CS study: CH retailers want to increase their marketing budget in 2009
According to a study by Credit Suisse, two-thirds of the 90 Swiss retail decision-makers surveyed plan to increase their marketing budgets in the coming year. At the same time, however, the retail sector is expected to face more saturated markets than in recent years.
According to a study by economists at Credit Suisse and the consulting firm Fuhrer & Hotz, two thirds of the 90 decision-makers surveyed in the Swiss retail trade intend to increase their marketing budget in the coming year. The study on the business development of the Swiss retail trade in 2009 states that this optimism may come as a surprise in view of the expected recession, but shows that the market players in the retail trade are not expecting a slump and that they remain confident with regard to their own sales.
Nevertheless, after several years of upswing, Swiss retailers are again expecting more saturated markets and overcapacities in 2009. However, more than 80 percent of the companies expect significant sales growth in some cases. The winners will therefore be low-cost suppliers and wholesalers. The outlook for retailers in the consumer goods sector is less positive, especially for independent retailers. The exceptions are everyday consumer goods and personal care and health products.
Increasing predatory competition is expected in the coming year. According to the study, in the saturated Swiss market, growth in the retail trade is only possible at the expense of competitors. However, a powerful concept, convincing marketing and solid financial strength are more important for success than low prices. For example, if food prices rose by 1 percent, consumer demand would only fall by 0.05 percent. And according to the study, private consumption only increases by 0.19 percent for every 1 percent real growth.
(Image: Keystone / Friday Zurich)
Nevertheless, after several years of upswing, Swiss retailers are again expecting more saturated markets and overcapacities in 2009. However, more than 80 percent of the companies expect significant sales growth in some cases. The winners will therefore be low-cost suppliers and wholesalers. The outlook for retailers in the consumer goods sector is less positive, especially for independent retailers. The exceptions are everyday consumer goods and personal care and health products.
Increasing predatory competition is expected in the coming year. According to the study, in the saturated Swiss market, growth in the retail trade is only possible at the expense of competitors. However, a powerful concept, convincing marketing and solid financial strength are more important for success than low prices. For example, if food prices rose by 1 percent, consumer demand would only fall by 0.05 percent. And according to the study, private consumption only increases by 0.19 percent for every 1 percent real growth.
(Image: Keystone / Friday Zurich)
