Fast-Moving Consumer Goods (FMCGs) and Emerging Markets: Consumer Convergence, MNCs, and Globalization: An Abstract

Abstract

The fast-moving consumer goods (FMCGs) industry continues to increase its sales and visibility in the USA and global markets. This industry is also a major player in emerging markets and developing countries. The topic of FMCGs in the marketing literature is particularly important because of consumer convergence, globalization, and MNCs’ well-known brands. No wonder well established MNCs are the main beneficiaries in this industry and its related segments. Major firms include P&G, Nestle, Unilever, AB InBev, PepsiCo, Coca-Cola, Philip Morris, Mondelez, and others. At the same time, there are many local and regional firms from emerging markets which remain active and profitable in these markets. To investigate corporate- and industry-specific issues, the paper uses a case-based research approach (see Eisenhardt and Graebner 2007; Siggelkow 2002, 2007) and aims at FMCGs-related firms and their operations in South Asia. We purposely selected a case-based approach because of the companies’ evolutionary growth and well-established market share. These MNCs are corporate behemoths in the FMCGs industry in South Asia and beyond. The paper first reviews over 50 studies which were published in credible journals on the topic of FMCGs. The work reviews and analyzes those investigations which specifically investigated FMCGs and their industry-specific issues. Preliminary findings of the paper reveal that South Asia is witnessing a “consumption boom” (Spender 2013, p. 14) because of urbanization, new infrastructure, and economic growth. In the FMCGs industry, we observe promotional activities on the part of MNCs and local firms. At the same time, there are many local rivals which sell in the same industry and remain profitable in their respective segments. No wonder a selected number of MNCs have started to strengthen their brand portfolios via local acquisitions and promotional activities. These firms include Mondelez, Nestle, Unilever, and others which are seeking efficient global value chains and transferring production to low-cost countries. In short, the FMCGs industry is a major part of South Asia, and its brands remain good cash cows in the market. Since FMCGs-related research remains sparse in marketing, it is important to seek investigations that generate new knowledge and value added.