Digesting F&B market trends
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Reading trends becomes increasingly important when P & Q are stagnant and C (cost) is stable Since 2010 it has become difficult to raise ASP without a good reason and companies have instead tried to improve product mix with premium items or introduced cost-efficient low-end products. Now the F&B sector faces the stagnation of both Q (quantity) and P (price). Reading consumer trends has become important more than ever. As the number of one- or two-person households increases rapidly, we expect: 1) the structural growth of the home meal replacement (HMR) market to sustain; 2) the polarization of consumption (cost-efficient products vs. premium products) to become more severe; 3) increasingly sophisticated consumer tastes to lead to the segmentation of megatrends into microtrends of various sorts; and 4) competition to intensify as large retailers enter the F&B market to overcome slowing domestic consumption. In the domestic market, we believe companies that move more quickly than others and have clear positioning strategies in structurally growing segments will enjoy a bigger market share. We also believe these companies’ efforts to provide fresh growth catalysts through overseas expansion will continue. |
CJ CheilJedang is engaged in the food, animal feed and life science business. Co.'s food business provides sugar, flour, seasonings, sauces, instant foods, instant cooked rice, fried dumplings, noodles, and hams. Co.'s animal feed business provides feeds for pigs, poultry, fish, chickens and cattle. Co.'s life science business provides circulatory system agents, antibiotics, gastrointestinal agents and blood-making medicines.
Hyundai Motor Investment & Securities is the investment banking arm of the Hyundai Motor Group. The company offers stock brokerage and advisory services; derivative products brokerage and advisory services; wrap account portfolio management services; and VIP wealth management and tax planning, institutional equities, derivatives, and futures brokerage services, as well as sells investment and institutional products. It also provides equity offering, ABS, real estate PF and real estate PF securitization, offshore SOC, structured financing, asset securitization, real estate sales, IPO advisory, and private equity fund and fund management services; and CMA/RP portfolio management and fixed income based investments, as well as involved in the issuance, management, and brokerage of OTC derivatives. In addition, the company offers research services, including macro economic forecasts and stock market outlook, industry overviews and forecasts, fixed income strategies, corporate credit analysis, and valuation analysis. Further, it offers a range of retirement and pension services for individuals and corporate members; portfolios and asset allocation consulting and marketing services; proposing retirement pension plans; contract and payment management services; pension plan advisory and actuarial services; and system development and implementation services, as well as operates call centers for retirement pension services, etc.
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