2021-05-31-GFK-GfK_Nederland_Insight_Summit_2021_Bekijk_de_opname_en_presentatie_74页_5mb

Insight Summit Summary - GfK Netherlands (2021)

Core Content Overview

The GfK Netherlands Insight Summit 2021 provided a comprehensive analysis of the retail sector's performance and future outlook across various sub-sectors, including Automotive, Food Retail, Non-Food Retail, and Groothandel Non-Food. It also explored the impact of the pandemic on consumer behavior, the role of digital transformation, and the evolving dynamics in brand management and market strategies.

Main Points and Key Information

Economic Recovery and Retail Performance

• Dutch Economy Recovery: Expected to recover in Q3 and Q4 2021, with a 3.7% growth in GDP, driven by private consumption (+1.6%), investments (+6.8%), and exports (+7.7%).
• Unemployment Rate: Continued to decline after peaking in August 2020, with a 3.6% rate in 2021.
• Consumer Confidence: Still below the 10-year average, indicating a cautious consumer environment.
• Online Consumption: Grew by 7% in 2021, with a significant increase in product purchases (+43%) and a decline in services (-39%).

Subsector Performance

Consumer Behavior Changes

• Growing Behaviors:

  • Make a shopping list for groceries
  • Try different products than usual
  • Special attention to physical health
  • Moderate 'bad' foods and drinks
  • Special attention to mental wellbeing
  • Try to shop in stores with best promotions
  • Pay special attention to quality
  • Try to keep the total amount of the basket low

• Declining Behaviors:

  • Shopping as fast as possible
  • Shopping weekly groceries online
  • Less snacking
  • Takeaway

• Pandemic Impact:

  • 83% of consumers changed their FMCG shopping behavior
  • Lower purchase frequency affected buying opportunities for brands
  • Online sales increased, with a 6.5% market share in 2021, expected to grow to over 10% by 2025

Sector-Specific Insights

Automotive

• Sales growth in 2021: 390/m, +9.5%
• 80% of sales via lease, with growth in 2nd hand vehicles
• EV growth driven by subsidies and changing consumer mindset
• Stricter EU CO2 regulations from 2020
• Decline in aftersales due to electric vehicles, but 2nd hand sales still contribute to revenue
• Digitalization and fewer physical locations are trends
• Local regulations may hinder growth

Food Retail

• 10% growth in sales due to increased foodservice and delivery
• Recovery of non-supermarket competitors, but home working impacts service shops
• Online retail is expected to grow significantly
• Consumers prioritize health, natural, and safety aspects
• Convenience, health, and sustainability are key drivers

Non-Food Retail

• Strong online competition and D2C strategies put margins under pressure
• Continued online growth (30% market share)
• Reduction in physical locations
• Return issues (Cljift) remain a challenge
• Differentiation based on price, assortment, service, and MVO
• Supply chain risks are a concern

Groothandel Non-Food

• Growth due to internationalization
• Competition from platforms and online transparency
• Differentiation through assortment, service, training, and supply chain reliability
• Private label and hard discount offerings are key for value

Digital and Social Trends

• Digitalism: Online presence is essential for growth in all sectors
• Fluidity: Businesses need to be flexible in their market approach
• Social Awakening: Sustainability and environmental responsibility are increasingly important
• Findability: Consumers value brand, price, and product availability
• Purpose: Brands should align with consumer values and needs
• Balance: Managing budget and added value is crucial
• Innovation: Adapting to new trends and technologies is vital

Key Takeaways for Businesses

• Consolidation: Market consolidation is expected, especially in 2021
• Digital Transformation: Implementing D2C strategies and enhancing online presence
• Sustainability: Being green is a key differentiator, but consumer trust in environmental claims remains low
• Collaboration: Working within supply chains is necessary for maintaining margins
• Adaptability: Quick adaptation to changing consumer behaviors is essential
• Customer Engagement: Focus on mental availability and effective communication strategies

Conclusion

The retail sector is undergoing significant changes due to the pandemic and broader economic trends. Digital transformation, sustainability, and adaptability are key to success. Online sales are growing, and consumers are becoming more conscious of health, environment, and value. Brands must differentiate themselves through innovation, collaboration, and a strong focus on customer needs and behaviors. The future of retail will be shaped by these trends, with a particular emphasis on omnichannel strategies and maintaining relevance in a VUCA (Volatile, Uncertain, Complex, Ambiguous) world.