FMCG Companies & Audit of it
FMCG, What is it ?
Fast-moving consumer goods or FMCG (also known as Consumer Packaged Goods or CPG) are, typically, low-value products with a regular high turnover of product.
Individually they often have a low profit margin – but because of the likelihood of bulk sales, they can be very profitable.
Fast-moving consumer goods generally carry shorter shelf lives, are bought for everyday consumption and encourage customer loyalty. Thus, companies in this sector trade at high volumes which means vast distribution networks, low-contribution techniques and high stock turnovers are fundamental to their success.
Why Retail Audit is Crucial for FMCG’s Success?
Retail auditors are those professionals that basically asses the stock at the retail outlets, in relation to company records and set requirements. They analyze everything about the company’s stock in a retail outlet. They provide information about the brand’s sales volume, the trending sales techniques, in store display effectiveness and overall stock management. Thus, retail auditors are important for any company but more so for FMCG companies which depend highly on retail stores for their product sales.
What key functionalities retail auditors perform:
- Assessment of the various stocks in all the retail stores allocated to them.
- Matching the stocks with the company’s records.
- Checking for any damage or wrong stock.
- Realizing any issue with a particular stock.
- Clearance of stock in a timely manner.
- Documenting and proper reporting.
- Informing and reporting to the higher authorities
What you need to know about FMCG Sector in UAE?
The FMCG (Fast Moving Consumer Goods) / Consumer Packed Goods (CPG) represents one of the largest industries worldwide. Companies involved in FMCG sector supply low-cost products that are in high demand. The sector is characterized by low margin & high volume. FMCG Sector in UAE is facing a challenging environment with recent changes in the market including implementation of VAT (Value Added Tax) and excise progressive pricing. FMCG Volumes are dipping down YOY by 3.2 % in UAE since last 2 years, which caused aggressive promotional campaigns by manufacturers and retailers to compensate for their sales losses and maintaining market share. The total sales of goods sold through discounts and special offers have reached 47% of total volume sales in the UAE, levying of the excise tax to reduce consumption of unhealthy/ harmful commodities such as energy drinks and carbonated drinks, cigarettes, etc. For markets that have been enjoying a decade of double-digit growth, it has been a challenge for manufacturers and retailers to adapt quickly to this new competitive intensity. The overbidding war on promotion has led companies to take quick, short term, decisions in order to defend their position: Recent Trends:
- Omni Channel Retail expanding
- Greater focus on healthier products. More emphasis on health and wellness product
- Upscale packaged food and drink that are ready to use and offer speed scratch is on rise
- Increase in disposable income and consumers
- Millennial consumers are creating their own impact on FMCG market
- Demand Driven by population Density
How Can FMCG Enterprises Achieve Global Regulatory Compliance?
In the FMCG industry, compliance is key. But in a changing regulatory landscape, how can FMCG brands stay ahead? Learn how to achieve global regulatory compliance in our guide.
In the dynamic industry of fast-moving consumer goods (FMCG), compliance is a crucial element. It has a direct impact not just on a brand’s success, but also on the wellbeing of consumers and the environment.
The FMCG industry is characterized by rapid pace, global reach and diverse product offerings, operating within a complex web of national and international regulations and standards.
In this article, we explore the challenges facing FMCG brands today and look at how brands can seek to respond to ever-updating guidelines to achieve global regulatory compliance.
How should FMCG enterprises respond to regulatory compliance risks?
Against this backdrop of increased compliance challenges, successful FMCG businesses will be those that focus their time and resources in getting familiar with – and ahead of – any upcoming changes.
AHG-Dubai provides the top audit reports, VAT services in Dubai, which meet the requirements of Federals Tax Authority in UAE, VAT laws, It is important to mention that our native language is Arabic, to follow Federal Law No.7.