CLSA has shifted its focus towards platforms rather than individual companies to take advantage of the consumer theme.
This shift is particularly evident in the quick-service restaurant sector, where competition has intensified due to the rise of food delivery aggregators like Swiggy and Zomato. Local chains are now challenging established players like Domino"s, especially in the pizza category.
In the fast-moving consumer goods (FMCG) sector, CLSA prefers food and beverages over home and personal care products. The analyst points out that the food and beverage category has lower gross margins, which makes it difficult for new entrants to undercut established companies. On the other hand, the home and personal care segment has gross margins of 70-80% and returns on investment exceeding 100%. This allows new players to disrupt the market by accepting a 20% ROI, which is still above their cost of capital.