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Marc Bruynseraede, DIY in Europe Belgium
“Nowhere in Europe is there less concentration than in Belgium,” in the words of Rudi Petit-Jean of Gamma Belgium. We are confronted with the unusual
situation that bigger and bigger retail groups are proliferating throughout Europe, whereas the Belgian DIY market is fragmented into a dozen chains – with just 250 outlets – and little short of 3000 independent DIY retailers, who are not even real specialists as a rule.
In order to survive the independents are being forced to concentrate increasingly hard on niche marketing and to expand those market segments where their individual strengths lie, whereas the big chains are becoming more and more alike in both product offer and service aspects.
A small food store can offer ten different kinds of butter and still survive; a big store, on the other hand, has to make ever greater efforts to attract custom by advertising leaflets and special offers. What is more, customers want better and better quality at lower and lower prices. And the chains are going along with this to a man, always on the lookout for any new potential savings so that prices can be reduced a little more without any obvious effect on product quality.
We are confronted by a paradox: the bigger the business, the less specialist it is; the smaller the unit, the greater its specialisation. The higher the quality, the lower the price. It is a question of when we reach the turning point: a big concern may well be no more than a giant with gammy legs. And will it then mean the bigger the concern, the poorer the quality?
“Nowhere in Europe is there less concentration than in Belgium,” in the words of Rudi Petit-Jean of Gamma Belgium. We are confronted with the unusual
situation that bigger and bigger retail groups are proliferating throughout Europe, whereas the Belgian DIY market is fragmented into a dozen chains – with just 250 outlets – and little short of 3000 independent DIY retailers, who are not even real specialists as a rule.
In order to survive the independents are being forced to concentrate increasingly hard on niche marketing and to expand those market segments where their individual strengths lie, whereas the big chains are becoming more and more alike in both product offer and service aspects.
A small food store can offer ten different kinds of butter and still survive; a big store, on the other hand, has to make ever greater efforts to attract custom by advertising leaflets and special offers. What is more, customers want better and better quality at lower and lower prices. And the chains are going along with this to a man, always on the lookout for any new potential savings so that prices can be reduced a little more without any obvious effect on product quality.
We are confronted by a paradox: the bigger the business, the less specialist it is; the smaller the unit, the greater its specialisation. The higher the quality, the lower the price. It is a question of when we reach the turning point: a big concern may well be no more than a giant with gammy legs. And will it then mean the bigger the concern, the poorer the quality?
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