#kingfmcg

April 22, 2025 – Soft drinks play a vital role in India’s food and beverage market, offering refreshment, excitement, and indulgence. Their versatility makes them ideal for social gatherings, celebrations, or everyday enjoyment, appealing to a wide range of preferences and age groups. Innova’s 360 research into soft drink trends in India highlights consumer preferences, innovative product launches, and emerging flavors that cater to the country’s diverse palate.

Soft Drinks Market Trends

The soft drinks market in India shows steady growth in value and volume and is forecast to slightly ease in pace through to 2027. Shifting demographics, rising income levels, and the tropical climate drive this growth. Within soft drinks subcategories, bottled water and juice show the highest growth, driven by safety and health priorities. Carbonated beverages and iced tea are other notable subcategories displaying significant growth. Despite this, the cost and cultural preference for traditional drinks limits per capita soft drink consumption in India. Low income, preferring natural or healthy beverage, and seasonal consumption are other limitations to the consumption of soft drinks in India.

Consumer Soft Drinks Preferences

Consumers in India have increasingly consumed juices, juice drinks and smoothies over the past year. The perceived healthiness and regions’ leading harvest of fruits, including mangoes, oranges, bananas, and guavas, make these drinks affordable and readily accessible. Soft drinks trends show that energy drinks have also grown significantly during this period, driven by consumers’ lifestyles and job patterns.

The consumption of soft drinks has increased across subcategories, which include bottled water, iced coffee, iced tea, juice drinks, smoothies, energy drinks, and carbonated beverages. Perceived healthiness is the top driver for the rise in consumption, followed by lifestyle changes, taste preferences, variety, novelty, and environmental responsibility.

Soft drinks trends reveal that bottled water is frequently consumed for hydration at least three times a week. While flavored, low-calorie beverages, such as lemon, coconut, and mint water, are consumed weekly.

Claims and Labels

In India, consumers’ top purchasing claims include ‘product safety’, ‘organic’, ‘no artificial flavors or colors’, and ‘vitamin/mineral fortified’. Regarding water, essential for hydration in India’s subtropical climate, consumers prioritize product safety. Purity-related assurance with clean labels strongly influences the purchasing decision. Clean labels vary across subcategories. For example, influential claims for iced coffee and tea include product safety, organic attributes, and natural or real ingredients, while energy drinks claim include vitamin/mineral fortified, organic, and product safety. Similar claims are observed for juices, sparkling juices, and soda/carbonated soft drinks in India.

New Product Launch Trends

Soft drink launches in India have grown consistently for two years and shown sustained growth over the past three years. The fastest growing subcategories include drink concentrates and mixed, carbonated beverages, iced tea, and iced coffee. This rise in consumption is attributed to the growing variety of flavors in the Indian soft drinks market. This broader appeal aligns with Innova’s top food trend “Wildly Inventive”. This trend highlights the craving for extraordinary experiences, driving companies to create surprising mash-ups and flavors that attract and delight.

Launches with reduced sugar or calorie claims have slowed down over the past year. Meanwhile, products with digestive claims increased in launches during the same period. Consumers seeking products that boost their digestion/gut health aligns with another Innova’s trend “Gut Health: Flourish from Within,” which highlights growing awareness of the microbiome, creating space for ingredients like fiber.

What’s Next in Soft Drinks Trends?

Soft drinks consumption continues to grow, but consumer preferences and expectations change consistently. Soft drinks subcategories offer unique opportunities to cater to varied demands, from better-for-you options to indulgent treats. Targeted marketing and innovative formulations play critical roles in driving growth.

Soft drinks brands can explore opportunities to enhance claims like ‘no artificial’ and ‘made with real ingredients,’ as these influence a significant portion of consumers. While vegetarian claims dominate product introductions, their impact on purchasing decisions appears limited, possibly due to the assumption that soft drinks are inherently vegetarian. Brands can highlight clean labels and safety assurances to build trust.

Understanding the FMCG Industry: A Deep Dive into One of the World's Most Dynamic Sectors

The Fast-Moving Consumer Goods (FMCG) industry is one of the most competitive and fast-paced sectors in the global economy. Encompassing everyday products such as beverages, packaged foods, personal care, household cleaning items, and over-the-counter drugs, FMCG plays a vital role in the lives of billions of consumers around the world. With low profit margins, high-volume sales, and rapid inventory turnover, companies in this industry are constantly innovating and adapting to consumer behavior, market trends, and supply chain challenges.

What Makes FMCG Unique?

High Consumption Frequency FMCG products are typically consumed or used daily or weekly. Because of this high turnover rate, companies focus on mass production, efficient distribution, and strong branding to maintain their competitive edge.

Low Involvement Purchases Most FMCG purchases are routine and low-cost, meaning consumers don’t spend much time deliberating their buying decisions. This is why marketing, brand loyalty, and product placement are crucial in influencing consumer choice.

Brand-Driven Competition Since many FMCG products are similar in functionality, strong branding and emotional connections with consumers often determine market success. Brands like Coca-Cola, Dove, and Colgate dominate because of years of consistent quality, strong advertising, and strategic distribution.

Current Trends Shaping the FMCG Industry

Sustainability and Eco-Friendly Products Consumers are becoming more environmentally conscious, pushing companies to adopt greener packaging, sustainable sourcing, and ethical production practices.

Digitalization and E-commerce Growth With the rise of online shopping platforms and mobile apps, FMCG companies are shifting toward direct-to-consumer models, enhancing digital marketing strategies, and investing in data analytics for personalized marketing.

Health and Wellness Focus Post-pandemic behavior has shifted consumer preference toward healthier food and hygiene products. Natural ingredients, low-sugar items, and immunity-boosting formulas are gaining popularity.

Premiumization in Emerging Markets In countries like Vietnam, Indonesia, and India, rising incomes are leading consumers to seek higher-quality and premium FMCG products, opening opportunities for both local and international brands.

Challenges in the FMCG Industry

Price Sensitivity With inflation and fluctuating commodity prices, maintaining affordability without compromising quality is a constant challenge.

Supply Chain Disruptions The COVID-19 pandemic revealed vulnerabilities in global supply chains. Today, FMCG companies are investing in more resilient and diversified sourcing and distribution networks.

Regulatory Hurdles Different countries have unique regulations regarding labeling, product content, and marketing. Navigating these requirements is especially important for exporters and multinational brands.

Why Vietnam is a Growing Hub for FMCG

FMCG ordering errors can lead to serious problems for both retailers and consumers. Managing the ordering process correctly in this industry is important for operational efficiency, customer satisfaction and business profitability. Understanding the common pitfalls you can encounter when ordering FMCG products will help you avoid costly mistakes and streamline the entire process. Do you know which FMCG ordering errors are the most common and how to avoid them? Read on to find out more!

In this article you will learn:

FMCG ordering mistakes – why you should avoid them

Ordering FMCG products – key rules

Food ordering errors – How to avoid them?

FMCG products – how to order to avoid mistakes?

FMCG order optimization – the key to efficiency

FMCG ordering mistakes – why you should avoid them

FMCG ordering errors are a problem that can occur at any stage of the purchasing process. It is common for businesses to order too many items without considering the actual demand for the products at a given time. This can lead to excess inventory that quickly loses value or becomes outdated. In addition, an incorrect FMCG ordering strategy, including incorrect demand forecasting, lack of flexibility in adjusting orders to changing market conditions, or insufficient control over inventory levels, can exacerbate the problem.

Avoiding these mistakes when ordering FMCG products starts with a thorough analysis of sales history and monitoring current industry trends. It is worth using the services of professional companies such as Hamar Poland Group, which is valued on the market as a professional FMCG distributor, to streamline the ordering process and minimize the risk of errors.

Ordering FMCG products – key rules

When ordering FMCG products, it is worth following a few basic rules that will help you avoid the most common mistakes when ordering food or other FMCG products. Rely on:

precise demand forecasting – analysis of sales history allows for better matching of orders to actual market demand;

adapting orders to seasons and promotions – remember to take into account periods of increased sales, such as holidays or promotions, when customers are more likely to buy FMCG products;

cooperation with experienced FMCG distributors – using the services of companies from the cosmetics distribution or household chemicals distribution sectors will allow you to optimize the order fulfillment process and avoid delivery errors.

Following these rules will help minimize errors when ordering FMCG products by providing better inventory control. This will make the entire ordering process more efficient and less error-prone.

Food ordering errors – How to avoid them?

Food ordering errors can lead to quality and shelf availability issues. Inadequate demand forecasting, improper storage, and over-ordering can lead to products not being available in a timely manner or losing their freshness.

It is therefore worthwhile for the FMCG product ordering process to be carefully monitored and optimized. Distribution of beverages or other FMCG products offered by professional distributors allows for better inventory control and precise matching of orders to actual demand.

FMCG products – how to order to avoid mistakes?

FMCG products – how to order? FMCG products require a special approach to orders, due to their rapid turnover and changing consumer preferences. Ordering FMCG products involves the risk of making mistakes, especially in situations where orders are poorly planned or not optimized. To avoid these problems, it is worth ensuring that the products ordered are tailored to current market trends and demand.

To minimize errors in FMCG orders, it is worth using the experience of proven distributors. Cooperation with professional business partners also allows you to avoid typical errors.

FMCG order optimization – the key to efficiency

FMCG order optimization is a process that aims to minimize errors and maximize operational efficiency. It is important that orders are planned based on actual market demand, taking into account seasonal fluctuations in demand and promotions that can affect sales. Using the right analytical tools and working with experienced FMCG distributors allows you to optimize the entire order process.

A good strategy and proper management of FMCG orders can help avoid problems with excess stock and improve product availability. For companies that most often distribute sweets or household chemicals, it is important that the entire process is well planned and effectively managed, which helps minimize errors in FMCG orders.

Summary – how to avoid mistakes when ordering FMCG products?

Ordering FMCG products is a process that requires precise planning, market analysis and cooperation with experienced distributors. Errors when ordering FMCG products can lead to excess inventory, availability problems and loss of product quality. The key to success is monitoring the market, optimizing order processes and working with reliable partners. The right FMCG ordering strategy can minimize risk and maximize efficiency.

The fast-moving consumer goods (FMCG) market in Vietnam has experienced remarkable growth in recent years, fueled by the country’s strong economic development and an expanding middle class. These products include food and beverages, personal care items, household cleaning products, and other consumer goods that are regularly replenished due to their rapid consumption.

Now, the sector has become a key contributor to the country’s economic growth, and its continued expansion is expected to play a crucial role in shaping the future of Vietnam’s consumer landscape.

Importance of the FMCG market in Vietnam

Both the government and private enterprises generate significant revenue from the FMCG market in Vietnam. The FMCG sector drives economic activity by producing, distributing, selling, and advertising a diverse range of products. Supporting the growth of industries such as packaging and logistics, it creates employment opportunities.

From production and distribution to sales and marketing, it provides a wide range of job opportunities throughout its value chain. The sector’s growth is expected to contribute to the nation’s overall socio-economic development by creating more employment opportunities.

Companies in Vietnam’s FMCG market face intense competition, which drives them to innovate and create new products customized to the changing preferences and needs of local consumers. The introduction of innovative products and services has not only occurred but it has also fostered a culture of entrepreneurship and innovation in the country.

FMCG market in Vietnam: Key drivers of growth

Rising disposable income: Vietnam’s robust economic growth has led to a significant increase in disposable incomes, particularly among the emerging middle class. With higher purchasing power, consumers are more willing to spend on a diverse range of FMCG products, driving demand for both essential and luxury items in the market.

Rapid urbanization: The ongoing urbanization process in Vietnam has resulted in a growing urban population with changing lifestyles and consumption patterns. As more people move to cities and adopt modern ways of living, their demand for FMCG products that meet urban lifestyles has increased, contributing to the growth of the sector.

Evolving consumer preferences: Vietnamese consumers are becoming increasingly discerning and sophisticated in their choices, seeking products that fulfill their specific needs and preferences. This has led to the expansion of niche markets such as health and wellness, premium products, and eco-friendly offerings, driving growth across various FMCG categories.

Government support: The Vietnamese government has implemented various policies and initiatives to support the growth of the FMCG sector such as investment incentives, trade liberalization, and infrastructure development. These efforts have created a favorable business environment, attracting both domestic and international companies to invest in the country’s FMCG market.

Challenges of FMCG market in Vietnam

There are many local and international players competing for a larger market share in the highly competitive FMCG market in Vietnam. To succeed in this competitive environment, companies must differentiate themselves by offering unique products, implementing effective pricing strategies, and executing successful marketing campaigns.

It can be challenging for businesses to maintain profit margins while offering products at competitive prices, given that Vietnamese consumers are typically price-sensitive. To appeal to the local market, companies must balance offering quality products with maintaining affordable pricing.

The distribution network in Vietnam can be intricate, especially in rural regions with underdeveloped infrastructure. To ensure their products are accessible to consumers across the country, companies must establish effective distribution channels.

FMCG companies in Vietnam may face challenges due to the existence of counterfeit and low-quality products in the market. It is vital for businesses to invest in strategies to safeguard their brands and fight counterfeits because these products can corrode consumer trust and harm brand reputation.

FMCG companies, especially those new to the market, may find it challenging to navigate Vietnam’s regulatory environment. Various regulations, including those related to food safety standards, labeling requirements, and import/export restrictions, must be taken into account and followed by companies.

Rapidly evolving preferences are a result of Vietnamese consumers being increasingly exposed to new products and trends. To remain relevant in the market, FMCG companies must constantly innovate and update their product offerings, being agile and responsive to these changing preferences.

The FMCG market in Vietnam can be affected by inflation and increasing expenses for raw materials, labor, and energy. To maintain profitability, companies must discover methods to efficiently optimize their operations and manage expenses.

FMCG companies must adapt to the shift caused by the transformation of the retail landscape in Vietnam by e-commerce and digital technologies. To better understand consumer behavior, one can develop effective online sales channels, utilize digital marketing strategies, and leverage data analytics.

Future outlook and opportunities in the FMCG market in Vietnam

As the Vietnamese economy continues to grow and consumer spending increases, the FMCG market in Vietnam is expected to expand in the coming years. This promising outlook presents numerous opportunities for companies looking to capitalize on the country’s rapidly evolving consumer landscape. Some key trends include:

Health and wellness: With the increasing health consciousness of Vietnamese consumers, there is a rising need for products that encourage a healthy lifestyle in terms of health and wellness. Offering products with natural ingredients, functional benefits, and reduced levels of harmful additives, presents FMCG companies with an opportunity to tap into this trend.

Sustainability and eco-friendliness: The surge in demand for eco-friendly and sustainable products in Vietnam is due to the increasing influence of environmental concerns on consumer preferences. By adopting environmentally responsible production practices, using sustainable packaging materials, and promoting recycling initiatives, companies can take advantage of this trend.

E-commerce expansion: The FMCG market in Vietnam has a significant opportunity to reach a wider audience and streamline its distribution channels due to the rapid growth of e-commerce in Vietnam. Companies can effectively tap into the country’s expanding digital consumer base by partnering with popular e-commerce platforms and implementing targeted online marketing strategies.

Product localization: To be successful in the competitive FMCG market in Vietnam, companies need to have a profound comprehension of the cultural nuances and local consumer preferences to localize their products effectively. Building lasting connections with Vietnamese consumers will require adapting product offerings to meet their unique tastes and needs.

Most people think anyone can be a good sales person but in reality it’s a highly skilled profession.

Here, we look at some of the fundamental skills, qualities and personality traits you need to succeed.

Confidence

To be successful, you need people to believe in you and the product you’re offering. This is impossible if you don’t believe in yourself. You also need to be able to take knock-backs as rejection is part of the parcel of working in sales. At the same time, you shouldn’t go overboard as arrogance can be a big turn off.

"Persistence is a sales person’s number one asset in the face of the many challenges they will be presented with on a day-to-day basis."

Ability and willingness to listen

The most successful salespeople listen to their clients. Rather than launching into a meeting or call with an over-rehearsed spiel, you should be able to listen to what a client actually wants and adapt your sales pitch and/or business proposal accordingly. If you speak in terms that your client can directly relate to by, for example, showing them the money you can specifically save or make them, you are far more likely to strike a chord.

The ability to maintain focus

Having said all this, you need a clear understanding of the ‘sales process’, from how you target and approach appropriate leads to how you approach sales meetings. Ultimately, you should never lose sight that it’s your job to sell and generate revenue. Being goal driven is in the DNA of any successful sales professional.

Strong communication skills

To be a successful sales person, you need to be strong on the phone to get your foot in the door at a client and then strong in meetings to ultimately close a deal. But - most importantly of all – you’ll need excellent communication skills to recognise the individual characteristics and needs of your clients. You’re ultimately looking to gain their trust and become an advisor they turn to. Being able to have a consultative sales approach is a hot skill in the sales jobs market.

Creativity

In sales, things rarely go according to plan. Even if you’ve got yourself in a position where a client trusts you implicitly, there’s always going to be a curve ball waiting for you just around the corner. You need to be ready for this and should always be thinking about your plans B, C and D. If your client suddenly decides your offer isn’t right for them, you need to be able to offer them an alternative.

A hunger to learn

Customers tend to trust and respect knowledgeable salespeople. By the same token, they will also lost interest at the first mistake made by a salesperson who is unprepared. You should therefore be seeking to learn about their product, industry and competitors at every available opportunity. This knowledge is what will ultimately allow you to be the trusted advisor you’re seeking to become.

Persistence

Persistence is a sales person’s number one asset in the face of the challenges they will be presented with on a day-to-day basis. If you’re the sort of person who gives up at the first sign of difficulty, sales is not for you. Whether a deal is rejected, a competitor makes an improvement to their product offering or a business you have been dealing with can’t afford the minimum price set by your company, you need to be able to react positively.

Everything You Need to Know About the FMCG Industry

The FMCG industry, or Fast-Moving Consumer Goods, is one of the global economy’s most exciting and dynamic sectors. If you’ve ever bought a product from a supermarket or convenience store, chances are you’ve interacted with an FMCG brand.FMCG products are an integral part of our daily lives, from household items like toothpaste and cleaning products to food and beverages.

But despite their ubiquity, many people still don’t fully understand what the industry entails. That’s where this guide comes in. In the following paragraphs, we’ll take a deep dive into the world of FMCG, exploring what it is, how it works, and why it’s such a critical part of the global economy.

History of FMCG

The FMCG industry has a long and fascinating history. The origins of FMCG can be traced back to the late 1800s when mass production techniques were first introduced. This led to the creation of products like soap, canned food, and other household items that could be produced quickly and cheaply. As the 20th century progressed, the FMCG industry continued to evolve by introducing new products like refrigerated and frozen foods.

One of the most significant developments in the FMCG industry was the rise of supermarkets and hypermarkets in the mid-1900s. These large-scale retail outlets offered consumers a wide range of products at affordable prices, making FMCG products more accessible than ever before. This, in turn, led to increased competition among FMCG companies and a greater focus on product innovation, branding, and marketing.

Today, the FMCG industry is a global powerhouse, with companies operating in virtually every country in the world.

Major Players in the FMCG Industry

Some of the largest FMCG companies in the world include Nestle, Procter & Gamble, Unilever, PepsiCo, Coca-Cola, and more. These companies are leaders in various product categories, with strong brand recognition and global reach.

Nestle, for example, is a Swiss company that operates in various food and beverage categories, including coffee, chocolate, dairy products, and more. Procter & Gamble, on the other hand, is a US-based company that specializes in personal care items, household products, and more.

FMCG Sales Channels

FMCG products are sold through various channels, depending on the product category and market. Some of the most common sales channels for FMCG products include:

1. Supermarkets and hypermarkets: These large-scale retail outlets offer consumers a wide range of products at affordable prices.

2. Convenience stores: These smaller retail outlets offer consumers quick access to essential products like snacks, beverages, and personal care items.

3. Online retailers: With the rise of e-commerce, many FMCG companies now sell their products through online retailers like Amazon, Alibaba, and more.

4. Direct sales: Some FMCG companies sell their products directly to consumers through door-to-door sales, vending machines, and more.

Overall, FMCG companies need a robust and efficient distribution network to ensure their products reach consumers quickly and efficiently.

Future of the FMCG Industry

The FMCG industry is poised for continued growth in the coming years. Factors like rising population, increasing consumer demand, and technological advancements are expected to drive the industry forward.

However, the industry will face numerous challenges, including changing consumer preferences, increased competition, and more. FMCG companies that can adapt to these challenges and continue to innovate will be well-positioned for success in the future.

Wrapping Up

What are Export Payment terms?

Export Payment Terms are a crucial part of International Trade, based on which exporters and importers decide how the final payment is to be processed. It's up to the two parties to decide or negotiate these terms.

There’s always a risk involved when it comes to the recovery of invoice amounts; and in cases of exports, the risk is even higher due to the physical distance between the two parties and diversities in the legal structures of the two countries.

To minimize the risk and facilitate the process different types of payments are made available to importer and exporters by which they can enter into mutual agreements. Some payment methods are more favorable for the buyer and some are more favorable for supplier. What export terms will they transact with, depends upon the trading history and relationship between the two parties.

How many Types of Payment terms are there in Export?

There are 5 types of payment terms and conditions in export. They are as follows:

1. Open Account

2. Documentary collection

3. Letter of Credit

4. Cash in Advance

5. Consignment

Methods of Payment in International Trade Export Payment terms 1

Open account

Open account payment in International Trade, the buyer receives the goods shipped by the exporter and then makes the payment at the end of an agreed credit period. The credit period can be a fixed duration – 30 days, 60 days, 90 days, etc. There is a gap between the date of receipt of the purchase order and the date of receipt of payment, with activities like production and shipping to be concluded in between.

The time gap involved in this method puts a burden on the working capital situation of the exporter. Nevertheless, the exporter may choose to opt for this payment method if the importer is a strong player with prospects of high volumes in the future. An exporter may also agree to an open account payment mode if there is a trusted relationship between the two parties, or if the amount of money at stake is negligible.

Open Account Export Payment terms - Payment method in international trade

Documentary collection

In this payment method, both parties involve their respective banks to complete the payment. The remitting bank represents the exporter while a collecting bank works on behalf of the buyer. Once the exporter ships the goods, they can submit the shipping documents and a collecting order to the remitting bank, who in turn will send these to the collecting bank along with the collection instructions. This is then passed on to the buyer, on whose payment the collecting bank transfers the amount to the remitting bank. Finally, the exporter receives the amount from the remitting bank. Documentary collection may be ‘at sight’ or after a time-lapse.

There are 2 types of Documentary Collections:-

a) Cash Against Documents / Document against Payment (D/P)

CAD payment term / DP in export, happens when the buyer needs to pay the amount due at sight. This payment is made before the documents are released by the buyer’s bank (collecting bank). It is also known as sight draft or cash against documents.

Cash Against Documents - Export Payment terms - Payment method in international trade

b) Document Against Acceptance

DA payment term in export, is an arrangement where the buyer is required to make the payment only after a specific duration. In this mode, the buyer accepts the time draft and makes a promise to pay. Once this acceptance is received, the bank can release the documents to the buyer.

Document against acceptance - Export Payment terms - Payment method in international trade

Apply for Invoice factoring with drip capital

Letter of Credit

This is a safe and common international trade payment mechanism. The buyer’s bank gives a written commitment to the seller, called a Letter of Credit. It is an assurance to the exporter that the buyer’s payment will be settled as per the agreed timeline and will be subject to the agreed terms and conditions.

Letter of Credit - Export Payment terms - Payment methods in international trade

Cash in Advance

This is by far the safest & the best mode of payment term in international trade for the exporter, in which they ship the goods to the buyer only after the receipt of payment from the buyer. Depending on the terms agreed upon, the payment may be full or partial. However, since in this case the buyer takes on the bulk of the risk associated with the transaction, most importers are unwilling to enter into cash-advance agreements.

Cash in Advance - Export Payment terms - Payment Methods in International Trade

Consignment

Consignment method of payment in International Trade is a variation of open account in which payment is sent to the exporter after the goods have been sold by the foreign distributor to the end customer. The key to succeed in exporting on consignment is to partner with a reputable and trustworthy foreign distributor or a third-party logistics provider. Appropriate insurance should be in place to cover consigned goods in transit or in possession of a foreign distributor as well as to mitigate the risk of non-payment.

CONSIGNMENT - Export Payment terms - Payment Methods in International Trade

Role of RBI in Export Payment Terms

The Reserve Bank of India (RBI) plays an important role in regulating export payment terms in India. The RBI sets guidelines for export financing, including the types of financing that are allowed and the terms and conditions that must be met. It also monitors the foreign exchange market to ensure that exports are being paid for in a timely manner and that there are sufficient foreign exchange reserves to meet the needs of exporters. Additionally, the RBI can impose restrictions on export financing in order to prevent foreign exchange shortages and protect the value of the Indian rupee.

How to reduce Credit Risks?

Timely receipt of the sale proceeds is the biggest concern for an exporter once they ship the goods to the port of destination. Though credit risk is inherent in the export industry, there are a few steps that one can consider to reduce it.

Export credit risk can be minimized by selecting the right mode of payment. As is apparent from the above payment modes, the cash advance is the safest payment mode for the exporter while an open account is the riskiest. Selecting the appropriate mode is often a business decision, but the risk element must be given due consideration.

Another important safeguard against credit risk is the drawing up of a written contract that can be used to resolve any future differences. The Export Credit Guarantee Corporation (ECGC) offers various credit guarantees against payment defaults by the buyer. In the actual event of a payment default, the exporter can claim the bad debt from the ECGC, which has the power to blacklist such defaulting buyers, jeopardizing their future trade prospects of export payment terms in India.

Note:- In India, the RBI does not have a direct role in regulating terms of payment in export. But since the exchange control regulation plays a vital role, any variation in the rule will require the RBI's approval.

The exporter must acknowledge the fact that every country has its own set of rules and business norms. They should try to understand this, and the export contract drafted should be consistent with these norms.

If the buyer refuses to pay, the exporter can try to recover the amount by contacting the embassy of the buyer’s country or any other diplomatic presence the country has in India. The exporter should try to develop a local network in the target country so that in case of defaults a local contact can be used to follow up with the defaulting buyer. The exporter can also take the help of international collection agencies to ensure better recovery efforts. Legal action can be expensive and won’t make sense unless the amount at stake is significantly high. Arbitration agencies, such as the International Chamber of Commerce, are a more economical way of settling payment disputes.

.

One of the qualities that marks a successful grocery score is having a variety of goods in stock. Grocery shopping isn’t just limited to fresh produce and baked goods. Packaged consumer products are essential items on most grocery shopping lists.

From ketchup bottles to spice packets, these types of fast-moving consumer goods (FMCG) are in high demand at grocery stores. This article explores the role of FMCG in grocery retail and how it should be represented in a store’s inventory.

What does FMCG mean?

FMCG stands for Fast-Moving Consumer Goods. It is a simple descriptor for non-durable packaged consumer goods. These products have a short shelf-life, usually under a year, which means consumers have to buy them on a regular basis.

These items are priced at affordable rates so that they can sell quickly. Because of their low prices, FMCG products usually have slim profit margins. That’s why stores that sell FMCG products need high sales volumes to generate revenue.

Since FMCG items are usually cheap, consumable, or disposable, they tend to be low-involvement products from the customer’s perspective. Shoppers usually pick a brand that they favor and then keep purchasing from it for months or years.

FMCG products in grocery stores

The FMCG sector makes up the largest segment in the overall consumer goods industry. Furthermore, the FMCG industry relies heavily on grocery stores and supermarkets to sell its products to their customers.

Maintaining a healthy stock of FMCG products is extremely important for grocery stores. According to the Food Industry Association FMI, the average supermarket carries 31,704 items on its shelves. In most stores, nearly all can be classified as FMCG.

FMCG products that you will see in nearly every grocery store include the following:

- Fresh and frozen food items, including fruits, vegetables, nuts, seafood, and meat

- Processed foods such as cheese and pasta

- Beverages such as bottled water, energy drinks, sodas, and other carbonated drinks

- The items above can be reliably found even in small, locally-owned, independent grocery stores.

As the size of the grocery store and the scope of its operations increases, additional FMCG products are added to its inventory, such as:

- Meal kits, which contain pre-prepared, ready-to-eat dishes

- Baked goods like bread, croissants, cookies, and cupcakes

- Alcoholic beverages, such as wine, beer, and liquor.

- Fresh meat from a deli counter

- The largest grocery stores and supermarkets don’t just limit themselves to food products. They also carry other FMCG items like:

Over-the-counter medicines, like aspirin and mild pain relief pills that do not require prescriptions

- Household supplies, including cleaning products like dishwashing soap, mops, and glass cleaner

- Cosmetic and self-care products, including shampoo, toothpaste, and make-up

- Tobacco products, including cigarettes

- Stationery and school or office supplies like pens, pencils, and notebooks

According to Statista, the FMCG industry’s output in terms of food totals $629.3 billion in the US alone. It’s clear that the average grocery store relies on a steady supply of inventory from FMCG manufacturers to keep shelves stocked.

Top FMCG companies

Grocery stores can get involved in the FMCG market by creating private-label products. However, most owners prefer to source items from established FMCG manufacturers. These include some of the largest and most recognized companies in the world — each with annual revenues in the billions.

Here are five of the most popular FMCG companies among American consumers.

1. Nestlé: Nestlé holds the title of being the largest food company globally. Every major grocery store stocks its products. Aside from the items named after the company, its product portfolio includes DiGiorno Pizza, Häagen-Dazs, Perrier, and Gerber.

2. PepsiCo: From the eponymous Pepsi soda to other wildly popular beverages like Mountain Dew and 7-Up, PepsiCo beverages are everywhere. Its snack portfolio also includes fast-selling items like Doritos, Fritos, Cheetos, and Quaker Oats.

3. Proctor and Gamble Company: Most of the best-selling health, personal care, and beauty brands in the US market are owned by Proctor and Gamble, another extremely successful FMCG company. Its top products include Gilette razors, Oral-B toothpaste, and Pampers diapers.

4. Unilever: In the same vein as Proctor and Gamble, Unilever owns brands related to health and beauty, as well as food and beverages. Some of Unilever’s well-known brands include Ben & Jerry’s ice cream, AXE body spray, and TRESemmé hair care products.

5. Tyson Foods Inc.: One of the US’s largest and most successful meat processing companies, Tyson Foods Inc. is responsible for some well-loved FMCG brands like Jimmy Dean and Hillshire Farms.

Understanding the FMCG industry’s trends

Taking the time to understand the trends shaping the FMCG industry can help grocery store owners optimize their inventory management processes. Adjusting the stock of FMCG products to match evolving customer demand can reduce costs and increase profit margins.

Here are three key trends influencing the market for FMCG products:

Ecommerce’s influence on FMCG

FMCG products are convenient by nature, so they pair seamlessly with the ease of online shopping. Grocery ecommerce stores should prominently feature FMCG products in their selection to encourage shoppers to purchase. By using an ecommerce platform like Wave Grocery, online stores can track real-time inventory, predict demand, and avoid stockouts that can lead to lost sales.

What customers look for in FMCG products

Modern consumers, especially millennials and Gen Z, are more conscientious about the brands they support. FMCG manufacturers that prize sustainability and ethical business practices will likely sell better in your grocery store.

Premiumization of the FMCG industry

While one of the defining characteristics of FMCG products is that they are inexpensive, this is gradually changing. Customers are willing to pay a premium for brands that meet their expectations when it comes to customer experience and sustainability.

This means selecting the right brands and suppliers of high-end FMCG products will lead to higher profit margins with every sale.

By integrating Wave Grocery’s data analytics tools, ecommerce managers can track which premium FMCG items are in demand and adjust stock accordingly.

Final thoughts on FMCG in grocery stores

FMCG products and grocery stores have a strong, long-lasting association. You could even say that FMCG products are the bread and butter of a grocery business, quite literally!

Learning about the FMCG industry and how it works is essential to run a grocery store that meets your customers’ demands.

How Wave Grocery can help your business use FMCG products for success

Wave Grocery offers a comprehensive suite of solutions tailored to help grocery stores and ecommerce managers optimize their operations, especially when it comes to managing FMCG products. From streamlining inventory management to improving picking accuracy and enhancing customer engagement, Wave Grocery ensures your store stays competitive in a rapidly evolving industry.

Here’s how Wave Grocery can help:

Efficient inventory management: Wave Grocery provides real-time stock tracking to prevent overstocking or stockouts, which is crucial for FMCG products with high turnover rates

Optimized order picking: With Wave Grocery’s AI-powered picking system, FMCG products are easily located, improving efficiency by up to 30% and reducing operational costs by €0.50 per order

Personalized customer experience: Wave Grocery’s integration of AI and machine learning helps offer tailored shopping experiences, increasing conversion rates for FMCG products​.

Scalability and flexibility: Whether a small store or a large chain, Wave Grocery’s scalable, cloud-based solution adjusts to your needs, ensuring you can manage FMCG demand fluctuations​.

Data-driven insights: The platform provides detailed analytics, helping you optimize FMCG inventory based on real-time sales data and trends​.

Incorporating Wave Grocery into your operations not only helps with FMCG product management but also ensures that your store is equipped to meet the demands of modern ecommerce shoppers. Whether you're looking to improve your order fulfillment speed, enhance customer satisfaction, or simply stay ahead of inventory challenges, Wave Grocery provides the tools necessary to thrive in the competitive FMCG market.