Investing in brands

These have been unprecedented times for the consumer sector – a global economic downturn, a lack of credit for companies and consumers, increasing margin pressure from both customers and suppliers, and an extended period of uncertainty over demand.

Our experience is that this environment creates clearer distinctions between truly successful businesses and the rest. In a period of sustained economic and consumption growth, it is easier for the majority of businesses to thrive and make money. In more difficult times, with lower levels of overall market growth, the winners succeed by taking market share through:

• winning customers from competitors who have weaker customer offerings, management or balance sheets;

• acquiring these competitors to consolidate markets; and entering new markets, by both product

• and geography (eg Asia).