Market Research: Consumer Goods

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Consumer Goods

Introduction and Purpose:

What are consumer goods? Consumer goods are new items intended for sale to consumers, and are different from capital goods. There are three major types of consumer goods. The first is durable goods. These are meant to be used continuously or repeatedly for over 3 years, such as appliances and cars. The second type of consumer goods is semi-durable goods, which can be used on multiple occasions and have an expected lifespan of 1 to 3 years, such as clothing, shoes and linens. The third type of consumer goods is non-durable goods. This are designed to be used only once, such as food and gas, but could also include goods of little value used a few times, such as cleaning supplies. Consumer goods are one of the main industries of the US economy, and make up 31.8% of the import goods market, and 15% of the export market for the US. Also, over the past year, the inflation rate for consumer goods dropped by 0.7% for the US, which is ranked 13th for the country. The consumer goods sector has 32 different industries; the top industries are Processed & Packaged Goods, Auto Manufacturers, Personal Products, Cigarettes, Beverages, and Electronic Equipment. The bottom industries are Housewares & Accessories, Recreational Goods, Sporting Goods, Tobacco Products and Office Supplies. As of April 2010, consumer goods had a total market cap of $2398.9 billion (refer to the chart below).

Table 1 Consumer Goods Market Cap:
Description| Market Cap | Description| Market Cap | Sector: Consumer Goods| 2398.9B| | |
Processed & Packaged Goods| 400.3B| Farm Products| 34.5B| Auto Manufacturers - Major| 296.7B| Cleaning Products| 26.9B| Personal Products| 293.3B| Trucks & Other Vehicles| 25.7B| Cigarettes| 239.6B| Business Equipment| 24.8B|

Beverages - Soft Drinks| 177.6B| Home Furnishings & Fixtures| 19.7B| Beverages - Brewers| 166.4B| Toys & Games| 15.6B|
Electronic Equipment| 108.5B| Confectioners| 15.0B|
Auto Parts| 69.9B| Recreational Vehicles| 12.9B|
Textile - Apparel Footwear & Accessories| 63.0B| Appliances| 12.5B| Food - Major Diversified| 62.6B| Rubber & Plastics| 10.9B| Photographic Equipment & Supplies| 60.0B| Dairy Products| 8.9B| Beverages - Wineries & Distillers| 58.5B| Housewares & Accessories| 8.8B| Paper & Paper Products| 48.3B| Recreational Goods, Other| 5.3B| Packaging & Containers| 46.8B| Sporting Goods| 2.4B| Textile - Apparel Clothing| 43.9B| Tobacco Products, Other| 1.8B| Meat Products| 36.4B| Office Supplies| 1.2B|

The recent market crisis severely affected the consumer goods sector. Spending on consumer goods makes up 2/3rds of the US economy. The market crisis of 2008 resulted in a drop of spending by 1.0%, which is the greatest fall since the attacks on the World Trade Center in 2001. In addition, costly US made durable goods sales dropped by 6.2% in October 2008. There have been many changes in the market since the crisis. Below is how the market crisis immediately affected some of the industries listed above.

Table 2 Market Crisis Impact on Consumer Goods:
Industry - Exports| 2008| 2009| Percent Change
2008 - 2009|
| In 1,000 Dollars| |
Toys and Games| 1,406,921| 1,452,426| 3.2 %|
Beverages - Brewers| 1,195,023| 1,225,258| 2.5 %|
Confectioners| 130,781,514| 117,145,222| -10.4 %|
Meat Products| 10,392,331| 8,902,415| -14.3 %|
Cookware (Housewares)| 225,304| 181,739| -19.3 %|
Paper| 1,194,170| 1,622,632| -26.4 %|
Sporting Goods| 973,233| 714,983| -26.5 %|
Dairy Products| 279,361,549| 157,967,463| -43.5 %|

The table above shows where the biggest decrease in spending is located as well as the industries affected the most by the market crisis. Although there are some industries that still showed a profit, most had a substantial loss....
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