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Fisher Investments knows non-durable consumer goods are manufactured products that can be divided into two sub-industries: Household Products and Personal Products. Some common items in the Household Products category include cleaning supplies, laundry detergents, garbage bags, paper plates, and cat litter. Virtually all these items can be found at neighborhood supermarkets and comprise approximately 73 percent of the Household & Personal Products industry group.*
The other 27 percent is Personal Products, with items generally falling into one of six segments—hair care, cosmetics and fragrances, skin care, deodorants, oral care, and miscellaneous (includes things like shaving products, sunblock, and hair dye).
The global market capitalization of the combined Household & Personal Products industry is around $ 550 billion and represents about 17 percent of the MSCI World Consumer Staples benchmark.** Table 4.9 shows the 10 largest Household & Personal Products (HPP) firms globally, listed by market capitalization.
Fisher Investments believes new HPP products are usually the result of research and development (R & D) efforts. Most firms in this space closely link their R&D departments to marketing. Marketing teams participate in consumer learning initiatives to gain in - depth knowledge of the company's consumers and target markets. Armed with this insight, Fisher Investments believes marketers help decide which new products to roll out and the best ways to design them. While most HPP firms create their packaging designs in-house, many firms purchase containers or packaging from third parties. On average, raw materials used to manufacture products and packaging comprise around 70 percent of the cost of goods sold (COGS). The remaining COGS include labor and factory overhead expenses.
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