The consumer goods industry is its own that provides basic foods, houses, and appliances to consumers. This sector is the economy’s powerhouse. Without them, there is no need for people to live in that country. In this article, we will delve into this term.
Definition of Consumer Goods Industry
1. Consumer goods industry is a sector of an economy that provides goods and services to the final consumers.
2. It can be explained as an industry that buys raw materials from capital goods firms, processes them, and sells them to final consumers.
Conversion process. The consumer goods industry converts materials bought from the capital goods sector. Subsequently, it processes them to form useful to final consumers. Meat sellers buy cows. Afterward, slaughter the cows to a form that can be sold to households.
Important economic sector. This sector is very important to an economy. One reason is that it has the largest market. Every citizen in an economy will eat basic foods like rice, beans, eggs, oil, and more. They also need gadgets like television, radio, smartphones, and more. If the economy cannot provide these things, then that country has failed its citizens.
Final consumers. Individuals and families are final consumers. We all need food to eat, clothes to wear, and houses to live in. Health is also another important thing we need. And finance to take care of the family and run businesses. These things are provided by the consumer goods industry.
Examples of Consumer Goods
Examples of consumer goods are Staple food and other farm crops. Electronic gadgets encompassing smartphones, games, apps, computers, Augmented Reality among others. Varieties of consumer motor vehicles. Also are personal banking services, insurance services and the list goes on.
Finally, the consumer goods industry provides products and services made available to final users. That’s you and I. Reading this article might be a consumer product to you if you’re the final destination. However, if the product or services are not sold to the final consumer then they are capital goods. Financial services, electronic gadgets are among examples of this term.