FMCG Sector Research Articles

Palm Oil Crisis in India's FMCG Sector – A Sustainability Dilemma

The FMCG companies in India and world over relies heavily on Palm oil as one of the core ingredients is going through difficult times. Oil Palm plantations have resulted in phenomenal ecological damage and biodiversity in southeast Asian countries which played a significant role in socio-economic development of the local community earlier. The supply chain disruptions along with pressing environmental or social concerns have negatively affected the balance sheets of Indian FMCG companies who was already under the strain of foreign currency fluctuations due to high import dependency. The government has initiated multiple programs under National Mission on Edible Oil to develop prospective solutions to resolve the crisis through sustainable palm oil agricultural practices as supporting environmental norms yet profitable outlook for self-consumption, leveraging government subsidies, inputs and technology through research and knowledge transfer. The study suggests the best competitive strategic measures which can be adopted.

Identifying extreme events in the stock market: A topological data analysis.

This paper employs Topological Data Analysis (TDA) to detect extreme events (EEs) in the stock market at a continental level. Previous approaches, which analyzed stock indices separately, could not detect EEs for multiple time series in one go. TDA provides a robust framework for such analysis and identifies the EEs during the crashes for different indices. The TDA analysis shows that L1, L2 norms and Wasserstein distance (WD) of the world leading indices rise abruptly during the crashes, surpassing a threshold of μ+4∗σ, where μ and σ are the mean and the standard deviation of norm or WD, respectively. Our study identified the stock index crashes of the 2008 financial crisis and the COVID-19 pandemic across continents as EEs. Given that different sectors in an index behave differently, a sector-wise analysis was conducted during the COVID-19 pandemic for the Indian stock market. The sector-wise results show that after the occurrence of EE, we have observed strong crashes surpassing μ+2∗σ for an extended period for the banking, automobile, IT, realty, energy, and metal sectors. While for the pharmaceutical and FMCG sectors, no significant spikes were noted. Hence, TDA also proves successful in identifying the duration of shocks after the occurrence of EEs. This also indicates that the banking sector continued to face stress and remained volatile even after the crash. This study gives us the applicability of TDA as a powerful analytical tool to study EEs in various fields.

Machine Learning and Digital Twins-enabled Supply Chain Resilience: A Framework for the Indian FMCG Sector

Disruptions highlight machine learning (ML)-powered digital twins as a significant technology to ensure supply chain resilience (SCR). The authors acquired supportive data by conducting semi-structured interviews with 37 fast-moving consumer goods supply chain professionals. Using open, axial and selective coding approaches, the authors mapped and discovered the themes that constitute the essential elements of ML-enabled SCR. The findings of the research underscore four principal capabilities in which ML is poised to enhance the resilience of supply chains, namely (a) visibility, (b) supply chain analytics, (c) managing levels of inventory and (d) consumer behaviour. The research implications employ empirical data to demonstrate how integrating ML with digital twins into the supply chain enhances resilience and presents a comprehensive framework utilizing ML to improve SCR. The research draws upon the dynamic capability view theory.

Unravelling the Effect of Consumer Perception of CSR Practices of Multinational Enterprises on Consumer Purchase Intention: Insights from the Sri Lankan FMCG Sector

Due to increased market potential, Multinational enterprises offering fast-moving consumer goods have grown rapidly in developing countries such as Sri Lanka. Accordingly, the main objective of this study is to investigate how CSR practices in the MNE FMCG sector of Sri Lanka affect consumer purchasing intentions through the mediation of brand image, brand attitude, and perceived quality. A positivist research paradigm has been adopted in this study. Accordingly, self-administered questionnaires were distributed among 200 consumers of MNE FMCGs and the structural equation modeling technique was adopted to generate the study's statistical conclusions. It was found that consumer purchase intention is influenced by the CSR practices of MNE FMCG companies, while brand attitude, brand image and perceived quality partially mediate the aforementioned relationship.This study unravels the actual effect of CSR practices of MNEs on consumer purchase intention especially in the context of South Asia based on the theoretical foundations of Social Exchange theory and the Theory of Planned Behaviour. This would be in contrast to extant literature which seems to have inconsistent findings on this relationship.

Influence of Artificial Intelligence Among Purchase Behaviour of Fast-Moving Consumer Goods

AI has transformed the FMCG industry in recent years by increasing productivity, reimagining long-standing procedures, and creating new avenues for innovation. Artificial intelligence is changing demand forecasting and inventory control in the FMCG sector. Information conveniently gathered from the 300 fast-moving consumer products buyers in the Palakkad District sample. The study's qualitative data were rated using a five-point Rensis Likert scale. With the use of SPSS software, one-way ANOVA and the Wilcoxon Mann-Whitney U test are used for statistical studies. The present investigation aims to understand the benefits perceived by customers of fast-moving consumer goods after the implementation of AI. It’s necessary to understand whether AI is effective in improving customer base for fast-moving consumer goods. The one-way ANOVA test results shows that is significant difference between levels of education and perception of consumers about Personalized Marketing and Consumer Engagement and Product Innovation and Development. The Wilcoxon Mann Whitney U test results shows that Gender has no impact on perception of consumers about benefits of AI in FMCG sector.

Effect of GST on WCM and Profitability of FMCG Sector in India

Working capital primarily consists of a company’s current assets, or the part of its financial resources that are converted from one kind of resource to another as operations are carried out on a daily basis. Working capital management is regarded as a key component of a company’s profitability. This study examines the working capital relationship with firm’s profitability. An optimal working capital is essential for enhancing the value of an organization. The impact of GST is significantly evident on all transactions of FMCG sectors, especially during stock transfer between two branches of a company, during which period the funds get blocked. This study considered 55 FMCG manufacturing firms, listed in BSE for a period of 12 years starting from 2012 to 2023. Multiple regression model was used to test the hypothesis. The study established a low working capital turnover ratio, which indicates quick realization of inventory, and creates the demand for funds to procure more stock for production purpose. The working capital turnover was used to gauge aggressive investing practices. An aggressive investment strategy is indicated by a low working capital turnover ratio, and a conservative strategy is indicated by a high ratio.

Methodology of evaluating finished goods warehouse performance through lean methods

This paper considers the problem of evaluating the effectiveness of the finished goods warehouse of a manufacturing company, in which a modified TPM method - Total Productive Management (TPM2) - was applied to improve productivity. A multi-stage methodology was proposed, including a decision to modify the system, determination of the scope of changes, monitoring the results obtained and a multi-criteria evaluation of the changes made. The decision to make modifications to the existing system was motivated by the lower-than-expected quality of customer service (frequent delivery delays). With regard to the transport department, lean flow pillar activities were focused on analysing losses (muda) in warehouse processes (product loading and package unloading). The purpose of these activities was to minimise interruptions in warehouse processes (product loading and package unloading). "The steps for solving the problem" methodology based on Deming's PDCA cycle was used to solve the problem. The analysis covered, among other things, the information flow processes between production planning and the customer service department, the planning processes of the dispatcher, the efficiency of the loading processes, and the causes of interruptions in warehouse operations. The analyses employed the chronometry of selected works, the 5W + 1H method and the Pareto method. By using the 5S method and some characteristics of the SMED method, the organisation of loading work was decisively changed (shunting yard changes, appropriate buffers for transport equipment). The changes introduced in the system were monitored for several months. Appropriately defined OEE indicators were used to assess the behaviour of the system after the changes. The indicators consider the use of available warehouse time, the efficiency of the loading process and the quality of the tasks performed. The results that can be achieved are presented using the specific example of the finished goods warehouse of a manufacturing company in the FMCG sector.

Effect of GST on the FMCG Sectors Profitability Position

By comparing the financial data from the three different periods, the study aims to identify any changes or trends that may have occurred in the companies' financial performance following the implementation of GST. This analysis can provide insights into how the implementation of GST has affected businesses in different sectors and can help identify areas where further reforms may be necessary. Overall, this study gives a thorough examination of how the GST has affected the financial results of fifteen Indian corporations. The research intends to offer insights into the short- and long-term effects of GST on firms in various industries by evaluating the data gathered for the pre-GST, post-GST, and present periods. Policymakers, academics, and corporate executives may find the study's conclusions interesting since they offer insightful information on the financial implications of the GST's implementation. A paired t-test can be used to determine if total income before and after the introduction of GST differed significantly. For this test, the null hypothesis (Ho) is that there is no discernible change in total income before and after the introduction of the Goods and Services Tax (GST).

Impact of green manufacturing, green purchasing, and eco-design on organizational performance in the FMCG sector of Pakistan

Global warming, air pollution, and natural resource depletion have severely changed how businesses manufacture and provide goods and services. Greening supply chains have attracted the attention of practitioners in several nations in this context. Carbon taxes, for example, have been made a legal necessity in various countries. However, green supply chain management methods and their influence on company performance are still in their early stages of adoption. Firms frequently require the engagement of their supply chain participants to meet rising stakeholder demands for ecologically friendly goods and processes. GSCM is a collection of managerial approaches that include environmental concerns in the supply chain. Green supply chain management may help a company gain a competitive edge while improving its environmental sustainability. The overarching goal of this thesis is to add to the conversation on green supply chain management methods by examining their drivers and performance implications for the FMCG sector of Pakistan. FMCG company's supply chain must be prioritized to be efficient and effective in GSCM because these products are essential for everyone. This study aims to raise awareness about the importance of GSCM practices for the advantage of society and long-term economic and environmental development. The respondents of the 136 helped in the collection of data. They use SPSS and techniques like ANOVA, regression analysis, and correlation. All of the three hypotheses were accepted.

Does the source of oil price shock matter for Indian sectoral stock returns? A time-frequency approach to analyse dynamic connectedness and spillovers

ABSTRACT This paper examines the connectedness and spillovers between decomposed oil shocks and Indian sectoral equities in a time-frequency domain using the most recent Barunik and Krehlik (2018) approach. Our empirical results show that the oil demand shock is the major spillover transmitter across all time horizons followed by the risk shocks; while oil supply shock appears to be a net receiver in all the frequency bands indicating the differential impact of oil shocks. Among the sectors, Basic Materials and Finance receive the highest spillovers from oil shocks in the short-term; while Consumer Discretionary Goods & Services and Industrials join the list in the medium- and long-term. FMCG, Health, Telecom and IT sectors receive the least spillovers in all the bands, making them apt for investments during periods of high volatility. Our empirical results are robust to the application of the alternative TVP-VAR time-frequency parameter framework. The portfolio analysis shows that inclusion of stocks in Oil and sectors like Metal and Telecom significantly reduces the portfolio risk. Dynamic connectedness analysis reveals that the spillovers dramatically increase during times of extreme turmoil, especially during the Global Financial Crisis (2008–2009) and the COVID-19 pandemic. Policy implications of our empirical results are also discussed.

Online shopping behaviour in the Northern and Southern Great Plain Regions

The aim of our study is to reveal the attitude of consumers related to online shopping, the advantages and disadvantages of online purchasing, the regional characteristics of purchasing food online. The literature review was carried out by a comparative analysis of the publications of the factors influencing the purchase decision, the advantages and disadvantages of using online channels as a priority. The secondary research, in addition to the changes in global and then Hungarian online retail, the FMCG sector and customer behavior. Primary research the survey was conducted using a standardized, structured, online questionnaire with the participation of students from the University of Debrecen and the Sándor Wekerle College of Business. The socio-demographic characteristics of the respondents (623) were measured according to the defining characteristics of online shopping. The rate of online shopping by residents living in the Great Plains region is 6 percentage points lower than the national average, poor result in the online purchase of food. The advantages of online shopping, the importance of convenience and saving time is rated equally, while other factors, e.g. the assessment of home delivery was different. Diadvantages are the terms of payment and data security. The future intention to buy online is uncertain and they imagine it within limits, and the potential purchase can only be linked to durable foods. Region-specific and product-specific (food) analysis of online shopping. Attitudes towards online shopping, based on regional characteristics, justify the fact that it would be more appropriate for store chains to use a differentiated marketing strategy, which may primarily affect marketing communication and sales organization.

Effect of Stakeholder Involvement on Project Management Success in Nigeria's Fast-Moving Consumable Goods Industry

In the FMCG sector of Nigeria, the study examined the impact of stakeholder participation on project management success. The study was simplified in order to assess the degree to which stakeholder engagement, support, and involvement effect project goals for a set of fast-moving consumer products in Nigeria. The study's qualitative design involved choosing seven FMCG companies in Nigeria: Dangote Sugar Plc, Nigerian Breweries Plc, Nestle Plc, Cadbury Nig Plc, Nigerian Breweries, Guiness Nig Plc, and Unilever Nig Plc. In order to create a cross-sectional period of 70 observations, secondary data on stakeholder involvement, support, and participation as well as the accomplishment of project objectives were sourced and gathered from yearly financial statement of account and Business Source Premier from 2013–2022. The data were subjected to panel regression analysis, and the results demonstrated that among a group of selected FMCGs in Nigeria, stakeholder involvement and participation have positive and significant effects on project goals, whereas stakeholder support has a negative and insignificant impact. Thus, it is concluded that one of the elements influencing project management performance in Nigeria's FMCG business is stakeholder involvement and participation.

A Comprehensive Literature Review on ‘Unpacking the Influence of Brand Image on Consumer Purchasing Decisions in the FMCG Sector’

A Comprehensive Literature Review on ‘Unpacking the Influence of Brand Image on Consumer Purchasing Decisions in the FMCG Sector’

Analysing the effects of brand authenticity on consumer trust and loyalty in Punjab's FMCG sector

Analysing the effects of brand authenticity on consumer trust and loyalty in Punjab's FMCG sector

Examining the impact of green branding on consumer behavior: A study on awareness, purchasing patterns, and gender-specific awareness in the FMCG sector in Bengaluru

Examining the impact of green branding on consumer behavior: A study on awareness, purchasing patterns, and gender-specific awareness in the FMCG sector in Bengaluru

Analysis of Dividend Payout Trends of Selected Companies in FMCG Sector: Evidence from India

Analysis of Dividend Payout Trends of Selected Companies in FMCG Sector: Evidence from India

Does the consumer awareness protect the exploitation? A Quantitative study in FMCG sector

Consumer awareness is one where the buyer could take the right decision in purchasing all types of product. Marketers in view of earning profit, neglect the interest of the consumers and this leads to exploitation of the buyers. To investigate the current scenario, this study focused on the consumer awareness in the urban and rural area towards the Fast Moving Consumer Goods (FMCG) along with the exploitation if any that existed in the market. For this purpose, 557 consumers who were using FMCG products residing in the western region of Tamilnadu were selected through cluster sampling followed by simple random sampling. To meet out the objectives, various statistical tools through SPSS 21 were applied and the result revealed that all the constructs like communication, price, labeling, promotion and unfair trade practices, if any remarkably influencing the consumer awareness. Also, labeling has a noteworthy mediating role between consumer awareness and satisfaction. But there existed a direct negative effect of consumer awareness on the satisfaction. It is suggested that marketers need to focus to fulfill all the rights of the consumers as detailed in the consumerism.

Sector-Wise Herd Behaviour in the Indian Stock Market during COVID-19

The article examines the herd behaviour at sector level in the National Stock Exchange of India. The novel objective of the paper is to analyse the presence of herd behaviour during the whole, pre- and post-coronavirus disease 2019 (COVID-19) pandemic outbreak period. The popular model proposed by Chang et al. (2000) has been deployed to examine herd formation in each sector. Five major sectors namely auto, bank, fast moving consumer goods, information technology and pharma have been considered along with NIFTY50 consisting daily closing prices of 106 companies comprising 58 from five sectoral indices and 48 from NIFTY50 for the period from 2011 to 2021 considering 1 January 2011–29 January 2020 as before COVID-19 outbreak period and 30 January 2020–31 December 2021 as after COVID-19 outbreak period. Results revealed significant evidence of anti-herd behaviour before COVID19 outbreak. At the same time, significant evidence of the existence of herd behaviour in FMCG, auto and pharma sectors have been detected after the outbreak of COVID-19 pandemic which assumes that investors tend to imitate the investment decisions of other market participants during such adverse macro events around the globe. The study tried to enhance the knowledge of investors to develop their trading strategies in the volatile market conditions by investing vigilantly and keeping such phenomenon in concern.

Unveiling Dynamics of Employee Engagement in the Evolving Workplace through HR Analytics: A Study of the Indian FMCG Sector

Unveiling Dynamics of Employee Engagement in the Evolving Workplace through HR Analytics: A Study of the Indian FMCG Sector

Relationship between Sustainability Reporting and Financial Performance in the Indian FMCG sector

Relationship between Sustainability Reporting and Financial Performance in the Indian FMCG sector