Why FMCG profits are so low

There are many reasons why FMCG profits are low

1, high cost and low selling price: FMCG prices are generally low (except for cosmetics), but the cost is relatively high, such as beverages, an outer bottle accounts for a large part of the cost.

2, more sales links: manufacturers - dealers - distribution - wholesale - retail terminals - consumers, the middle of each link to have profits, so the total view, profits are apportioned, the profit of each link is low; but if there is no such link, FMCG is very difficult to fully open the market.

3, thin margins, rely on the amount of money is the basic mode of operation of FMCG.

4, small businesses have fewer sales links, but they can't sell their prices

5, big brand buyers are relatively high, but the support costs are large, advertising, staffing costs, market operating costs, etc.