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  • Fmcgat A Glimpse: Consumption Naturein Bangladesh

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    Hafiz.Mehrab Yusuf
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    The document discusses Fast Moving Consumer Goods (FMCGs) in Bangladesh. FMCGs are consumer goods that are sold rapidly and at low costs, such as packaged foods, beverages, and toiletries. They tend to have high turnover rates and short shelf lives. While profit margins on individual FMCG products are low, the industry relies on high sales volumes to generate significant aggregate revenue. The FMCG industry in Bangladesh is growing due to the country's large population and rising GDP and private consumption. Private consumption as a percentage of GDP and household income has also been increasing over time, supporting stable economic growth.

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    Overview of Bangladesh at Present

    Original Title

    FMCG Overview

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    The document discusses Fast Moving Consumer Goods (FMCGs) in Bangladesh. FMCGs are consumer goods that are sold rapidly and at low costs, such as packaged foods, beverages, and toiletries. They tend to have high turnover rates and short shelf lives. While profit margins on individual FMCG products are low, the industry relies on high sales volumes to generate significant aggregate revenue. The FMCG industry in Bangladesh is growing due to the country's large population and rising GDP and private consumption. Private consumption as a percentage of GDP and household income has also been increasing over time, supporting stable economic growth.

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    © All Rights Reserved
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    15 views1 page

    Fmcgat A Glimpse: Consumption Naturein Bangladesh

    Uploaded by

    Hafiz.Mehrab Yusuf
    The document discusses Fast Moving Consumer Goods (FMCGs) in Bangladesh. FMCGs are consumer goods that are sold rapidly and at low costs, such as packaged foods, beverages, and toiletries. They tend to have high turnover rates and short shelf lives. While profit margins on individual FMCG products are low, the industry relies on high sales volumes to generate significant aggregate revenue. The FMCG industry in Bangladesh is growing due to the country's large population and rising GDP and private consumption. Private consumption as a percentage of GDP and household income has also been increasing over time, supporting stable economic growth.

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    © All Rights Reserved
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    of 1

    FMCGat a GlimpseConsumergoods referto the final goods and services that

    are consumed by the households and not used in the production process of other
    goods & services. Consumption of these goods and services is defined as the
    Private Consumption or Household Consumption. On the other hand, Fast Moving
    Consumer Goods (FMCG) are products that are sold rapidly and at
    comparativelylower cost.Examples of such FMCGs are packaged foods, beverages,
    toiletries, over the counter drugs and similar consumables. Usually, FMCGs have a
    short shelf life. Some FMCGs are highly perishable such as meat, fruits, vegetables,
    dairy products and baked goods. Others products like toiletries, packaged foods,
    soft drinks, housework products have high turnover rates. Revenue margin from the
    FMCGs is comparatively small, these products are generally sold in bulk quantities
    to make considerable aggregate earnings. The business of FMCGs is considered as
    the most definitive instance of low margin and high volume business. Based on how
    fast products are sold to the customers, consumer goods are also classified as Slow
    Moving Consumer Goods (SMCG). SMCGs are those which have a useful life
    longer than a year including stuffs such as domestic appliances, furniture and home
    upgrading products. These products have a sluggish sales regularity and are not
    circling as quickly as FMCGs. FMCGs industry is one of the fastest growing
    segments of the market.The population of Bangladesh was 164.67 million in the end
    of 20171. This large number of population of the country makes the FMCGs industry
    very prospective. With the considerable growth of GDP, the private consumption
    growth has also increased over the years. In FY 2016-17, GDP Growth rate was
    7.28% compared to 7.11% inFY 2015-16 whereas Private consumption growth in FY
    2016-17 was 10.3% compared to 9.1% in FY 2015-162.Consumption Naturein
    BangladeshPrivate Consumption which is also known as Household Consumption
    is backing up the stable growth of the economy of Bangladesh. In FY 2016-17,
    Private Consumption was 67.6% of GDP compared to 69.1% in FY 2015-16. The
    private consumption trend is downward since FY 2010-11 where itwas 74.3% of
    GDP. GDP at currentmarketprices wasBDT 19,561 billion in FY 2016-17
    whereasConsumption at current prices was BDT 13,213 billion in the same
    period. http://www.worldometers.info/world-population/bangladesh-population/ https://www.thedailystar.net/country/bangladesh-gdp-
    1 2

    growth-rate-in-2016-2017-fiscal-year-7-percent-government-1491103 Characteristics of FMCGs Consumer's


    AngleFrequent PurchaseLow InvolvementLow PriceProducer's AngleHigh VolumesLow MarginExtensive
    Distribution NetworksHigh Stock Turnover1.00%6.00%11.00%16.00%2011-122012-132013-142014-152015-
    162016-17GDP & Private Consumption GrowthGDPPrivate ConsumptionSource: BB,BBS &
    Analyst: Asaduzzaman Ashikresearch@eblsecurities.com
    EBLSL
    2EBL Securities Limited Research21stJune, 2018According to Bangladesh
    Bureau of Statistics(BBS), consumption expenditure was 96% of average monthly
    household income (national) in 2010 where it was 83% in 2005 and 78% in 2000.
    Consumption expenditure was 93% of average monthly household income(Urban) in
    2010 compared to 79% in 2005 and 74% in 2000. From this historical trend, we can
    see that the consumption expenditure as % of total income has increased
    significantly over the periods both in urban and rural areas.

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