The growth of e-commerce, and the subsequent stagnation of brick and mortar shopping, continues to greatly impact how consumer products companies market and sell their products. Some companies in the consumer products industry are seeing a decline in revenues as many consumers, especially the U.S. middle class, are still very wary of spending. In addition, consumer products companies continue to face heightened competition due to the oversaturation of brick and mortar stores and an increasingly globalized online marketplace.
We have seen a number of key trends in the consumer products industry as companies develop more robust presences online. In the fashion sector, the growing market share of fast fashion companies is forcing more traditional retailers to shorten cycles and come to market more quickly. Athleisure is emerging as a mainstream fashion trend that is changing the way health, beauty, and apparel companies approach new products, advertising and marketing, and customer relationships. Technology (occupying an increasing portion of U.S. discretionary spending), menswear brands, and pet stores are all segments within consumer products that are doing well despite consumer reluctance to spend. These segments are also likely to attract growing interest from investors as the industry evolves.
An increasing number of retail brands are bypassing designers and manufactures to develop direct relationships with warehouses and production facilities, the effects of which are being felt by many consumer products companies. Manufacturers are feeling this pressure from retailers in the form of contracted margins throughout the industry. We also see private labeling products becoming a trend as a tool to increase market share and compete against well-known consumer products brands.
Carl Marks Advisors’ investment banking and restructuring advisory consumer products experience spans a variety of sectors including health and beauty, apparel, home furnishings, and housewares companies. We specialize in solving the toughest challenges for mid-market businesses, creating growth opportunities, and maximizing value for organizations in the consumer products industry.
Our role on engagements in the consumer products industry can involve:
- Interim Management: Our team can step in to fill senior management positions in times of operational instability with seasoned CEO, COO, and CFO professionals.
- Operational Advisory: Our deep and experienced professionals provide operational tools and outputs to help clients understand the current state of their business including: 13 week cash flows, business assessments and overall cash management.
- Restructuring Advisory: Carl Marks Advisors is well qualified to advise companies and/or its constituents through complex restructuring assignments including full balance sheet recapitalization.
- Buyside advisory: We help our business services clients identify, negotiate, and complete strategic acquisitions and buyout opportunities that add value to their businesses.
- Sellside advisory: Carl Marks Advisors specializes in streamlining the sell process to uncover specialized buyers, discover optimal market opportunities, and ensure successful closes.