How to deal with discounters

Discounters continue to enjoy major success in Europe. In the summer of 2006, the German Lidl group will be the first discounter to enter the Croatian market.

Local producers of branded articles have essentially three strategies to deal with the increasing pressure: produce private label brands for discounters, reduce product range variety or focus on innovation. However, these seemingly attractive options are not without considerable risks.

Our "How to deal with discounters" study concludes that industry-specific approaches and intensive examination of the various strategies are paramount for ensuring sustainable success.