Brands, be yourself!

Driss Farissi
Procter & Gamble, Switzerland

PREAMBLE

Discount retail in Western Europe continues to show an unsettling growth rate. The retail structure in Western Europe came a long way since the launch of the first Aldi in 1948. Many factors helped discount retailers to grow in Western Europe. To mention a few, the energy crisis, Mass retailing control laws, the ongoing shift in power between retailers and manufacturers at the expense of the latter. Today retailers make more than 18% of total retail value in Western Europe with share in some categories and countries above 70%. Discount retailers are now focusing on white space coverage by exporting their activities into areas that till lag behind Western Europe such as Eastern Europe and the US. The other trend we can see emerging is exploration of new categories where involvement levels are higher than average FMCG. (See Figure 1, 2)