hiiiiii i need help on a project on oil prices... on how oilprices has effected FMCG , how it has effected consumer, how it has contributed to rise in inflation . pls reply soon its urgent.....
Well, strictly speaking oil prices affect all markets indirectly. The process works this way:
-Oil prices have a direct effect on gasoline (fuel) prices.
-Gasoline prices affect transportation prices, making basically everything to have higher prices (consequently, generating inflation).
-Inflation makes everyone's spending power to go down.
-Higher gasoline prices also take a part of people's income that in other scenario would be spent on other goods or merchandise.
-People spending goes to basic needs first, and the remaining to non-basic needs (such as consumer electronics) and then to savings.
-When people have savings are more prone to spending on shopping.
Now, the cost of oil (petroleum) affect directly the plastics and products that use plastics directly:
-So, as most consumer electronics products have plastics involved in their production, the rise in the price will make them less affordable.
-If you add this to the indirect effects mentioned before, the problem is even worst.
Finally, you can conclude that YES, oil prices will affect the consumer electronics market indirectly (spending power) and directly (related cost of materials).
plz check dis are some articles which will help u make data for d project
The Hindu Business Line : Rise in palm oil prices to hit FMCG cos
Moneycontrol >> News >> Business >> Oil price hike: FMCG, steel cos to face brunt
this is a pdf
http://www.google.co.in/url?sa=t&ct...168YAN-_ulaDpDHhg&sig2=HXFwBHfoD3DY6MvbnKJJzQ