The Threat You Might Not See
At what point does a company become competition to others already in the market? For many large, multinational global brands, other companies don’t become competition until they’re operating at the same scale and in similar markets. As a result, global companies often don’t pay much attention to the small brands that operate well outside of their global peripheral vision.
Today, however, scale is no longer a prescription for success, particularly in the fast-moving consumer goods (FMCG) industry. Notably, global manufacturers across many FMCG categories are experiencing slowed growth and are not capturing their fair share of the growth that is obtainable. Said another way, the FMCG landscape has proven challenging in recent years for many brands, yet when opportunities do arise, multinational brands are not as successful in capitalizing on them as they have been in the past.
There is no single reason why multinationals are experiencing slowed growth. While factors like digitalization, the prevalence of choice and economic elements can play a role in any company’s success in today’s market, global competition isn’t causing the decline for many multinationals. Rather, they’re facing increased competition from B brands—the small brands that fall outside the realm of multinationals and store brands. While these “invisible” brands don’t typically pose a competitive threat individually, they can shift the balance within a specific category when a group of individual brands are involved. Said another way, a large group of B brands can be a significant threat to a multinational brand in ways an individual brand cannot. Nielsen – Read more…