A concept originally popularised by US ‘dollar stores’, the one-euro price tag is now proving a hit with budget-conscious European consumers, The Wall Street Journal has reported.
A host of one-euro stores have opened across the continent in response to the sluggish consumer market. Germany’s Tedi Gmbh retail chain, which has more than 1,300 outlets in Germany, began expanding into Austria and Slovenia last year. Meanwhile, British retailer Poundland is opening a new store every week in the UK.
Fast-moving consumer goods brands are repackaging items to fit the easy-to-understand price point. For example, consumer goods giant Unilever has introduced smaller five-wash packs of laundry detergent and individual Knorr soup packets, both priced at one euro, to the European market. This strategy helps brands to maintain consumer loyalty in the face of shrinking household budgets and fierce competition from cheaper own-brand labels produced by supermarkets (read more about the rise of private labels in Own-Label Packaging).
Restaurants and cafés are also responding to changing consumer priorities. Earlier this year, Starbucks launched a range of “petite” baked goods – including cookies, pastries and croissants – priced at a euro each.
Euro Consumers in Flux explores the new consumer behaviour emerging from the Eurozone in more detail, while Austerity-Era Branding recommends new packaging and branding tools for tough economic times.