Indian Fmcg Sector

The fourth largest heavens in the Indian economy is both set for 16% growth during 2008-09, from a base of Rs. 85470 crores, as predicted by FICCI. Going forward, as anticipated by CRISIL, FMCG sector go out touch around Rs. 140000 crores by 2015 (33.4B$). This post will through some pointers for growth in FMCG Sector and update with the contemporary category trends. Growth Drivers: FMCG Sector 1. Disposable Income: thither is ontogenesis in disposable income, observed in both agrarian and urban consumers, which is giving opportunity to many rural consumers to slickness from traditional un unionised unbranded products to branded FMCG products and urban federation to splurge on value added and lifestyle products. The increasing salaries, on with rising trend of perks in the corporate sector at regular intervals, have incr calm downd messs consumption power. As per some research, there is a high correlational statistics between Disposable per capita and HPC per capita. 2. Organized Retail: The emergence of organized sell have lead to more variety with ease in browsing, opportunity to compare with different products in a category, one stop destination (entertainment, food and shopping) etc, which is playing an pregnant role in bringing boom in the Indian FMCG market place.

Currently the modern trade is capturing 5% of the total retail space, which will increase to 10% and 25% in 2010 and 2025 respectively. Also, as the credit card and organized retail trend picks up, people wont think much while purchase and buy more. 3. Distribution Depth - Rural Penetration: There are 5500 towns and 6.38 Lacs villages with 2.5Mln and 5Mln outlets respectively. Due to saturation and cut throat competitor in urban India, many FMCG companies are devising strategies for targeting rural consumers in a big way. Many FMCG companies are management on increasing their distribution network to penetrate with a step by step plan. This is the reason that FMCG urban market size has dropped from 50% to 29% in last 5 years.... If you want to get a full essay, order it on our website: Orderessay

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