Author : Gaspar Villard
The Do It Yourself market is in a good shape, even in those time of crisis. There are many competitors and a big opportunities for retailers. But it's sometimes very complex.
To better understand the challenges of this sector, this article will answer a few questions.
To better understand the challenges of this sector, this article will answer a few questions.
Is there a big leader who sets standards and shape the market?
The market is fragmented between multiples brands, such as Mr Bricolage, Bricorama and so on. It’s a very competitive sector.
There is no real leader in the Do It Yourself sector. The main retailers, Leroy Merlin, Brico Dépôt and Castorama are sharing about 70% of the turnover. Combined, Brico Dépôt and Castorama represent the group Kingfisher and are the leaders.
The pie on the right shows the market shares on the DIY sector. What is strinking is that the market is dominated by big retailers. The section "others" means the small hardware stores. They represent only 3.6% of the global market shares.
There is no real leader in the Do It Yourself sector. The main retailers, Leroy Merlin, Brico Dépôt and Castorama are sharing about 70% of the turnover. Combined, Brico Dépôt and Castorama represent the group Kingfisher and are the leaders.
The pie on the right shows the market shares on the DIY sector. What is strinking is that the market is dominated by big retailers. The section "others" means the small hardware stores. They represent only 3.6% of the global market shares.
What are the marketing and communication strategies?
The strategy of Brico Dépôt stays the same, good prices and a deep stock available at any time. But how does the brand gets better prices than Leroy Merlin or Castorama?
For Leroy Merlin, it’s more customer oriented. There are many references are the stores are way more design and welcoming. It’s not an ugly hangar as for Brico Dépôt. The customers relationship is good, thanks to and efficient after sale services and many advisers in the stores.
For Leroy Merlin, it’s more customer oriented. There are many references are the stores are way more design and welcoming. It’s not an ugly hangar as for Brico Dépôt. The customers relationship is good, thanks to and efficient after sale services and many advisers in the stores.
Does the brands share the values of its target customers ?
The target of Brico Dépôt is construction companies and experts. Those people are supposed to know what they are looking for and don’t need for advisers. They just want good quality products and important quantities for the building sites, at cheaper prices. The low cost model applied by Brico Dépôt seems excellent for this model.
Concerning Leroy Merlin, the model complete the one of Brico Dépôt. Indeed, Leroy Merlin is targeting families and amateurs who are looking for advices. Those people are not experts and what good quality products for their home improvement. It is always cheaper to work by ourselves than to pay an expert.
What associations are in place to create long and durable brand awareness ?
Brico Dépôt is very famous in its core activity which is to sell products to professional. We can see many ads and poster on the building sites to promote their products.
Leroy Merlin is very active on social networks such as facebook. A community manager is posting news every day about the brand, some events or new products. Furthermore, we can see every day on tv a show where a clients of Leroy Merlin is interviewed. This show is called “du coté de chez vous” and helps a lot to increase the brand awareness.
Does the consumer engage easily and on what criteria ?
The consumer of Brico Dépôt is a company or an Expert. He engages on a functional level with this brand because he wants big quantities and don’t want to lose time. In the store every products are in a mess but it’s cheap and in small references.
The consumer of Leroy Merlin is looking for an emotional level. He wants to work in his house or in the garden by himself for a few reasons. First, the consumer is looking for and wants to share moments with the family. Then, because it’s cheaper.
Source :
http://www.bricomag-news.com/index.php/en/fournisseurs/fournisseurs-bricolage/1120-20-ans-de-marche-du-bricolage-la-femme-linternet-et-la-mdd-ont-change-la-donne
http://www.ladepeche.fr/article/2013/12/04/1766842-auch-brico-depot-ouvre-matin-109e-magasin-pavie.html
http://www.e-marketing.fr/Marketing-Magazine/Article/Brico-Depot-montre-la-voie-8839-1.htm
http://www.lsa-conso.fr/l-evenement-le-nouveau-souffle-de-brico-depot,124558
http://www.insee.fr/fr/themes/document.asp?id=3469®_id=0
The consumer of Leroy Merlin is looking for an emotional level. He wants to work in his house or in the garden by himself for a few reasons. First, the consumer is looking for and wants to share moments with the family. Then, because it’s cheaper.
Source :
http://www.bricomag-news.com/index.php/en/fournisseurs/fournisseurs-bricolage/1120-20-ans-de-marche-du-bricolage-la-femme-linternet-et-la-mdd-ont-change-la-donne
http://www.ladepeche.fr/article/2013/12/04/1766842-auch-brico-depot-ouvre-matin-109e-magasin-pavie.html
http://www.e-marketing.fr/Marketing-Magazine/Article/Brico-Depot-montre-la-voie-8839-1.htm
http://www.lsa-conso.fr/l-evenement-le-nouveau-souffle-de-brico-depot,124558
http://www.insee.fr/fr/themes/document.asp?id=3469®_id=0
