Do you still think that free competition is an advantage and the variety of goods in the stores makes your eyes run away? Don’t be in a hurry to declare the victory of the free market, because it is still dominated by monopolies. The variety of brands in each product group is just a “trick of the eye”: it happens that the effect of having a choice creates only one manufacturer. And where are the antimonopoly authorities looking? You may ask.
“Have a vacation in the Krasnodar region!”, “Fly on Aeroflot airplanes!”, “Keep your money in Sberbank!” – all these advertising sayings of the not so distant past, now sound a bit ridiculous, we evasively answer. Going on vacation, flying, and keeping money only as advised makes sense only if there is no alternative!
Free entrepreneurship, which developed vigorously in the early 90’s, created a different kind of problem – in the form of diversity – there are too many brands! But few people know that nowadays, even when there is no empty space in the store windows and the number of names makes your eyes run wild, entire product categories are under the control of two or three manufacturers, masquerading under numerous brand names.
There are at least six product categories, each of which is usually dominated by one person. So, who are they, these mysterious market monopolists? In the Ukrainian and Russian market, monopoly enterprises are easy to identify by studying the labels of one product group. As a rule, a large retail chain concludes a contract for the production of goods of a certain category under its own trademark with one manufacturer – the leader of a particular market, and then graciously admits to its storefronts brands of this very manufacturer, under different trademarks. Thus, visually, creates the impression of diversity of choice. Take a closer look at what you buy in retail grocery chains and share your impressions in the comments, whether we are right or wrong.
As for the foreign market, we will give a few specific examples of the formation of monopoly positions there. Firstly, because the economy continues to globalize, and secondly, because our markets, in many respects, are always oriented to foreign models of market coverage.
So, uh:
№6. Luxottica Group and its sunglasses
Fans of Hollywood sci-fi blockbusters such as “The Matrix” and “Men in Black” remember that sunglasses are an integral attribute of the main characters of these movies. Glasses “like Neo” are in the collections of most famous manufacturers. Whichever brand you choose – Revo, DKNY, Ray-Ban, Oakley, etc. – note that all these brands are the property of the Italian manufacturer Luxottica Group. Unexpected, isn’t it?
Let’s move on:
#5 Menu Foods and Cat Foods
In 2007, North America was rocked by an epidemic of domestic cat deaths. Innocent pets were abandoned by their loving owners due to melamine poisoning. Investigations revealed that the toxic substance was found in more than 150 brands of pet food! And all these brands had one thing in common – they were the property of the Canadian conglomerate Menu Foods (after the scandal, since 2010 – Simmons Pet Food). All the feeds of this company differed only in label design. It is said that the guilty party was a small but Chinese company Chemnutra (“The China-Source Experts”), which supplies large pet food manufacturers with various chemical ingredients. After this case, the owners of the company paid a $35,000 fine to the state and, as if nothing had happened, continued to conduct their business under a different name. By the way, among their clients – there is a very large organization that produces energy drinks. So, if, after drinking an “energy drink”, your soul will be inspired and allowed to separate from your body, it is very likely that it will be possible to assume what could have caused such an “elevated state”.
Let’s keep flying:
№4. Corn from Monsato
Syrup and starch from corn is in most canned, confectionery and many other products (remember, on which package you saw the inscription “modified starch”) …. And then there’s the fact that corn waste is used to make biofuel. Not only that, corn, in a certain consistency, is even included in the composition of drywall! You didn’t know that? Well, now you do. And this is only a small part of the ways in which corn is used.
That is, corn is practically everywhere! Which means whoever owns the corn owns the world… or at least a large part of it. If so, the rulers of this part of the world are the rather boring folks at Monsato, who have conquered part of our planet by sponsoring the breeding of genetically modified cobs. Monsato’s new idea is corn seeds mysteriously named “Terminator.” The plants grown from them will not be able to produce viable offspring, so farmers will be obliged to buy seeds from the same firm forever!
But, let’s go even further:
№3. Computers from Quanta plants
Very clever engineers assembling computers in sterile workshops in the USA are left only in low-quality advertising. Companies from Asia have long ruled the PC market. Approximately one-third of the world’s many laptops are assembled at Quanta. From the shops of this plant come out PCs such brands as HP, Toshiba, Dell, Sony and, imagine, the popular “Macs” (Macintosh|Apple). Moreover, for customers prices for these devices are formed on a fairly simple principle: the more loaded the factory, the lower the cost of each copy of the product. But, more often than not, this principle does not extend beyond the customers.
Why don’t we sing a song about it?
№2. Max Martin and the performers of his pop songs
Do you remember the haunting melodies of bands like Backstreet Boys, N’Sync, Take That, etc.? Well, the melodies of their most popular hits were written by one person – Max Martin. By the way, this talented composer does not stop only at pop music. The prolific author also writes for some rock bands, including Apocalyptica.
If after all that you’ve heard you feel like drinking… tea… give it a try, well we’ll continue on – about beer:
№1. If it’s beer, it’s InBev
Every country has its own beer traditions. The adherents of these traditions treat other nations with condescension, considering their beer to be the best. For example, Americans love Budweiser and Michelob, while Canadians prefer Labatt beer, and in Belgium they love Hoergaarden TM. But, in our millennium, the uniqueness of a popular product can be very relative! The varieties of the hoppy beverage listed above, as well as many other beer brands, belong to the huge corporation InBev.On this basis, whatever beer from the above brands you buy, your money will go into the pocket of the biggest brewer in the World…. Although, this fact does not make each of these beers any less tasty. Nevertheless, it is not possible to call such brands truly national either.
So, a couple of monopoly caps have been lifted by us for you, which means it’s time for the article to end…. And you share in the comments what you think about it.
We cannot fail to mention that you can turn to KOLORO branding agency with such issues as brand creation and promotion. All monopolists started small. Let’s create diversity together!
