Monday, August 16, 2010

Consumer Goods Companies Continue to Roll Out Lower Prices

Each week, it seems, brings news of another Japanese company rolling out a low-end product line. Lately, those moving downmarket are getting smarter about how they do it.

The step-down reflects the harsh reality of Japan's economy for most consumer-goods companies. Earnings are being squeezed by thriftier shoppers and falling prices overall.

Last week, cosmetics maker Shiseido said it too will market a line of lower-end products. The company's earnings growth is still robust-operating profit rose 57% last quarter-but it's losing market share to rivals with cheaper products.

http://online.wsj.com/article/SB10001424052748703748904575410801372024486.html

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