREASED LEVEL OF OVERALL EDUCATION. CSR PROGRAMMES LIKE P&G’S SHIKSHA AND ITC E-CHOUPAL HAVE SIGNIFICANTLY INCREASED IN NUMBER.
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CHANGES IN TECHNOLOGY AND MANUFACTURING
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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
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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
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FUTURE OF FMCG IN INDIA
• BOOM INCREASE IN COMPETITION INNOVATION IN MARKET.• FURTHER SEGMENTATION• MORE BENEFIT FOR THE CONSUMERS.• MODERN RETAIL FORMAT
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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.
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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.