The dynamic nature of consumer goods require thorough understanding of legal issues affecting the industry, Langa Attorneys is well established in this sector.
The makers of food and beverage, health and beauty, household, and other consumer products, it is the best and the worst of times. Most enjoy solid balance sheets, healthy profit margins, and a good return on invested capital – things that CEOs in other industries only dream about. Yet the consumer goods packaging industry is losing its glow.
After 30 years of growth and innovation, when frozen foods, prepared meals, disposable diapers, and other new product categories drove rapid growth, the industry is seeing revenues and market values go flat. “Since the late ‘90s the industry has not matched its earlier strides in values, quality and convenience.
Three keys to success
In this new environment, consumer product companies must focus on three core processes:
1. Managing retail customers
In recent years leading retailers have consolidated power and extracted concessions from suppliers in pricing, delivery, and other terms and conditions. Retailers now also compete with, as well as buy from, branded goods makers, stealing market share with lower priced house brands. Manufacturers must learn to hold their own in this delicate relationship.
2. Managing consumers
From the 1950s through the 80’s, consumer goods companies could quickly build share through mass marketing – a core competence for the industry. But as markets become more complex and fragmented, and consumers grow more sophisticated and selective, companies have to connect with the market in new ways.
3. Managing supply chains
With retailers and consumers increasingly exerting their influence, manufacturing have little margin for error. To deliver products on time at the lowest possible cost.
Langa Attorneys has positioned itself as premium legal service provider, with its highly knowledgeable team in the consumer goods industry.
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