When comparing two of the biggest sectors in the world, the industrial goods and consumer goods sectors are no stranger to contributing to extremely large parts of the economy annually.
If the industrial sector is responsible for the manufacturing and sales of everything from the world’s machinery, manufacturing materials, plants and other tools or components used by other major industries and firms, then it is quite understandable as to why it is considered a crucial sector. It is especially true in the development of technology.
The consumer goods sector is also considered a crucial sector in the world of trading as it accounts for the majority of human resources, such as food, clothing, as well as the production and manufacturing thereof.
What are Industrial Goods?
Based on the demand for industrial goods, which is in fairly high demand all over the world, there are two categories in which industrial goods fall under to balance out the industry.
It includes production support goods, as well as final consumer goods, which is industrial products, such as equipment, and machinery. If you take a look at sectors surrounding the industrial markets, you’ll come to find that without it, many industries will fail and not be able to implement modern day technology or innovations, as it did in the last few centuries.
What is Consumer Goods?
The consumer goods industry can be described as tangible commodities, which is most often produced and sold in retail stores to suit the needs of the buyer, which is also known as the customer.
These goods are classified as both durable or non-durable goods, as well as consumer services.
Durable goods refer to things such as furniture, cars and equipment for your garden. If these durable goods can usually be sold within the period of three or more years, it gets taken out of the store or placed on sale.
Non-durable goods include products that can be used immediately such as food and beverages. What most consumers don’t know, is that it also includes clothing.
When it comes to consumer goods, imagine any intangible product or service that still render a profit, even though a physical product isn’t being sold. These include your local services such as a car wash, an appointment with your hairdresser, your dentist, doctor or any related service purchased from a business.
The Importance of Industrial and Consumer Goods
In a nutshell, there is a big difference between these two types of goods. Both of them concludes to industries of their own and contribute to the economy in a big way.
If neither of these industries existed, the entire population of the world would still be caught up in the way people lived a couple of hundred years ago. Other than that, there would also not be any development in humankind regarding equipment for specialities such as medicine, education or even economic growth as a whole.