Fighting talk: what retailers and manufacturers can learn from France’s FMCG price war
Whereas many European countries are in the early stages of an FMCG price war, retailers in France have been battling for two years. The reasons for the start of a price war differ from country to country, but there is useful insight to be gained by understanding the impact events in France have had on price trends, retailers’ performance, the balance between national brands and private label, and distribution structures.
In this article Jacques Dupré, IRI’s Insight Director, examines the price war in France and the lessons that can be learned by retailers in other European countries.
He will consider whether a price war is the path to success for retailers and manufacturers, looking at the impact in France on:
- Consumers upgrading to premium brands
- Sales of national brands v. private label products
- The performance of different FMCG sectors and brands
- Volume consumption
- Price differences between retailers
- Consumers’ trust in retailers.
Jacques will also identify how strong a lever for growth price really is, compared with promotion and range. Finally, he will explore the different ‘triggers’ for price wars across Europe, how the battles are developing and what retailers and manufacturers can do to influence a positive outcome.