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Eighty percent of companies reported increased sales last fiscal year, 90 percent a profit

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Eighty percent of companies reported increased sales last fiscal year, 90 percent a profit

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New York, 2 April 2013 — According to the sixth annual 2013 Global Powers of Consumer Products report issued by Deloitte Touche Tohmatsu Limited, the world's 250 largest consumer products companies grew by 7 percent in fiscal year 2011 (which encompasses fiscal years ended through June 2012) despite global economic uncertainty, with total sales exceeding $3 trillion, up from $2.82 trillion in fiscal year 2010. Additionally, the report found that the ten largest consumer products companies reported combined sales of $846 billion.

"The global economy has witnessed several challenges including inflation, the euro crisis, and natural disasters. Healthy consumer product sales are an indicator that the global economy may be cautiously rebounding," said Dr. Ira Kalish, Director of Global Economics at Deloitte Services LP in the United States. "For the coming years, this means that the industry should see solid growth, but disproportionately coming from emerging markets."

Regional Results

The report also measured year-over-year composite growth rates by region, with Africa/Middle East companies (24 percent growth) posting the highest gains, followed by Latin America (16 percent), North America (14 percent), Europe (4 percent), and Asia/Pacific (2 percent). However, within Europe, French companies year-over-year growth (15 percent) outpaced their German (6 percent) and British (6 percent) counterparts. North America had the highest composite net profit margin (10 percent) of all the regions.

In Asia-Pacific, Japanese companies' sales declined 4 percent, due mainly to the continued effects of the earthquake and tsunami. However, excluding Japan, the Asia-Pacific region as a whole posted above-average year-over-year growth numbers (10 percent) with China/Hong Kong (24 percent) realizing the biggest increase.

For the first time, the report also looked at companies' growth over a five-year period, which yielded different results by region. Latin America had the highest compound annual growth rate of all the regions (22 percent) from 2006 to 2011, followed by Africa/Middle East (10 percent), Europe (6 percent), North America (6 percent), and Asia/Pacific (5 percent).

Electronic Products companies' top list

Also for the first time, the top three spots were filled by companies from the electronic products sector. For the fifth consecutive year, Samsung retained its number one position, followed by Apple Inc., which climbed 21 spots in five years to rank second. Panasonic Corporation remained in third place.

For the second consecutive year, the fashion goods industry posted the highest growth rate (14 percent) of all the product sectors analyzed. It also remained one of the most profitable, with a composite net profit margin of 8 percent. On the other hand, the food, drink, and tobacco sector saw its top 250 representation decline. Nevertheless, the sector reported substantial composite sales growth of 9 percent.

Emerging markets continue to fuel Fastest 50

The 50 fastest-growing consumer products companies grew more than three times faster than the Top 250 as a whole. For the first time, the Fastest 50 were determined by their sales growth over the five-year period 2006 to 2011. Nearly 60 percent of the Fastest 50 were also among the 50 fastest growing companies in 2011, with emerging markets such as China and Brazil well represented.

Consumer Behavior

The report also gauged consumer behavior trends particularly in light of digital growth. With the increase of smartphone and tablet adoption, the impact on consumers and their "path to purchase" has been evident. Deloitte research has found that 58 percent of consumers who own a smartphone have used it for store-related shopping.

"The impact of this digital growth on consumer and shopper behavior cannot be underestimated. It affects the way consumers interact with brands, how they research products, purchase via multiple channels, take advantage of promotions, and how they receive post-purchase customer service," said Jack Ringquist, Global Consumer Products Lead, DTTL. "Manufacturers must continue to rethink their operating models and leverage analytics to better identify, understand, and ultimately satisfy consumer needs."

To download a copy of the 2013 Global Powers of Consumer Products report, please visit: http://www.deloitte.com/consumerbusiness

Top 10 consumer products:

Rank

Company

Country of Origin

2011 Net Sales (US$mil)

FY 11 net sales growth %

1

Samsung Electronics Co., Ltd.

South Korea

150,152

6.7

2

Apple Inc.

United States

108,249

66.0

3

Panasonic Corporation

Japan

99,412

-9.7

4

Nestlé S.A.

Switzerland

94,704

-10.1

5

The Procter & Gamble Company

United States

83,680

1.4

6

Sony Corporation

Japan

70,022

-12.3

7

PepsiCo, Inc.

United States

66,504

15.0

8

Unilever Group

Netherlands and United Kingdom

64,721

5.0

9

Kraft Foods Inc. (now Mondelēz International, Inc.)

United States

54,365

10.5

10

Nokia Corporation

Finland

53,846

-8.9

Press contact

Carolyn Vadino

Deloitte Touche Tohmatsu Limited

Global Communications

cvadino@deloitte.com

+ 1 212 436 6970

About the 2013 Global Powers of Consumer Products Report

The report identifies the 250 largest global consumer products companies around the world based on publicly available data for the fiscal year 2011 (encompassing companies' fiscal years ended through June 2012). The report also provides an outlook for the global economy, an analysis of market capitalization in the industry, and an assessment of the increasing impact that digitally empowered consumers are having on the industry.

2013 Global Powers of Consumer Products
About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 professionals, all committed to becoming the standard of excellence.

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