While I do agree with the concept broadly, or agree with some names, I have a different view in general, as not all the companies’ fortunes are linked to premium products alone, the element of premiumization may exist in many businesses, but it alone cannot make a business grow, something like a Ferrari.
I don’t know about any trends or mega trends, but the existence of unorganized sector and local strong players in businesses cannot be overlooked, as these are mentioned by managements of many companies. Some shift happens due to GST or other government policies, and some for other reasons. Jewellery for example also concerns with trust, and trust is lost, business is lost. And for other businesses like Nestle, there could be science involved. Businesses which have a definitive moat will charge more, and not all businesses have such moat.
And if such premium products are available from multiple brands, where the buyer has no clear idea what to choose, as all brands are big and household names, there is no monopoly, and not to mention the possibility of many bigger names entering into other businesses with funds of their own and foreign.
India for the most part, still is a cost cautious country, discounts are attractive, so if something does the job with less amount, for something where options exist, I guess majority of the people would choose the low price product.
And if the sales of certain categories and products pertaining to physiological or psychological experiences, then perhaps this will continue. And I guess for others products, things, for some businesses, target buyers play a bigger role here, and as we have tens of crores of younger population, products targeted towards them may bring in a lot of sales, even if there is no distinguishable change between the products of companies.
And trends have to emerge, accepted and welcomed and participated by many, and not restricted to few, and India seems to be on this path for the most part, and these mega trends even if are indeed true, I guess they will emerge over a period of time, sometimes a couple of decades, and to be able to identify, buy, and hold for the entire duration of such a trend is not easy, as there could be long periods of consolidations or corrections, and who does may get a 100 bagger or even more for themselves.
Just some thoughts, and a participant of all businesses to the extent possible.
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