What Big Consumer Brands Can Do To Compete In A Digital Economy
No industry is failing faster than retail. Just last month, the 125-year-old Sears—once the world’s largest retailer—filed for bankruptcy. The public has more or less come to expect the shuttering of stores such as Macy’s, Sears, Toys ‘R’ Us, Kmart, Kohl’s, J.C. Penney, and Barnes & Noble. The ones that manage to escape are discount chains—such as T. J. Maxx and Marshalls—which compete aggressively on price. Price competition hurts. It also hurts the brands sold inside the stores, which in part explains why consumer product giants like Procter & Gamble are seeing their sales stagnate for products like Tide detergent, Gillette razors, Pampers diapers, and Crest toothpaste. A recent report by the consultancy BCG documented a general decline in sales among consumer packaged goods (CPG) companies in the United States during 2017, with mid-sized and large companies losing market share and small companies increasing theirs. Consultancy Catalina also revealed that 90 of the 100 top brands had all lost market share. In dollar terms, small players—defined as those with sales less than $1 billion—grabbed approximately $15 billion in sales from their larger peers between 2012 and 2017. Read more at Harvard Business Review.
