Our study “Discounter on the Rise” shows that in 2019, Discounters contributed above average to the total FMCG global growth compared to the other brick and mortar players, such as Supermarkets and Hypermarkets.
In most of the Western and Eastern European countries, Discounters are well positioned, with a high market share or dynamic growth, and still a lot of potential for expansion. Asia, LATAM and the US, as well, offer room for further growth, however, each region and country is characterized by different particularities.
To stay ahead, Discounters have to strengthen their core attributes – price and private labels. While price differences between Discounters, Supermarkets and Hypermarkets tend to narrow down, once Discounters reach a significant market share, private labels could be an opportunity for growth around the globe, especially as a persuasive answer to a change in consumer behavior.
A thorough analysis of the market data is essential for Discounters to stay ahead of the game. The knowledge of trends and developments in FMCG and a good understanding of the consumer expectations will be key for continued success.
2019 and 2018 were strong years for Discounters, however, 2020 was a catalyst for change: COVID-19 influences the current and future shopping behavior and accelerates other important developments. E-Commerce and sustainability have gained momentum during the past COVID-19 period and will be the main topics in the future.
Discounters have to find the right answers and successfully adapt to this environment as this is not their natural playing field. For example, the economic crisis due to COVID-19 and a more value-sensitive consumer could be the chance to establish a range of private labels which offer value to the consumer. Similarly, leveraging the strong demand in E-Commerce and implementing an online business strategy, could be a significant step towards a more Omnichannel approach for Discounters.
Therefore, “Discounter on the Rise, continued” could be the title of further studies by GfK, if Discounters will adapt their strategies and identify opportunities in these challenging times.
"Growth from knowledge” is possible for Discounters, but for other players in the FMCG market, too.