No compromise on quality

Gone are the days when buying cheap was synonymous with lower quality.

Today’s budget conscious consumer is no longer willing to compromise on quality. This is what a McKinsey¹ study on the new trends in food distribution reveals. More than a passing fad, this is a fundamental trend that is shaking up brands and leading them to rethink their offer. Entry-level products are increasingly matching the quality of major brands.

The challenge for retailers: how to justify the sometimes significant price differences between two products of comparable quality? How can they meet their consumers’ expectations?  They have two options: increase the quality of private label in the entry-level category, or merge it with the main category.

What seems certain is that quality is becoming more and more levelled upwards, and that food retailers now consider that improving the quality of the entry level is essential.

The impact of such an evolution on the performance of retail operators is limited : indeed, if consumers buy differently, they still continue to buy and shop in stores.

• Source: State of Grocery Europe CEO Survey, January 2022

The information presented above is the product of the reflection of Greenman Arth’s collaborators, built from raw data and the sharing of thoughts among professionals. Any analysis presented here should not be considered as an impartial but as an independent analysis.

This information is intended to provide food for thought and should be considered for information purposes only. It does not constitute an offer or a request for an offer, nor does it constitute advice to buy or sell any financial instrument whatsoever. It is not contractual in nature.