Belgium Continues to Offer Bigger Promotions, but Are They Delivering?
In promo-crazy Belgium, discounts are, unsurprisingly, on the rise. 58{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} of Belgian consumers identify themselves as obsessed with promotions, while 51{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} consider themselves very price sensitive: they know the prices of their products and notice when those prices change. In fact, 41{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} of Belgians claim that they actively look for and buy products on discount.
And there are multiple reasons for this. Inflation is on the rise in Belgium, reaching 1.8{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} in October 2016 – and is relatively higher next to its neighboring countries (FR +0.4{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea}, LUX +0.4{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea}, DE +0.8{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea}, NL +0.1{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea}). According to Nielsen’s Q3 2016 Consumer Confidence Index, 54{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} of Belgian respondents have recently changed spending habits to save more.
As hard discount matures in Belgium, the arrival of new competition (low-end retail), the Ahold/Delhaize merger, and new shopping (saving) habits all contribute to create a perfect storm for promotions: low/fair price perception remains crucial for retailers as a reliable traffic driver.
Using this logic, the retailer or manufacturer should increase promotions and the happy shoppers will purchase more products, right? Wrong. Nielsen – Read more…
And there are multiple reasons for this. Inflation is on the rise in Belgium, reaching 1.8{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} in October 2016 – and is relatively higher next to its neighboring countries (FR +0.4{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea}, LUX +0.4{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea}, DE +0.8{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea}, NL +0.1{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea}). According to Nielsen’s Q3 2016 Consumer Confidence Index, 54{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} of Belgian respondents have recently changed spending habits to save more.
As hard discount matures in Belgium, the arrival of new competition (low-end retail), the Ahold/Delhaize merger, and new shopping (saving) habits all contribute to create a perfect storm for promotions: low/fair price perception remains crucial for retailers as a reliable traffic driver.
Using this logic, the retailer or manufacturer should increase promotions and the happy shoppers will purchase more products, right? Wrong. Nielsen – Read more…
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