What Is the Difference Between FMCG and FMCD?

People often use FMCG and FMCD interchangeably, but these terms represent two distinct categories in the consumer goods industry. If you are working in the retail industry, then you must have heard about these terms from the mouths of people around you. To a layman, these terms can be confusing.

If you are in the food business, it's necessary to understand the difference between FMCG and FMCD. It will help you strategize pricing and promotion for your products. So today, in this article, we will enlighten you regarding the difference between these two terms. Let's get started.

What are FMCGs?

FMCG stands for fast-moving consumer goods. FMCG products usually have a lifespan; they are non-durable goods. These products can either perish quickly or be consumed immediately. FMCGs need to be purchased frequently so they are available at low costs. They are required to fit into daily or weekly budgets.

FMCG purchases are impulse-driven or influenced by promotions. These products are widely distributed through retailers or online platforms.

Some notable examples of FMCG products are packaged food, beverages, toiletries, laundry cleaning, and personal care products. There are big brands that deal in FMCG goods like Coca-Cola, Milka, Unilever, Nestle, and others.

What are FMCDs?

On the other hand, FMCD stands for fast-moving consumer durables. FMCD products are designed to last a long time; they are durable goods. These goods have a greater initial cost, and they are bought less often.

FMCD purchases are well planned and well researched. These products have specialized distribution channels due to their longer sales cycle and higher value.

Some examples of FMCD products are cars, household appliances, sports equipment, and electronic devices. Some leading brands are Samsung Electronics, LG Electronics, Whirlpool, and more.

Five key differences between FMCG and FMCD

Though these two terms have some similarities, as they both are consumer goods, they differ significantly from each other. If you are working in the consumer goods sector, you must not use these two interchangeably. Let’s explore some pointers that will help you find the difference between FMCG and FMCD better:

Purchase Frequency

FMCG products have a high purchase frequency. Consumers have to buy them regularly to replace them with consumed or used goods. Some examples are beverages (Nescafé, Coca-Cola, and Tang), snacks (Kellogg's, Doritos, and Lays), and more.

FMCD products have a low purchase frequency. They are durable products, so consumers buy them less often. Some examples are furniture, home appliances, and others.

Lifespan

FMCGs have a limited shelf life; they are perishable or consumed quickly. They are essential in the daily lives of individuals, so they buy them on a regular basis. Some examples are spreads (Nutella, Lotus), tea (Lipton), coffee (Nescafé, Starbucks), and more.

FMCD products have a long shelf life. Consumers don't need to buy them regularly. These goods are intended to last for a considerable amount of time. For instance, electronics, automobiles, and others.

Price Point

FMCGs are generally available at lower prices, as they are needed to fit into the daily budget of everybody. You can easily get these products at your nearest local shops, supermarkets, or e-commerce websites. For instance, chocolates (KitKat, Cadbury, Hershey's), shampoos (Dove, Head & Shoulders), and others.

FMCD products are more costly due to their durable quality. These are designed with food technology. Consumers buy them after considering their quality. Some examples are washing machines, laptops, desktops, and others.

Sales Volume

FMCGs are produced in large volumes because of frequent sales. Almost every individual belonging to all classes consumes these products. These products are easily available everywhere. Some examples are soaps (Lifebuoy) and lotions (CeraVe, Cetaphil).

FMCD's sales volume is lower because of infrequent sales. They are available in almost every home, but they don't need to be purchased every day. They have the durability to last for years. For example, cars, mobile phones, and more.

Distribution

FMCGs have wide distribution channels to make them easily available to everybody in less time and at a low cost. They are available everywhere, including supermarkets, local stores, and online platforms. If you want products for your store or food business, you can contact any trusted FMCG distributor, which provides products from leading FMCG companies. They will help you order snacks, beverages, and personal care products in bulk.

FMCDs have specialized distribution channels. They are available at exclusive retail stores and online platforms. Like if you are planning to buy an Apple phone, then you can go to an Apple retail store and get it from any online platform like Flipkart, Amazon, etc.

Conclusion

Both FMGC and FMGD play a key role in the consumer market for products. They both play a significant role in the lives of people. They both have distinct features and marketing needs. By understanding the differences, businesses can serve their customers better and achieve greater growth. If you want to have these FMCG products in bulk, you can contact any FMCG wholesale distributor around you.