Page 142 - Accelerating out of the Great Recession

GO ON THE OFFENSIVE

Eleven continued to gain share and cemented its place as the
market leader in one of the few industries that saw consistent
revenue growth during the decade.
Asahi Breweries, a Japanese beer manufacturer, also rode the
consumer trend toward bulk purchase of discounted products.
As a late entrant to the industry, Asahi recognized that it would
have little chance of growing fast if it chose to sell its products
through traditional sales channels such as liquor stores, which
were dominated by its major competitors. Instead, Asahi tar-
geted discount chains and mass merchants. Although these out-
lets commanded a small share of the market in the early 1990s,
Asahi believed that their influence was likely to increase. And
competition for shelf space in these retailers was less intense.
Asahi’s foresight enabled it to grow more quickly than it
could have through the traditional channels, and its rise was
helped by its major competitors’ slow recognition of the grow-
ing influence of discounters. In fact, one major competitor
finally shifted its focus toward discounters only in 1996, after it
had already conceded a sizable share of the new and growing
business to Asahi. Asahi’s well-timed move played an important
role in its success during the 1990s and eventually helped it to
achieve market leadership.
This shift to private-label products continues today. In
Europe, discounters such as Lidl and Aldi are gaining market
share, and other retailers are aggressively increasing shelf space
for private-label products. Manufacturers have started respond-
ing by strengthening the lower end of their product range.

Make the Most of Government Intervention

Some of the best opportunities that existed in the 1930s were
those presented by the increasing role of government—and

■ 121 ■