FMCG, Pharma are both defensive stocks. But I frown at FMCG stocks and prefer Pharma for the following reasons:
1. FMCG has easily duplicatable products. All biscuit manufacturer have cream, marie, butter buiscuits and also take for eg huge player like HUL, which has several soaps. If Liril’s share is increased, it might be eating the Pears
2. Heavy.. very heavy Adv cost in FMCG and brutal price wars
3. People need new products or improved products every week
4. In Pharma the doctor chooses the best product and ppl don’t mind paying price
5. In Pharma even though we’ve generics, Doctor knows whats the best and they choose the leader
6. Unlike FMCG in Pharma there are fewer ppl who decide what to buy, its easy for the Pharma companies to sell to them
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