1.Definition of consumer goods in the consumer goods manufacturing industry

Before answering the question “What is consumer goods?”, let’s come to a broader term of “What is the industry field?”. Industry refers to the economic activity through which businesses and organizations produce goods and services for sale, commerce, or consumption.

Consumer goods are products that satisfy essential needs in daily life such as food, beverages, personal care products, hygiene products, household appliances, clothing, etc. In today's market, consumer goods are becoming more and more diversified and developed.

However, one of the most frequently asked questions is “What are industrial products?” and how different they are compared with consumer products. In essence, industrial products are products that are manufactured to satisfy the demands of businesses and organizations, or products that are used in industrial production processes. These products can include components, industrial computers, equipment, chemicals, building materials, and many more. Whereas, consumer goods are products that are designed to meet the daily consumption needs of consumers.

What are consumer goods?

In the consumer goods manufacturing industry, consumer goods are an important definition. Manufacturers of consumer goods must consider the needs of their customers when making products. Additionally, they must also identify their target audience in order to create products that cater to their requirements.

2.Characteristics of the consumer goods manufacturing industry

Specifically, industry is the sector that appeared the earliest in the world and has gradually entered Vietnam and become one of the key industries of our country. The Vietnam consumer goods manufacturing industry has the following distinct characteristics:

• Requiring small investment capital, providing quick payback and high profitability.
• Simple production process with short production time.
• The operation mainly relies on the abundant existing labor source and does not require skilled labor.
• Often causing environmental pollution in the production process.
• Having large domestic and international consumer markets.

Characteristics of the consumer goods manufacturing industry

• The consumer goods manufacturing industry belongs to the light industry, mainly providing daily consumer goods for people.
• Requiring fewer costs of raw materials, fuel, electricity and transportation than heavy industries.

It is noticeable that our country has a lot of favorable potentials to develop the consumer goods manufacturing industry with such factors as a large domestic consumption market and a plentiful supply of labor with a low basic salary.

3.Importance of the consumer goods manufacturing industry

The consumer goods industry is an important and essential sector in the system of industries of every country for many reasons:

• Creating a variety of common goods catering to the daily life of all classes of people.
• Many products of the industry can replace imported goods, contributing to increasing the value of exports.
• The consumer goods manufacturing industry satisfies the needs of life, creates job opportunities, especially for female laborers, contributes to the country’s exports, and increases people’s income.

4.Structure of the consumer goods manufacturing industry in Vietnam

By utilizing local raw materials, creating jobs, and owning a large consumption of products, the consumer goods manufacturing industry is widely distributed in many countries. Specifically, industries that produce consumer goods include handicraft industry, industrial technology, and the food industry.

• Handicraft.

What is the handicraft industry? In the handicraft industry, products are made by hand or with the help of basic tools. Handicraft products include clothing, shoes, jewelry, and other decorative products.

What is the handicraft industry?

Normally, handicrafts are produced in small factories or in family-owned production facilities, which helps create job opportunities for local communities and contributes to the local economy.

• Industrial technology

What is industrial technology? Industrial technology refers to the process of producing goods using high-tech machines and equipment. Some industrial products include electronic products, home appliances, automobiles, computers, mobile phones, and other industrial products.

Industrial technology is prioritized for development in large and modern factories

In contrast to handicrafts, industrial products are usually produced in large and modern factories. These factories are often located in industrial areas and provide many jobs for laborers.

• Food industry.

The food industry is one of the largest and most important industries. Products of the food industry include: processed foods, beverages, and other food products…

The food industry is growing in Vietnam.

These food products are manufactured in food factories and distributed to retail stores, supermarkets and restaurants. Food factories are often required to meet specific standards for food safety and product quality.

Through the article, we can notice that in many countries, the consumer goods manufacturing industry has thrived with the mission of leveraging the capabilities of all other economic sectors, coming in many types, scales and suitable technologies. With its growth potential, this industry sector promises to develop into a key industry reaching out to the international market in the future.

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