2011 turned out to be a more difficult year than expected for the consumer. The pace of recovery slowed down due to tough market conditions. 2012 is likely to continue as 2011 left off. But there are reasons for optimism including; the strength of large corporate balance sheets and the interest from sovereign wealth funds and Private Equity, particularly in emerging markets and for niche sectors and brands.
After a relatively buoyant year in 2010, the consumer goods sector again faced trying times in 2011, and consumer confidence remains very fragile as we kick off the new year in 2012.
This has had significant consequences for both consumer goods businesses and retailers, and there will undoubtedly be both winners and losers in 2012 as a result.
We expect both overseas investors and big corporates with strong balance sheets to continue to be active buyers of undervalued businesses and brands in the coming months.