The decline of the overpriced consumer brand? | Value Investing News

The decline of the overpriced consumer brand?

  • The global CPG companies are currently facing a confluence of headwinds, ranging from weak inflation in key developed markets, to the rise of Amazon and other retailers’ private labels, to the acceleration of online shopping which has made prices more transparent and discounting more prevalent.
  • Proctor & Gamble reported that prices fell 2 per cent across its businesses in the first quarter, led by its Gillette shaving brand.
  • What has become increasingly clear to shareholders is that these companies must increasingly rely on volume growth rather than pricing to grow their top line.
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