Speaker unverified: belief

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…What's FMCG? Fast-moving consumer goods. Your basic consumer staples, et cetera. But if you look at China, the foreign brand penetration is actually north of 40%. Much higher than that for certain other categories. If we assume that China's going to look more like the rest of the world in terms of how strong its domestic economy and brands are relative to foreign ones, then there's a huge market share that domestic brands can capture. This is accelerated by the fact that in recent years, manufacturing, design, all these things that go into brands have significantly improved. Like I was saying to you, Ben, the OEM of the past—the original equipment manufacturers—where the model is that when you go to China, you already have your product spec. You already have your brand. You have your design. You go there just looking for someone to make it for you. Those days are a long past. OEMs are now ODMs. They also do a lot of design where you can just go there with some much fuzzier product spec, and then they'll actually design something for you as well as manufacture it, too. Today, I hear people call these factories OBMs—the original brand manufacturing—where literally, they're doing pretty much everything for you except the final branding. They even will do a lot of the marketing copy, et cetera, for you as well because they've just gotten so much better at all these parts of the entire process. I should caveat with saying that is still, in my opinion, a lot of PR, so the "original brand manufacturing" is basically still ODMs, but the point is that they are significantly better than before. Again, you see this already in the U.S. and Amazon. You already have a bunch of brands from China trying to brand themselves on Amazon selling commodity products. What we're talking about however is not no name, unpronounceable brand from China selling an Apple, FireWire, or something. Right, iPhone chargers or stuff.…

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