17 October 2017

Challenging Times for European Retail Industry


Challenging Times for European Retail Industry

Image Courtesy : popaitaly

European retail market is continuously changing and it is becoming increasingly difficult to ascertain the conditions and forecasts in the European Debt Crisis. But, the fast booming trends and influences such as growing population, political landscape, developed technologies, scarcity of resourced and economic changes are contributing to the large sum of economic stability that is finally taking shape in European countries. Trends such as these have the power to influence the behavior, demands and needs of consumers and which in turn can cause economic instability to lead to more price quality conscious consumers. It usually depends on the size, demographic and characteristics of the market as a health trend may have more impact in the food and cosmetic segment than in wooden or metal furniture segments. There have been several trends noted for the ten year forecast that can prove to be improving the market segments such as apparels, furniture, natural ingredients, food, cosmetics and DIY products.

The recent newcomers on the retail scene are expected to develop as specialist discounters are known to expand in their own trades and the conventional retailers are expected to adopt different forms of discount trading. There have been many threatening and negatively impacting signs on European market, especially from Smartphone market in recent times due to retail spending showing ominous signs of weakness since a couple of months. Voluntary groups, established organizations are looking forward to present UK with opportunities for international marketing. The incoming large-scale units such as hypermarkets and supermarkets will not be affected or hampered as the prospects of further change that could prove to be positive are very strong and might result in sustainability for near future to come.

There is an enormous scope for growth in retail than just from shopping centers; although in Eastern Europe shopping centers have been the focus of many international retailers planning to establishing and engaging in a particular market to reap more benefits and acquire a larger chunk of market share. Europe is the home to discount retailing, especially in Germany from where four out of five leading European discounters originate. In addition, with the value of approximately €68 billion the German discount sector is more than three times the size of any other discount market. Even though some western European countries such as UK, Spain and Ireland are growing rapidly in discounters market, the German market has reached a saturation point and the growth is slowed down gradually. Therefore, leading discounters are looking to many eastern European countries and emerging markets to drive growth. As consumers increasingly look for quality and varied choice with a value for money, discounters cannot focus entirely on price and they will have to flex their models and propositions to meet new and emerging market needs.

For many reasons, European market can sustain itself with more and more export of products and maintain a stability on trends such as changing competitive landscape, demographic shifts, growing consumer concerns about sustainability, increase in regulatory pressure, increased importance of health, adoption of supply chain technologies and increase in consumer service demands. It is highly important to understand trends that affect or cause a positive effect to the growing economy as many a times, several trends influence each other and the combined effect of trends can result in new trends being established. Europe accounts for more than 20% of global high-end smartphone sales and the power to retain that market has been very strong despite every year the number keeps declining.

 

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