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Consumer Markets (CM)
CONSUMER MARKETS
Consumer markets today are witnessing change at a rapidity not seen before and offer new opportunities and challenges. This can be attributed to dramatic shifts in the buying behaviour, growing urbanisation, emergence of the service sector, changing trends/lifestyle, and most importantly, the increasing power of the retailer as the key link between buyer and seller.
The consumer market can broadly be classified into:
Consumer products
Intense competition, shifting customer loyalties, aggressive marketing and the presence of global players are some of the salient features that typify this segment. Companies are realigning their activities towards meeting specific customer needs, radically changing business models and exploring new ways of collaboration between buyers and sellers. Adherence to the World Trade Organisation (WTO) norms is exerting further pressure on local industries, forcing them to either enter into alliances and be competitive or exit completely. Mergers, alliances and marketing tie-ups would increasingly impact companies and businesses in this sector.
Sub segments in the sector:
- Air conditioners
- Apparels
- Bicycles
- Consumer electronics
- Consumer durables
- Domestic electrical appliances
- Cosmetics and toiletries
- FMCG
- Furniture
- Gems and jewellery
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Food and beverages
Companies in this sector are faced with exceptional growth opportunities in the wake of increased consumer awareness and changing lifestyles and perceptions. Brand loyalty and positioning remain paramount to gain increased presence in the consumer's minds. Adherences to international safety standards and certification by renowned rating agencies like the US Food & Drug Administration have become the acceptable norm.
Sub segments in the sector:
- Bakery and milling products
- Beer and alcohol
- Beverages
- Cocoa products and confectionery
- Dairy products
- Distilleries
- Frozen foods
- Meat and poultry
- Packaged foods / snack foods
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Retail segment
The increasing influence of western culture and media on the Indian household has radically altered lifestyles and spending patterns giving rise to new business opportunities. This increased sophistication has resulted in big retail chains coming up in most metros with mini metros and towns being the next targets.
The industry is characterized by low margins and high growth. Companies need to be dynamic and respond to the ever-changing trends in consumer lifestyle and behaviour. They need to focus on providing value for money and generate loyalty for repeat purchase.
Sub segments in the sector:
- Convenience stores
- Department stores
- Food chain outlets
- Mail order / catalogue services
- Specialty stores
- Supermarkets
- Franchisees
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KPMG Focus
Consumer Markets and Industrial Markets are by far the largest of KPMG's
lines of business, and include some of the leading names in the FMCG,
consumer products, industrial and automotive segments.
KPMG, with its vast repertoire of skill sets and resources is uniquely
positioned to offer clients cutting-edge business advisory services.
These include but are not restricted to providing management assurance
services, accounting and audit services, financial advisory services,
management consulting and tax and regulatory services.
Providing sophisticated yet meaningful solutions is a result of KPMG's
alignment towards clear lines of business in which KPMG has dedicated
professionals specialising in these chosen lines of business.
The consumer and industrial markets sector has perhaps the largest growth
amongst any segment in the economy today and is by far the barometer
of the state of the economy. Companies seeking KPMG's expertise in these
sectors have benefited substantially, and greatly increased their value
proposition in arriving at both product and process efficiencies, enabling
sustained profitability and growth.
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