Advent of FMCG industry.pptx

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.