business model of fmcg companies

What is the Business Model of FMCG Companies?

Tuesday, 26, 2022

The pattern of Business Model of FMCG Companies changes it's way as per the changes of time, market, geographical location, economical and financial condition. Business model is how a company sells its goods to customers and gets profit out of it. A FMCG company has to select such a business model out of which it can sell maximum products and make profit. Brand building of products and innovation of products as well as keeping the standard of the products  in this competitive market are the most important steps of a FMCG company. Selling branded products in the market is easier than the unbranded products.


FMCG industries have a prolong history of occupying the market with reliable growth. But the consumer market is changing its way towards direct market selling to online selling of products, which is creating a pressure on the customers' behavior as more alternatives are exposing in front of them. FMCG companies have retained a static market occupancy since World war II and steel is the major field of business along with higher return to their shareholders in comparison to other industries.


Success of FMCG business model depends on


  1. Create a brand of the products to identify it separate entity and innovate new products as per market demand.


  1. Building up of relation with retailers and grocers to connect with the customers need need and behavior. Deploy distributors for supplying products efficiently.


  1. Capturing of markets by continuous market research and to find out prospective customers.


  1. Minimization of overall cost by changing their operation model. Now their following the way of centralisation to cut their cost down.


  1. To increase online sale they should come forward to digital marketing and advertise their products in social media platforms.


Consumer goods are classified into three categories.


a) Durable consumer goods.


b) Non durable consumer goods.


c) Services.



FMCG companies deal with non durable consumer goods like food, cosmetics, toiletries, cleaning products and medicine. FMCG companies have a large volume of turnover as there is a big open market, which is full of competition with be companies and unbranded medium and small companies also. Besides the production FMCG companies have to package the goods efficiently as those are to be sent to distant markets for distribution. Consumers from all over the world and now preparing to procure goods online. This is because of delivering the orders at the residence at a lower price. Due to the ongoing pandemic, online sale of FMCG products have been accelerated.


A FMCG company has to depend upon some basic characteristics of  producing and marketing of products.


  1. Products are consumable frequently.


  1. Product brands are well known to customers and choose them without any thinking.


  1. The Prices of products are low.


  1. Durable for a shorter period or singly used.


Apart from big and established FMCG companies, startup companies have captured a minority of the FMCG product market about 25%. To start a FMCG company, business model is the main feature to ascertain the success.

Types of FMCG products, their market, distribution, competitive price should be taken into consideration for forming a company. The profit margin of FMCG products are very low, so to earn a standard profit margin one should  invest a large amount to produce many kinds of commodities.  FMCG companies have to undertake all sorts of marketing including advertisement to sell the products to wholesalers, retailers and and directly to customers.


The Importance of Analytics for FMCG Companies


Some startup FMCG companies are Pec Safe, Epigamin, Parallel Dots, WIMWI Foods, Future Consumer etc.

The role of analytics of FMCG companies to assess data to step up a company forward. They analyse the data of stocks of FMCG companies for selling in the stock market to asserting the trend of stock market, distribution and sale of products. Big FMCG companies hire specialised data analytics to increase the business.


FMCG is a big player in the business market, it has huge experience since post World war II. FMCG has a very wide diverse extent of market throughout the globe. Development of products and increasing the range of products in this competitive market is necessary to keep behind the rivals. Continuous process of growth and its expansion of the trade are going on in this sector. FMCG companies are making many strategies for their success. Campaigns  of some logos and slogans are created by companies like Coca-Cola for promotion of their products.


The List of FMCG biggest companies

fmcg company name list, fmcg biggest companies

FMCG biggest companies are dominating the market. Almost 75% of the FMCG products are sold by the big companies.


Here are some big FMCG company name list in the world are


  • Nestle
  • Procter and Gamble
  • Pepsi Co
  • Coca-Cola
  • Johnson and Johnson.


In India some big FMCG company name list


  • Hindustan Unilever limited
  • ITC limited
  • Nestlé India limited
  • Godrej consumer products limited etc.


India has a vast FMCG product market. Consumers from different places, lifestyle, purchasing capacity create the opportunity to all big, medium and small FMCG companies to do their business. Among them Pupos Planet is a emerging FMCG company since last 24 years. The company is a renowned entrepreneur for making perfume products like scent, incense sticks. Riya brand perfume of  the company is well established in almost 20 states in India. Now they are diversifying to various FMCG products. The company believes that a remarkable change in lifestyle has occurred in this post-pandemic situation and it has made a familiar approach to this reshaping lifestyle.


1 Comment

omer on 27 Mar 2023

I would like to see the information on this if possible

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