Consumer Goods Section

Consumer Goods Section


The consumer goods section is the largest and most important section in the market, because it absorbs the bulk of the earnings of the population. It does so in that, as the very name 'consumer goods' implies, these are goods which are most frequently used, even daily, and in the case of food axe a necessity of life. Other consumer goods, food apart, are expended at a much faster rate than other classes of goods in the other sections of the market, e.g., capital goods, such as engineering, heavy electricals, shipbuilding, aircraft, property, etc.; mining, such as gold and diamonds; or services, such as insurance. It is estimated that at present 30% of the nation's spending is on food and drink, and a further 20% on the remaining consumer goods.

Let us be clear what consumer goods are. There are two main groups. 1. Perishable and 2. Durables:


Food and provisions;

Beers, spirits and wines;

Tobacco, sweets and soft drinks.

2. Durables:

Clothing, shoes and hosiery;

Furniture and household goods; Electricals, radio and television; Motor cars.

In our discussion of this important section we shall consider together manufacturers and retailers.

Our survey of each section of the market will follow a definite plan leading to a conclusion, which will provide the basis of a judgment as to what proportion of your portfolio each particular section of the market should form.


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