All consumer sectors are seeing tech & innovative disruptions which will change the landscape. This has smaller players to compete with more established big players. There is a lot more competition now than ever before in the consumer staples segment from brands of direct-to-consumer companies or private label brands of organized retailers. We are seeing more competition in the jewelry and paints sectors, as two prominent cases. Besides, with more innovation, technological and other forms of disruption, traditional moats and market structures are getting weaker. This is true for all consumer sectors such as automobiles, consumer staples and even for the IT services sector. Given this backdrop, historical valuations may be irrelevant. Here quality companies who adopt to these new technological & marketing innovations will survive and capture higher market share.

#PsychologyofMoney#Miscellaneous#PersonalFinance

1 like