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Fast Moving Consumer Goods (FMCG) Consulting

Fast Moving Consumer Goods (FMCG) Consulting

I) Challenges faced by FMCG Industry

#1. Inventory Management

One of the toughest challenges in the FMCG sector is undoubtedly inventory management. When there are inflationary pressures and sales slacken, dealing with perishable or slow-moving inventory becomes a real problem. The companies in this sector need to have strong inventory management systems especially ARS i.e. auto replenishment system & well-defined planogram. In order to achieve excellence in inventory management most FMCG consulting / Supermarket businesses rely on Supermarket consultants like Your Retail Coach, who can reduce their learning curve and facilitates to achieve goals faster.

Inventory Management Grocery Amazon

#2. Brand Building and Connect

Brand building and maintaining strong content with the audience is becoming so important in the FMCG business sector. While the goal of marketing has always been to connect better, the way this reaches differs. It is critical to understand that there need to be new ways and opportunities for connecting with the consumer. Companies must establish trust in consumers and use different channels to build rapport and establish a relationship. Only then will they be able to power their brands and fuel growth.

#3. Grievance Management

Addressing customer problems and grievances in a timely way has become very important for the consumer goods business. In the present atmosphere of social media activity and transparency, bad reviews or ratings can damage company reputation in seconds. The value of building a solid, trust-based relationship with customers involves solving their problems as quickly as possible and turning crises or complaints into opportunities for growth.

#4. Low Product Margins

Low margins on products and high operating cost has left with no choice but to target volumes or it can bring the FMCG business down.

Low Margins Retail Supermarket Business

#5. Supply Chain and Logistics Management

Efficiency in logistics and supply chain is another core challenge for the Supermarkets and FMCG sector. The nature of the FMCG sector means deliveries need to be carried out on a constant basis, with the capability to adapt to seasonal fluctuations whereby peaks can be as high as 400% yearly. Products also have a limited shelf life on account of the fragile or perishable nature and changes in customer tastes. This accounts for continued supply chain efficiency by streamlining processes to meet price expectations and economies of scale.

Supply chain and logistics plays a very vital role especially for online grocery and online supermarket retailers, where logistics accounts to almost 45% of customer dissatisfaction reviews and remaining 55% accounts for product and other service related concerns. Thus, defining supermarket operations manual for supply chain and logistics is not a choice, but basic necessity for FMCG ecommerce.

Large Enterprises in the FMCG space must rethink warehouses, operations and supply chains to remain competitive in dynamic industries and service consumers as required. The competitive edge of this approach can be seen in FMCG warehouse operations of major companies. As retailers have restructured the supply chain, FMCG manufacturers carry higher stock volumes to manage demands in service levels. Optimizing storage space efficiency has become a significant challenge, leading to advancement in new technologies like AGVS, ASRS, and mobile-device driven fulfilment solutions.

#6. Management of Fragile Goods

The FMCG sector also faces the challenge of managing fragile or perishable foods. Careful packaging and handling of delicate products are of critical importance here.

#6. CRM for Customer Retention

A highly competitive, dynamic business environment has necessitated that FMCG sectors need to not only attract but retain customers as well. Hence, the need is to build and maintain a one-to-one, lifelong relationship with a massive customer base. This has led to the emergence of CRM or customer relationship management. CRM is built on the philosophy of relationship marketing. It aims to create, develop, enhance and retain relationships with customers and enhance lifetime customer value and organizational profitability.

The goal is also to improve customer experience, enhance satisfaction and build loyalty for increased profits. CRM is a business strategy which can yield significant ROI for the FMCG industry. It adopts a customer-centric business approach to support effective sales, service and process and marketing.

#7. Adopting an Omni-Channel Approach

What is equally critical at this juncture is that multiple customer voices across different online and offline channels must form part of an authentic brand narrative. An omni-channel approach encompasses website channels, e-commerce models, and traditional brick and mortar store frameworks and much more, so that integrated marketing communication is facilitated and customers have the choice of choosing an FMCG consulting provider on the channel they are most comfortable with. To facilitate omnichannel retailing, you need a retail experience consultant for supermarket operations who can understand how to innovate. FMCG consulting shall help consumer goods business overcome their challenges and improvise customer experience.

Omnichannel Retail FMCG

II) YRC: Your Strategic Partner for Growth in the FMCG Business Sector

If you need to start an online grocery store, or built your own supermarket retail chain, it’s time to choose a supermarket consultant you can rely on. CPG consultants, YRC has been a choice for many online and offline retailers, whether you need strategists well versed in CPG business analytics or consumer goods supermarket expansion.

The competitive environment for the FMCG sector necessitates need for reputed FMCG consultants. If you are wondering how to hire an FMCG consulting who can meet diverse requirements, talk to YRC, Retail consultants. Your Retail Coach anticipates trends and technologies emerging as the future of the FMCG industry evolves.

This reputed consultancy assists organizations in the FMCG to leverage their brand value and build their business by ensuring campaigns, trade activities and sales systems are streamlined for maximum efficiency with the help of standard operating procedure for retail stores. Retail Operations Consultant, YRC, ensures strong reporting systems and retail process manuals are in place to help your FMCG business expand by monitoring the “Business 3-s” i.e. staff, stock and sales.

III) About FMCG Industry

FMCG stands for “Fast Moving Consumer Goods” and CPG stands for “Consumer Packaged Goods” sold or consumed on an everyday basis. Consumers have a critical role to play in the FMCG sector as price bands of every FMCG product depend on consumption. Persistent, continuous and strong growth in the herbal and natural product segments has further caused accelerated the pace at which new launches are proceeding, by leading FMCG firms. Economic liberalization and transparent policies have piloted the economy towards the free flow of fast moving consumer goods. According to a Deloitte Report, the FMCG sector is one of the biggest drivers of global growth. The report further states the sector is set to grow at an impressive CAGR in the period from 2020-2023. So, if you are opening up a grocery mart or and online supermarket and wondering “how to start a supermarket business,” consider that while the avenue for growth is limitless, so are the challenges.

Changing lifestyles, growing incomes and easier access have all driven growth for this sector. The urban segment accounting for a revenue share of 55% is the largest contributor to overall revenue the Indian FMCG sector generates. Further, the retail market in India alone is estimated to reach USD 1.1 trillion by 2021, from USD 840 billion in 2017. This will boost revenues of the FMCG companies, as modern trade is growing by average 20-25 percent per year.

Fast moving consumer goods comprise three basic sectors – food and beverages, which holds 19% of the sector’s revenue. Healthcare accounts for another 31% and household and personal care account for the remaining 50%.

The FMCG sector is poised to grow at CAGR of 27.86 percent by 2021. FMCG companies are also poised to invest in energy efficient plants and food parks for capacity expansion and acquisitions in the domestic markets. Investment in the FMCG sector centers around sugar, food processing, cosmetics, and paper pulp industries.

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We work only for Visionaries.


The idea of having Ecommerce Consultants on-board from the beginning itself points towards reducing the involvement of the promoters in daily operations. Ecommerce Businesses willing to be a brand reaping profits & sustaining the competition must ensure that most of their processes should be automated. The more the manual intervention, the more would be the errors.

In Ecommerce business, you get only 1 chance to impress the customer & if you mess up there, you lose the customer for long.

Process automation in respect to all the activities pertaining to customers from order receiving to order fulfilment is a must for a seamless experience for the customers.

Task Management is another grey area where most deadlines fail as 90% of the tasks are assigned manually & are forgotten, unheard, misunderstood or mistaken.

YRC Team of Ecommerce Management Consultants helps to make maximum of the processes system-driven to ensure minimalistic manual intervention.


No matter how good your product is, the customer would know only if it looks good.

Photography includes the following steps:

  • Cataloguing your products
  • Cataloguing your images
  • Backup your images (A few cloud storage solutions include Dropbox, Google Drive, Bitcasa, Apple’s Cloud Storage etc.)
  • Choose the right camera & lens (You may also outsource the photography to a third party agency)


Digital Marketing includes SEO & SMM. SEO i.e. Search Engine Optimization includes activities like back-linking, meta tags, blog-writing etc. to ensure your website ranks on the 1st page on Google Search.

Next comes SMM i.e. “Social Media Marketing” which as the name suggests including promoting your products on all the social media sites, email marketing, influencer marketing & several other BTL activities.

These activities are going to be recurring & would decide the traffic on the website, the conversions, whether the right target market is tapped, the likes, the views, the orders, the reviews & much more. YRCs Ecommerce Consultants create a budget for digital marketing right from pre-launch to launch & for each month thereafter.

Building digital marketing strategies in coordination with the agency, selecting them to signing them off would be the role of YRC.

This ensures seamless coordination, detailed interactions & desired execution as it is always advisable to work with a single agency than multiple of them.


Selection of the right software for smooth functioning of back-end operations right from production to webstore display would be suggested and integrated by YRC Team.

YRC’s Team defines SOPs of Product Movement, maps it with the locations & people. They then create a blueprint of all the features required in the software & help in shortlisting & selection.

IT Integration involves connecting your offline inventories with real-time online webstore so when a sale occurs, inventories get deducted real time across offline as well as online platforms.

This helps in accurate inventory management, maintaining the MOQs, re-order levels & achieving the optimum inventory levels.

Some popular software include unicommerce, viniculum for your front-end website management & Genisys for your entire back-end Purchase, Production, Accounting, Invoicing etc. management.


  • How many cities or countries you wish to sell in?
  • Where should your Warehouse be located?
  • Should you have one warehouse in each country or city?
  • Should you be having your own delivery team in your base city?
  • Would the 3rd party vendors be reliable? What happens when they lose or misplace your product during delivery?
  • How should I manage the logistics if my goods are coming from different countries?
  • How should the goods be stored and barcoded?
  • How much space do I require for warehouse?
  • I am sure several such questions must be haunting you while you think of starting your own fashion ecommerce brand.


At YRC, our warehousing and logistics experts can help you devise a strategy for all of the above mentioned queries and much more.

We design the layout of the Warehouse considering the inward, goods processing, software entry, barcoding, outward, goods return, scrap storage, goods stacking & much more.

Logistics route plan is devised considering the manufacturer to your warehouse and from there to last mile delivery locations.


This Step involves 03 distinct parts:

Part 1: Choosing the right Platform:

From several platforms available in the market right from Shopify to magento, woocommerce, prestoshop, wordpress etc. you must choose the one that fits best for your business

Part 2: UX Designing:

“UX” denotes User Experience, which if put in simple language is building the functional requirements of the website.

UX Designing includes designing the features required in the website, customer journey map, website features, the browsing features, navigation features, ecommerce order management process flow, checkout cart features, catalogue management, ecommerce payment system, cross selling features & much more.

“As per statistics, 68% of the customers abandon the carts before payment”

An interesting UX ensures the customer sticks on to the website for a longer time.

Part 3: UI Designing:

UI stands for User Interface, which means designing the look and feel of the website. UI includes using the right colours, elements and the entire aesthetics of the website.

A good User Interface ensures the user completes the task that he has come for. It navigates the user through the journey of the brand in the simplest but most effective way.

The UX designer maps out the bare bones of the user journey; the UI designer then fills it in with visual and interactive elements.

If User experience is the bare bone, user interface wraps it up with an attractive cape.

At YRC, our team if experts can help you develop the entire User Journey to ensure it is engaging!


This step follows the “Designing” Phase, whether you have an in-house design team, freelance designers or an outsourced design company. It is one of the most exciting phases, as here you see your designs turning into products & your ideas turning into reality.

In most start-up cases, production is outsourced i.e. brands tie-up with the established manufacturers/ job-workers to get their products manufactured.

Sampling involves multiple 04 Stages, Fit-Sample, Prototype Sample, Pre-Production Sample & the Production Sample.

Prototype Sample is the first sample provided to the buyer. It can be in any fabric/ colour. This sample is just to understand whether the product design looks equally great in reality.

Fit Sample, as the name suggests is prepared to check the fit of the garment i.e. the various sizes, length, width etc.

Pre-production is made by the actual production line. Here the stitching quality and other aspects related to manufacturing are checked. This is the last stage where rejection can be accepted.

Production Sample is made before the production which is the replica of what is going to be finally produced.

Once you are through with all this, you are good to go ahead & get your goods manufactured.


Product Designing or Sourcing is the heart of the Ecommerce Fashion Brand.

Product Designing / Sourcing can be done in several ways, as follows:

  • In-house Design Team
  • Freelance Designers
  • Outsourced Design Team
  • Ready Product Sourcing (From Manufacturer or Wholesaler)

At YRC, we evaluate your business strategy & business model to arrive at the decision, which of the above ways would be best-fit for your business. In certain cases, product sourcing may be a combination of the above.

These are the people who are going to build your brand! Whether they are the designers or merchandiser, your brand look is going to be in their hands.

If you are designing each garment from the scratch, the sourcing would play crucial role in developing design identity of your brand.

Sourcing includes fabric, trims, lining & all the raw material required to build the garment.


Branding is the “Look of the Brand”, right from logo to tagline, the colours used, the brand story, the brand communications on social media, the packaging & all the other aspects which speak directly or indirectly to the customers. Branding constitutes the look & feel of the brand & hence must be thoughtfully planned to match with the product that we are selling.

Branding must appeal to our target audience. Example : A golden colour logo depicting finesse, art, richness, premium, however beautiful it may be individually cannot go with a brand selling affordable kids wear products. So, your logo must be in-line with your brand positioning, whether you are an expensive brand or a luxury brand or a value for money brand, it must be depicted from your “Branding”.

It is an integral part to attract the target audience.


Organogram is the “HR Blueprint” of the business which is created at the onset, to map out the team required across each function at various stages of the business. At the launch, only key people need to be got on board to ensure the project gets started & at this stage, all of them need to multi-task. Similarly, certain financial as well as operational goals are set for addition of the further team. Example, for the operations team, we hire 1 operations manager during the pre-launch phase & we add 1 more only when the business kicks-off & we reach a volume of selling more than 1000 pcs/ month or a turnover of more than 0.1 million USD.

SOPs are Standard Operating Procedures, a bible to run the entire organization right from Sales, Purchase, HR, Order receiving to Order fulfilment, Inventory Management, Accounts, Warehouse, Logistics, Supply Chain, Production & all the other relevant functions for the business. Business must be organized from its first day of operations; only then the tasks can be delegated.

At YRC, we design the organization structure, the processes, and approximate time taken to execute each process, job profile of every member within the organization, their KRAs, KPIs & the Reporting Structure.


Critical Pathway Analysis (CPA), is a project management technique which cannot be overlooked while launching an ecommerce fashion brand. Brand launch process is cumbersome with multiple inter-dependent & time-bound tasks involved, which need to be tracked to ensure the project remains on track.

CPA outlines key tasks across the project, their turnaround time (TAT) & the dependencies of tasks upon each other. It identifies the sequence of tasks, their interdependent steps from inception to completion, their criticalities, and their dates of onset, target dates of completion along with the key responsible person for the respective activities. Critical Pathway helps in understanding the unimportant & not urgent tasks which may jeopardize the execution of the project because of an unexpected snag! It also maps out the potential bottlenecks which might be posed because of the dependencies of tasks upon each other & cases where the next task cannot be commenced before the completion of the previous one.

CPA detects the minimum & the maximum time involvement of a particular individual or team to execute the task, thereby arriving at the overall deadlines associated with the project.

At Your Retail Coach, we design the Critical Pathway & review it periodically to ensure the project is on track & the progress is measurable.


Business Strategy includes the vision, mission, goals, business model, business plan & strategy for all the functions within the organization.

Business Strategy is a well-defined plan that outlines who, what, where, why, how & when for the company; for example, who would be the target market, how to attract the target audience, when to launch new products, where to operate from, how to handle competitors, what would be the USP, what would be long term goal of the organization & several other answers to the 5Ws of Strategy.

Business Strategy aligns the organization towards a common goal. Business SWOT helps company to identify & overcome their weaknesses & focus to sharpen the strengths. Business strategy forecasts future risks and helps business in building skillsets to overcome the potential threats.

YRC’s Business Plan focuses on creating a “Blueprint” of the business, thereby deriving the feasibility of the concept & gauge whether the opportunity is lucrative to invest time, energy & effort. Business Plan creates cash flow understanding i.e. building inflow & outflow cash projections from Week zero to week 60 i.e. 05 year projection. Business Plan calculates the capital investment, operating costs, one-time costs, recurring costs & all the other numbers relevant to obtain the breakeven sales, return on investment, return on capital, internal rate of return & several other ratios. Business Plan is also one of the important requirements if you are targeting the “Investor Route”. Fund raising becomes extremely transparent & channelized. With business plan panned out clearly, the business will know until what point must it be stretched & where to stop, which reduces the probability of unplanned investments.


Starting the concept of Ecommerce Fashion brand with Market Research ensures we get detailed understanding of the industry & this research report also acts as a social confirmation for your concept. Market Research helps in understanding the target locations, their population, potential online buyers for your product, competitors for each category, and top selling products of the competitors, competitors’ price range, offers & their responses & much more. Market Research helps in thorough understanding of your brand position as compared to our competitors. It helps in identifying gaps in the market, in your category along with the scope of the said product in the desired market. This will help in validation of your concept & prevents you from making the same mistakes as your fellow brands, eventually saving your time, energy & efforts. This phase is also a make or a break phase, as the market research study may at-times come up with some eye-popping numbers & statistics which might compel you to re-think on your product or category that you are planning to sell or alter your entire concept itself!! Market Research Reports analyse the competitors’ webstore for their traffic, conversion & sales. This is extremely valuable information to derive our inventory budgets & projections, which takes us to our next phase.