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What is FMCG? Overview and Trends of the Fast Moving Consumer Goods Industry

Asia accounts for more than 1/3 of total global FMCG sales, led by China, India, Indonesia, Vietnam, Philippines; leading the world in FMCG e-commerce, with the strong development of platforms such as: Tmall, JD, Shopee, Lazada, TikTok Shop. In which, Vietnam is considered a strong growth market in the Southeast Asian region.

This article by Bizzi will provide a comprehensive view of FMCG, from definition, characteristics to trends and opportunities.

What is FMCG? Detailed definition and outstanding features of the industry

FMCG stands for Fast Moving Consumer Goods (Fast Moving Consumer Goods) or also known as: CPG (Consumer Packaged Goods) – Consumer packaged goods.

Features of FMCG products:

What are the FMCG products?

Below is a classification of typical items in the FMCG (Fast-Moving Consumer Goods) industry – helping you easily visualize the scale and diversity of this industry:

what-is-bizzi-fmcg 2
Fast Moving Consumer Goods (Fast Moving Consumer Goods) include a wide variety of items.

Customers and Distribution Systems in the FMCG Industry

Below is a detailed analysis of Customers and distribution systems in the FMCG industry, especially suitable for the Vietnamese market and the Asian region:

It is not the end consumer, but the distribution intermediaries such as Distributors (NPP), agents, and retail outlets (stores, supermarkets, convenience stores, sales booths).

Trends driving the FMCG market in Vietnam

FMCG brands not only “sell” online, but also use e-commerce as a channel to build brand experiences (shop interface, livestream, exclusive online packaging, etc.). Below are the prominent trends that are driving the FMCG market in Vietnam – compiled from reports by Nielsen, Kantar, Deloitte and market practices:

What are the challenges facing FMCG companies?

The FMCG industry has low barriers to entry, so it is easy for many competitors in the same industry (domestic + international). Brands must compete on price, promotion, market coverage, distribution channels, and even brand. In many segments, consumers easily switch brands and are not loyal if there is no clear difference.

Below are the major challenges that FMCG companies are and will continue to face, especially in the Vietnamese market and the Asian region:

However, based on analysis data in recent years, it can be seen that consumers are increasingly More trust in domestic brands, especially when the brand:

Many Vietnamese brands are examples of successful development in the FMCG sector, such as: Vinamilk, Masan, TH True Milk, Lix, Skinna, Rohto Vietnam...

What skills are needed to work in FMCG?

Working in the FMCG (Fast Moving Consumer Goods) industry requires dynamism, quick adaptation and strategic thinking. Here are the most important skills you need to develop a career in this field:

Types of jobs and career opportunities in the FMCG industry

In the FMCG (Fast Moving Consumer Goods) industry, there are many diverse career opportunities ranging from marketing, sales, manufacturing, supply chain to data analytics and e-commerce. Here is an overview of the common types of jobs and career development opportunities in this field:

What is the distribution channel development strategy and technology solutions for the FMCG industry?

Distribution channel development strategy and application of technology solutions are factors. survival in the FMCG industry – where competition is fierce, demand is constantly changing and the turnover of goods is extremely fast. Below is a detailed analysis of:

Developing multi-channel distribution (Omnichannel)

FMCG uses multi-channel distribution system to ensure product wide coverage, reach consumers quickly, at the right time, at the right price.

Channel Describe For example
GT (General Trade) Traditional channels: grocery stores, markets, small retailers Grocery stores, cafes, retail pharmacies
MT (Modern Trade) Modern retail system Supermarkets (Co.op Mart, VinMart), convenience stores (Circle K, Bach Hoa Xanh)
E-commerce Online store, e-commerce platform, social commerce Shopee, Lazada, TikTok Shop, Zalo
Horeca Restaurant – hotel – cafe channel Highlands, The Coffee House, Japanese restaurant
Direct distribution channel (D2C) Sell through official website, app Website of Vinamilk, Unilever
Distribution channel development strategy and technology solution application are vital factors in the FMCG industry - where competition is extremely fierce, demand changes constantly and goods turnover is extremely fast.

Connect directly with agents/points of sale:

Applying technology solutions in optimizing operations and management

FMCG is currently undergoing a strong digital transformation to increase operational speed, control costs and enhance the buyer-seller experience. The ERP system integrated with DMS is considered a growth-promoting solution for the FMCG industry with its characteristics of fast consumption, multi-layered distribution network, high order frequency, and dense promotion/reward programs. 

Among the popular technology applications on the market today, Bizzi is an automated electronic invoice processing platform, very suitable for FMCG businesses with a large volume of input invoices each month from hundreds of suppliers, distributors, factories... Bizzi application is a smart solution to help managers control overall, unify data from the point of sale to the purchasing - accounting department.

Suppose an FMCG company has a network of 300+ agents and 50+ raw material suppliers. Before using Bizzi, invoice consolidation and manual reconciliation took 5-7 days/month. After implementing Bizzi, all invoices are automated - reduced to only 1-2 days, and data is also ready to export to accounting files or serve audits immediately.

So, what are the outstanding features of Bizzi in managing FMCG businesses?

What are the benefits of applying technology solutions like Bizzi to business operations in general and in the FMCG sector?

Bizzi – Smart cost management solution for businesses

Conclude

Understanding the nature and characteristics of the FMCG industry is the first step to help businesses build a foundation for long-term development. Although the FMCG market has great potential, it requires businesses to constantly innovate, optimize costs, improve data capacity and respond quickly to the market. 

It can be seen that the trend: “Local brand – global mindset” is the path to sustainable development for many Vietnamese enterprises. Brands that understand consumers well – control distribution channels well – effectively combine online and offline will have the advantage.

In general, taking advantage of the development of AI and applying technology software will contribute to creating a connection between market data - operations - finance, tracking sales performance and profits by region, increasing transparency, eliminating manual operations, and being suitable for the characteristics of the FMCG industry. Technology solutions such as Bizzi are an indispensable part to help FMCG businesses optimize operations, improve efficiency and adapt to market trends.

If your business is looking to learn about software or wants to design based on your needs, contact us for immediate consultation:

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