Growth in discounters: a risk to manufacturers' margins and brand image, says Goldman Sachs' Jacques-Frank Dossin.(Stock Watch)

Cosmetics International, June, 2004

A marked increase in discounters' market shares

Since 1997, discounters' market share increased by 150 basis points from 6.5 per cent to 8 per cent (source: Euromonitor). This stems from the more difficult economic environment, as consumers sought more favorable pricing terms, and increasingly trust less glamourous and more down-to-earth brands. In addition, discounters operated more aggressive pricing policies and some have even widened their food offering, with the view to attracting customers and generating more traffic in the stores. Conversely, market shares of department stores were coming down over the same period. This highlights the structural trading down from prestige to mass-market channels over that period.

The North American market...

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