What’s it: Consumer goods are goods for end-use by consumers without further commercial process. They range from durable products such as furniture and household appliances, clothing, and electronics, to non-durable products such as food and beverages.
Why are consumer goods important?
Consumption is vital to promote economic growth. In some countries with large populations, such as Indonesia, consumption accounts for more than half of gross domestic product (GDP). So, increasing demand for consumer goods is vital for growing the economy.
Businesses produce consumer goods to meet our needs and wants. These items are essential for our standard of living.
Abundant and varied supplies make our lives more comfortable. It helps us save time and increase productivity. For example, we can use cell phones to chat and talk with other people wherever we are. With computers, we can also produce reports or articles faster and more fun than by handwriting.
But, indeed, relying on several items also makes us lazier. This also affects the quality of health, such as the adverse effects of electromagnetic waves from cellphone use. A more significant impact is consumerism, where more people buy goods excessively.
The difference between consumer goods and capital goods
We call consumer goods final products because they are the final production output and don’t require further processing. For example, you can buy food and drinks on retail store shelves and consume them. You don’t need to process it further to get the benefits.
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Consumer goods are different from capital goods such as machinery, equipment, computers, and furniture. Businesses use capital goods to produce other products and services, including consumer goods.
Likewise, raw materials or semi-finished goods such as copper and steel plates aren’t consumer goods. Businesses must process them further to produce the final output.
Types of consumer goods
Based on the useful life, consumer goods consist of:
- Durable consumer goods
- Non-durable consumer goods
Durable consumer goods have a long useful life (usually more than 3 years). You can still use it during this time span without losing its benefits. Furniture and electronics are examples.
Conversely, non-durable consumer goods have a shorter useful life. This is because they usually run out once we consume. Examples are food and drinks.
Besides, marketers also classify consumer goods into four categories based on their buying patterns.
- Convenience goods
- Shopping goods
- Specialty goods
- Unsought goods
Convenience goods are regularly consumed and sold by wholesalers and retailers. Examples include dairy and tobacco products.
Two types of convenience goods are necessities and impulse goods. As the name implies, necessities are to meet our basic needs, such as food and drinks.
- Impulse goods are items you buy without prior planning. Candy near the cashier is an example. You immediately buy it when paying, without thinking about buying it first.
Shopping items have a higher unit value and are rarely purchased (for example, clothing and furniture). Therefore, their purchasing usually requires more thought and planning than convenience items. Likewise, the price of these items is generally higher and has a longer endurance and life span than convenience goods.
Specialty items are high-value items. Customers easily recognize it through their brand names and often are willing to sacrifice to get them. Therefore, marketers pay special attention to marketing these items. For example, they only target the upper-class market rather than the mass market. Examples of specialty items are jewelry and luxury cars.
Unsought goods were previously unthinkable by consumers. Desires appear, for example, because of danger or fear of loss. These items are usually not purchased repeatedly and only serve specified needs, such as life insurance.
In addition to the above classification, you might also hear the following consumer goods:
Fast-moving consumer goods (FMCG) – include products that are quickly and widely consumed. As a result, they promptly disappear from retail store shelves because consumers regularly buy them. Examples are:
- Meat and meat products
- Fish and fish products
- Fruit and vegetables
- Vegetable and animal oils and fats
- Dairy products
- Grain mill products
- Bakery products
- Cocoa, chocolate, and sugar confectionery
- Macaroni, noodles, couscous
- Malt liquors and malt
- Soft drinks, mineral waters
- Tobacco products
- Paper, and paperboard
- Corrugated paper, containers
- Soap and detergents, cleaning preparations, perfumes
- Men’s and women’s inner garments, deodorants, shaving gels, personal care, home care
White goods – comprise large household appliances such as freezers, stoves, refrigerators, and washing machines. In the past, this product generally had a white color, that’s why we call it that.
Brown goods – consist of relatively lightweight electronic devices such as radios, computers, and digital media players. Like white goods, in the past, wood or the like framed the outside of these products, making them look brown.
List of consumer goods companies in Indonesia
|Company||Business segment||Assets (IDR billion)||Reporting date|
|Indofood Sukses Makmur Tbk||Food and beverage||161,532||Sep-20|
|Indofood CBP Sukses Makmur Tbk||Food and beverage||102,157||Sep-20|
|Gudang Garam Tbk.||Tobacco||76,929||Sep-20|
|H.M. Sampoerna Tbk.||Tobacco||44,744||Sep-20|
|Kalbe Farma Tbk||Pharmacy||22,451||Sep-20|
|Unilever Indonesia Tbk||Cosmetics and household goods||21,079||Sep-20|
|Tunas Baru Lampung Tbk.||Food and beverage||19,984||Sep-20|
|Mayora Indah Tbk||Food and beverage||19,003||Sep-20|
|Kimia Farma Tbk||Pharmacy||17,688||Sep-20|
|Bentoel Internasional Investama Tbk.||Tobacco||14,592||Sep-20|
|Tempo Scan Pacific Tbk||Pharmacy||8,897||Sep-20|
|Diamond Food Indonesia Tbk||Food and beverage||5,670||Sep-20|
|Integra Indocabinet Tbk||Houseware||5,645||Sep-20|
|Ultra Jaya Milk Industry & Trading Company Tbk||Food and beverage||5,584||Sep-20|
|Kino Indonesia Tbk||Cosmetics and household goods||5,324||Sep-20|
|Garudafood Putra Putri Jaya Tbk||Food and beverage||5,033||Sep-20|
|Bumi Teknokultura Unggul Tbk||Food and beverage||4,997||Sep-20|
|Nippon Indosari Corpindo Tbk||Food and beverage||4,007||Sep-20|
|Soho Global Health Tbk||Pharmacy||3,787||Sep-20|
|Industri Jamu dan Farmasi Sido Muncul Tbk||Pharmacy||3,700||Sep-20|
|Panca Mitra Multiperdana Tbk.||Food and beverage||3,338||Jun-20|
|Siantar Top Tbk||Food and beverage||3,308||Sep-20|
|Multi Bintang Indonesia Tbk.||Food and beverage||3,096||Sep-20|
|Budi Starch & Sweetener Tbk||Food and beverage||2,936||Sep-20|
|Mandom Indonesia Tbk||Cosmetics and household goods||2,275||Sep-20|
|Tiga Pilar Sejahtera Food Tbk.||Food and beverage||2,124||Sep-20|
|Darya-Varia Laboratoria Tbk||Pharmacy||1,908||Sep-20|
|Sekar Bumi Tbk||Food and beverage||1,793||Sep-20|
|Merck Sharp Dohme Pharma Tbk||Pharmacy||1,771||Sep-20|
|Wismilak Inti Makmur Tbk.||Tobacco||1,553||Sep-20|
|Wilmar Cahaya Indonesia Tbk||Food and beverage||1,385||Sep-20|
|Sariguna Primatirta Tbk||Food and beverage||1,323||Sep-20|
|Delta Djakarta Tbk.||Food and beverage||1,200||Sep-20|
|Tri Banyan Tirta Tbk.||Food and beverage||1,101||Sep-20|
|Campina Ice Cream Industry Tbk||Food and beverage||1,090||Sep-20|
|Akasha Wira International Tbk||Food and beverage||890||Sep-20|
|Buyung Poetra Sembada Tbk||Food and beverage||887||Sep-20|
|Victoria Care Indonesia Tbk||Cosmetics and household goods||809||Jul-20|
|Prasidha Aneka Niaga Tbk.||Food and beverage||787||Sep-20|
|Sekar Laut Tbk||Food and beverage||757||Sep-20|
|Langgeng Makmur Industri Tbk||Houseware||708||Sep-20|
|Mulia Boga Raya Tbk||Food and beverage||615||Sep-20|
|Mustika Ratu Tbk||Cosmetics and household goods||566||Sep-20|
|Martina Berto Tbk||Cosmetics and household goods||523||Sep-20|
|Chitose Internasional Tbk||Houseware||505||Sep-20|
|Indonesian Tobacco Tbk.||Tobacco||490||Sep-20|
|Inti Agri Resources Tbk||Food and beverage||376||Sep-20|
|Cahaya Bintang Medan Tbk||Houseware||345||Sep-20|
|Wahana Interfood Nusantara Tbk||Food and beverage||268||Sep-20|
|Morenzo Abadi Perkasa Tbk||Food and beverage||258||Sep-20|
|Cottonindo Ariesta Tbk||Cosmetics and household goods||250||Sep-20|
|Pyridam Farma Tbk||Pharmacy||219||Sep-20|
|Kedaung Indah Can Tbk||Houseware||157||Sep-20|
|Era Mandiri Cemerlang Tbk||Food and beverage||133||Sep-20|
|Sentra Food Indonesia Tbk||Food and beverage||121||Sep-20|
|Pratama Abadi Nusa Industri Tbk||Food and beverage||120||Sep-20|
|Prima Cakrawala Abadi Tbk||Food and beverage||113||Sep-20|
|Boston Furniture Industries Tbk.||Houseware||28||Jul-20|