Industry Analysis of Consumer Staple

Consumer Staples are the goods which cannot be cutout from daily usage regardless of people financial position. Its stocks are also considered to be non-cyclic like it will always be in demand no matter how economy is performing. Consumer Staples is always be in constant level irrespective of prices. In terms of Global revenue of Consumer staples sector, it is contributing around $447 Billion in the industry. Industries include Food and Staple Retailing, Food, Beverages, Tobacco, Household & Personal Products. It also includes retailing of Pharmaceutical products, Supermarkets; Hyper retail markets.Major customers including Mass Merchandiser, Whole sale stores and specialty outlets. Consumer Industry is under-performing in S&P 500 indices .Its 1 year annual return is around 8.81% and price return is around $434.89.

Current trends of Consumer Staple sector fund characteristics are as follows; Market capitalization of this industry is around $3.22Trillion but according to S&P it has undervalued by average  -1% .Estimated EPS growth of 3-5 year is around 7.85%, dividend yield around 2.79%, Price Earning around 17.9% and return on equity is 20.47% as of 3-13-2014 Recent consideration of short selling is allowable because of unstable economic position. Some companies are modifying their objective to make healthier, nutritious products to increase and promote health conscious environment because of rising corpulence and regulatory pressure.

Companies like Coca Cola and Pepsi is expected to expand their portfolios in non-carbonated categories. Coca cola is positioning itself in new market and will competing with market leader Orangina Schweppes which has around 25% of market share in drinks and in tonic about 22%.On the other hand Pepsi Co. is planning to announce naturally sweetened, low calories soda i.e. Pepsi Next estimated that it will contribute to bring up sales in 2014.Coffee giant Starbucks Corps.  is also looking for expanding its portfolio to make new addition in more nutritional, healthy products in the menu. Phillip Morris is planning to come up in e-cigarette business by late 2015.

The year-end review of consumer staple sector is quite well from previous year and there are actually some companies where investor can invest for healthier profit.

Netflix Earning boosts its shares up as it is raising prices

 The company that have popular binge-watching added recently to charge its new customer about $1 to $3 per month for more of its online video facility and it will start later in this quarter soon. Netflix Inc. is also verified a report that in first quarterly profit there is a subscriber growth that will beat analyst projection and added to this the shares climbed on a new height.

The prices of the shares show the growth and confidence on the original show like House of Card and also the exclusive movies will continue to gain new subscriber, even that the soccer world cup is starting in mid-June that will be a distinction for the company and  it will  temporary low user.growth. Netflix currently offering, unlimited web browsing in just about $8 per month.

The leverage earning on even just a one dollar is pretty fine added by Daniel earnst-an analyst at Hudson square research,New York who suggested buying its stocks for investing point of view. “Its incredible value  will be added advantage for the Netflix customers”.

Netflix Stocks grew 6.5 % to $371 in the expanding trade announcement .Its investment has gained 0.8% to $348 at the close in New York and withdrawn about 20% from its close high of $454 on 4 march. Netflix have now gained around 48 Million streaming facility worldwide. The company also forecasts that it will gain more new subscriber this quarter which include around 520,000 in United States.

Current customers might not effect by changed price for at least one or two year said Chief Executive Officer Reed Hasting on webcast. It means all of the fans of women prison series i.e. Orange is the new black will not face higher prices when this show will return in June. When the FIFA World Cup starts in June at Brazil, it will slight headwinds forecasted by the Los Gatos, a California based company.

Netflix is the world’s largest online-subscription service provider which splits the DVD through mail business from the steaming which ultimately increased the prices by 60% of the people that prefer to buy both. Adding $2 to the recent price amounts up to 25% increase.

Netflix added 2.25Million new domestic subscriber that streaming during the quarter in line.with.the.company January predicted and carrying the USA’s total up to 35.7Million.          

Amazon might offer 5 features in its phone

According to New York, a report of this week in Wall Street Journal reported that Amazon (AMZN) is designing to release a smartphone and as analyst suggests that technology sector is in growing stage and there is a lot more intensive work has to be done in coming years. A real challenging arena is emerging in the smartphone sector has been developed after big giants like Apple, Samsung, Motorola and E-bay too in some extent.

In this race amazon is coming up with its smartphone although it’s not yet confirmed by Amazon because of there is so much crowd in this industry. Introducing such devices would be tough contending product in recent days as market is dominated by the big mobile phones corporation .Even that innovation like the kindle fire and prime membership platform establish that the online retailing enterprises has an ability to go for its massive size marketing budget to capitalize on gap in the e-market or in market place.

Though some of unofficial reports says that the phone might have a 3-D interface and multiple that can be include front facing camera.

We have mentioned here five feature technological options which can be believed by experts that might be opted in its smartphone. Let’s have a look on its features

1. Free streaming video

As per IDC’s Llamas reported that one of the mobile phone’s unique selling points could be a free advertisement supported version of Amazon’s existing instant video service, that can be include in the around $99 per annum in prime membership criteria. The proposed service could be seen on its smartphone, Kindle or an Amazon’s Fire TV but not anywhere like Xbox or Ruko he added

2. 3-Dimension shopping

3D interface does not include any unique glass or any which can have a more of uses. This option will open features like when for instance anyone wants to opt for shopping, he or she can pull up a 3D image of any product like any sport wear or jackets and can be able to see its entire feature easier propose by Bill Menezes who is the research analyst at Gartner. Another possible reason you could do that , scan your living or drawing room to make a 3D rendering and if you are out of furniture or wants to change , you can take a picture and digitally insert the product into the rendering to see if its fit and matching accordingly.

It could be like if it matches with your taste then you can easily order and have it in your dinning or drawing room added by Ramon Llamas research manager of research organization IDC mobile phone team.

3. All-in-one grocery shopping

Amazon was testing a Wi-Fi bandwidth called amazon dash which can be simplifies through barcodes scanning interface. Comparable feature might be included in that smartphone which can improve on existing barcode scanning application. Combining a same day grocery feature with amazon fresh it is currently in testing phase in Los Angeles, Seattle and San Francisco after that grocery shopping would be amazingly simplified through this component. It is relatively easy then dragging a shopping cart to look around or scrolling down for a list of products online. This service could be done through a quick response from the phone that can be delivering your all groceries at your doorstep with in an hour.

4. Enhanced gaming feature

As it is consider that amazon is rapidly expanding its business into the gaming area through its Amazon gaming Studio and video game offering service through its new streaming device, Amazon fire TV.

.According to CRT Capital analyst Neil Doshi. , “Smartphone can be a way to help potentially boost more on game front.”

The phone is supposed to offer 3D experience through 3D interface facility.

5. Competitive.  Pricing

Menezes at Gartner wonders that the phone could be offered on.different price levels. One level could be a one-time payment for the phone.that offers Amazon's apps and services but a limited number of other features. A higher price level could feature a monthly bill and a.phone with more bells and whistles.

It's difficult to be competitive on price in the cutthroat phone market. But as Amazon has shown with its tablets, the.company is willing to deliver high-quality hardware at a loss in order to undercut competitors like Apple.and put its devices in the hands of people.who will use them to buy Amazon's goods and services.