Why FMCG companies are losing to smaller rivals
Research from Richard N. Foster has shown that the average lifespan of companies listed on the S&Ps 500 – the 500 most valuable companies traded on the U.S. stock market – was 61 years back in 1958. Today, the average lies more around 18 years. At this pace, 75% of the companies quoted today on the S&P 500 are set to disappear by 2027. Too big to fail? For FMCG companies, growth is no longer a given. Quick wins have become rarer, markets are becoming saturated, and the world has changed and evolved rapidly thanks to technology. A lot of smaller players have spotted opportunities and started grabbing market share from the big corporations. This triggers the question: How is it possible that small companies, with a fraction of the marketing budget of big FMCG companies, are winning more and more market share and hurting the big guys?