What is consolidating and fragmenting in consumer tastes

26-Jul-2016 22:46 by 7 Comments

What is consolidating and fragmenting in consumer tastes - Sexy chat men online

The supply of obscure films and music seems to be growing faster than people are discovering them.

Dollar Shave Club’s direct to customer business model, for example, has propelled the company to over 0m in sales and #2 market position in US shaving in just 5 years. Turnover is stated in US dollars but growth rates quoted are those in the local currency in which each company reports.

The record may not stand for long: next month “Avatar”, a three-dimensional action movie thick with special effects, will be released (see picture).

This film's production budget is reportedly 0m, which would make it one of the most expensive movies ever made.

Cable and satellite television are growing quickly, supplying more channels to more people across the world.

More than half of all pay-television subscribers now live in the Asia-Pacific region.

The report reveals that M&A deal value quadrupled from bn in 2014 to 6bn in 2015, with a flurry of large deals making 2015 the biggest year of M&A in the sector since 2008.

Two mega mergers - ABInbev-SABMiller and Kraft Heinz - accounted for 5bn or three quarters of the total, but the increase in M&A activity was also driven by: further consolidation in cash rich but low growth tobacco; Brazil’s JBS expanding into Europe with its acquisition of Moypark; and Heineken purchasing four mid-sized businesses in emerging markets.

In emerging markets, local players have been taking share through a combination of scale in local distribution networks, tailoring products to local trends and tastes, and agility.” The research shows that the Global 50 are working hard to find a way out of these doldrums, however, with mergers and acquisitions just one of the levers being pulled to find growth.

Marketing spend was up by 0.7% of sales, R&D by 0.1%, together contributing an bn boost in investment and leaders in the industry have been embracing digital across the value chain in a further bid to drive growth.

That is, the few products that sell a lot were losing market share to the great many that sell modestly.

By cutting storage and distribution costs, the internet was overturning the tyranny of the shop shelf, which had limited consumers' choices.

Will Hayllar, Partner at OC&C Strategy Consultants said: “The Global 50 consumer goods giants are finding their very business model under siege from all sides.

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