Fast-Moving Consumer Goods (FMCG) Industry Profile

Lacy, Peter; Long, Jessica; Spindler, Wesley

doi:10.1057/978-1-349-95968-6_13

Cited by 4 publications

(4 citation statements)

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“…The FMCG sector is renowned for its ability to adapt quickly to changing consumer preferences and market dynamics, making it a cornerstone of economic activity worldwide. However, it is within emerging markets where the FMCG sector truly shines, driving economic growth, shaping consumer behavior, and transforming societies (Thain, and Bradley, 2014;Lacy, et al, 2020). Emerging markets encompass a wide range of countries with varying levels of economic development, from rapidly industrializing nations to those transitioning from agrarian economies.…”

Section: Fmcg In Emerging Marketsmentioning

confidence: 99%

The Integrated Banking-Supply Chain (Ibsc) Model for FMCG in Emerging Markets

Tolulope Esther Edunjobi

2024

Financ. account. res. j.

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The Integrated Banking-Supply Chain (IBSC) model represents a comprehensive framework designed to enhance the efficiency and resilience of Fast-Moving Consumer Goods (FMCG) supply chains in emerging markets. Emerging markets present unique challenges, including infrastructural limitations, economic volatility, and limited access to financing. The IBSC model addresses these challenges by integrating banking services with supply chain management practices, fostering collaboration among stakeholders and leveraging financial instruments to optimize operations. This paper explores the key components and benefits of the IBSC model within the context of FMCG industries operating in emerging markets. It highlights the significance of collaboration between banks, FMCG companies, suppliers, distributors, and other stakeholders to promote transparency, efficiency, and accountability throughout the supply chain. Moreover, it emphasizes the importance of tailored financial services, such as trade finance, working capital loans, inventory financing, and supply chain financing, in meeting the unique needs of FMCG businesses in emerging markets. Trade finance plays a pivotal role in facilitating international trade transactions by providing financing for importing raw materials and exporting finished goods. Working capital loans assist FMCG companies in managing their day-to-day operational expenses, while inventory financing enables them to leverage existing inventory as collateral to secure financing and optimize cash flow. Supply chain financing mechanisms, such as factoring and invoice discounting, provide liquidity to suppliers and distributors along the supply chain, thereby enhancing overall efficiency and resilience. Overall, the IBSC model offers FMCG companies in emerging markets a strategic approach to overcome challenges related to supply chain management and financing. By integrating banking services with supply chain operations, the model enables FMCG businesses to optimize working capital, reduce financing costs, and improve cash flow management, ultimately enhancing their competitiveness and sustainability in rapidly evolving markets. Keywords: Integrated Banking-Supply Chain Model, FMCG, Emerging Markets, Supply Chain Management, Financial Services, Collaboration.

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Section: Fmcg In Emerging Marketsmentioning

confidence: 99%

The Integrated Banking-Supply Chain (Ibsc) Model for FMCG in Emerging Markets

Tolulope Esther Edunjobi

2024

Financ. account. res. j.

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“…1 Adapted from Manninen et al [37] and EEA [48]. 2 Elements to which specific realisation methods relate: P: reusable product; I: reuse-enabling infrastructure 3 Adopted from literature sources. 4 Evaluation of the linear model.…”

Section: Data Analysis: Evaluation Of Environmental Value Proposition Of the Reuse Modelsmentioning

confidence: 99%

“…Fast-Moving Consumer Goods (FMCGs) are mass-produced products that conveniently and recurrently meet consumers demand [1]. The production, distribution, and delivery of FMCGs to a global market requires a continuous supply of materials and energy [2]. FMCGs have short lifespans as they are typically designed for single-use and disposal [1,3].…”

Section: Introductionmentioning

confidence: 99%

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Characterisation and Environmental Value Proposition of Reuse Models for Fast-Moving Consumer Goods: Reusable Packaging and Products

et al. 2021

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Fast-Moving Consumer Goods (FMCGs) are products that are purchased and consumed frequently to satisfy continuous consumer demand. In a linear economy, FMCGs are typically offered as single-use and disposable products. Limitations in product design, insufficient collection systems, and inefficient recovery processes prevent high recycling rates. As a result, FMCGs often end up in landfill or the environment, contributing to waste accumulation, and pollution. Whilst recycling is the most common waste prevention strategy practiced by the industry, the process is limited to addressing only the final stage of the product life cycle, omitting the overproduction and consumption of materials typical of FMCGs. Instead, reuse is a strategy that is capable of extending the value of resources by slowing material flows. Novel reuse models that require the consumer to interact with durable primary packaging and products are emerging in the FMCG industry. However, the constituent elements and operation principles of such reuse models are not fully understood. The aim of this research is to develop a comprehensive characterisation of reuse models and to evaluate their potential to deliver environmental value. Method: Ninety-two reuse offerings were selected and analysed to identify their reuse system elements. The analysis led to the identification of a framework including five reuse models, which were also evaluated to establish their capability to deliver environmental value when compared to conventional single-use and disposable FMCGs. Results: Currently in the FMCG sector, reusable products are mostly durable packaging, such as bottles and containers for beverages, foods, personal and home care goods, and are infrequently durable products, such as personal and baby care goods, including razors and nappies. Three reuse models involve exclusive reuse, a behaviour by which a reusable product is used and kept by a single user throughout the product lifetime. In exclusive reuse models, users are provided with either a reusable product (model 1), a reusable product with preparation for reuse infrastructure (model 2), or access to preparation for reuse infrastructure (model 3). Two reuse models involve sequential reuse, a behaviour by which a reusable product is used by multiple users throughout the product lifetime and returned after each use to a provider. In sequential reuse models, users are provided with either a reusable product with preparation for reuse infrastructure and provider-operated recovery services (model 4), or a reusable product and provider-operated services for recovery and preparation for reuse (model 5). Whilst the five reuse models can operate standalone, some offerings were found to embed a multi-model approach. Both exclusive and sequential reuse models are capable of delivering environmental value by reducing the use of natural resources and retaining their value in the economy. In particular, sequential reuse models were found to have a greater capability to increase the share of recyclable resources by offering access to infrastructure for the closure of material loops. Conclusions: Consumers can currently access five reuse models and choose between exclusive and sequential reuse behaviours. When adopted in conjunction with recycling, reuse models can enable a more efficient consumption of FMCGs. Providing the infrastructure necessary to enable reuse and recycling is key to the successful and sustainable deployment of the reuse models.

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Business Model Transformation through Digitalization as an Approach to Facilitate SDG Achievement: A Case of an MNC in Bangladesh in the COVID-19 Context

Nabi¹,

Masroor²

2022

Business in the 21st Century

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Fast-Moving Consumer Goods (FMCG) Industry Profile

Cited by 4 publications

References 0 publications

The Integrated Banking-Supply Chain (Ibsc) Model for FMCG in Emerging Markets

The Integrated Banking-Supply Chain (Ibsc) Model for FMCG in Emerging Markets

Characterisation and Environmental Value Proposition of Reuse Models for Fast-Moving Consumer Goods: Reusable Packaging and Products

Business Model Transformation through Digitalization as an Approach to Facilitate SDG Achievement: A Case of an MNC in Bangladesh in the COVID-19 Context

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