Blogs

23/02/2023
How to Get into the FMCG and Retail Sales Industry?

FMCG, often known as Consumer Packaged Products (CPG), is intensely competitive and moves quickly within the retail industry. It is one of the industries that exemplify the meaning of growth where products that customers frequently buy essentially flow from the store to the customer extremely quickly.

Understanding FMCG

FMCG stands for Fast-Moving Consumer Goods and products. They are relatively cheap. They include non-durable goods such as packed food, beverages, toiletries, consumable goods, and some electronic gadgets such as mobiles, chargers, batteries, toys, etc.  

Mostly, FMCG products are perishable, will have a short shelf period, and hence will be purchased daily. Below are some of the characteristics of the FMCG and retail industry. 

What are FMCG products?

FMCG products are predestined to be in high demand. One literally cannot imagine a day without using FMCG products; everyone uses them on a daily basis in one way or another. As a consequence, they move fast from the retail stores’ inventory into the customers' hands.


FMCG products include perishable items like milk, butter, bread, jams, fruits, packaged goods, etc.  FMCG goods also include consumer goods such as lotions, detergents, and laundry items.

Characteristics of fast-moving consumer goods

Frequent useFMCG products list includes daily used items purchased daily like bread, milk, fruits or vegetables, etc.

High Demand:  Demand for FMCG brands is relatively high. The seller does not have to wait for long in getting a consumer for the products he sells.

Low priced:  FMCG and Retail Sales Industry are relatively low-priced with fewer profit margins.

High turnover rate: Fewer profit margins are compensated by its high turnover rate. Invested money on products will reach you in a quick time to reinvest. So, there is no requirement of pumping more capital into the market.

Product consistency:  Most of the products available in FMCG have product consistency. For example, the brand of bread available in the supermarket is also available in small retail or Kirana shops. So, the buyers are aware of the product and its quality and you as a retailer need not invest your time in familiarizing the product.

Highly competitive:  FMCG and retail industry have to face fierce competition from small outlets to mega supermarkets. Many supermarkets employ the marketing strategy of selling more by reducing profit margins. So, to excel in the FMCG sectorhow fast you are selling is the key.  

Examples of Top FMCG companies in India

Examples of Popular FMCG companies in India include 

  • Coca-cola
  • Nestle India
  • ITC
  • Hindustan Unilever

Most popular FMCG sector stocks in India

Franchising with top FMCG companies in India will yield you the best returns. The rising middle class, changing lifestyles, and increasing disposable income all contribute to the popularity of FMCG sector stocks giving the investor the best return for the FMCG share price. The best FMCG stocks in terms of return include Bajaj Consumer Care ltd, Britannia Industries Ltd, and Colgate Palmolive.

The process of starting an FMCG and Retail Business

Starting an FMCG and retail industry can be an exciting and rewarding venture available in India. It stands 4th largest industry in India. We have a strong 130 crore population market with a formidable middle class. 

For this reason, the FMCG industry in India is blessed with plenty of market demand and there is no requirement to propagate induced demand. 

But every businessman should be aware of the pre-requisites before starting an FMCG company. Listed below are some of them.

Decide on your product

FMCG and retail industry has an ocean of products you can deliver. You should be certain about the commodities you are going to sell as they are perishable and have little shelf period. Diversification is the key but should be according to the customer base you have created.

Envisage a business plan

A business plan helps you get a vision of your business. It helps you in targeting your customers, the type of distribution channels you should use, marketing plans and management strategies you should employ, and calculating the investment required on logistics and supply chain.

Find a suitable location

Location is very important for FMCG and the retail industry. The size of the space should be according to the products you sell and the strength of the delivery system you have. You should consider starting small and expanding gradually with the increased FMCG brand value.

Go for licensing

Licensing is mandatory for the FMCG industry for maintaining safety and quality. It may vary according to geographical locations.  

Market research

With the help of professionals, do market research about the locality of your business, the taste and preferences of people there, and their buying habits. This will be helpful for you in tailoring your market strategy.

Create a Brand identity

Establish a strong brand esthetics and reputation that will automatically drive more customers into your store.

Choose the right distribution channels

Create a separate but strong distribution channel for both perishable and non-perishable products. 

Compared to non-perishable goods, Perishable goods should be distributed fast. A combination of these two is the best way for the FMCG sector.

Strong digital presence

FMCG and retail industry requires a strong digital presence through your website, social media, and other digital channels.

Advertising and promotional strategies

Advertising and promotional activities help you reach the right target audience and increased market penetration.

Monitor and analyze the sales and improvements

Track your performance in FMCG sales and how much happiness is your customer. It is very important for tomorrow’s business. Always be ready for changes according to market situations.

Staff skillset.

FMCG companies give more importance to staff quality and their skill sets. It helps them take on new challenges and changes in technology.

Expand your reach, and go online!

The future of FMCG and Retail Sales Industry rests in how much they have online space or its penetration. The concept of online purchases is very common in India and is the future of the Indian FMCG sector. To excel in e-commerce, you should be taking extreme care in the following areas.

Easy-to-use website

You should create a vibrant and easy-to-navigate website. The time it takes for the customer in finding what they require is the key to your success.

Offer a wide variety of products

Try to diversify your products so that customer finds everything in your store. It also gives you the added advantage of getting more visibility on your website.

Use high-quality images

The images used inside the website should be sharp, catchy, and clear and should invoke the customer to place more orders.

Reliable delivery system

You should create a reliable delivery system that is capable of delivering the orders as fast as you can. Some retailers are coming up with challenging concepts like delivering orders within a few minutes. You should be one among them.

Detailed product description and reviews

It is the customer's habit of checking the reviews before buying. So, take time in giving a detailed and catchy product description and its reviews.

Strong customer service

Customer service is the key to FMCG and Retail Sales Industry.  You should be capable of solving numerous customer queries if you are online. You should have a dedicated team who can answer queries and encourage the customer to post a review.

Strong social media presence

As a reliable FMCG company in India, Maximize the use of social media and digital marketing channels to reach your potential customers daily.

Speak in vernacular languages

FMCG brands in India speak in vernacular language. It helps them to expand the market. Using local languages helps your business get noticed globally.

Use the service of influencers and ambassadors:

Influencers and brand ambassadors help your business prosper well.

Franchise with Qwipo

As a retailer, you may require reliable FMCG distributors who can deliver perishable items daily without any delay and daily. The delivered goods should be of fine quality, from the best manufacturers, and following the latest trends in the market. It is a very old concept in FMCG and Retail Sales Industry wherein the trader buys different commodities from the different market and bring them together in his outlet for sale. It eats your time, money, and efficiency.