"Markets in focus - discounters in the food retail sector"

Trade increased advertising spending in the crisis - discounters are investing more in TV - organic range and local presence ensure stable sales in the discount

The trade defies the crisis - in the advertising market: Trading has its gross advertising expenditure compared with the same period last year, according to Nielsen Media Research to 5,2 percent to a total 3,6 billion euro increase (each January to September). Primary beneficiaries TV (+ 37,7 percent) and Internet (+ 41,5 percent). A decent increase of 26,3 percent also listed poster advertising.

Commercials - the strongest in the field of trade advertising medium - contrast forfeit 2,7 percent. However, the biggest loser in the field of trade advertising are the popular magazines with a loss of 16,3 percent. The discounter discover now the advertising medium TV: While 2008 2,7 total percent of the budget was invested in television, there are 2009 already 4,9 percent. This resulted in an analysis of SevenOne Media in the new publication "markets in sight - discounters in food retailing".

Organic range as a new source of sales in discount stores

Discounters continue to be the market leaders in food retailing, but have not been able to benefit from the tense economic situation as much as experts had forecast. In addition to the intensified price war, the decline in sales in the non-food area is also responsible for this. In addition, the price is no longer the only thing that counts when making a purchase decision, but consumers are increasingly paying more attention to the factors of health, sustainability, fair trade and animal welfare. A new consumer awareness is developing, to which the food retail trade must react in good time. A look at the discounters' organic range shows that this trend has already been recognised. Between 2004 and 2008, they increased their market share in organic food from 12,5 percent to 26,9 percent. The largest organic range is offered by Plus (now part of Netto), Netto and Norma.

Above all, local proximity and price sensitivity attract discounters

Another important factor for consumers is proximity to where they live. The discounters know this and are striving for the densest possible branch network. For example, today 90 percent of consumers can reach the nearest Aldi within 15 minutes; 84 percent come to Lidl in the same period of time. Young men between the ages of 20 and 39 in particular prefer the discounter to the full-range retailer. In general, however, all age structures from 20 years can be found at the discounter. Differences can only be recognized when one distances oneself from the "package customer" and looks at the situation in a more differentiated manner. Households at risk of a crisis in particular, which make up 21 percent of the German population, are increasingly going to discounters. In the crisis, they struggle with emotional worries and fears and therefore pay more attention to the price. Another 33 percent of Germans live in a financially strained situation - they have a need for security and honesty in uncertain times. Here it is important to offer the right balance between quality and price. This consumer group also makes most of its purchases from discounters, especially from Lidl. The remaining 46 percent of Germans are considered crisis-resistant. They prefer premium brands or support the feeling of sustainability by primarily buying organic and fair trade products. To do this, they mainly use the range of full-range retailers such as Rewe and Edeka, but also noticeably often the discounter Aldi.

In addition to this data, "Markets in sight - discounters in the food retail trade" offers further information on the current market situation, the target group structure or the advertising behavior of this economic sector. "Markets in sight - discounters in the food trade" is now available for download free of charge at www.sevenonemedia.de in the Research area. In addition, analyzes of the "White Line" and "Decorative Cosmetics" markets were published in this series in 2009.

Source: Munich [ sevenonemedia.de ]