Markets & Justice

Markets & Justice
Freely operating markets yield a just outcome?

White Australia Has A Black History

White Australia Has A Black History

Wednesday, 13 January 2016

Consumer question of the day --- do you do know what FMCG stands for?

Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinkstoiletriesover-the-counter drugs, processed foods and many other consumables.[1][2]

In contrast, durable goods or major appliances such as kitchen appliances are generally replaced over a period of several years. The term was coined by Neil H. Borden in The Concept of the Marketing Mix in 1965 (1996, Prentice-Hall, Inc.).
FMCG have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Some FMCGs, such as meat, fruits and vegetables, dairy products, and baked goods, are highly perishable. Other goods, such as alcohol, toiletries, pre-packaged foods, soft drinks, and cleaning products, have high turnover rates.
Though the profit margin made on FMCG products is relatively small (more so for retailers than the producers/suppliers), they are generally sold in large quantities; thus, the cumulative profit on such products can be substantial. FMCG is probably the most classic case of low margin and high volume business. (This information is from Wikipedia)
To be a pro-active consumer has always taken quite a bit of thought. 

Consumer boycotts have a long history:
1.   Boycotts as we know them today began in the nineteenth century and had quite an effect.
2.   In modern times, we are concerned about what is being added to or put into the food we purchase. As well, we are concerned about chemicals in our cleaning products and our cosmetics.

3.   We are concerned about animal welfare - cruelty, experimental research etc., lack of humane guidelines for industrial animals.  

4.   Some of us, but not enough, want to purchase Australian products.  The time has long since gone (probably late 1960s/early 1970s) when a consumer could purchase in a supermarket a trolley full of products which were produced wholly in Australia by Australian labour employed by Australian-owned companies.  

5.   Labelling is often far from truthful and/or transparent.  Major powerful food and grocery organisations such as the Australian Food & Grocery Council lobby strongly against simpler and easily understood labelling which is honest about point of origin.  So one is left to think that in the confusion there is profit!  Perhaps even an escape from Australian standards?

6.  Consumers in the 21st century have now to be conscious of Fair Trade and trade in goods produced by forced, exploited and/or slave labour --- even when those goods are made in Australia.
Major corporations are not necessarily cleanskins on this issue.  Some of these are multi-national corporations who do one thing in Australia and another in countries where they can get away with less stringent watchfulness and where consumers are unable to demand high standards.

There are no consumer visits to the Nestle factory in Tongala.
The person interested in how these well-known commonly used products
and would like to see how they are produced -
well, you won't get past the reception office and the security there.
Considering that generations of Australians have been supporting
the Tongala community, this seems a bit rich.