A perfect storm – fast-moving consumer goods

• Published 07 Apr 2011

Mounting pressure on balance sheets was evident in 2H last year, but Q1 this year has seen the mix turn sourer still.

It is fair to say that China's fast-moving consumer goods (FMCG) players have hit a rough patch. Intense cost pressures from rising raw material and labour costs are taking their toll on margins. Meanwhile, government intervention to protect consumers by controlling prices as well as stiff competition, is leaving little room for them to manoeuvre their way out of it.

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