Every weekend, L'Hebdo des PME, the rendez-vous for small and medium-sized businesses. Jeanne Baron interviews the heads and founders of companies that stand out in their sector, followed by an interview with an expert in their field. In this issue, Cyril Besse shares his expertise on post-containment trends.
The program was broadcast on BFM Business (November 28 & 29, 2020), France's No. 1 all-news business channel.
This period of confinement and, more generally, the health crisis, have been a catalyst for a number of trends that are emerging or accelerating, such as :
The rental/second-hand market
Historically, it has been the pure players who have entered this market (Back Market, Le Bon Coin or Vinted). However, more and more physical retailers are entering the second-hand market, for 3 main reasons:
- Economic: this is a market worth several billion euros, as demonstrated by "Vinted", a specialist in second-hand goods between private individuals, which takes the cake with sales of 1.3 billion euros. Retailers are keen to capitalize on this windfall by investing in this market.
- Societal : many households have reduced their consumption, either out of obligation due to the drop in their purchasing power during the confinement period, or by choice, as making a second-hand purchase represents a militant act for many consumers.
- Environmental: recovering second-hand items and reselling them is perfectly in line with thecircular economy, which aims to reduce environmental impact. It is also the promise of a new development model desired by consumers.
The hybrid hypermarket model
During the containment period, supermarket chains saw their sales increase, particularly in the food sector. However, in hypermarkets, margins have been eroding for many years in the non-food sector.
To improve their profitability per square metre, hypermarkets may have found the solution by teaming up with non-food chains to better meet customer expectations. For these chains, which are increasingly limiting the extension of their network of physical stores, this is a way of finding new distribution channels at lower cost.
This hybridization can take different forms: Carrefour Belgium has integrated Decathlon corners into its stores. Conversely, the Décathlon outlet in Namur has installed a "Carrefour Bio" corner. Finally, in Ile de France, Franprix stores have opened their sales areas to Decathlon products.
The local market
Short supply chains, local markets... Containment has shaken up consumer habits, even if certain issues such as costs need to be taken into account. Producers save on transport and delivery costs, but production costs in France remain high compared to other countries. This is why local products are more expensive than imported ones.
The penetration rate of this market will decrease compared to the containment period, but the French have embraced " consumer local " and this will continue over the long term, particularly in terms of working with local producers and accessing fresh produce, with this deep-rooted feeling of "eating better".