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Agnès RichardDIY in Europe, FranceEditor-in-chief, Univers Hebdo
Will 2006 be the year when the French are won over to do-it-yourself? That is open to question. DIY retail sales grew in the order of one per cent in the first five months of the current year, which suggests that this season is not turning out any better than the previous one. What is more, the weather conditions were not particularly good in the spring, and then the dominant tendency was extremely dry weather.
Some observers had hoped that a victory by the French soccer team in the World Cup would help to boost the economy, which had been the case in 1998. But this euphoria proved to be extremely short-lived. Another fact that must be taken into account is that 2007 is the year of the presidential election, which has never been a good omen for consumption.
Nevertheless, everyone is unanimous in recognising that the DIY market is still buoyant. But over the past ten years its growth has been boosted by new store openings and the expansion of retail areas, which is still the case today, except that the rhythm has slowed down tremendously. In view of this new market saturation, one retailer or the other will find himself specifically confronted with the necessity of reflecting long and hard about what he can offer consumers to appeal more strongly to them: improved ranges in the shape of genuine collections, enhanced status for innovative ideas and for products with real additional benefits, which allow the consumer to understand what it is that justifies the difference in price between two products, as well as customer service, etc. There are numerous possibilities for differentiation between the individual retail formats which, as a means of surviving in the marketplace, are without a doubt more promising than exposure to a pricing war in order to win over customers.
Download: Slower rhythm (PDF-Datei)
Will 2006 be the year when the French are won over to do-it-yourself? That is open to question. DIY retail sales grew in the order of one per cent in the first five months of the current year, which suggests that this season is not turning out any better than the previous one. What is more, the weather conditions were not particularly good in the spring, and then the dominant tendency was extremely dry weather.
Some observers had hoped that a victory by the French soccer team in the World Cup would help to boost the economy, which had been the case in 1998. But this euphoria proved to be extremely short-lived. Another fact that must be taken into account is that 2007 is the year of the presidential election, which has never been a good omen for consumption.
Nevertheless, everyone is unanimous in recognising that the DIY market is still buoyant. But over the past ten years its growth has been boosted by new store openings and the expansion of retail areas, which is still the case today, except that the rhythm has slowed down tremendously. In view of this new market saturation, one retailer or the other will find himself specifically confronted with the necessity of reflecting long and hard about what he can offer consumers to appeal more strongly to them: improved ranges in the shape of genuine collections, enhanced status for innovative ideas and for products with real additional benefits, which allow the consumer to understand what it is that justifies the difference in price between two products, as well as customer service, etc. There are numerous possibilities for differentiation between the individual retail formats which, as a means of surviving in the marketplace, are without a doubt more promising than exposure to a pricing war in order to win over customers.
Download: Slower rhythm (PDF-Datei)
