Our analysts Katerina, Zhixin and Giles have put together in our insight this month their thoughts on the opportunities and challenges for consumer stocks, highlighting the inherent quality these companies have and the value opportunity they represent.
Big brands and the huge marketing machines that sit underneath them have found themselves under direct attack in recent years from agile upstart competitors.
From beauty products to biscuits, the stability and durability of long-term brands has been eroded by inertia on their behalf and also from changing consumer behaviour, with the way we shop now eliminating much of their competitive advantage over new entrants.
Brands that cannot adapt to changes such as Amazon’s Alexa and the product placement challenges they create will, regardless of their size, succumb to those which can. But of course, the giants of the consumer staples world are not ones to lie down and accept their fate.
Below, three of our investment analysts look at the challenges facing consumer staples globally and how brands are fighting back.