The site you are about to enter is intended for Australian wholesale clients only (as that term is defined in section 761G of the Corporations Act 2001 (Cth)) and is not intended for distribution to, nor should it be relied upon by, retail clients. Newton Investment Management Limited (Newton) is authorised and regulated in the UK by the Financial Conduct Authority (FCA). Newton is providing financial services to wholesale clients in Australia in reliance on ASIC Corporations (Repeal and Transitional) Instrument 2016/396, a copy of which is on the website of the Australian Securities and Investments Commission, www.asic.gov.au. The Instrument exempts entities that are authorised and regulated in the UK by the FCA, such as Newton, from the need to hold an Australian financial services license under the Corporations Act 2001 for certain financial services provided to Australian wholesale clients on certain conditions. Financial services provided by Newton are regulated by the FCA under the laws and regulatory requirements of the United Kingdom, which are different to the laws applying in Australia. This information is made available by Newton Investment Management Limited and BNY Mellon Investment Management Australia Ltd (AFSL 227865).
By using this website I also confirm that: I accept the Terms of Use and I agree to comply with them – View our Important information I accept the BNY Mellon Privacy Notice and I agree to comply with it – View the BNY Mellon Privacy Notice I accept and consent to the use of cookies and analytics – View our Cookie Policy
The customer is always right – and they want more than ever before
Making a statement
The internet has changed the consumer landscape significantly, and, as investors, we are paying attention. In the past, it was only big brands with big budgets that could afford to advertise to the masses. Now, consumers have access to a wealth of product and price information, online reviews and influencer preferences at the touch of a button. The onus is therefore on the consumer companies to navigate this shifting landscape through differentiation – be it through offering experiences, pricing, convenience or greater authenticity, or by focusing on consumers in emerging markets.
Great expectations
Our expectations as consumers have changed significantly over the last few decades: In 2018, customers in the US expected deliveries within 24 hours, as opposed to a nine-day delivery time in 1995, while consumer preferences for experiences rather than things and sustainable businesses are also sharply on the rise.
Small, nimble brands that connect directly with consumers may be able to capitalise on these trends, while established brands may find it hard to adapt their long-standing business models to meet the needs of tech-savvy consumers who want their goods at competitive prices from companies with a purpose.
As investors, it is our job to identify which companies, both new and established, understand the current retail landscape and are poised to thrive in a world where consumers hold more of the power than ever before.
Our key areas of focus
Experiences
Status is no longer driven purely by ownership. Technology and millennials have united to drive a wallet-share shift away from material possessions to experiences. The ability to share experiences via messaging is amplifying this trend.
Value
With divergence in incomes, but increased experiential spending, something has to give. Consumers look for bargains when purchasing material items, and the ubiquity of price information favours those brands and retailers that can offer the best value for money.
Convenience
In the face of online ordering and delivery, bricks and mortar offerings must be highly convenient in order to lure the customer to stores. Consumers look for easier and faster ways to navigate the online shop.
Authenticity
Purchases reflect aspirations and values. Consumers want brands that genuinely stand for something. They have more information about brand behaviours, and expect brands to act responsibly and to communicate honestly. Consumer companies are also increasingly using personalised products that offer a tailored and unique proposition. Online ads enable precise targeting of advertising messages.
The emerging consumer
Over 80% of the world’s population live in emerging markets, making this segment a huge opportunity for consumer companies. In addition, the disposable income of consumers in these countries is increasing disproportionately fast, propelling more consumers into the middle class where the propensity to consume rockets.
Of course, our themes don’t exist in a vacuum
Health-care companies are capitalising on the increased power of the consumer, a trend that forms part of our healthy demand theme.
Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.
These opinions should not be construed as investment or other advice and are subject to change. This material is for information purposes only. Any reference to a specific security, country or sector should not be construed as a recommendation to buy or sell investments in those countries or sectors. Please note that holdings and positioning are subject to change without notice.
Individual Investors will be redirected to bnymellon.com
This is a financial promotion. Issued by Newton Investment Management Limited, The Bank of New York Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England No. 01371973. Newton Investment Management is authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN and is a subsidiary of The Bank of New York Mellon Corporation. Newton is providing financial services to wholesale clients in Australia in reliance on ASIC Class Order 03/1099, a copy of which is on the website of the Australian Securities and Investments Commission, www.asic.gov.au. The Class Order exempts entities that are authorised and regulated in the UK by the FCA, such as Newton, from the need to hold an Australian financial services license under the Corporations Act 2001 for certain financial services provided to Australian wholesale clients on certain conditions. Financial services provided by Newton are regulated by the FCA under the laws and regulatory requirements of the United Kingdom, which are different to the laws applying in Australia.
Material in this publication is for general information only. The opinions expressed in this document are those of Newton and should not be construed as investment advice or recommendations for any purchase or sale of any specific security or commodity. Certain information contained herein is based on outside sources believed to be reliable, but its accuracy is not guaranteed. You should consult your advisor to determine whether any particular investment strategy is appropriate. This material is for institutional investors only. Past performance is not a guide to future performance. Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.
This material is for Australian wholesale clients only and is not intended for distribution to, nor should it be relied upon by, retail clients. This information has not been prepared to take into account the investment objectives, financial objectives or particular needs of any particular person. Before making an investment decision you should carefully consider, with or without the assistance of a financial adviser, whether such an investment strategy is appropriate in light of your particular investment needs, objectives and financial circumstances.
This information is made available by Newton and BNY Mellon Investment Management Australia Ltd (AFSL 227865). This information is confidential and is only provided to Australian wholesale clients (as that term is defined in section 761G of the Corporations Act 2001 (Cth)). This is not an offering or the solicitation of an offer to purchase an interest in any financial product referred to in this website. This content is for general purposes only and should not be relied upon as financial product advice. This content has been prepared without taking into account the objectives, financial situation or needs of any person. Before making an investment decision an investor should consider the appropriateness of the information in this website having regard to these matters and read the disclosure document relating to a financial product. Investors should also consider obtaining independent advice before making any investment decisions. Investments can go up and down and to the extent that this website contains any past performance information, past performance is not a reliable indicator of the future performance of the relevant investment or any similar investment strategy.
Newton Investment Management Limited is exempt from the requirement to hold an Australian financial services licence in respect of the financial services it provides to wholesale clients in Australia and is authorised and regulated by the Financial Conduct Authority of the UK under UK laws, which differ from Australian laws.
The internet has changed the consumer landscape significantly, and, as investors, we are paying attention. In the past, it was only big brands with big budgets that could afford to advertise to the masses. Now, consumers have access to a wealth of product and price information, online reviews and influencer preferences at the touch of a button. The onus is therefore on the consumer companies to navigate this shifting landscape through differentiation – be it through offering experiences, pricing, convenience or greater authenticity, or by focusing on consumers in emerging markets.
Our expectations as consumers have changed significantly over the last few decades: In 2018, customers in the US expected deliveries within 24 hours, as opposed to a nine-day delivery time in 1995, while consumer preferences for experiences rather than things and sustainable businesses are also sharply on the rise.
