Ad Age's How Tiny Startups Like Hello and 800Razors are Stealing Share from CPG Giants covers the trend towards small consumer packaged goods companies being able to effectively compete with industry giants.
Key quote:
Much of the credit for smaller brands' ability to break through goes to digital disruption in media and retailing ... Social media in particular tends to generate strong returns on investments at low spending levels, which benefits the little guy with the little budget.
Regular readers know this is part of a broader shift to barbell industry structures. The big CPG firms are responding, not surprisingly, by buying the fastest growing of the smaller firms.
We've looked at dozens of industries and see this same pattern in pretty much all of them - small businesses gaining share.
This does not mean large corporations are going away - at least not anytime soon. The large, global giants are getting even bigger. It's the mid-sized firms that are losing out in most industries.
Our Industry Structure section contains many examples.
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