Emerging Markets Take Lead Among Fastest Growing Consumer Product Companies..!

According to the sixth annual 2013 Global Powers of Consumer Products report issued by Deloitte Touche Tohmatsu Limited, the slowdown in the economy has taken its toll on many but not all emerging markets.

Acquisitions and product innovation were considered to be the major growth drivers. Emerging markets accounted for about 60% (29 companies) of the 50 fastest growing consumer product companies over the 2006-2011 period. This group of companies grew more than three times faster than the Top 250 as a whole.

Two Indian companies Ruchi Soya & ITC Ltd continued its presence in the Deloitte Top 250 list.

Ruchi Soya ranked 121 this year, performed remarkably well as compared to its position 175 in the Top 250 list published last year. Another Indian company that retained its place in the list was ITC Limited ranked at  150, a fall from it earlier ranking of 143. Videocon Industries Ltd that made its debut to the Top 250 list last year, thanks to its aggressive organic growth failed to find a place this year though.

“While the global economic scenario will favour some and be harsh on others, companies that understand & cater to changing consumer needs will always have opportunities to profit. For many decades the developed markets tapped the emerging ones’ with existing products and services, however the future for companies in the emerging markets is to innovate specific products and services that cater to the consumer in the emerging markets itself”, said Mr. Gaurav Gupta, Senior Director, Deloitte India.  

The world's 250 largest consumer products companies grew by 7% in fiscal year 2011 (which encompasses fiscal years ended through June 2012) despite global economic uncertainty, with total sales exceeding $3 trillion, up from $ 2.82 trillion in fiscal year 2010.

Additionally, the report found that the ten largest consumer products companies reported combined sales of $ 84,600 Cr. 80% of companies reported increased sales last fiscal year, whereas 90 percent a registered profit.

"The global economy has witnessed several challenges including inflation, the euro crisis, and natural disasters. Healthy consumer product sales are an indicator that the global economy may be cautiously rebounding," said Dr. Ira Kalish, Director of Global Economics at Deloitte Services LP in the United States. "For the coming years, this means that the industry should see solid growth, but disproportionately coming from emerging markets."

Electronic Products companies' top list..!

For the first time, the top three spots were filled by companies from the electronic products sector. For the fifth consecutive year, Samsung retained its number one position, followed by Apple Inc., which climbed 21 spots in five years to rank second. Panasonic Corporation remained in third place.

For the second consecutive year, the fashion goods industry posted the highest growth rate (14%) of all the product sectors analyzed. It also remained one of the most profitable, with a composite net profit margin of 8%. On the other hand, the food, drink, and tobacco sector saw its top 250 representation decline. Nevertheless, the sector reported substantial composite sales growth of 9%.

Consumer Behavior...!

The report also gauged consumer behavior trends particularly in light of digital growth. With the increase of smartphone & tablet adoption, the impact on consumers and their "path to purchase" has been evident. Deloitte research has found that 58% of consumers who own a smartphone have used it for store-related shopping.

However, India still needs a lot of catching up to do as compared to its other BRIC nation peers. As of the first half of 2012, only 10% of mobile subscribers in India owned a Smartphone. In comparison Brazil had 36%, Russia 37% and China 66% of Smartphone owners.

Deloitte Touche Tohmatsu India Private Limited

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Malika Kumar
Deloitte Touche Tohmatsu India Private Limited

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Vishnuram

Integral PR, Chennai, Mobile: +91 9841255885

Email: vishnu@integralpr.com

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