The Four faces of FMCG

What is FMCG

FMCG is the another name for the fast moving consumer goods, which provides the basic products for health, hygiene and grooming for the mankind. FMCG is the fourth largest industry in the Indian economy, contributing USD 47.3 billion of revenues to the economy and is expected to contribute USD 49 billion by the year 2016. FMCG is the last industry to be affected by the economic slowdown because people will still brush their teeth, take a bath, have cereals and toast in their breakfast irrespective of the economic conditions,

FMCG industry has three major segments:

1. Food & Beverages contributing 18% to the industry
2. Health Care contributing 32% to the industry
3. Household & Personal Care contributing 50% to the industry

These three major segments are divided into eight sub-categories, whose contributions to the total industry is described in the chart below:

These aforementioned eight sub-categories which make FMCG such an important industry today comes either of the four faces of FMCG.

So what are these four faces?

1: The Evil face:

This is the face of FMCG behind which companies creates products and persuade customers to desire these products.
This is the face which enables companies to force their customers to shell out some extra bucks out of their pockets.
Customers don't actually need these products but companies present them in front of customers as the much better than the previous products. This proposition allures customers and is happy to spend more.

Glassless Deos, Men's face wash, toothbrush with charcoal bristles, are just a few examples of evil face of FMCG.


2: Noble Face:

Just opposite to this face is the noble face of FMCG which does all the corporate social responsibility activities and wears a makeup of the social cause.
This helps FMCG companies to evolve as socially responsible companies and establish a good image in the eyes of their customers. It is because of this face only that companies are able to win soft corners in the hearts of their customers.

HUL's hath muh bum, project sunlight, Dettol's association with Swachh Bharat Abhiyan, P&G Shiksha and many more projects are examples of the noble face of FMCG.


3: Healthy face:

The face of FMCG which is established by providing a healthy proposition to the customers derived from herbal or ayurvedic or organic base.
It is always said, "Health is the real wealth", that holds true for the companies operating behind the healthy face of FMCG.
Companies under this face play the USP card as health advantage with no harmful effects of using their products, and customers willingly pay whatever amount is asked from companies.

These companies operate under the model of low volumes and high revenues and some of the examples of companies which represent healthy face are Kama Ayurvedics, Forest Essentials, Organic India, Keya Seth, Arish Ayurvedic, Parampara.


4 Religious face:

The Indian FMCG industry was operating cheerfully behind its three faces Evil, Noble and Healthy, but then came the religious face, which became the vexation for the other three faces.
This face of FMCG is still in a nascent phase and since its inception, it has become the centre of attraction for customers, channel partners and companies of other faces.
Indians are listed under most religious people alive on the planet, who don't follow religions but blindly go after the people who claims to be the messengers of religions.

The first company which utilised this opportunity of prodigious followers base was "Patanjali Ayurved", founded under the name of Baba Ramdev AKA The yoga guru.
This company operates by providing products under all the three major segments of FMCG, with lesser maximum retail price than the products of companies of the evil face.

While all the major FMCG companies, including the largest FMCG company of India HUL, operates only in one or maximum two segments of FMCG and that too with the limited products, but Patanjali Ayurved is operating in all the three segments with all possible products in every segment.

P&G: Household & Personal Care
Coca-Cola: Beverages only
Kellogg's: Foods only (Cereals)
Nestle: Foods & Beverages
L'oreal: Personal Care

Patanjali Ayurved: Foods & Beverages, Household & Personal Care and Health Care
It is now being said, if all the products of all the companies are combined together, product catalogue of Patanjali will contrive. Patanjali has products in over 75 categories and over 800 SKUs.
After the success of Patanjali Ayurved, every "baba" and "Sadhvi" in India, who have their own base of followers are now jumping in FMCG industry with the support of religious sentiments of Indians.

A company known as "Shri Shri Ayurveda" which was founded by H.H. Shri Shri Ravishankar, has now launched several products under foods & beverages and personal care categories although it started merely as a health care product manufacturing company in 2003.

In the recent past, a company known as "MSG all trading international" was founded by the "Dera Sacha Sauda" chief Saint Gurmeet Ram Rahim Singh Ji Insan, under which 151 products were launched.

While the religious face will evolve with time, other faces will dwindle and it will be fascinating to see the revamped four faces of FMCG, till then fasten your seat belts and be ready for a roller coaster ride because a lot has to happen in this crazy industry.