Rewe bundles its strengths and turns Merkur into Billa Plus. That makes brand manufacturers nervous
Go shopping at Mercury – that will soon be history. From Easter onwards, Merkur will be called Billa Plus and will disappear from the scene. The parent company Rewe will in future rely on a brand, purchasing, marketing and campaign policy. In short – in the competition against arch rivals Spar, the forces are bundled.
This creates nervousness on the producer side. After all, this increases the already great market power, says Günter Thumser, Managing Director of the Branded Articles Association. Especially when it comes to campaigns, the Rewe Group will have to negotiate better and more timely with its suppliers in the future. “Otherwise, consumers will be surprised why the items advertised in the campaign area are not on the shelf at all.” Background: It is more and more common for Rewe to change planned campaigns at short notice. Suppliers would receive calls that the product should now be on the shelf even cheaper and that more quantities are therefore needed. Thumser: “Often within a week, which is a logistical challenge.”
The competition between retailers' own brands (Clever, Spar Gourmet, etc.) is also a challenge, as producer brands are increasingly pushing producer brands off the shelf. Here, too, Thumser calls for more fair play: “Innovative products have to be given a fair chance and not be on the shelf somewhere outside of the consumer's field of vision. Perhaps next to the retailer's own brand, which is 40 percent cheaper. This is a template for self-interest and not fair competition. “
Because of loyalty
Speaking of the importance of brands: a survey by the Havas agency group is sobering. According to this, 77 percent of brands would ultimately not be lost on consumers if they disappeared from the market. “You can also see that in the supermarket, where brands are constantly being taken out of the range without anyone noticing,” says brand expert Michael Brandtner. The older a market, the more it tends towards a “duality”. In his opinion, customers would ultimately love “either-or decisions”. “Coca-Cola or Pepsi. Ariel or Persil. Samsung Galaxy or iPhone. Spar or Billa. Anyone who is positioned undifferentiated in the middle will ultimately fall out of the market. “
