Fast Moving Consumer Goods – “FMCG” – falls under the broader Consumer Goods industry. FMCG products are in high demand, sell quickly and are replaced often. Such items are said to be “fast-moving” because they leave the shelves quickly.
FMCG products are typically sold at markets, supermarkets and convenience stores. For instance; canned drinks, toothpaste, soap, chocolate, cigarettes and sanitary products.
ProCapita has completed countless FMCG Headhunter assignments, for both MNC and Local producers.
Overview – the Indonesian FMCG Sector
FMCG and the broader Consumer Goods industry is considered one of the most exciting in the country. Annual sales exceed USD 10 billion. In addition, the industry sees year on year growth, driven by the country’s ever growing middle class population and increasing levels of disposable income.
The FMCG sector is critical to the country’s economy. And the future is bright.
With over 270 million people, Indonesia has the worlds 4th largest population. In addition, with an average age of 30, it has a “young” population by global standards.
FMCG sales make up about 18.5 % of national GDP (2016). This figure is expected to rise to 30 % by 2030.
According to research by Accenture 82% of all FMCG sales take place in traditional markets or independent “mom and pop” shops (2017). Also referred to as “General Trade”.
With only 18% of items sold via “Modern Trade”; large chain stores such as hypermarts, supermarkets and minimarts.
Why is this? According to a Snapcart survey, 65.2% of respondents stated that they saw General Trade Retailers as offering the lowest prices. On the other hand, consumers viewed Hypermarkets as the most expensive retail environment, followed by online.
Alongside this, the archipelago has 6,000+ inhabited islands. Until now, most of the rural population has been served by local independent retailers. However, Modern Trade chain stores, in particular minimarts, are slowly starting to enter less inhabited regions.
There are 4.1 million+ retail stores spread across Indonesia, the vast majority are independent “mom and pop” units.
The FMCG retail sector is highly fragmented. For instance, for grocery items, the five largest retailers have a combined market share of only 3.8%.
Having said this, shopping centers and retail chain stores are growing fast, not just in major tier 1 cities like Jakarta, Surabaya and Bandung, but also in tier 2 and 3 cities. However, urban areas, which possess 60% of the population, continue to be the core focus for Modern Trade Retailers. This leaves rural areas to be dominated by General Trade independent stores and markets.
Another interesting item is that a McKinsey report found local consumers to be risk averse and brand loyal. Based on their survey, 63% of respondents will only buy products that have familiar brand names. Therefore, Indonesian consumers are seen as “late adopters”, typically not willing to try new products until suggested by friends or family.
In conclusion, Indonesia provides huge opportunities, alongside significant challenges, for FMCG producers and Modern Trade retailers.
Fundamentally, the sector is benefitting from the increasing middle class population and its desire for more and more FMCG goods. On the other hand, as an emerging market and an archipelago nation, retailers must contend with large infrastructure and distribution issues. In other words, how to get the product to the end buyer.
E-Commerce is helping FMCG firms to get their products onto the radar of more people. However, the challenge still remains of transporting the items to the end consumer.
Executive Search for FMCG & Consumer Goods Businesses
As a booming local market sector, it is not surprising that FMCG firms often ask us to assist on key hires. Therefore, over the years ProCapita has worked on hundreds of FMCG related executive searches.
ProCapita has helped companies across all the major FMCG product areas:
- Personal Care / Hygiene / Sanitary
- Beauty / Cosmetics
- Food / Beverage / Alcohol
- Electronics / Batteries
- Consumer Healthcare
FMCG clients usually have very specific hiring needs. For instance, they require people with particular product knowledge or market experience.
Similarly, if recruiting for senior management or commercial roles, FMCG businesses often need professionals with specific sales channel expertise:
- General Trade
- Modern Trade
- Digital / E-Commerce
- HORECA (Hotels, Restaurants, Cafes)
And we have performed Executive Search for all key job functions:
- C-Level Leadership
- Sales, Marketing & Digital
- Operations, Quality Control, Production, Procurement, Supply Chain, Logistics, Product Development & R&D
- Corporate Administration; Finance, HR & Legal
Examples of FMCG / Consumer Goods Hires Completed:
- Country Head / President Director
- GM Operations
- Chief Financial Officer (CFO)
- VP Sales & Marketing
- National Sales Manager
- Director of Human Resources
- Chief Operations Officer (COO)
- Director of Plant / Production
- Head of Supply Chain
- Chief of Procurement
- VP Logistics & Distribution
- Sales Manager – Modern Trade / General Trade / HORECA
- Regional Head of Talent
- Senior Manager Marketing
- Chief Marketing Officer
- Head of Digital
- Senior Category Manager
ProCapita’s in-house Research Team is continually updating our FMCG Executive Database. Therefore, we are kept aware of the movement of all FMCG talent.
Above all, we provide market leading access to the specific type of FMCG professional that a client may require.
ProCapita starts to deliver qualified and interested executive candidates within 7 days of starting an FMCG Headhunter assignment.
What makes us different:
- We are the only boutique executive search firm in Indonesia, British owned and managed.
- As a true Headhunter Firm we provide Old-School Direct Approach Only Headhunter Services.
- The majority of local Recruiters operate as “Recruitment Agencies”. Therefore, they rely on Social Media Job Adverts to attract Active candidates.
- However, as a true Headhunter Firm ProCapita never uses job board advertising. For senior hires, online job adverts are far too public and an inappropriate way to gain candidate interest.
- Therefore, we always directly and proactively approach all relevant talent for a client position. We professionally market the role and our client business.
99% of ProCapita’s hires involve “Passive Candidates”. Professionals that are currently employed and not job seeking when we approach them.
- For clients that require confidentiality, we have a significant track record of completing “No Name Searches”. Under this approach, we only reveal the clients name once a candidate is selected for interview.
- As a boutique, we focus on quality vs quantity and provide a premium 24/7 client service.
- In addition, we manage the entire recruitment process, making our clients life easy.
- Our Consultants are proactive and honest in client communication, providing market specific information and insights. This helps to ensure a successful placement.
- We only invoice once a hire is made, on employment start-date. In other words, we provide a Success Fee (Contingency) Service. Therefore, all risk sits on our shoulders. If we don’t succeed we don’t invoice.
- In conclusion, our consultants are senior, long-established Headhunters with a combined 70+ years of executive search experience.
For companies that are looking to make a senior FMCG / Consumer Goods hire in Indonesia, please have a look at This Article. It gives an Overview about our Executive Search Process at ProCapita Indonesia.
Similarly, please check This Article which explains the Differences between a Headhunter Firm and a Recruitment Agency.
For FMCG or Consumer Goods Businesses that wish to hire Executive Talent in Indonesia, you can submit your Enquiry Here. Or reach us through our Contact Details Here. A Consultant will respond within a few hours.