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FMCG

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FMCG Industry Overview:

The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1 billion. Well-established distribution networks, as well as intense competition between the organised and unorganised segments are the characteristics of this sector. FMCG in India has a strong and competitive MNC presence across the entire value chain. It has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle class and the rural segments of the Indian population are the most promising market for FMCG, and give brand makers the opportunity to convert them to branded products. Most of the product categories like Jams, Toothpaste, Skin care, Shampoos, etc, in India, have low per capita consumption as well as low penetration level, but the potential for growth is huge.

It is small wonder then that retail sector has opened the floodgates of employment opportunities to the Indian youth. Statistics reveal that the organized retail sector has increasing employee base burgeoning from 5.4 lakh to an awesome 22 lakh over the last couple of years.

Manpower Challenges:

Organized retailing is highly manpower intensive. Retailing is the second largest employer in India; presently it employs about 22 million people. The present scenario depicts that there will further be a very high demand for manpower to match the scope of roll out plans of various players in the near future. It is estimated that 8 million people will be required in organized retail by 2011. This gives a clear indication of the extent of human resources required to support the growth of retailing in India. Especially, at the lower levels, there is requirement for large number of support staff as customer care associates. Moreover, due to organized retailing correlation with other industrial and service sectors, it is generating a great deal of indirect employment viz. Security, Electrical and Mechanical Maintenance, Property Management Services, Parking, Sorting, Packaging, etc.

The FMCG sector continues to face the war for talent, with the number of people with disposable income growing every year. Indian FMCG professionals in the marketing field are considered the best, with many of them leading organisations worldwide. Sales & Marketing professionals from FMCG companies have been approached by companies from sectors such as Telecom, Textiles, Pharmaceuticals and Automobiles and the trend are likely to continue. FMCG professionals are much sought after as they bring with them specific skills which can effectively drive business transformation.

The sector is facing talent crunch because neither the talent required on such a large scale in the sector are available nor there is training infrastructure facility for them.

Unavailability of Experienced Manpower:

Organised retailing is an emerging sector in India; there are not many executives with long and relevant experience. KPMG report (2006) reveals that there is a skill-set gap in those manning the floors. Although, India has a huge posse of qualified human resources, who have the required education and are highly motivated to undertake the challenging tasks still there is more pronounced need for middle and senior level management. Managers from industries such as FMCG Telecom, BPO, and Hospitality are able to quickly learn and adapt to the demands of retailing. Consequently, the scramble for talent hunt amongst organised retail players will be as fierce as their battle for customers. Therefore, developing strategies for creating, attracting, nurturing, retaining are required in the initial stages themselves.

Spiro's Perception:

SPIRO's clients include well established multinational companies having globally benchmarked talent management practices, as well as domestic players with an interest in developing globally competitive capability and talent management programs. Our wide network of consultants collaborates closely to ensure that we can match our knowledge and expertise to our clients' business needs.