Deloitte - Top 10 Issues – 2003, Revised 2008

Deloitte Top 10 - Consumer Business Top 10 Issues 2003 Personal Household Durable Goods From Source To Consumer Personal Household Durable Goods

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Top 10 Issues – 2003 From Source To Consumer Consumer Business
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
1 Goods Manufacturers — Top Ten Issues Introduction Manufacturers of personal, household, and durable goods confront a difficult business environment including an uncertain global economy, worldwide overcapacity, rising energy costs, fears of terrorism, and health alerts. For three years running, a global economic recovery has remained more of a mirage than a reality. Pricing pressures have intensified and are expected to continue into 2004. A slow-growth environment means that companies are scrutinizing their balance sheets, looking to defer capital expenditures and reduce debt. Other 22% Computers/ Software 11% Video/Audio 23% China/ Tableware 11% Appliances 12% Furniture 21% Source: U.S. Department of Commerce
Background image of page 2
Fortunately, there are indications that consumer spending is poised to return to more solid growth. Consumer confidence is recovering from its nine-year low, and preliminary data suggest that the economy is headed for healthier gains. Consolidation, coupled with the growing brand equity of retailers, has given stores greater clout in requiring consumer product companies to provide more merchandising and inventory support. As larger retail chains acquire smaller ones, manufacturers need to focus on brand management to leverage limited shelf space and maintain a strong global presence. Other major issues for manufacturers include the need to create new products to respond to changing demographics and new concerns over product safety. In addition, manufacturers are looking to increase the efficiency of their supply chains, driven both by the demands of Wal-Mart and the cost-savings opportunities offered by new technologies. Manufacturers of personal, household, and durable goods face a formidable set of challenges. Here are the ten critical issues for consumer goods manufacturers in the coming year. Hair/Oral/Other 57% Soap 10% Cosmetics/ Perfumes 33% Personal Care Products: $57 Billion in Sales Household Supplies: $64 Billion in Sales Paper/Misc. Supplies 38% Cleaning Supplies 49% Lighting Supplies 13% 2 Source: U.S. Department of Commerce Source: U.S. Department of Commerce
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
3 Summary of Issues 1. The Wal-Mart Effect . Wal-Mart’s market power is inescapable. Manufacturers need to continually increase their operational efficiencies to meet the retailer’s demanding standards, while at the same time differentiating their products from the increasing competition provided by Wal-Mart’s private label brands. 2. Responding to the Increasing Brand Equity of Retailers. To offset the growth in private label, manufacturers need to rationalize and strengthen their own brands to continue to build loyalty among consumers. 3. Managing Brands
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/05/2011 for the course BUSINESS 404 taught by Professor Kast during the Spring '11 term at Wilfred Laurier University .

Page1 / 17

Deloitte Top 10 - Consumer Business Top 10 Issues 2003 Personal Household Durable Goods From Source To Consumer Personal Household Durable Goods

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online