Our view on the market
Consumer demand is the engine of the world economy. As wealth spreads, consumer businesses with compelling, well-targeted models are thriving.
For many, the heart of their appeal is a successful brand that attracts consumer loyalty and a premium price.
In the West, cash-rich, time-poor consumers increasingly focus on products that free them to enjoy their scarce leisure time. Ageing populations, new family models and steady migration are opening up profitable niche markets. In Asia, millions are joining the consumer society each year and showing a strong appetite for premium brands.
At the centre of every successful consumer business is an understanding of the customer. Some trends, such as the focus on health and wellness, are universal but many consumer preferences, such as the use of the internet and environmental concerns, are far more developed in some markets than others.
At 3i, the businesses that we see succeeding are those which:
- Develop distinctive customer propositions: Low-cost and premium models offer more interesting opportunities than undifferentiated players in the mid-market.
- Own successful brands: Engaging the consumer, above and beyond function or price, so that sales and margins can be sustained through the economic cycle.
- Build strong delivery capabilities: Creating robust supply chains and slick roll-out execution models that can be rapidly migrated to new markets.
- Harness the power of technology: Maximising the opportunity presented by the internet as a channel to market, and using technology to collect customer information, to better understand and predict consumer behaviour.
Across three continents, 3i’s expertise is helping consumer businesses fine-tune their positioning, build their operational effectiveness, and achieve domestic and international expansion.
