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Soap and Economics

First few months in a FMCG industry is all about learning. This is true for almost every kind of industry. Or better still, you never cease to learn anywhere ... usually. But then, these learnings is not only about your work or general philosophical fundas pertaining to life, universe and everything.

Having been in FMCG industry for few months has thrown up a few learnings for me too. But weirdly, I think I think I have learned most about economics and few random bits about life in a rural-ish setting (bits of which I have been mentioned in few earlier posts few months ago.)

The economics I am mentioning is not all those complex equation, but few random common-sensical, observational stuff - a la The Under Cover Economist way.

- For example, so many different things are involved in making things work for a product (apart from people managing and researching on it), say a soap - host of vendors (for different species of raw materials, packaging materials), support materials like labels, stickers etc.,

- Different agencies involved - media planning agency, advertising agency, PR agency, design agency, printers etc.

- Businesses which survive on above like Media - TV, newspaper ... even internet.

- Different kinds of people involved in taking the products to the marketplace - transporter, guys at warehouse, distributor, salesman, retailer ... and all the company people employed to smoothen the process.

- Add few more things like consultants, accountants, auditors, market research agents, software developers which provide support organization in various forms

- And then support staff (as in canteen guy, janitor etc.) or the neighboring paan waalah, the puncture repair shop opposite to the office etc.

- Then there are guys like banks or various agencies who suck in the money of the ones above and pump it into the system.

- Then there are credit card guys who tell you to spend more and more, which is used to buy more and more and feed in other such companies (with different products and services) the above people put in their money to buy the same soap and similar stuff and so on ...

With so many different companies and businesses and so many interconnections ... imagine the scale ... and all the systems that keeps money flowing and the economy ticking ...

It might seem elementary, but it's amazing. But then, this is just an extremely small part of this whole complex system of economics!

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