SUCCESS FACTORS OF FAST MOVING GOODS OF SMALL MEDIUM ENTERPRISES IN INDONESIA: SUCCESS FACTORS OF FAST MOVING GOODS BUSINESS

Fast moving consumer goods (FMGC) are regularly and frequently purchased goods with affordable price. It is defined as goods that are generally replaced or fully used up over a short period of days, weeks, or months, and within one year. It has a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. The marketers, which were small medium enterprises in this case, produce or provide high volume for the products. They gained profit through massive sales because the goods have low contribution margins, so the entrepreneur is forced to broader his distribution network extensively (Majumdar, 2004). On the other side, in fast-moving goods industry, companies face a very difficult task developing a competitive advantage based on differentiation or low cost strategies. The main reason is that competitors match or even overtake innovations and costs reductions in a very short period (Kunc, 2005).
In Indonesia, fast moving goods, become a popular business option for small medium enterprises. Since the entrepreneur could start it easily, the business promise certain profit in a short time even though not as much as shopping goods. Many new SMEs tend to choose fast moving goods for their first start since the product frequently purchased by consumers. Because of the low price, the SMEs do not have to spend a lot of money for the initial capital; they could start the business in a short plan.
Although SMEs have the advantage from the various sides, but they still faced many constraints and challenges, consequently SMEs need to focus on factors to succeed in the business. In order to achieve success in business, according to Pitts an entrepreneur must be able to build confidence and ideas in themselves to create effective steps that embodies these ideas forward. This means, the business itself must be a challenge for the entrepreneurs and it is a business that could develop enthusiasm, a business that trigger a passion, or a business that become his/her interesting so it would not become a tiring job. Source
Entrepreneurs should focus on the main objectives that want to be achieved rather than question the obstacles that appear in every activity while building a business. Entrepreneurs should also need to establish good mentoring relationships with other entrepreneurs who have the ability to look at a particular situation with variety of perspectives. This statement was reinforced by Soriano which stated that the innovative talent is closely linked to the individual character of the entrepreneur. The characters are very positive influence on the business success, such as ambitious, never gives up, relaxing the pressure, positive thinking, and other positive characteristics.
In addition, according Huovinen & Tihula, knowledge is also a major capital for entrepreneur to start a business. Knowledge can be acquired through experience, so that the entrepreneur is not only able to control the products marketed but also have a good managerial skills to support business continuity.
Other success factors owned by SMEs entrepreneurs in various types of business in various countries are presented in table 1.

Table 1. Business Success Factors

No Success Factors Literature Sources
Business challenging McManus & Delaney; Kropp et al.
Hard working McManus &Delaney
High motivation Pena
Discipline McManus & Delaney; Jin et al.
Interested in the Business McManus & Delaney
Hiring high integrity employees McManus & Delaney; Jin et al.; Deamer & Earle; Pasanen & Laukkanen
Good leadership McManus & Delaney; Darling et al.; Jensen & Luthans
Personality traits McManus & Delaney; Darling et al.; Sarri & Trihopoulou; Soriano; Mattis
Involvement in the process McManus & Delaney
No Success Factors Literature Sources
Good business instincts Pech & Cameron
Good opportunity Pech & Cameron; Haynes; Jin et al. ; Darling et al.; Wright et al.; Jones & Holt; Yu
Strong capital Zaratiegue & Rabade; Soriano; Wilson & Stokes; Pasanen & Laukkanen
Adopting information technology and communication Roffe
Knowledge Roffe; Omerzel & Antocic; Haynes;    Jin et al.; Huovinen & Tihula; Pena; Pitts; Kropp et al.; Deamer & Earle; Awe; Simpson et al.;    Pasanen & Laukkanen
Customer satisfaction Bennet & Rundle-Thiele; Darling et al.; Pasanen & Laukkanen
Extensive experience of business Jin et al.; Huovinen & Tihula; Pena; Deamer & Earle
Continuous innovation Darling et al.; Soriano
Maintaining ethics in business Machan
Good marketing strategy Wilson & Stokes
Adaptation Schindehutte & Morris