Brand growth 2.0: The only global language in a local dialect
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The global and especially the European economies are going through one of the longest periods of economic turmoil in recent history. Throughout the past five years, only rarely have we seen sustained growth for any European market, and the prospects for the next few years are still typically considered modest.
Such periods are a big concern for many industries, although FMCG markets usually suffer less because a large part of the household expenditures on food, beverages, household and personal care items are not discretionary (as for durables or many services). However, shedding light over some trends from the past five years, it is becoming clearer that FMCG markets also experience major changes, some of which have likely been exacerbated due to recession:
- Volume growth is extremely low in a majority of markets;
- Private Labels are gaining share with no signs of saturation;
- Promotions are increasing in importance.