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Are consumer tastes consolidating or fragmenting to global brands

Moreover, the majority of consumers in mature markets have, until 2016, endured more than a decade of stagnant wages, and members of today’s younger generation are at risk of ending up poorer than their parents.

The biggest losers in this setting are large CPGs (including many multinationals) that are stuck with musty legacy brand portfolios.

They could once rely on a large, relatively homogeneous group of middle-class consumers who would purchase staples and even a luxury or two at mid-priced stores, cognizant of cost but not overly concerned about it and seeking a modicum of quality for their money. Members of this group, which includes a vast and growing number of retirees and, in the U.

S., millennials saddled with college debt, are stretching their budgets by limiting themselves to value retailers such as Aldi, Lidl, and Costco as well as online outlets offering lower prices and greater convenience.

This leaves the Japanese CPG market ripe for new entrants with the capabilities to break through the logjam of antiquated distribution structures and to market products to specific customers in multiple channels, including in-store and online.

In China, the CPG market is hyperdynamic and rapidly growing.

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