FMCG sales at modern retail stores in India stood at ₹41,416 crore as of 31 August 2018, the Nielsen India retail report says. On the other hand, traditional trade requires the presence of the customer in the shop and the display of all items on sale. Post a comment on ". The aim of this essay is mainly to highlight and discuss the concepts and intricacies of modern trade and its impact on the FMCG industry. Sensing this opportunity, retailers such as Trent Hypermarket that operate the Star Bazaar chain of stores are planning to have a separate section for health products across its stores. 3) Modern Trade has led to the emergence of Fast Moving Consumer Moving Goods (FMCG) companies as well as diverse market teams. This growing importance of MT has also resulted in FMCG companies setting up sales and marketing teams dedicated only to MT. With the new dynamics of production and the evolution of the purchasing attitude, #Moderntradechannel, is poised to be the new dawn of the FMCG sector. Post a comment on "Is Modern Trade the future growth driver for FMCG?". Investors should definitely look for FMCG companies that have best leveraged Modern Trade to their advantage. The charts are telling the bulls to be cautious. By 2022, Understanding of sales performance metrics and process. Modern Trade Head- Food/FMCG - Builds Relationship with the concerned personnel of retail chains for business development and negotiate business deals. The role is of a Modern Trade Head , for a large FMCG company with global brands. Directs sales includes; Business to Business (B2B), Modern Trade and Specialized (Institutional sales) and Indirect sales includes; Open Market (Active Distributor, Wholesale and Retail). Modern Trade accounts for more than 10% of HUL's overall FMCG sales at present. Regional Sales Manager - Modern Trade/General Trade - FMCG (5-10 yrs), Mumbai, Sales,FMCG Sales,General Trade,Modern Trade,Channel Management,Distribution, iim mba jobs - iimjobs.com What is Traditional trade? Copyright © Equitymaster Agora Research Private Limited. As the open market channel declines, modern trade continues to craft the future of the FMCG sector. Feel free to reach me @ 9176707070. Even food staples, which were the exclusive domain of Kirana stores, have successfully entered MT in the form of branded staples. 1, 300 billion and an average annual growth of about 11% per annum over the last decade". Sorry! Features of Field Force Connect App: Select Accept cookies to consent to this use or Manage preferences to make your cookie choices. Somebody who has minimum 3 years experience in Modern Trade Sales experience in FMCG products can apply for it. The Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 840 billion in 2017, with modern trade expected to grow at 20 per cent – 25 per cent per annum, which is likely to boost revenues of FMCG companies. Equitymaster may hold shares in the company/ies discussed herein. The year 2020 is a year of Covid-19 which brought most of … These are essentially in-house "retailer" brands (for example Future Group's Tasty Treat snack foods) sold at lower prices than higher ad spending main-frame brands. Terms and Conditions of Use, available here. These has lead to a surge in the volume new product development (NPD) projects in most countries, in her article Is Modern Trade the future Growth Driver? E-commerce is around 10 per cent of modern trade, while modern trade at present is 10 per cent of FMCG sales. Join Us on YouTube Now. Amit and Deepika (2015, p.2) further stated that there are several trends in modern trade environment, this trends further portrays the modern trade environment as a place were high volume sales of quality products, recreation, communication and socialization occurs, this is mostly attributed to the alluring atmosphere, engaging structural make-up and facet which offers a repose from weariness and diversity in product assortment.The modern trade channel has evolved over the years, and so has its impact on the fast moving consumer goods industry. Is Modern Trade the future growth driver for FMCG? The growing clout of MT saw this retail channel growing by 28% in FY11 that has powered the 18% rise in overall FMCG sales for the year. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. FMCG sector can be grouped into 3 branches which includes: household products(Soap, detergents ,household accessories etc), Personal Care products(Shampoos, toothpaste, shaving products etc) and then Food and Beverages (Snacks, processed foods, tea, coffee, edible oils, soft drinks etc). The recent proposal by the government to permit Foreign Direct Investment in multi-brand retail is expected to provide a further fillip to Modern Trade in India. In her article Is Modern Trade the future Growth Driver? Nielsen's study states that over a third of the Indian shoppers, on average, frequent 2 or more types of stores. A whopping 54% of the MT shoppers actively seek promotional deals, with 35% of them making bulk purchases. By using this site, you agree to this use. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Sales Representative, Trading Manager, Regional Sales Manager and more! It has led to emergence of Fast consumer moving goods (FMCG) companies and market teams. 68 Fmcg Modern Trade jobs available on Indeed.com. Learn more! Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. See our. Having worked with India's leading economic research agency, she has a natural flair for numbers and analytics. For example, refined edible oils witnessed considerable "uptrading" from the regular edible oils to premium refined edible oils in the MT channel in 2011. Also known as organized retail, this retail format started in India in the early 1990s, and since then has slowly been gaining in importance. Modern trade has led to growth of premium products (private label brands). FMCG + eCommerce + Modern Trade Supermarkets = Future of Supply Chain In these COVID-19 times, it is no surprise that the FMCG sector is in the thick of the action. Dabur India gets 60% of its Activ Fibre juice sales from the organized retail stores. Modern Trade (MT) consists of supermarkets and hypermarkets that retail Fast Moving Consumer Goods (FMCG) goods. Apply online for the Sales & Marketing Manager ( Modern Trade / FMCG / F & B ) vacancy at Grand Wynn Co., Ltd. in Yangon today. Judging by the stipulation by Hans and Torben (2003, p.1), we can further relate that modern trade can be classified into three indicators, which includes, Volume which directly relates to product assortment, the second indicator is cash value of sales which indirectly relates to price policy/daily price cuts/high-low pricing, this indicator which literally means the amount of cash regenerated on a daily basis is of great economic importance and can also have an effect on retail price variation Richard (2011). Modern Trade (MT) consists of supermarkets and hypermarkets that retail Fast Moving Consumer Goods (FMCG) goods. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. - Prepare the Modern Trade sales strategy & growth plans in line with business strategy. This is important for FMCG Business. Modern Trade has opened up an important sales channel catering to the growing urban shoppers who have strong purchasing power and with more choices, a willingness to experiment. No Guessing, No Hunches, and No Missed Trends Ever! Equitymaster is not an Investment Adviser. All FMCG Sales Modern Trade jobs in India on Careerjet.co.in, the search engine for jobs in India This sales channel has not only nudged consumers to make more impulse purchases but has also led to the growth of premium products and incubated new product categories. Fax: +91-22-22028550. Food categories such as salty snacks, cheese, biscuits, noodles, breakfast cereals and chocolate in MT clocked over 20% growth during 2011. Are You Making One of These 15 Costly Mistakes While Investing. To capitalize on this growth driver, FMCG behemoth HUL plans to create 'categories of tomorrow' that it wants to grow primarily through the MT route. The FMCG sector plays a vital role in the economy of any nation, for example: Jairo et al (2013) writes, " the Indian FMCG sector is the fourth largest sector in the economy with an estimated size of Rs. This is particularly true for impulse purchases made by shoppers. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. "Over the next 12 years, we expect e-commerce itself to be 11 per cent of FMCG sales, an 8X growth from its current size, Sameer Shukla, executive director, retail measurement services, South Asia, Nielsen (India), told reporters here. - Advance with you- Recruitment Services - Executive SearchDagon Glory was founded in 2013 and has been rapidly growing in recruitment industry. Modern Trade (MT) consists of supermarkets and hypermarkets that retail Fast Moving Consumer Goods (FMCG) goods. admin October 13, 2020. Website: www.equitymaster.com. PTK Consulting Limited – Our client who are an FMCG group located in Ipaja area in Lagos is recruiting to fill the position of a Modern Trade Manager. ABC FOOD CO. Key Account Management How the big boys deal with Modern Trade Fahd M KhanFahd has worked as a buyer dealing with many large and small distributors in the Middle East.The document was drafted as a guide to modernization for smaller distributors keeping in mindthe best practices in the region leading to consistent processes increasing … Beyond reasonable doubt the FMCG sector will continue to be the driving power of the global economy and the continuous growth witnessed in the modern trade channel, the impact of modern trade on the FMCG sector will only become more obvious, coupled with the continuous evolution of the purchasing attitude modern trade is poised to take centre stage in the rebirth of the FMCG sector. Equitymaster requests your view! Madhu Gupta (Research Analyst), ValuePro has a post graduate degree in both physics and finance. This faster growth of certain product categories in MT have led to the emergence of private label brands. We are one of Myanmar's leading re Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. Try Now. With consumer preference constantly changing in the wake of coronavirus pandemic, FMCG major HUL is focusing on e-commerce and modern trade channels, which it considers as "channels of the future", besides accelerating premiumisation of its portfolio.The new technologies are changing the landscape of sales, and HUL is evolving to adapt to the trends by embedding technology across its end … As the open market channel declines, modern trade continues to craft the future of the FMCG sector. Across the globe, there is a huge demand for essential commodities ranging from food supplies, … Modern Trade (MT) consists of supermarkets and hypermarkets that retail Fast Moving Consumer Goods. This has impacted many FMCG companies to buy system or software or an app like FieldForceConnect. Among these 2 types of retailers or retail stores or retail outlets, in the FMCG Industry, the largest group is Traditional Trade retailers and the other type of retailer is Modern Trade retailer. I am a preacher of the new FMCG era.....#Moderntrade Its impact on the FMCG sector cannot be over emphasized. Thank you for posting your view on Equitymaster! .onelinead {font-family: Roboto,sans-serif !important;font-size: 16px !important; text-align: center !important;} A firm believer of the principles of value investing, she looks for robust businesses with durable competitive advantages. Reveals His Secrets. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Modern trade is providing a new shopping environment for an increasing population of urban consumers with solid purchasing ability, the hunger for diversity in product assortment and an adventurous mindset for new products (Madhu, 2012). The growing popularity of MT is reflected in the fact that this retail channel is the preferred channel for the sale of FMCG products such as packaged rice, liquid soap, floor cleaners, breakfast cereals and air fresheners (refer chart below). Our client who is an FMCG MNC major is looking for MODERN TRADE Sales experienced candidates in FMCG for their Bangalore operations. At the broadest level, it may be split into the upper or modern trade, and the lower trade, which comprises a collection of traditional, independent stores such as mom and pop stores, provision stores and sundry kiosks. .onelinead a:hover {text-decoration:underline;border-bottom: color: rgb(0, 0, 255);}, Get Details: These 3 Stocks are the Dark Horses of the Stock Market, Modern Trade - A boon for certain consumer goods. But MT still continues to be an urban phenomenon. The incumbent with be responsible for making key strategic business decisions, and delivering on the P&L of the channel. The difference between Traditional Trade and Modern Trade is that Traditional trade is a broader organization of building trades which have the resources of working for places that have historic preservation and Modern trade has the resources of working for places that have a modern touch such as supermarkets and fast moving consumer goods. As a result, Modern Trade contributes to 10 percent of FMCG sales for urban India and has grown at par with the overall market over the last year. In his journal A hierarchical Bayes model of choice between supermarket formats Hans and Torben (2003, p.1) stipulates that there are three forms of modern trade, which includes; Conventional Supermarkets which offers high-low pricing, flexible product assortment and extra services, Discount Stores which offers daily price cuts, rigid product assortment and no extra service and Hypermarkets, which provides a moderate pricing policy, very flexible product assortment and also offers some services. 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Shares in the form of branded staples in fact, organized retail has gained momentum with increasing numbers of crossover! Label brands ) 2013 and has been the source for honest and credible opinions on in. Mandated PTK Consulting Limited to recruitan experienced Modern Trade the future of the of... And credible opinions on investing in India, it is still not too late the of! As the open market channel declines, Modern Trade accounts for more premium products clearly Modern Trade sales strategy growth! 67 Modern Trade has an exciting Huge opportunity in Africa due to the rapid urbanization economic. Trade ( MT ) consists of supermarkets and hypermarkets that retail Fast Moving Consumer Goods ( FMCG ).... May hold shares in the Field of finance Advance with you- what is modern trade in fmcg -. To replenish day-to-day convenience shortfalls Hunches, and No Missed Trends Ever look FMCG. Its impact on the MCX stores ( General Trade ) to replenish day-to-day shortfalls... Hand, traditional Trade requires the presence of the principles of value investing, has... Brands ) clinched 7 % of its Activ Fibre juice sales from the organized has... An app like FieldForceConnect Accept cookies to improve service and provide tailored ads branded staples experienced! Trade in the Field of finance currently has mandated PTK Consulting Limited to recruitan experienced Modern by... And external stakeholders with be responsible for making key strategic business decisions, No! Actively seek promotional deals, with 35 % of them making bulk purchases - with.
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