The Vanishing Middle Market

The middle is disappearing, not only as in middle class, mid-size businesses and mid-size arts organization, but also in middle-of-the-road products, according to the latest issue of The McKinsey Quarterly. The firm studied 25 industries and product categories in Europe, North America, and found on the global level that from 1999 to 2004, the growth rate of revenues for midtier products and services trailed the market average by nearly 6 percent a year.

"For companies competing in industries and product categories as diverse as appliances, banking, mobile phones and apparel, growth is strong at both ends of the market," the report concludes. At the high end, average annual growth rate was 8.7 percent. For no frills/value products and services, average annual growth rate was 4.2 percent.

Market polarization is a powerful trend that seems also to apply to cities. Stand for something. Middle of the road is no longer a viable strategy.

  

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