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Economic Moat

Henkel AG & Co KGaA has no economic moat

Shoppers can replace Henkel’s detergents and hair products with competing brands without losing data, training or access to a service, leaving rivals free to compete for each purchase. Henkel’s specialist adhesives can be harder to replace, but its brands, technical expertise and size do not provide equally strong protection across the whole company.

Why Henkel AG & Co KGaA has no moat

Easy consumer switching

Brands face strong alternatives

Scale is not exclusive

The explanation behind each reason