The fast-moving consumer goods (FMCG) sector represents one of the largest industries worldwide. Also labeled the consumer packaged goods (CPG) sector, it is mainly characterized by companies that supply low-cost products that are in constant high demand.
Products that are classified under the FMCG banner include food, beverages, personal hygiene and household cleaning utensils. The term “fast moving” stems from the fact that FMCG products usually have a short shelf life and are non-durable.
From a retailing perspective, FMCG is often cited as a low margin – high volume game. Seeing as profit margins are usually rather slim, firms operating in the FMCG sector mostly employs a strategy focused on driving top line sales.
Within categories, FMCG products are often near-identical, and for this reason price competition between retailers can be intense. To boost profitability, companies use marketing and other techniques to establish loyalty to the product, which enables them to charge higher prices. That said, managing input costs also remain vitally important, as small margin gains still have a significant impact on the bottom line. This where we come in At TABS, we provide logistics support to players in this sector in an efficient and cost friendly way to make sure that their bottom line remains on target.