Consumer goods are products or services for the final consumer to use for household or personal use. So what are the categories of consumer goods? How do you classify them? Let’s take a look with me below.

What are the classifications of consumer goods? At present, there are two classification methods used to classify various consumer goods.

(a) According to the consumption characteristics of consumer goods and product form, consumer goods can be divided into three categories: consumable products, consumer durables and services.

1. Consumable consumer goods

Consumable consumer goods, also known as non-durable consumer goods, are tangible goods that can only be used once or a few times and are easily consumed. For example, food, fruits, laundry products, etc.

2. Durable consumer goods

Consumer durables are tangible goods that can be used many times and have a high unit price. For example, clothing and household appliances

3. Services

A service is an activity, benefit or satisfaction that is sold for or together with a product. A service is an intangible product. For example, beauty, technical advice.

(b) According to the classification of consumer buying habits, consumer products can be divided into four types: convenience products, optional products, special products and non-thirsty special products.

1.Convenience products

Consumers should buy frequently, nearby, instantly, habitually and repeatedly, and the goods that do not need to spend time comparing and choosing when buying are convenience products.

2. Optional products

It refers to the products whose basic aspects such as availability, quality, price and style are carefully weighed and compared by customers. For example, furniture, clothing, used cars, and large equipment. Optional products can be divided into homogeneous products and different products. Buyers consider homogeneous options to be of similar quality, but at significantly different prices, so it is necessary to buy them. The seller must “negotiate the price” with the buyer. However, for customers, product characteristics are usually more important than price when choosing heterogeneous products such as clothes and furniture. Operators of heterogeneous purchases must have a large variety and colors to meet different preferences; they must also have well-trained sales staff to provide information and advice to customers.

3. Special products

Refers to goods with special meaning and value to consumers or goods with specific brands or unique features, such as wedding rings, collectibles with collector’s value, etc.

4. Non-desired products

Refers to goods that consumers are not familiar with, or are somewhat familiar with, but are not interested in and do not actively seek to buy. Examples include environmental products, life insurance, and highly specialized books.

There are two types of non-thirsty products

  • New non-thirsty products

New non-thirsty products are products that truly offer new ideas that potential customers are unaware of. Informative promotions can help convince customers to accept the product and end their non-thirsty status.

  • Conventional non-thirsty products

Conventional non-thirsty products are those that remain in a non-thirsty state, but not always (e.g., tombstones, life insurance, encyclopedias). The demand may be there, but the potential customer is not stirred to buy. For these products, promotion is very important. Many nonprofits try to “market” their non-thirsty products.

What are the characteristics of the FMCG industry?

The FMCG industry is characterized by high consumption frequency, short service times, broad consumer base, high consumer convenience requirements, diverse and complex distribution channels, and the coexistence of traditional and emerging formats. In addition, the industry’s concentration is gradually increasing, making competition more difficult. FMCG products are impulse buy type products, impromptu purchase decisions, insensitive to the advice of many people around, depending on personal preferences, similar products do not need to be compared, and product advertising and promotion, appearance/packaging, price, and point of sale play an important role in sales.

The main factors affecting competitive success are:

1. Close to consumers through a high coverage distribution network with multiple channels co-existing to achieve high distribution rates.

2. A reasonable distribution model and effective channel control and management.

3. A strong marketing function-oriented marketing organization to achieve effective coordination between marketing and sales.

4. Improve brand awareness and marketing efficiency as well as the right market expansion strategy.

With the integration of the world economy and the further development of the Chinese economy, more and more foreign FMCG companies are entering China, while domestic manufacturers are gradually emerging and the market competition is becoming more and more intense. This competition is not only an intensive campaign for the final consumers but also for the prospective entry. As foreign brands are investing more and more in China, domestic brands are being squeezed for survival.

The share of modern channels is increasing, while traditional channels tend to shrink. Manufacturers are competing more fiercely for cities and are also extending into townships. Retailers have more private labels, although their share remains small. Consumers have more room for choice and less loyalty to brands/retailers. Consumers are increasingly influenced by retail end-market activities, and manufacturers and retailer people are beginning to focus on investing in consumer research.