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Troels R. Klausen, DIY in Europe, Denmark
You might well think so, in view of the positive figures. Whether figures for the sector or for the economy as a whole, they simply add up. But this first glance is deceptive. The old familiar muscle-flexing is still going on. Who will get the upper hand, the retailers or the manufacturers?
In this little kingdom with its splendid economic data (4 per cent unemployment, for instance), the DIY market is indeed growing steadily, but the Danes cannot repudiate their very nature: the desire to get a good bargain is rooted deep within the Danish soul.
And so in 2006 we quickly arrived at the “vexed” or “fascinating” question of prices once again. This is and will continue to be important, precisely because there is always a choice of DIY stores in the majority of Danish towns and cities. And prices will remain important not least because of the sale of Silvan and DT Group to the English giant, Wolseley.
For the retailers – with the exception of Jem & Fix – it will be a matter of directing customers’ attention to other parameters: services, breadth of product offer, the shopping experience, etc. Which is what they are doing, though with limited success. A glance at their catalogues shows that they are giving priority to the communication of prices. An approach geared to emotional loyalty would be the right one, but how do you get customers to commit themselves to your firm? By means of the above-mentioned parameters, and perhaps through conspicuous advertising as well.
For the manufacturers it is a matter of lo-gistical effectiveness, reliability, short delivery terms, PR, POS leaflets, etc. Everything that buyers definitely do not get from cut-price Chinese producers. It is a matter of taking some of the burden off the shoulders of the stressed-out buyer at head office by putting together an offer that leaves him as little as possible to do.
To sum up: The customers are there, they have the money and are increasingly happy to spend it on DIY projects – but they will definitely look closely at the price. Nothing much new in the North of the DIY continent!
You might well think so, in view of the positive figures. Whether figures for the sector or for the economy as a whole, they simply add up. But this first glance is deceptive. The old familiar muscle-flexing is still going on. Who will get the upper hand, the retailers or the manufacturers?
In this little kingdom with its splendid economic data (4 per cent unemployment, for instance), the DIY market is indeed growing steadily, but the Danes cannot repudiate their very nature: the desire to get a good bargain is rooted deep within the Danish soul.
And so in 2006 we quickly arrived at the “vexed” or “fascinating” question of prices once again. This is and will continue to be important, precisely because there is always a choice of DIY stores in the majority of Danish towns and cities. And prices will remain important not least because of the sale of Silvan and DT Group to the English giant, Wolseley.
For the retailers – with the exception of Jem & Fix – it will be a matter of directing customers’ attention to other parameters: services, breadth of product offer, the shopping experience, etc. Which is what they are doing, though with limited success. A glance at their catalogues shows that they are giving priority to the communication of prices. An approach geared to emotional loyalty would be the right one, but how do you get customers to commit themselves to your firm? By means of the above-mentioned parameters, and perhaps through conspicuous advertising as well.
For the manufacturers it is a matter of lo-gistical effectiveness, reliability, short delivery terms, PR, POS leaflets, etc. Everything that buyers definitely do not get from cut-price Chinese producers. It is a matter of taking some of the burden off the shoulders of the stressed-out buyer at head office by putting together an offer that leaves him as little as possible to do.
To sum up: The customers are there, they have the money and are increasingly happy to spend it on DIY projects – but they will definitely look closely at the price. Nothing much new in the North of the DIY continent!
