FMCG, FMCD, Value retailing, and lifestyle retailing. These are the phrases that you might be familiar with if you are trying to be in the retail market. Don’t be confused with the terms. Make yourself familiar with not just the terminology but also the concepts, here is the piece of information for you. Our major focus will be trying to know the vital question, what is the difference between FMCG and FMCD?
Fast Moving Consumer Goods (FMCGs) are the products that are sold really quick and at a relatively low cost. This FMCG industry deals with the consumer goods that have a lesser shelf life and the goods that are perishable in nature. Some of the examples of FMCG products include packaged foods, toiletries, beverages, cosmetics, over the counter drugs and other consumables.
Fast Moving Consumer Durables (FMCD) are the products that are also known as durable goods or hard goods or consumer durables. Consumer durables are the goods that yield utility over time rather than being completely consumed in one use. Some of the examples of consumer durables will include household goods, automobiles, books, jewellery, toys, etc.
It is in fact a marketing strategy or a kind of a concept for the big format stores like shopping malls where branded products and accessories are put on sale for the customers with attractive deals.
Value retailing is planned mainly for tier II and III cities for attracting the people.
Lifestyle retailing is a concept where a shop sells a uniquely picked and curated collection of products that connect to an overarching theme. Sometimes, they evoke a lifestyle that attracts a certain kind of audience.
So now after getting the basic understanding of what all these terms mean, now let us get into the main thing which is our vital question.
What is the difference between FMCG and FMCD?
While both FMCG and FMCD are considered as the fastest growing and also one of the prominent sectors in the Indian marketing industry, there are a few basic differences.
1. FMCG Vs FMCD
With the above definitions, it is pretty clear that FMCG sector deals with the consumer goods that don’t last longer. On the other hand, FMCD sector deals with the consumer goods that are more durable.
2. Nature of the products
FMCG products are consumed almost immediately and they need the consumer to replenish from time to time. While FMCD products don not exhaust with one usage. They can be used considerably for a longer period of time.
3. Demand from consumers
With no connection to the economic status of the individual, FMCG products will be a basic necessity for the consumers. So, FMCG companies will always be on-demand. Whereas durable goods from the FMCD companies are the goods that the consumers purchase from their disposable income. Life expectancy which is commonly known as the durability is usually longer than the FMCG products, so the sale volume is considerably low.
For FMCG industries, it is quite a challenging thing not only because of the quality of the goods that are perishable in nature, but it is also actually difficult to keep up the competition with the changing tastes of the consumers. Packaging, pricing, branding everything matters and are immediate factors of conversion.
FMCD companies won’t be facing any challenges in storing the goods as they are long-lasting products. But one major thing that affects these companies is the economic condition or the purchasing factor of the consumer in the targeted market.
From the company perception, whether it is selling consumer goods or durables, it is important for them to first understand the nature of the product, target customers, and the competition in the market before they step into it. Any company should and must concentrate on giving the consumers the assurance, belief on their products and it is the ultimate thing that brings them success.