Electricals Retailing in Belgium, Market Shares, Summary and Forecasts to 2022, a report published by Globaldata, contains market insights on the retail sector for electricals in Belgium. Considering the market factors such as consumer preferences, demographics, consumer trends, technology and changing economic factors and also the historic data on the sector, it provides a thorough analysis for each. The report also contains information on the major retailers in the product category and their product proposition and market positioning as well as their key developments.
Belgium is one of the most densely populated and highly industrialised European country, with a population of about 11.3 million. It is made up of three regions: Flanders, Wallonia and Brussels- each culturally unique from the other. Belgium’s retail environment had been negatively affected in the past, but in last few years it has started to recover and is showing some positive growth which will seemingly continue in the forecast period. Belgium retail market is forecasted to grow at a CAGR of 2.2% during 2017-2022. Electricals sales in particular will show a growth at a CAGR of 2.7%; it already reached EUR 5.8 billion in the year 2017.
Amongst the European economies, Belgium has been doing well in terms of business. Openness to global trade had invited many foreign investments; favourable regulations, policies and new reforms for business conduct has helped create a competitive market. Its location and geography also helps the country in terms of attracting business. Belgium shares its borders with Netherlands, France and Germany, which significantly contributes to the exports as well as cross border sales. However, businesses in Belgium face challenges due to the language dichotomy existing there. The players have to carry out their marketing operations and product propositions in a manner that resonates with the maximum population; sometimes the sales activities are differently carried out for the east and west regions.
The main players in the electricals retail market covered in the report are: Media Markt, Cool Blue, Vanden Borre, Bol.com, FNAC, Selexion, Krefel, Expert, Carrefour Market and Eldi. Cool blue registered the highest sales in the year 2016-2017.
A majority of the organizations in the country are following the multi-channel distribution route. With retail stores and chains in existence, they still can’t miss out the online shoppers. Internet infrastructure in Belgium has developed fast, yet the e-commerce adoption is still considered to be in nascent phase by market experts. The electricals retail sector, however has a good penetration in the online space by being the second most bought category after fashion and apparels. As a result of this, the sales at the specialists store has received a dent. The on-going shift is mainly due to the global digital drive. Customers are moving fast towards the online channels, firstly due to the ease of internet access and second due to the changing preferences. With new additional services being provided by the online sellers, their online experience has become better and closing towards the in-store one. Also, the market has experienced a change in the shopping habits in context of the product. With higher wages and disposable income, the consumer wants to have the best of the category and constantly update herself with the new offering. Not to overlook the high discounts offered by the e-sellers are a main driver for the consumers to make the shift.
While the overall electricals retail sector is showing a positive growth, the brick and mortar stores have seen a decline in their sales. There is a need to improve the offerings, accelerate the marketing while simultaneously resonating with the demands of all populations. The online sellers have been thriving well and will continue, given the increase in number of online buyers and a set of consumers that are more adapt with the online environment.
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Ankur Gupta, Head Marketing & Communications