Intensifying Struggle Between Manufacturers of Brands and Retailers

The competition between brand manufacturers and retailers is intensifying, with retailers developing strong private label brands. The struggle between manufacturers and retailers will continue, and the concentration is increasing. The future for both Gillette and P&G is perceived to be better as a combined enterprise than separate entities due to the strength of big retailers like Wal-Mart and Costco. However, the impact of P&G's pharmaceutical business is uncertain and not well understood.