New FMCG Products: A Ray Of Profitable Future
All the business houses want to produce those goods that earn them higher profits at low cost. This can be done by producing the new FMCG products. FMCG is the fastest growing sector and introducing new products and improving the old products would be profitable for the company and its employees. These products are available at low cost and on a daily basis.
What Are New FMCG Products?
The products that are recently added by the government of India in the fmcg are known as new fmcg products. It is the updated list that is being released by the Indian government. This will ensure the rise of the economy in the country and improvement or updates in the lifestyle of people.
Why Is It Done?
We all are familiar with what fmcg products are. The list has been updated by the government officials because of:
1) Growing Demand
The demand for fmcg products never faints or lowers down. There are very less chances of low demand for fmcg products. The customers are constantly looking for newer products and the government has to keep on updating and innovating in order to meet the demand of people.
2) More Profits
The fmcg products generate more profits than any other products. It is because these are less capital intensive. As they do not require much capital investment, the rate of profits increases. There is a continuous demand for FMCG products and compared to other industries the company never stops working. For instance, during the covid-19 pandemic, all other companies had shut down but the FMCG sector was still in existence.
3) Growing Sector
As per some of the reports, by the year 2030 India’s fmcg sector will become the 4th largest sector. Thus the growth prospects are much higher in this sector. The company has also shown a lot of growth in the past 2 or 3 months and the revenue of the sector is estimated to reach US$ 103.7 billion by the end of 2020.
Recent Updates in New FMCG Products
The following are the latest updates that we have seen in the fmcg sector.
1) Increased Capital Efficiency
Post covid there has been rapid growth in the capital efficiency of the fmcg sector. Some of the companies are not supporting poor performance or low profitable businesses. This has led to the increased capital efficiency of this sector.
2) Growth of 9- 10%
By the year 2020, India’s fmcg sector has seen a rapid development and growth of 9-10%. The biggest reason behind this spontaneous growth is the global crisis covid-19 pandemic.
Most of the people for about more than 6 months used only daily household items and necessities, rather than any other products that were not useful.
Due to increased rural consumption, the locals have been encouraged a lot. They are performing much better than the urban consumers. Thus more rural consumption has made the voice of locals more loud. Many young people who are blessed with any kind of skills are coming forward and doing work. Not only young people, powerful influencers on social media are also promoting local products and encouraging people to buy local ones.
4) Support From Government
The support from the government has increased a lot over the years. The government has allowed 100% FDI in this sector, thus making it possible for the foreign investors to invest in this sector. With the 100% FDI many new innovations will be possible. Technological and financial assistance will also be provided to them. They are introducing new schemes and providing assistance to newcomers to startup their businesses and grow it further. The goods and services tax i.e GST introduced by the government has been reduced on many FMCG products which is beneficial for the companies as well as the consumers.
The fmcg sector is coming up with new products according to the situation and interests of customers. Nowadays consumers want organic products and the companies are introducing them in many varieties like soaps, skin care, and food & beverages. Along with this new FMCG products like healthy drinks, immunity boosters, healthy cookies, and cruelty free skin care products have also been introduced and the demand for it is rising day by day.
6) Customer Preference
The FMCG companies are now giving more preference to the demand of customers and planning the products accordingly. This helps in building a better relationship with the customers and also increasing the sales of the products. So, whatever the consumers wish for is fulfilled by the companies.
A recent trend that has started worldwide is a change in lifestyle to save the environment. The environment has suffered a lot and the whole world is facing issues such as global warming and ever increasing pollution. So, the customers are looking for reusable or recycled products and are reducing the consumption of plastic in their life. The FMCG sector has to ensure that they introduce new products keeping in mind the current situation and the mindset of the people. While packaging and transporting the products, use of single use plastic is now prohibited and the products are now wrapped in recycled plastic bags.
The Bottom Line
As we all can see, the FMCG sector has grown a lot especially in this global pandemic. Despite many luxury items, it is the basic product that one needs for survival. Assistance from the government and support from the general public have made this sector a king.
If it continues to work like this, for sure it will be the most developed sector. And the major fact here is that it provides employment to more than 3 million people. Soon it will provide more opportunities to the youth of the world and improve the developing or underdeveloped countries. This was a small article about new FMCG products from our side.Myanmar Golden Heart hope that you find it informative and helpful for further research and studies on the FMCG sector.