Definition: Out of total purchases of a customer of a product or service, what percentage goes to a company defines its market share. In other words, if consumers as a whole buy 100 soaps, and 40 of which are from one company, that company holds 40% market share.
Description: There are various types of market share. Market shares can be value or volume. Value market share is based on the total share of a company out of total segment sales. Volumes refer to the actual numbers of units that a company sells out of total units sold in the market. The value-volume market share equation is not usually linear: a unit may have high value and low numbers, which means that value market share may be high, but volumes share may be low. In industries like FMCG, where the products are low value, high volume and there are lots of freebies, comparing value market share is the norm.
The significance of market share: Market share is a measure of the consumers' preference for a product over other similar products. A higher market share usually means greater sales, lesser effort to sell more and a strong barrier to entry for other competitors. A higher market share also means that if the market expands, the leader gains more than the others. By the same token, a market leader - as defined by its market share - also has to expand the market, for its own growth.
How much market share is enough? Usually, gaining 100% market share is not a good idea, as the risk associated with market actions, like fashion changes, product / use changes will impact the company heavily. Also, the cost and effort to maintain 100% market share against nimble, local or more aggressive smaller competitors can be very high and killing. Most companies decide on a target market share beyond which the cost of acquiring marketshare is more than the profit from that incremental gain.
Godfrey Phillips has done well since Bina Modi took over: CEO Sharad AggarwalGodfrey Phillips CEO Sharad Aggarwal has expressed confidence in chairperson Bina Modi's leadership, under whom the company has increased its market share despite stagnant consumption. Aggarwal also downplayed the ongoing shareholder dispute involving Bina Modi's son, stating it would not impact the company's operations. The company's stock has surged over 150% despite these conflicts.
India's tablet market grows over 2x to 1.84 mn in Q2; Samsung clocks 49 pc shareThe Indian tablet PC market saw significant growth, more than doubling its shipments to 1.84 million units in Q2 2024, according to IDC. Samsung led with a 48.7% share, followed by Acer, Apple, Lenovo, and Xiaomi. The slate tablet market grew by 178.1%, and the detachable segment saw a 23.6% increase.
What were CCI's concerns over Disney-Reliance dealWalt Disney Co and Reliance Industries have received approval from the Competition Commission of India for their $8.5 billion merger of Indian media assets. The approval came after concessions related to their control of cricket broadcasting rights, amid concerns of reduced competition in the sports TV and advertising markets.
Market cap overhang a challenge for potential listing: PhonePeWalmart-backed fintech major PhonePe on Wednesday said the market cap overhang is a challenge for the potential listing of the company and can not go to the market based on the current numbers and market share. He also said the company plans to enter the European market in the next five years.
UPI market share cap directive a spoiler for IPO plans: PhonePe’s Sameer NigamPhonePe, a Walmart-backed entity, is the largest UPI payment app in India and holds around 48% of the market share in terms of transaction volume. However, the central government and the National Payments Corporation of India (NPCI) had proposed a 30% market share cap in the UPI segment earlier to prevent market concentration and duopoly.
China's JD.com announces $5 billion share buyback planJD.com, which last week beat profit forecasts for the June quarter, and rivals such as Alibaba, have been seeking to alleviate investor concerns over the sluggish Chinese retail market through major share buybacks.
Quick-commerce vs e-commerce: Ready for the new pricefight in town?Quick-Comm operators like Blinkit, Swiggy Instamart, and Zepto matched prices with major ecommerce platforms Amazon and Flipkart, aiming to attract consumers. This strategy marked a shift from their previous 10-15% premium charges for instant deliveries. The move has triggered a price war and increased competition for faster services in the home delivery market.
Sony Pictures' channels back in Tata Play's DTH packagesSony Pictures Networks India's channels have returned to Tata Play's packages after resolving their differences. Tata Play had recently removed SPNI channels due to declining market share. The channels are now reinstated. SPNI had earlier sought an audit of Tata Play's subscriber management system, citing discrepancies.
Indian cement makers to invest Rs 1.25 lakh cr in 2 years to meet growing demandThe Indian cement industry is planning a capital expenditure of around Rs 1.25 lakh crore for FY25 to FY27 to meet increasing demand, according to a report by CRISIL. This will add 130 million tonnes of cement grinding capacity. The sector’s credit profiles are expected to remain stable due to low capex intensity and strong balance sheets. Major players such as UltraTech and Adani Group are leading the expansion. The top five cement manufacturers held around 54 per cent of the market share in FY24, indicating significant consolidation in the industry.
What should investors do with Zomato stock after Paytm deal? Karan Taurani answersHow do they achieve these kind of profitability levels is going to be a key monitor. Otherwise, as far as market is concerned, they have that clout. This will give a much needed boost to currently going out business, which is somewhere around 400 crores in terms of annualised basis revenue.