Role of Indian Consumer Class in FMCG

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A Short Note on the Consumer Class in FMCG Sector in India-

Consumers play a crucial role in the Indian FMCG sector as the price band of each FMCG product is fixed depending largely on the consumer class which the particular company is targeting. A number of variants is offered by each brand in the FMCG sector. For example, the personal care, home care, bakery products, dairy products, processed foods are more consumed by the urban classes whereas the personal care items and fabric care are consumed more by the rural population.

Some of the FMCG companies like Nestle India, Cadbury, Procter & Gamble (P&G) and SmithKline Beecham offer high-priced branded products as these companies target the elite and upper middle class consumers. These high-priced branded products do not have high sales in the rural regions as much as it does in the urban section of India.

Processed food manufacturers gain more profit in the urban areas as the urban population has a higher preference for ready-to-eat meals. The consumption of personal care items is high in the rural regions.

High literacy rates and an increase in the per capita income of the inhabitants led to a rise in the consumption of the FMCG products in the country.

Some Facts About the FMCG Market in India-

The FMCG sector has attracted a large number of consumers in both the urban and rural sectors in India the past few decades through better penetration and low-priced products. Various manufacturers of FMCG products are concentrating on increasing the sales volume due to the rising demand of the consumers. Creativity and innovation are the major attributes required for success in the sector. Large-scale FMCG companies have won the hearts of consumers by delivering high-end and innovative products at affordable range.

Last Updated on 3/16/2011