Winners of the economic crisis will have on consumer goods firms

More than 2 / 3 of the companies that produce consumer goods reached shrinkage costs due to the crisis showed the results of the study Opportunities in Adversity, conducted by Ernst & Young. Companies in the sector sees scope for further gains 62% reduction in costs due mainly to the distribution network, says the study. Companies from other sectors do expect most 48% additional profits.

Companies in the consumer goods sector to cope best with the recession, it is clear from the study. The secret of their success lies in timely and adequate response to pricing, cost, supply, dealing with customers and working capital. Despite the stagnation of the consumer goods industry players were able to derive maximum benefit from your business.
The focus of consumer goods companies is directed towards working capital. 80% of managers surveyed said they recently have done a comprehensive review of its cash flow and resources. In other sectors, this step is taken by only 73% of the companies. 62% of consumer goods companies plan to reduce its costs through next year.

Companies in the sector have a special action plan, the study reveals. 56 percent of companies plan to accelerate the time of release of new products on the market. 41% of respondents would focus on new markets like Asia, South America and Africa. Another step in the crisis are more decisive action to prevent competition.
Overall, companies producing consumer goods to cope with the recession relatively well, said Howard Martin, head of global consumer goods in department Ernst & Young. According to him, this is due to natural resistance to most of the sector to the falls. But it also reflects the ability of these companies to more quickly and easily many of the initiatives for improving activities that were undertaken before the crisis, he added. Companies whose programs for distribution system efficiency and optimize the price is executed correctly, will become more stable and will have the opportunity to rise to market leaders, said Martin.
According to Howard Martin, ceased after the global financial and economic crisis, the winners will be companies that are prepared to increase its growth globally.
The survey was conducted among 569 business leaders worldwide. Results are based on a representative sample of 39 companies in the sector of consumer goods. Over 50% of the respondents are managers of companies with annual revenues exceeding 1 billion USD.

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