Scope
The term FMCGs refers to those retail goods that are generally replaced or fully used up over a short period of days, weeks, or months, and within one year. This contrasts with durable goods or major appliances such as kitchen appliances, which are generally replaced over a period of several years.
FMCG have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Some FMCGs – such as meat, fruits and vegetables, dairy products and baked goods – are highly perishable. Other goods such as alcohol, toiletries, pre-packaged foods, soft drinks and cleaning products have high turnover rates.
The following are the main characteristics of FMCGs:
- From the consumers' perspective:
- Frequent purchase
- Low involvement (little or no effort to choose the item – products with strong brand loyalty are exceptions to this rule)
- Low price
- From the marketers' angle:
- High volumes
- Low contribution margins
- Extensive distribution networks
- High stock turnover
Read more about this topic: Fast-moving Consumer Goods
Famous quotes containing the word scope:
“Each man must have his “I;” it is more necessary to him than bread; and if he does not find scope for it within the existing institutions he will be likely to make trouble.”
—Charles Horton Cooley (1864–1929)
“In the works of man, everything is as poor as its author; vision is confined, means are limited, scope is restricted, movements are labored, and results are humdrum.”
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