11.08.17
In a new study, McKinsey & Co. mulls the idea of consumer packaged goods companies bypassing traditional retail altogether in favor of a more direct approach. In her report, Priti Joshi notes that several major players did just that via acquisition, such as Unilever's purchase of Dollar Shave Club.
But not every company has such deep pockets. Another way to play, is through a set of metrics including:
• Gross margin per customer should be at least six times the cost of acquisition.
• Year-over-year growth rate should be at least 50 percent.
• Capital investment should break even in four years or less.
• Cash flow should be consistent regardless of seasonal spikes in the business.
To read more about the study, click here.
But not every company has such deep pockets. Another way to play, is through a set of metrics including:
• Gross margin per customer should be at least six times the cost of acquisition.
• Year-over-year growth rate should be at least 50 percent.
• Capital investment should break even in four years or less.
• Cash flow should be consistent regardless of seasonal spikes in the business.
To read more about the study, click here.
