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That's a lot of packaging
February 14, 2008
Some numbers are staggering. Consider that the total worldwide sales for the Top 250 consumer product companies exceeded $2.65 trillion in 2006.
That's the result of Deloitte's inaugural Global Powers of Consumer Products Industry report. When you think of that amount in terms of millions of packaged items, how can you put your mind around that sum?
North American companies dominate the list in terms of numbers and size. There are 94 North American companies in the Top 250 with average sales figures over $11 billion, the largest average of any of the regions. However, these companies also experienced the slowest sales growth at 7.4 percent. Companies in Africa and the Middle East grew fastest at 14.3 percent, followed by those in Asia Pacific (8.9 percent), Europe (8.8 percent) and Latin America (8.5 percent).
The study also detects a shift in the balance of consumer spending worldwide. As disposable incomes increase in emerging nations, global consumer products companies are likely to benefit. The study says companies reliant on the mature, "old world" markets (that's U.S. and Western Europe) are likely to see a period of tightening.
Other key points:
Consolidation in the retail sector is resulting in a smaller number of very large retailers with such scale that they can produce their own private label goods across a wide range of products.
Seven of the Top 10 companies are electronics manufacturers, led by Hewlett-Packard and South Korea's Samsung.
The report says leisure goods companies are growing at the greatest average rate of 15.5 percent.
Food, Drink and Tobacco was the largest group with 123 companies in the Top 250, but it was also the group growing most slowly at 5.6 percent in 2006.
Some of the fastest-growing companies - like Nintendo (Wii), SanDisk (memory products), Apple (iPod, iTunes, iPhone) and Red Bull (energy drinks) - grew in excess of 25 percent as a result of their innovative products.
In my minds eye, I can see the packaging for each of those companies. Can you?
Posted by John Kalkowski on February 14, 2008 | Comments (3)
In response to: That's a lot of packaging
Chad Alexander commented:
I am a student looking for case studies showing successful "repackaging" efforts by pakaged goods companies. Specifically, where a risk was taken to redesign a classic design. Any help or guidance would be much appreciated.
In response to: That's a lot of packaging
Neil commented:
Hey John, Are you with Sun Chemical? Im with pVelocity a profit optimization company. I like to speak with you about Suns commitment to its customers and the attempt to streamline internal operations to dercease prices. 416-493-8000 x245
In response to: That's a lot of packaging
Kathleen Molloy commented:
I bought plain cotton underwear for my beau, via the Internet so that I could use up my Sears points. The Joe Boxes brand arrived wrapped in a hard plastic case, inserted with a glossy print, and stuffed with a thick hard cardboard. That's a lot of packaging. I flipped the glossy print to see if I could locate a company address for Jo. I didn't find it but I did find an invitation from the company that said "please recycle, d'uh!" D'uh?? I was ticked! I read the French to see if it was also rude and there was no "d'uh" equvilant. I cut the glossy print into a postcard, added a stamp and sent it to the Canadian distributor out of North York with a stern finger wagging about the over-packaging and the rude marketing. I sent a copy to Sears. On the distributor's website they list all the brands the sell. I will avoid these and I've let Sears know that I'll avoid Sears for carrying products triple wrapped with rudeness. And I have also encouraged all Joe Boxer wearers to go commando for Earth Day. Kathleen Molloy, author - Dining with Death www.diningwithdeath.ca