Blurred boundaries

The DIY industry finds itself in the most critical upheaval in its history. In contrast to previous years, it’s not about expansion into new countries or range of products. This time we are talking about impending structural changes and, contrary to the past, it will affect the whole industry worldwide. The bottom line is: The boundaries are becoming blurred.
This phenomenon of a new lack of clarity can be determined in at least three areas: On the one hand, geographical boundaries for the expansion drive are disappearing, while on the other hand they are being redrawn. The boundaries between specialist trade and retail trade are becoming more and more obscure while the boundaries between online and offline are being erased.
In regard to the geographical borders: these are probably the easiest to keep track of, but the changes are striking. Up until now, a certain pattern has been applied in Europe: The West colonializes the East and Southeast, thereby creating very strong competition in the respective countries.

At the very latest since the German Praktiker group’s insolvency and the weakness of the Austrian market leader Baumax, this no longer applies. Praktiker didn‘t only disappear from Germany, but also from eight other countries – not as a brand however, as the acquiring companies are keeping the original brand name. Baumax is pulling out of six countries and is mainly focusing on Austria. These aren‘t the only companies which are withdrawing: Mr. Bricolage has left Serbia and Obi the Ukraine.
As to the boundaries between specialised trade and retail trade: It‘s nothing new that the DIY markets are broadening their business basis by stepping up their competitiveness with the specialised retailers in the professional business market. However, these efforts are being pursued with a new kind of momentum. The best example is Screwfix: The British Kingfisher group‘s sales division for professionals now has stores located in Germany (as reported in this issue). Thus, it is clear to everyone: This is not only supposed to be the gateway to the professional market but, above all, to the DIY trade in Germany.
Finally the boundaries between offline and online: The shifting of these boundaries is regarded as the most threatening border…