For successful online stock trading, you must be prepared for major decisions and forays into new segments by new companies or conglomerates. That could shake up the segment and reflect on the stock market too.
The Koch Industries conglomerate is making its entry into the household-cleaner industry. This has been the realm of such multinational giants such as Clorox Co., Procter & Gamble Co., and Reckitt Benckiser Group PLC. Koch’s foray into the household cleaning industry is considered a game changer, since Koch is known for its innovation which has been lacking in the industry in spite of the presence of the aforementioned multinational companies.
Koch is one of the world’s largest private companies. Two of its companies, Invista and Georgia-Pacific, are pairing to launch the Stainmaster carpet-cleaner line. This isn’t the only product in Koch’s entry into the US household cleaning market that is estimated to be worth $25 billion. The company claims to have several other products in development too.
With the Stainmaster carpet-cleaner line, Koch has entered the $360 million American carpet-cleaning market of which roughly 36% is held by Reckitt Benckiser’s Resolve and Woolite carpet cleaners. Koch claims that its Stainmaster carpet cleaner leaves no sticky residue, which is usually the case with other carpet cleaners. Reckitt Benckiser also claims that its carpet cleaners don’t produce any kind of sticky residue.
Koch is also looking to collaborate with one of its companies for manufacturing apparel as well as lawn-and-garden products. Koch company Georgia-Pacific has started a home-cleaning division with more offerings on the way. Currently, Koch has chosen not to delve deeper into core consumer products. But if they do, the diversification could bring the group in to direct competition with more major multinationals such as P&G and the Kimberly-Clark Corp.
But now that Koch has chosen to bring together companies from unrelated industries to work for developing innovative solutions, there really is no telling how far the group could trouble established players. Watch this space!
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