Consumer Goods

In economics, any commodity which is produced and subsequently consumed by the consumer, to satisfy its current wants or needs, is a consumer good or final good. Consumer goods are goods that are ultimately consumed rather than used in the production of another good. For example, a microwave oven or a bicycle which is sold to a consumer is a final good or consumer good, whereas the components which are sold to be used in those goods are called intermediate goods. For example, textiles or transistors which can be used to make some further goods. When used in measures of national income and output, the term “final goods” only includes new goods. For instance, the GDP excludes items counted in an earlier year to prevent double counting of production based on resales of the same item second and third hand. In this context the economic definition of goods includes what are commonly known as services. Manufactured goods are goods that have been processed in any way. As such, they are the opposite of raw materials, but include intermediate goods as well as final goods. Consumer goods are goods which are intended for everyday private consumption. They cover a large product portfolio including food and non-food categories in order to meet consumer demand. They are further classified in fast moving consumer goods (FMCG) and slow moving consumer goods (SMCG). The definitions are based on how fast products are sold to the customer, a determining factor in the rotation of goods. SMCG are goods with a useful life longer than a year comprising items such as household appliances, furniture and home improvement products. These items have a lower sales frequency and are not rotating as rapidly as FMCG. The competitive landscape of the consumer packaged goods (CPG) industry is shaped by global leading CPG companies such as US-based Procter & Gamble (P&G), Unilever, L’Oréal and Nestlé. Many companies invest large amounts of money for the development of new products in accordance with recent market trends and the latest research findings. As many manufacturers operate globally, product packaging and labeling regulations have to be fulfilled in order to meet the country-specific requirements. In addition, product formulas may have to be adapted to suit different consumer tastes.