Consumer goods, often referred to as final goods, are the main source of supply for the average consumer and are the foundation of every market economy. They include a wide range of products that are meant for immediate use or consumption, from apparel and food products to dishwashers and personal services.
The Consumer Product Safety Act of 1972, which the U.S. Consumer Product Safety Commission enforces and also handles any necessary recalls, governs these products.
The promotion, classification, and sale of these products have a considerable impact on consumer behavior and the state of the economy as a whole. We explore the many sides of consumer products in this article, including their varieties, the marketing techniques employed for them, and their impact on the consumer goods sector.
In a Nutshell
- Consumer goods are services, nondurable items, and durable things that are bought for individual use or enjoyment.
- The Consumer Product Safety Act of 1972 established the United States Consumer Product Safety Commission, which oversees consumer goods and coordinates product recalls.
- The type of product and consumer behavior play a major role in marketing tactics for consumer products.
- Fast moving consumer products, purchased goods, specialist goods, and non purchased goods are among the product categories.
- Due to their rapid turnover on shop shelves, fast moving consumer goods (FMCG) are well liked by businesses.
- With options to invest in both individual companies and ETFs, the FMCG sector is a significant investing area.
- Because they are utilized in the creation of goods and services for customers, capital goods set themselves apart from consumer commodities.
- With a noteworthy increase in online sales, the growth of e-commerce has had a significant impact on consumer demand.
Types of Consumer Goods
Durable goods are consumer goods that have a useful life of more than three years and are used repeatedly over time. Bicycles and refrigerators are considered durable goods.
Non durable goods are consumed in less than three years, are typically used only once and include packaged food and beverages or laundry detergent.
Service goods include items such as car repairs and haircuts, which are intangible consumer goods.
Creating a better product that is cheaper and more useful, it will always work in every consumer goods industry.
Ron Johnson, former CEO of JC Penney
Product Recalls
A recall is a request to return, exchange or replace a product after a manufacturer or consumer watchdog group discovers defects that affect product performance or harm consumers.
Marketing of Consumer Goods
How consumers view and use a product determines how companies market their products.
Fast moving consumer goods are goods that are consumed regularly and are readily available for purchase. They are usually non durable goods and low priced items sold by wholesalers and retailers. Examples of convenience goods are milk and tobacco products.
Purchased goods are those items that are purchased less frequently, are durable and are usually more expensive than consumer goods. Examples are furniture and televisions.
Specialty consumer goods are rare and often considered luxury purchases. They are often marketed by brand or targeted to a niche market. Sports cars and works of art are examples of specialized consumer goods.
Non purchased consumer goods that are not purchased are readily available, but consumers often do not seek them out. Although they may be necessary purchases, they require targeted marketing to consumers to entice them to buy them. Examples of non purchased consumer goods are life insurance and prepaid funeral expenses.
Wrap Up
Making informed judgments about purchases, business strategy, and investments requires an understanding of consumer goods and their place in the economy. Businesses, investors, and consumers must stay up to date on the most recent developments and possibilities in this industry as e-commerce continues to change the landscape of consumer products.
FAQs
Customers purchase these items for their use or enjoyment. Clothing, food, appliances, and services like haircuts are a few examples.
FMCG includes non durable goods such as food and beverages that move quickly through the supply chain from producers to distributors and retailers to consumers. Companies and retailers prefer this segment because it offers great opportunities for shelf space rotation.
Physical assets employed in the creation of goods and services for consumers are known as capital goods. Contrarily, consumer goods are the final commodities consumed by customers.
With a sharp rise in online sales, e-commerce has greatly raised consumer demand for goods. This development has made it possible to promote, distribute, and consume these products in new ways.
A 2022 Edelman Research survey found that Hasbro, Yeti, and Procter & Gamble were the three most dependable consumer products companies in the country.
This statute established the U.S. Consumer Product Safety Commission and governs the sale of the majority of ordinary consumer items. This team is in charge of product safety and makes the appropriate recalls of faulty consumer goods.
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- U.S. Consumer Product Safety Commission – Consumer Product Safety Act (CPSA)
- iShares – iShares US Consumer Staples ETF
- Consumer Goods Technology – Top 100 Consumer Goods Companies of 2021
- CNBC – E-Commerce Surged During COVID
