Structure and features of the market
There are no irreplaceable products in this market segment. When a product is discontinued, its place is taken by other brands.
These products are bought daily without hesitation. Therefore, the products in this category have a high turnover.
The level of consumer involvement is low. Most people treat these purchases as routine tasks. Few take the time to carefully select a product or compare the characteristics of products from different manufacturers in detail.
The sales margin is low. All products in this niche usually tongliao cell phone number list have low profit. Manufacturers earn only with a large volume of production and, accordingly, a large quantity of goods.
Packaging plays an important role. Due to the large number of products, a lot of packaging material is required. In addition, packaging attracts the attention of the consumer and stimulates sales.
Due to the necessity of using these products in everyday life, the demand for them is very high. Because of this, their sales in the target markets are only a matter of time. However, this applies to well-known and large manufacturers. Unknown brands may need more time to be sold.
There are four levels of structure in the FMCG market:
Manufacturers. This level includes product creation and development of its sales strategy. An FMCG partner can act as a manufacturer.
Distributors. Intermediaries. Their task is not only to work with the warehouse and ship goods. They also create customer bases, advertise, deliver goods to stores and other points. They take a commission of 10% for their services.
Retail stores and other outlets. At this level, the highest markup is applied to the product. The final cost can exceed the initial cost by 100%, depending on the business sector.
Consumer. Individuals who purchase goods from a store for personal use.