The consumer goods sector is a category of stocks and companies that relate to items purchased by individuals rather than by manufacturers and industries. This sector includes companies involved with food production, packaged goods, clothing, beverages, automobiles and electronics.
Consumer products companies have traditionally looked to innovate as a source of growth, and now, they are trying newer and bolder strategies than ever. Many such companies utilize agile workflows to frame their approach to developing, testing, and iterating innovative ideas compared to traditional, highly structured, more time-consuming testing methods. However, companies are changing how they pursue innovation. In addition to following traditional new product development cycles, many companies in the consumer products industry are experimenting with new approaches, such as innovation through: venture capital-styled incubators, crowdsourcing and partnering with consumers, renovation of previously successful products, continued focus on health and wellness/good-for-you products.
The consumer products industry are often increasingly looking to expand across geographies and reach out to markets that can drive both sales and profitability.