Stock Market Guide to Consumer Trends and Stock Market Valuation
Consumer intimacy is a vital, if sometimes hidden, ingredient of stock market investing success. Even industrial marketers cannot afford to ignore their direct and downstream customers. The best technology companies have come aground because they have not invested adequate resources in tracking consumer behavior accurately. Cosmetics and detergents on the other hand, have made rising profits out of generics for decades, because brand owning companies do little else than observe customers at close quarters!
Globalization and the Internet make consumer knowledge even more relevant for stock market results than in the old days. Companies which have succeeded in their domestic markets, have floundered in emerging countries with strange tongues and exotic customs. E-commerce and web sites are services that no stock market can limit effectively to a particular territory. Segments are being redrawn, so all companies are forced to return their Marketing Strategies to the drawing boards.
Statutory reporting does not enjoin on stock market members to provide details of their consumer knowledge and trends. Many professionals would baulk at the thought, because it would mean loss of proprietary information, and would expose those at the helm of affairs without deep consumer knowledge. It is up to stock market investors to seek dialogue with the companies in which they have important fund allocations, so that they can gauge how well prepared each enterprise is for the new circumstances of the conventional market place.