FMCG, or fast-moving consumer goods, are products that people buy regularly. Most of us think FMCG is about soaps, shampoos, and food items with low margins. But there is another side. Some FMCG products offer very high margins to retailers and franchise owners.
Stores like U.S. Dollar Store 99, Market 99, Super 99, MR DIY, and Miniso have built successful businesses on these high-margin goods. They sell affordable lifestyle and household products, yet they make solid profits.
In this article, I will explain what high margin FMCG goods are, how these brands operate, and why their franchise model attracts entrepreneurs. I will also share personal insights and expert views to give you a complete picture.
What Are High Margin FMCG Goods?
High margin FMCG goods are products that:
- Sell quickly.
- Cost very little to make.
- Offer high profit on each sale.
Examples include home décor, stationery, plastic containers, toys, kitchen tools, and beauty accessories. Customers see them as budget-friendly. But because brands source them at very low cost, margins remain high.
This is why you see ₹99 stores everywhere. The business model works.
U.S. Dollar Store 99 Business Model
The U.S. Dollar Store 99 brought the “everything at 99” concept to India. Their strategy is clever. They focus on importing or sourcing low-cost household items. Then they sell them at ₹99 or slightly higher.
From a customer’s point of view, it looks like a great deal. But for the store, the margin is excellent. For example, a kitchen spatula sold at ₹99 may cost only ₹20–25 in bulk sourcing.
I once visited a Dollar Store outlet in Delhi. What struck me was the variety. Customers rarely leave with one product. They usually pick four or five. That increases the average bill size and makes the franchise profitable.
Market 99 Franchise Success Story
Market 99 is one of the fastest-growing retail chains in India. Their motto is simple: affordable products with good design. They target middle-class households who want to upgrade their homes without overspending.
From glassware to organizers, they keep everything under the “budget yet premium” category. And their use of “99” pricing works like magic. People psychologically feel it is cheap, even if the actual difference is ₹1.
I spoke to a franchise consultant once who mentioned Market 99’s model is especially attractive for small investors. Why? Because the stock turns over quickly, margins stay healthy, and customer satisfaction is high.
Super 99 Retail Strategy
Super 99 offers a treasure-hunt shopping experience. Their stores are full of products across categories—stationery, toys, kitchenware, and gifts. Customers enjoy exploring because there is always something new at low prices.
From a business angle, this model is smart. Many products are impulse buys. Shoppers may not need them, but they pick them up because of low prices. Impulse products usually have very high margins.
For franchisees, this is important. The more customers buy on impulse, the higher the revenue. And because sourcing is cheap, profits remain strong.
MR DIY High Margin Products
MR DIY, originally from Malaysia, has entered India with big plans. Their focus is slightly different. They sell DIY tools, household products, and unique items not found in kirana stores.
Here the advantage is exclusivity. Customers see MR DIY as a place for new, innovative, and useful products. Even if prices are low, the perceived value is high.
From a franchise angle, MR DIY has global systems in place. This makes operations smoother. Margins are healthy because many of their products are sourced in bulk from Asia at very low cost.
Miniso Lifestyle Brand Example
Miniso is a brand that feels premium but is affordable. It focuses on design. From bottles to toys to bags, everything looks modern and stylish.
The secret of Miniso’s success is branding + margin. Customers are ready to pay ₹200–₹500 for a product that may cost less than ₹100 to make. This gap creates strong profits for the company and franchise owners.
When I visited a Miniso store, I noticed how young shoppers were buying in groups. They enjoyed the experience, clicked pictures, and purchased multiple products. This shows how a brand can turn affordable goods into a lifestyle statement.
Why These FMCG Brands Are Successful
Looking at these examples, some patterns are clear:
- Smart sourcing from low-cost manufacturers.
- Bulk buying to cut per-unit cost.
- Attractive pricing with ₹99 strategy.
- Product variety to increase basket size.
- Impulse buying that boosts revenue.
- Strong branding to increase perceived value.
Together, these make a winning formula for high margin FMCG goods.
Franchise Benefits in High Margin FMCG
Now let us talk about the franchise angle. Why should entrepreneurs consider this model?
- Proven Business Model – Franchisees follow a tried and tested format. The risk is lower.
- High Margins – Products usually give 40–60% margin. Some even higher.
- Low Investment Range – Many of these stores need moderate investment compared to food franchises.
- Quick Return on Investment (ROI) – Fast product turnover means quicker recovery of investment.
- Strong Support – Brands like Miniso and MR DIY provide training, supply chain, and marketing support.
- Customer Trust – People already recognize these brands. That saves marketing effort for the franchisee.
For small and medium investors, these factors are very attractive.
Expert Opinion
Retail experts often say that FMCG is about volume plus margin. Only margin is not enough. Only volume is not enough either. But when both combine, the business becomes profitable and scalable.
High margin FMCG stores balance both sides well. They sell in large volumes and earn strong margins on each sale. That is why franchisees see growth faster compared to traditional retail.
Personal Insights
From my visits to different outlets, one thing stood out: customers feel smart when shopping here. They believe they are saving money. At the same time, franchise owners are making healthy profits.
This win-win equation is rare in business. And it explains why the franchise network of these brands is expanding across India.
Challenges for Franchise Owners
Of course, no business is without challenges. In this segment, common issues include:
- Inventory management – So many SKUs make stock control complex.
- Changing trends – Customers want fresh and trendy products.
- Competition – More brands are entering the ₹99 space.
- Import dependency – Currency fluctuations can affect cost.
But with strong systems and regular product updates, these challenges can be managed.
Future of High Margin FMCG Goods in India
High margin FMCG is a growing opportunity in India. Customers love affordable, attractive, and useful products. Brands like U.S. Dollar Store 99, Market 99, Super 99, MR DIY, and Miniso are proving the power of this model.
For entrepreneurs, franchise investment in this space is promising. With healthy margins, quick ROI, and strong customer demand, it is a business worth exploring.
From my perspective, the formula is simple: offer value to customers, and profit will follow naturally.