Fast moving consumer goods are any type of goods that are designed to attract consumers and promote a rapid volume of sales even while providing those goods to consumers at very affordable prices. Goods of this type are often non-durable, meaning that they are quickly consumed and require frequent replenishment by making additional purchases. Due to the nature of this type of consumer packaged goods, sales volume is normally very high and consistent throughout the course of the year.
One of the most common examples of this type of good is the food, fresh and processed, sold in grocery stores and supermarkets. Items such as fresh produce are non-durable, meaning that the fruits and vegetables must be consumed within a limited amount of time after purchase or they will spoil. Once the foods are consumed, they cannot be renewed, prompting consumers to purchase more units of those same items. This same general concept applies to canned and frozen foods that are ultimately used and must be replaced on an ongoing basis.
With most fast moving consumer goods, the products are not only produced at high volumes but also carry a price that is considered within reason by most consumers. In some cases, the producer of the manufactured goods does not generate a great deal of profit on each unit sold, but does realize a considerable return when a good appeals to a wide range of consumers and is sold in large volumes on a regular basis. Manufacturers offer volume purchase pricing to supermarkets and other retail outlets, which buy in bulk then set the unit pricing to also make a small amount of profit on each unit sold. The end result is that both the manufacturer and the retailer generate profits by selling high volumes of goods, as long as the quality and appeal is present, and the retail price paid by consumers is considered equitable enough to maintain consumer interest.
