The uncertainties of Brexit combined with a fluctuating exchange rate could mean UK suppliers are tempted by new possibilities for expansion beyond Britain.
Although rising inflation has buoyed the UK grocery market to some extent, the current political climate means that some suppliers and retailers have been eyeing up Europe’s FMCG potential. But will mastering the continent’s shopping habits prove an easy nut to crack?
Despite global GDP rising by 3.1 per cent to the end of 2016, growth within the global FMCG market has decelerated over the past year – now increasing at just 1.3 per cent. Western Europe in particular has failed to deliver, with the FMCG market there expanding by a mere 0.3 per cent. With slow growth across the Channel, suppliers looking to make a quick buck might be left short-changed. Market growth aside, companies will need to think about their new consumers’ shopping behaviour.
British shoppers are creatures of habit. Over the past five years UK consumers have consistently visited supermarkets around 260 times annually, providing retailers with plenty of chances to attract new customers. Western Europeans on the other hand are shopping less frequently. Five years ago, consumers were visiting supermarkets 190 times a year, which has now fallen to just 183 trips.
Suppliers and retailers in the UK have honed their business model to suit the stereotypical British consumer so companies planning a hop across the Channel will need to do their research, updating their existing business models to accommodate European consumers.
Suppliers should bear in mind that, with Europeans visiting supermarkets less and less frequently, they will need to adapt to create maximum impact and inspire consumers to buy their product every time. Within Europe itself, individual countries have their own distinct shopping patterns and suppliers should take care not to generalise their strategies.
With fewer opportunities to impress, consumers, suppliers and retailers will need to make sure that their product is a cut above the rest to make the crossing to mainland Europe worth their while.
