Generally, consumer goods are categorized into two categories: fast-moving and non-fast-moving. Fast-moving consumer goods are the products that are bought frequently, such as milk, gum, fruit, vegetables, toilet paper, beer, and soda. Slow-moving consumer goods, on the other hand, are products that take a long time to sell. Consumer goods can also be classified into two types: nondurable and durable. Durable goods are those that are durable and have a long-term shelf-life, while nondurable goods are those that are purchased less frequently.
Another difference between the two types of FMCG is their distribution. While the urban market contributes about half of India’s consumption revenue, the rural market accounts for only 24 percent. However, because the rural population is 12.2% of the country’s total population, the growth in rural consumption is being watched closely by investors. This year, analysts are predicting a rural consumption growth of four to five percent.
Similarly, services are intangible, variable, and perishable. These need more quality control, supplier credibility, and adaptability than other types of goods. Consumers can be further classified according to their shopping habits. They can be categorized as convenience goods, staples, and shopping goods. Consumer needs for convenience goods are the primary basis of this category. For example, people buy newspapers or soaps as an impulse, and they buy emergency goods if they need them right away.
A product can be classified as either a service or a good, depending on how it is used. For example, a consumer buying salt is a tangible product, while a hotelier buying a movie is buying a service. A service is a service. This distinction is critical, as a service is purchased by a buyer, not an industrial buyer. They differ in the types of buying motives.
Besides supplies and convenience, there are also business services. These services include advisory and maintenance services. Products can also be classified according to their nature, process, and durability. Durable goods are the products that last longer than their less-durable counterparts, which are used less often. The same goes for non-durable goods. A consumer product has different marketing mix strategies than a durable one.