Conclusion

Long gone are the days when the low-cost market was seen as the poor relation of consumerism, one disdainfully ignored by established brands and retailers, and patronised mainly by households with limited budgets. Not only has it successfully made its mark in many sectors, in some cases to the point of setting the standard, it has also been able to adapt locally to attract more customers from across the social spectrum. Customers have opted for low-cost solutions either out of choice or necessity.

Of course, it cannot be claimed that the frog has fully transformed into a prince. The low-cost model’s image has room to improve and its offer could be further enhanced, as demonstrated by those retailers that have chosen to offer certain branded products.

Has the low-cost concept already had its golden age?

Europeans tend not to think so. Consumers believe it has scope to expand in a number of sectors beyond the “golden trio”, i.e., food, clothing and air transport. While it thrives during times of economic crisis, it has also shown that it can prosper during periods of growth.

But one crucial element that this latest Observatoire survey makes clear is that the low-cost market must not forget its DNA and must continue to make low prices its primary, if not its only selling point. In other words, it must not forget its roots.

But is that not true for every consumer market player?