FMCG Sector: An Evergreen Career Option Written by Dr. J.K Goyal – Director at JIMS Rohini
0n May 13, 2016
Source: http://careerlinksonline.in/fmcg-sector-an-evergreen-career-option-written-by-dr-j-k-goyal-director-at-jims-rohini/
The Indian Economy is poised to grow at a fast pace and according to the International Monetary Fund (IMF) Indian Economy growth is forecasted to grow at 7.5% in 2016-17. There is a growing feeling of confidence among stakeholders and investors in FMCG sector. As the name suggests Fast Moving Consumer Goods (FMCG) or CPG( Consumer Packaged Goods) are those products that are sold quickly and at a relatively low cost. The sector comprises of those brands and products that are categorised as essential household items used daily. Some of these items include detergent soap, shampoo, packaged food, paper and stationary, juices, personal care items, toiletries and many other consumables. The shelf -life of these products is short due to high consumer demand or perishable nature of the commodity and therefore these products leave the store very quickly.
This sector is the fourth largest sector in Indian Economy and has seen an annual average growth of 11 percent in the last decade. Experts forecast that the FMCG market in totality is expected to increase at CAGR of 14.7% during 2012-2020 with rural footprints to increase by CAGR of 17.7% during 2012-2025.
The factors which have led the growth of this sector include heightened awareness, easier access, evolving lifestyles, rising disposable income driving purchase, availability of online shopping, new product launches and innovative modern trade. Government policies and regulations such as relaxation in license rules, 51% foreign direct investment (FDI) in multi-brand and 100% in single brand retail has also boosted the trust of investors in consumer markets.
Career Opportunities
FMCG sector which is heavily customer driven is adopting a fast changing approach in managing itself. Growing awareness among consumers, easier accesses to channels, changing lifestyles, dynamic demand patterns make the landscape more interesting. Rural, semi-urban and urban markets also add different dimensions to this sector. Brands such as ITC, Godrej, Nestle, Proctor & Gamble, Pepsico, Dabur woo consumers with different strategies be it related to product, price and promotion. Latest entrants, Patanjali Ayurveda with its range of products have disrupted the branded consumer goods segment thereby making it more attractive and competitive.
Role and Responsibility
Studies predict that FMCG market is expected to grow at a CAGR of 14.7% by 2020. And as a result offers lucrative job opportunities in abundance, which are fulfilling, exciting and simultaneously rewarding.
- Marketing and Sales: The role includes managing sales volume, managing brands, , develop marketing mix, innovation and/or channel sales.
- Operations and Supply Chain: Develop linkage between marketing and supply chain, demand planning, smooth and timely delivery of products at the right time in right quantity, physical distribution, warehousing and transportation.
- Finance: Offering financial transactions and managing expenses provide financial expertise in business decision making, managing accounts, institutional accounts and records.
- Product/ Brand Manager: Formulating brand visions, manage integrated brand experience, strategy formulation including innovation and communication.
- Category Manager: responsible for a specific category of products
- Customer & Accounts Manager: Handling business with key customers or clients. Managing stock supply, promotion plans and provide product launch support.
- Human Resource Manager: manage HR services such as payroll, recruitment, performance, review culture, business partner, handling HR systems and processes.
Package: Growth in any sector depends on the calibre of the candidate. However The starting package usually goes between 4.5 – 6.5.
Eligibility for a career in FMCG
The eligibility criteria needed for FMCG jobs largely varies according to the specific requirements of the job profile and the candidature requirement. However for most of the entry level positions, specialised skills like an MBA or a CA or an engineering degree is desired as qualification depending on the nature of the job. Most of the FMCG companies visit campuses to hire fresher and meet their talent requirement.
Besides technical skills and intellectual rigour, the companies also look for right kind of behavioural and personal competencies such as integrity, communication, ‘can do’ attitude, assertiveness, team skills, lateral thinking, creativity, ability to leadership skills and organisational skills.
How to select the right College
Most of the B- Schools promise of a career which is challenging and rewarding, however while choosing a college for pursuing a management course, due consideration must be given to the previous year placement records, corporates that visit the college, package and profile offered. Additionally, industry- academia interface of the institute must also be explored along with live-projects and summer internships offered.
FMCG sector with its sunshine growth continues to be the most preferred sector by young professionals and in turn meets expectations in terms of job autonomy, compensation offered, learning and growth and status of the company in the market.
Colleges:
Welingkar Institute of Management, Mumbai & Bengaluru
Jagan Institute of Management Studies (JIMS), Rohini, New Delhi
International Institute of Management Studies (IIMS), Pune
Indian Retail School, Bangalore