Fast Moving Consumer Goods Sector Research Articles

PREDICTION OF FINANCIAL DISTRESS IN SELECTED FMCG COMPANIES USING THE ALTMAN Z-SCORE MODEL

Financial statement analysis has played a crucial role in evaluating a company's potential for financial difficulties, such as its ability to repay debts. Initially, credit suppliers utilized financial statement analysis to assess the creditworthiness of borrowers. However, in today's landscape, financial statement analysis has become widespread, involving a diverse range of ratios and catering to various users which include the suppliers, commercial banks, agencies involved in credit rating, existing and potential investors, higher management and others. Financial distress denotes to a company's incapacity to meet its financial commitments as they come due. Academic research in accounting and finance has predominantly emphasized defaulters of bond holders or bankruptcy as indicators of distress. The primary question revolves around whether the likelihood of distress significantly fluctuates based on the magnitude of financial statement ratios. This research study analyses the how sound the financial health of the company is and what are the probabilities of bankruptcy of selected companies belonging to the FMCG sector in India with the help of revised Altman Z-score model. This study focuses on the analysis of twenty (20) selected Fast Moving Consumer Goods (FMCG) companies listed on the Stock Index i.e Bombay Stock Exchange (BSE). These companies represent various segments such as Personal care, Food and Beverages, Alcohol and Cigarettes, Dairy, Food, Soaps and Detergents, Tobacco products, home care and other consumer durables. Based on the study's findings, it can be inferred that a majority of the companies in the FMCG sector in India exhibit good financial health and fall within the Safe Zone according to the Altman Z score model. The companies initially classified in the grey zone have shown improvements in their financial well-being in subsequent years. The Pearson correlation analysis reveals a noteworthy positive relationship between the variables and the Altman Z scores. Consequently, the study validates the effectiveness of the Altman Z score model as a reliable tool for predicting and forecasting the level of and impact of financial distress in companies. Emphasizing both the analytical and practical significance, this study aims to showcase the inherent value of using financial ratios. By employing financial ratios, this research underscores their potential to provide meaningful insights and practical applications in assessing corporate performance. As a result, investors can utilize this study to identify financially stable companies and make informed investment decisions based on the findings.

Exploring Digital Marketing Optimization: Enhancing Company Performance with a Focus on the FMCG Industry in Lebanon

In the ever-evolving landscape of digital marketing, companies within the Fast-Moving Consumer Goods (FMCG) industry in Lebanon are recognizing the imperative need to optimize their digital marketing strategies to enhance overall performance. This study delves into the intricacies of digital marketing optimization, with an emphasis on perceived ease of use, perceived usefulness, user experience, and consumer engagement as pivotal themes impacting company performance. Employing a qualitative research methodology, in-depth insights were garnered from 15 industry professionals through semi-structured interviews. These individuals were carefully selected for their expertise and firsthand experience with digital marketing within the Lebanese FMCG sector. The analysis of the qualitative data led to the extraction of nuanced understandings regarding how perceived ease of use and perceived usefulness directly influence the user experience and, subsequently, consumer engagement in digital platforms. The study highlights the critical role of user-friendly interfaces and valuable content in fostering positive consumer experiences, which in turn, amplify engagement rates. Moreover, the research identifies the chain effect that starts with the initial consumer interaction with digital marketing campaigns and cascades into long-term company performance metrics. The findings reveal that the FMCG companies in Lebanon are at a pivotal junction, where embracing digital marketing optimization can lead to significant competitive advantages. Companies that adeptly leverage the ease of use and usefulness of their digital content can create enhanced user experiences, thereby fostering deeper levels of consumer engagement.

Identifying the dimensions of philanthropic CSR in the FMCG sector: agenda for the sustainability of business

Purpose This study aims to use a multi-stage scale development process to identify the dimensions of philanthropic corporate social responsibility (PCSR) in India’s fast-moving consumer goods (FMCG) sector. Design/methodology/approach The authors conducted a study to develop a comprehensive, reliable and valid scale for measuring PCSR based on the customer perception of FMCG product manufacturers. This research adopted a comprehensive and detailed scale development process using multi-stage sampling for scale development. This final study was conducted on a sample of 402 respondents from the city of Jaipur, India. Findings The results have underlined the multi-dimensional aspect of PCSR; these dimensions are: altruism towards society, volunteering for local community development, generosity towards ecology, benevolent spirit and problem-solving charity. Practical implications This study gives valuable insights into philanthropic scale development in the FMCG sector that can immensely help domestic and international marketers to formulate CSR as a strategy. This research provides insights into a wide range of scales which can be base for future research studies that aim to explore different organizational settings. Originality/value PCSR and CSR are important for developing strategies for sustainable businesses across the globe. Dimensions of PCSR will be useful for practitioners and researchers in developing second-order constructs for future studies.

CRISIS MARKETING IN THE FMCG SECTOR: A REVIEW OF STRATEGIES NIGERIAN BRANDS EMPLOYED DURING THE COVID-19 PANDEMIC

The COVID-19 pandemic has ushered in a wave of unprecedented challenges across global markets, with Nigeria's Fast-Moving Consumer Goods (FMCG) sector being no exception. This study delves deep into the crisis marketing strategies employed by Nigerian FMCG brands during this tumultuous period. The research utilized the potential of a qualitative approach to offer a broad view of the sector's response to the pandemic-induced challenges. The findings underscored a significant shift towards digital platforms, with brands leveraging online engagements, e-commerce initiatives, and social media campaigns to maintain consumer connections. Concurrently, offline strategies were reimagined, emphasizing safety, community engagement, and product diversification. The analysis revealed that these adaptive strategies mitigated the immediate economic ramifications and positioned brands for long-term success in a post-pandemic world. In conclusion, the FMCG sector in Nigeria demonstrated remarkable resilience and adaptability, with brands developing robust crisis marketing strategies rooted in consumer-centricity, agility, and data-driven insights. The study recommends continued investment in digital transformation, prioritization of consumer needs, and adaptability as key pillars for future success. This research provides a blueprint for FMCG brands globally, offering insights into navigating market challenges with agility and innovation.
 Keywords: FMCG, Nigeria, Crisis Marketing, Digital Transformation, Consumer-Centricity, Covid-19 Pandemic.

Performance of cold chain logistics service providers in the fast-moving consumer goods industry in Nigeria: a systematic review

The operations of the fast-moving consumer goods (FMCGs) businesses in Nigeria rely on the efficiency and efficacy of cold chain service providers for quality storage and optimal safety of perishable goods. However, the sector faces obstacles such as inadequate technology, unskilled labour, insufficient funds, weak regulation, and a poor regulatory policy framework, all of which impede the business’s growth and performance. The goal of this study is to systematically review the issues that restrict cold chain logistics service providers’ performance in Nigeria’s highly perishable food business. This study employs PRISMA procedure and the systematic literature review technique to extract articles and emphasize the importance of employing cold chain services to increase efficiency, quality service delivery, and consumer fulfilment. The study’s findings demonstrate that achieving quality service delivery, service effectiveness, cost savings, and customer satisfaction is hampered by a lack of proper synergy between cold chain logistics service providers and cold chain major stakeholders such as regulators, as well as an absence of skilled personnel, policy, funding, infrastructure, and technologies for monitoring and tracking product movement and condition. By remedying these difficulties, Nigeria’s FMCGS sectors could potentially improve their performance and contribute to the development of a robust, sustainable cold chain logistics industry. As a result, the quality and safety of FMCG goods would be enhanced, driving the expansion of the FMCG sector in Nigeria. Future research findings should focus on the cold chain logistics performance leverages on economic growth and development in Africa.

A Study on Technical Analaysis of Indian FMCG Sector

The Indian fast-moving consumer goods (FMCG) sector plays a crucial role in the country's economy, experiencing strong growth and catering to the needs of its vast population. This research aims to conduct a close examination of the Indian FMCG sector using technical analysis techniques in order to identify patterns, trends, and potential investment opportunities. Using a quantitative approach, this study employs various technical indicators and chart patterns to assess the price and volume movements of FMCG sector stocks listed on Indian stock exchanges. Historical price data and trading volumes are collected and analyzed to identify recurring patterns and trends that can assist investors in making well-informed decisions. The study covers a time period between 26/04/2021 to 02/06/2021, allowing for a comprehensive evaluation of the FMCG sector's performance and behaviour. Few technical analysis tools such as moving averages convergence and divergence (MACD), relative strength index (RSI), on balance volume (OBV), and trendlines are utilized. By applying these techniques, the study aims to identify potential signals for buying and selling, levels of support and resistance, and price targets within the Indian FMCG sector. Additionally, the research explores the impact of market trends, economic factors, and industry-specific events on the sector's performance. The findings of this study contribute to the existing knowledge in technical analysis and provide valuable insights for investors and traders interested in the Indian FMCG sector. The results enhance understanding of the sector's price movements, volatility, and potential investment opportunities, enabling market participants to develop effective trading strategies and risk management approaches. It is important to note that this study solely focuses on the technical analysis of the Indian FMCG sector and does not consider fundamental analysis or qualitative factors that may influence investment decisions. Therefore, readers are encouraged to combine the findings of this study with additional research and analysis before making investment choices.

Actions to promote circular economy: case study of multinational manufacturers in the automotive and fast-moving consumer goods in Mexico

The overuse of natural resources as manufacturing inputs demands enterprises to support sustainable development through a transition from a linear model of production to a circular and resource-efficient model. This work applies a multiple-case research design based on secondary information to explore the advancement of circular economy (CE) among six subsidiaries of multinationals that operate in Mexico. The qualitative analysis shows that reduction of natural resources and closing the loop of water, followed by closing the package cycle and using renewables, are the main approaches applied by companies in the automotive and fast-moving consumer goods sectors. Slowing the product life cycle and closing the supply chain are the least used approaches. Results show a limited advancement in the implementation of circular economy models and provide guidelines to other companies as well as recommendations for the establishment of a legal framework that complements the bottom-up efforts of enterprises located in a developing country.

Customers’ Motives to Engage in Social Media-based Product Idea Contests – Empirical Evidence from Germany

An empirical motive study based on the design science approach is presented. The aim of the study is to develop specific problem-solving knowledge in the form of artefacts that can be directly applied in marketing practice. The problem-solving knowledge relates to consumers’ motives for participating in product idea contests (PICs) in the fast-moving consumer goods sector. The research phases underlying the motive study are guided by a five-phase design science research process. As a result of this research process, two artefacts are developed: a multi-item motive scale and a factor analytic motive model. The motive model includes six participation motives – three intrinsic (enjoyment with creative tasks, altruism and search for new/better product solutions) and three extrinsic motives (material–financial reward, identification with the user community and positive feedback from participants/company). Finally, the motive model enables the derivation of recommendations for action for the PIC management.

Supply Chain Conceptual Model in Logistic Operation Strategies for Best Practice Performance

Business actors, ranging from national to global levels, seek to capitalize on competitive advantages, and modern supply chains often adopt a globally distributed manufacturing system by outsourcing logistics processes to service providers. In the FMCG (Fast- Moving Consumer Goods) industry, companies must effectively control the supply chain through the establishment of a robust logistics and SCM (Supply Chain Management) management system. This study aims to analyze and describe an efficient logistics management model in the FMCG industry to enhance company performance. The research employs a qualitative descriptive method, utilizing a narrative literature study and conducting case studies on FMCG companies in Indonesia. The study’s findings demonstrate that building and implementing an effective logistics model, particularly through the integration of information technology, service quality, and communication, along with optimizing delivery methods, can significantly improve company performance in the FMCG industry. Moreover, the study highlights the impact of commitment and trust on loyalty, attitudes, and behavior concerning logistics management within the FMCG sector.
 Keywords: business, FMCG, logistics, operations management, supply chain management

Sectorial Allocation of Banks’ Assets and Profitability of Commercial Banking Sector in Nigeria

This study examines sectorial allocation of banks’ assets and profitability of commercial banking sector in Nigeria. The study made use of return on assets (ROA) as proxy for dependent variable measuring profitability of commercial banks in Nigeria while banks assets allocations to Petroleum Sector, Breweries Sector, Conglomerates Sector, Agricultural Sector, Construction Sector and Fast Moving Consumer Goods Sector, was used in the study as independent variables. All data were obtained from Central Bank of Nigeria statistical bulletin and which span across 2008 to 2022. Data stationarity was ensured using the Augmented Dickey Fuller statistics, while the error correction model was applied to as the statistical tool for acceptance of hypothesis. The study also upholds the bank-based systems and that of the commercial bank theory. Sectorial allocation to the Petroleum Sector (PETR), Breweries Sector (BREW), Conglomerates Sector (CONG), Agricultural Sector (AGRIC), Construction Sector (CONS), Fast Moving Consumer Goods Sector (FMCG) is significant and positive and contributed positively to return on assets (ROA), government should ensure the proper financing and monitoring of these sectors. No causality between FCMG and PETR. PETR, BREW, CONG, AGRIC, CONS, FCMG granger cause ROA. There is a bi-directional relationship between PETR and ROA; BREW and ROA; CONG and ROA; AGRIC and ROA; CONS and ROA; and FMCG and ROA. The current risky business environment is affecting banks’ ability to lend to the Petroleum Sector (PETR), Breweries Sector (BREW), Conglomerates Sector (CONG), Agricultural Sector (AGRIC), Construction Sector (CONS), Fast Moving Consumer Goods Sector (FMCG). Commercial bank assets allocated to Fast Moving Consumer Goods (FMCG) and allocation of banks’ assets to conglomerate sector (CONG) exhibited a negative coefficients, thus suggesting reject the alternate hypothesis, and accept the null hypothesis which states that t here is no signi

Dynamic analysis of consumer loyalty fast-moving consumer goods market in the Republic of Kazakhstan

As a result of the formation of new geopolitical, economic, and social conditions, the consumer goods market is undergoing high volatility, which entails significant changes. At the same time, the transformation concerns not only the behavior of consumers but also the marketing policies of companies selling goods from the fast-moving consumer goods sector. The scientific article presented the current indicators of the fast-moving consumer goods (FMCG) market in the Republic of Kazakhstan. The results of changes in the economic profile of consumers are given based on the interpretation of the survey data. The article aims to study the impact of consumer behavior transformation on Kazakhstan's consumer goods (FMCG) market. The following research methods were used in the study: statistical analysis, survey, and in-depth interview. As a result of the study, the economic characteristics of the market were reflected based on the results of a statistical cross-section of 2022 the three quarters. The forecast of further transformation of the market and the explanation of individual trends was formed based on the data from the conducted expert interview. Accordingly, in a three-stage study, up-to-date data on the volume and structure of the FMCG market were obtained, a modern economic portrait of the consumer was derived, and the possibilities for improving consumer loyalty in the Republic of Kazakhstan were assessed. Local FMCG and retail companies can use final data in the processes of building sales strategies and studying the behavior of a modern consumer, as well as in the formation of sales policy and tactical decisions. These studies may be relevant for companies that still need their analytical tools.

THE IMPACT OF E-COMMERCE ON FMCG SECTOR IN BHOPAL

In India, Fast Moving Consumer Goods sector is the fourth largest sector and is driving everyone’s life every day.From the past twenty years, FMCG sector has seen a drastic change specifically in terms of increasing online sales across various categories. E-commerce is growing tremendously giving ample opportunities to both big and small businesses in the FMCG industry. Fast Moving Consumer Goods (FMCG) are goods which have very high demand and very low shelf life because they are perishable in nature. These products are non-durable products that are purchased frequently and are consumed very rapidly, they have very less profit-margin and high-volume sales. FMCG includes processed foods, beverages, baked goods, Fresh foods, cosmetics, and toiletries, office supplies, etc. This study is carried out to analyze about the impact of E-Commerce on FMCG sector and consumer buying behavior on different E-Commerce platforms. Study will also focus on most demanded FMCG products, different ECommerce stores available to consumers of Bhopal and to evaluate the impact E-Commerce is creating to small retailers.

Exploring new-product selling challenges in the FMCG sector: a qualitative method approach

PurposeThe study aims to identify salespeople’s challenges while selling newly launched products in the fast-moving consumer goods (FMCG) sector by examining the holistic environment in which they perform their selling tasks. Furthermore, it develops a hierarchical model mapping the interrelationships between identified challenges to explore their dependence and driving power through qualitative research techniques.Design/methodology/approachThe current study is exploratory and inductive in its research design. It used focus-group discussion (FGD), semistructured interviews and thematic content analysis (TCA) to identify new-product selling challenges in the FMCG sector. The identified factors were then worked into a hierarchical model using total interpretive structural modeling (TISM) to analyze their relationship. The factors were further classified into clusters based on their driving and dependence power, with the help of the Matrice d’Impacts Croisés Multiplication Appliquée à un Classement (MICMAC) techniqueFindingsThe TISM and MICMAC results identified salespeople’s most critical new-product selling challenges in the FMCG sector: product innovation, product differentiation, customer perception and market turbulence. An enhanced organizational focus on these factors will ensure that salespeople get adequate input to tackle the challenges they face while selling newly launched FMCG products.Research limitations/implicationsThe study was confined to identifying challenges in the FMCG sector alone but offered scope for application in other sectors.Practical implicationsThis study will help organizations to identify and close gaps in the new-product selling process, thereby improving the performance of salespeople and contributing to a new product’s success. The study findings have a bearing on various stages of product development, management and life cycle. They also highlight the need for greater synergy between an organization’s sales force and other departments.Originality/valueTo the best of the authors’ knowledge, this research is unique in identifying new-product selling challenges in the FMCG sector. It also delineates the complex Web of interrelationships between them and classifies the identified factors based on their driving and dependence on power. The research results can help in organizational decision-making and sales practices, empowering salespeople in their new-product selling tasks.

A Study on Effect of Packaging on Consumer Buying Choice of FMCG Consumer Goods

This study examines The Effect of Packaging on Consumer Buying Choice of FMCG Consumer Goods. In the highly competitive Fast-Moving Consumer Goods (FMCG) industry, packaging plays a crucial role in influencing consumer buying decisions. This study aims to examine the effect of packaging on consumer choices in the FMCG sector and uncover the key factors that drive consumer preferences. The research employs a mixed-methods approach, combining both qualitative and quantitative data collection methods. In the qualitative phase, in-depth interviews and focus group discussions will be conducted to explore consumer perceptions and attitudes towards packaging in FMCG products. The quantitative phase involves a large-scale survey administered to a diverse sample of FMCG consumers. The survey will capture data on demographic characteristics, brand awareness, packaging design elements, and purchase intentions. The findings from this study will provide valuable insights into the significance of packaging in the FMCG industry and its impact on consumer behaviour. It is expected that packaging design elements such as colour, shape, typography, and material will emerge as influential factors affecting consumer preferences. Furthermore, the study will shed light on the role of brand awareness and the interaction between brand image and packaging in consumer decision-making. The implications of this study are twofold. First, it will contribute to the theoretical understanding of the role of packaging in the FMCG industry, providing a foundation for future studies in consumer behaviour and marketing. Second, the findings will have practical implications for FMCG companies, enabling them to optimize their packaging strategies to better align with consumer preferences and gain a competitive edge in the market

Modeling enablers of supply chain decarbonisation to achieve zero carbon emissions: an environment, social and governance (ESG) perspective.

Climate change is the greatest threat to our planet and way of life. There is an immediate need of decarbonisation and a push for a smooth transition to a world with no net carbon emissions. To achieve sustainability, fast-moving consumer goods (FMCG) firms are increasing their efforts to reduce their carbon footprint across their supply chains. The firms and government undertake several initiatives towards achieving the zero carbon mission. Hence, there is a need to identify the prominent enablers that may enhance the decarbonisation in the FMCG sector and contribute towards a net-zero carbon economy. The current study has identified and assessed the enablers (6 main criteria, 19 sub-criteria), including green innovation, green supply chain, sustainable decision-making, organisation decisions and government control from environment, social and governance (ESG) perspective. Eco-friendly manufacturing techniques and eco-friendly goods may give businesses a competitive edge and sustainability. The six primary factors that can help to reduce decarbonisation are evaluated using the stepwise weight assessment ratio analysis (SWARA) technique. The criteria and sub-criteria are assessed by SWARA method. A total of 32 experts from the FMCG industry are undertaken to validate and assess the enablers. This study identified and evaluated the ESG-based decarbonisation enablers in FMCG. The study shows that green innovations are ranked first, followed by organisational decisions and government control. This is likely the first study to examine how the FMCG industry's enablers for decreasing carbon footprints connect. The study is helpful to the supply chain managers and the other decision makers to implement well-designed processes for creating new products and a supply chain from the point of purchase to the place of supply, all backed by advanced technology and the appropriate regulatory adjustments.

A Study on Effectiveness of Ecolabels in the Fast-Moving Consumer Goods Sector

Ecolabels are not enough to solve sustainable consumption and procurement; if the awareness of ecolabels among the population is increased, a significant amount of purchase behavior can be changed towards eco-labeled products. Food consumption or fast-moving consumer goods is one such sector that can be looked upon to bring out changes in the food consumption habits of people. Programs to impart ecolabel knowledge can be implemented to increase the perception of individual towards saving the environment and thereby increasing the perceived environmental attitude. For the analysis, the sample size of 206 individuals was tested for the various hypotheses. 45% of the respondents have significant awareness of ecolabels and the steps can be taken to design the ecolabels for food products consumed daily. The results suggest that attention to ecolabels can be a significant factor in increasing ecolabels’ awareness. With the increase in awareness the buying or purchase intention of eco-labeled products also increases. Understanding the effectiveness of ecolabelling will help in developing the comprehensive ecolabelling scheme for food products and consumer good which may result in emission reduction since ecolabels considers the life cycle assessment and the impact of product on environment.

A Study on Consumption Pattern of Herbal Personal Care Products among Male Consumers with Reference to City of Mumbai

In terms of economic output, the fourth-largest sector in India is fast-moving consumer goods (FMCG). The sector is divided into three primary segments: food and beverage, which makes up 19% of the sector, healthcare, which makes up 31%, and household and personal care, which makes up the remaining 50%. From US$ 31.6 billion in 2011 to US$ 52.75 billion in 2017–18, the FMCG sector has increased. The sector is anticipated to expand at a further Compound Annual Growth Rate (CAGR) of 27.86%. In 2018, the market for personal care and cosmetics generated US$14,443 million in revenue. The market is anticipated to expand by around 7.1% yearly. When it comes to skin care, personal care, and makeup, the Indian consumer is getting increasingly oriented towards all things natural, organic, and herbal, and 2016 has been a definite advantage for this market. Herbal products are those that are made with natural ingredients and are based on the Hindu practise of using herbal remedies rather than products that have undergone chemical treatment. Today, personal care and cosmetics are no more perceived for female consumers only, but male consumers are also equally taking keen interest in finding a suitable personal care and cosmetic products which suit to their skin, colour, and body. But market of male consumers for personal care products is untapped market. The objective of this research paper to explore the consumption pattern of male consumers for herbal personal care products

An Analysis on the Impact of GST on the Fast Moving Consumer Goods Sector in India

An Analysis on the Impact of GST on the Fast Moving Consumer Goods Sector in India

Creating a Sustainable Future: The Circular Economy in India's FMCG Sector

Circular economy is an emerging approach to economic growth that aims to keep resources in use for as long as possible, by designing out waste and pollution, and regenerating natural systems. Fast Moving Consumer Goods (FMCG) industry that produces and sells consumer goods that are frequently purchased and consumed, known for its high volume of production and consumption, leading to significant environmental impacts. In this case study, we will examine the circular economy initiatives taken by a leading FMCG player Unilever and explore opportunities, success factors and enablers for adoption of circular economy in Indian FMCG sector. Unilever is a British-Dutch multinational consumer goods company that produces and sells a wide range of products, including food, beverages, cleaning agents, and personal care products. The company has set ambitious goals to reduce its environmental impact and increase its positive social impact. Unilever's circular economy strategy is centered around three main pillars: designing for circularity, reducing waste, and increasing reuse and recycling.

Managing the Logistics Distribution Performance Using Digitalization in the FMCG Sector

The logistics performance of fast-moving consumer goods (FMCG) depends profoundly on transportation and warehouse performance, which can be worked on through digitalization. This paper studies the distribution of FMCG and tries to identify inefficiencies in transportation and warehousing operations. The factors leading to inefficiencies in transportation and warehouse performance are identified through a literature review. The goal is to assess the impact of digitalization on composed activities scattering execution. The information was gathered through organized polls from 256 managers and executives in the FMCG area. The information is examined through structural equation modelling with AMOS. The calculated model is formed, and speculations are tried in light of the model. The measuring model’s parameters were assessed for reliability, convergent and discriminant validity. The results of the study indicate the optimization of transport performance and warehousing performance has a positive impact on the logistics distribution performance of FMCG. The partly mediating effect of digitalization is also supported and found to be substantial in enhancing logistics distribution performance.