Consumer Staples Sector | Development of new products

0

BQ Blue’s special research section brings together in-depth and quality research reports on stocks and the economy from top Indian brokers, asset managers and research agencies. These reports provide BloombergQuint subscribers with the opportunity to deepen their understanding of businesses, industries, and the economy.

We believe that a good NPD strategy is an underestimated (long-term) growth engine for consumer staples – the benefit is far more than a few extra points of growth (for a year).

A good NPD process, driven by top management, ensures (1) longevity – companies must innovate to stay relevant in the long run, (2) expansion into adjacencies – highly accretive DCF, in our opinion.

While there are short-term risks of NPD failure (1) the costs of returning stocks (can be minimized, however) and (2) a (potential) conflict with the trade channel, we believe the potential benefits far outweigh the costs.

Click on the attachment to read the full report:

WARNING

This report is written by an external party. BloombergQuint does not guarantee the accuracy of its content and is not responsible for it. The content of this section does not constitute investment advice. For this, you should always consult an expert according to your individual needs. The opinions expressed in the report are those of the author entity and do not represent the views of BloombergQuint.

Users are not licensed to copy, modify, or distribute the content without the permission of the original owner.

Share.

Comments are closed.