The retail industry, including web-based retail software, has been overgrowing recently. It happens because of the increasing number of community needs and challenges for companies to meet them. This development also occurs because of the growing number of productive people with many needs. Therefore, many most profitable fast moving consumer goods industries implement an integrated retail system to balance the high demand for people’s needs.
The most profitable fast moving consumer goods industry is progressing in Singapore, as seen by the increasing number of existing FMCG companies. There are more and more FMCG companies because they have significant profits and many consumers. Another reason is that many companies in this industry are flexible online and offline sales systems that can adapt to all conditions.
In developing a retail business, you can use the most complete Hash Retail Innovation System from HashMicro to maintain stock availability, increase employee productivity and customer management, and automate your company’s financial transactions. Find out more about retail software pricing scheme calculation here before implementing this to your business.
Definition of FMCG
Fast-Moving Consumer Goods or FMCG is a product that sells quickly in the market. It is a profitable business in Singapore. The price is relatively low. It is also helpful for everyday life. Although the profit is small in selling this item, the quantity sold is enormous, so the total profit is still significant. It means that these products sell quickly, and the products that are sold are products that consumers use every day. These products have a short shelf life due to high consumer demand for perishable goods. So, you need Supply Chain Management Software to keep up with fast-paced markets.
The following are some examples of most profitable fast moving consumer goods products:
- Instant food
- Packaged drinks
- Processed foods (cheese, pasta, etc.)
- Toiletries (soap, shampoo, toothbrush, etc.)
The Characteristics of FMCG
Consumer point of view
Consumers are one of the essential aspects of the company. Without consumers, the company will not make a profit and cannot achieve its goals. From a consumer point of view, here are the characteristics of FMCG:
- Repeat product purchases
Consumers will always buy products quite often and repeatedly. The regular period can be once a week, once a month, or once every three months.
- Lack of loyalty
Consumers feel not tied to a brand or product image that can cause their favorite product to change.
- The price is relatively low
It is because most profitable fast moving consumer goods products tend to be affordable and cheap for consumers. In addition, there are many product variants with various packaging to reach a broader society.
Company point of view
Companies see this industry differently. The company sees this as a good business because it can sell many products and have many consumers.
- Abundant stock availability. This stock comes from manufacturers who produce as many products as possible. Companies need to create multiple production sites or factories in various locations to do this.
- Large distribution network. It means the distribution network can reach various regions to remote areas.
- High Inventory turnover. The point is high and efficient stock turnover. Producers must be able to provide a large stock in a fast time in the field.
FMCG in Singapore
The industry has been down recently due to the pandemic. The pandemic caused a downturn in many industrial sectors. However, unlike other industries, FMCG business can still survive during a pandemic because it is a product that people need every day, which means that it is really a profitable business in Singapore.
In addition, this industry can also make flexible sales online and offline. In this way, this industry can still survive, even though the number of sales from the pandemic continues to decrease.
FMCG Company Example
Unilever is a multinational company established in 1929 in the United Kingdom. This company has many products from food, ice cream, vitamins, tea, coffee, toothpaste, etc.
Danone is also a multinational company that was founded in 1919 in Spain. The company’s products are very diverse, from coffee, baby food, packaged drinks, and dietary supplements.
Indofood is a packaged food and beverage manufacturer based in Jakarta, Indonesia. The company exports foodstuffs to various countries in Australia, Asia, and Europe. Indofood products are instant noodles, biscuits, snacks, ice cream, syrup, milk, and many more.
Industry Challenges of FMCG
All businesses must have a challenge, including FMCG business. Products from this industry can reach all societal levels. It could even be that all society levels use the same products and brands. But on the other hand, the availability of a large market is a challenge for this industry. Because the type of product is perishable, producers must be able to produce efficiently with proper management.
Intense product competition is also a big challenge for this industry. Consumers will remember which brand was the pioneer and buy that product repeatedly. If this happens, it will be difficult for the new product to replace the pioneer product. Therefore, companies need to continue innovating to make unique products so that consumers become interested.
FMCG business is a significant and promising industry since it is a profitable business in Singapore, but there are also many challenges. Various manufacturers and brands are well known in this field. The choice of best fmcg products to sell is also increasing to meet the multiple needs of consumers. This is an ample market opportunity for business people because consumers always have their own needs.
To maximize profits in this industry, you can use HashMicro’s CRM Software-Sales. With this software, you can make your sales more innovative and more effective and increase the sales team’s productivity. You can also determine which marketing efforts are most effective by analyzing which sales channels contribute the most. Contact us now to implement this system in your business.