Most investing markets are relatively efficient. Early stage consumer and retail private equity markets are not. Consider this:
- The United States is the largest consumer goods market in the world – worth more than $400 billion. Consumer and retail accounts for roughly 20% of the US economy.
- The sector is going through a major disruption creating incredible tailwinds. Millennials, on the brink of becoming the largest segment of the population, are driving purchasing decisions – demanding more personalized products. Innovative small brands are emerging almost daily to lead the way in what I’m calling the Personalization of Consumer. The emerging brands ($1-10M in revenue) are stealing market share from the big packaged goods companies that have been slow to adapt.
- Investors in consumer products realized 3.6 times their investment in an average of 4.4 years, according to the Angel Investment Performance Project (AIPP) from the Kauffman Foundation.
Originally posted on Forbes.com | By Ryan Caldbeck