Size Matters

It's no secret that the growing power of retailers and the rise of private labels are two major factors that continue to transform the consumer goods industry. The long term effects caused by these two catalysts, however, is eye-opening to say the least. According to recent research from A.T. Kearney, discount channels may retain some 30 to 40 percent market share in the coming years. Ditto for private labels which will likely increase its foothold 40 to 50 percent across the globe. When it comes to addressing these issues, a majority of consumer goods manufacturers are in a hold pattern--foregoing growth and innovation in favor of reducing price levels.

Size Matters
This issue marks the arrival of our annual "Fast Track" concept which is designed to provide tips on growth and innovation. Instead of turning our attention to the Procter & Gamble's of the world, we look instead at the little guys. Kicking things off this year is surf wear maker Quiksilver (p. 31), a company that is continually striving to streamline internal operations while keeping an eye out for sensible acquisitions to grow its brand portfolio. Like Quiksilver, many of the other mid-market companies profiled seem unfazed by all of this private label/retail power nonsense and are quickly building brand equity in unique and surprising ways. Also on tap: "Next Generattion RFID" (p. 15), a Best Practices section devoted to one of the most loved and hated technologies in recent memory. Whatever your take, be sure to check out "Who Does What"? (p. 16) a comprehensive breakdown of vendor capabilities in addition to our exclusive Industry Poll on page 16. As always, your feedback is welcome: [email protected]