Companies which are able to generate stable demand, often resistant to the economic cycle, thanks to their position on the market, a strong brand or innovations, have the advantage of pricing power. We track down such rare pearls which generate high-added value and stable yields mainly in the following areas:
| Luxury goods |
Prestigious branded articles are characterised by stable demand which holds up even when times are tough. Suppliers of quality brands can therefore achieve high prices. Moreover, the development of the emerging countries brings greater purchasing power and opens up important new markets for luxury goods suppliers. |
| Biotechnology |
To secure food and pharmaceutical supplies for a growing and ageing population worldwide, biotechnology companies are investing massively in research and development. With mature products protected by patents, they gain a price edge and with it the potential for long-term growth. |
Companies with pricing power offer attractive development prospects. Julius Baer gives access to them through specialised products managed by experienced experts. Invest in companies with a strong and independent market position to benefit from the potential of these lucrative niche markets.