In many European countries, there have been complaints from politicians and economists based on statistics that show that the quality of the economic dynamic as a reaction to the lack of consumption propensity of the consumer leaves much to be desired.

We are not able to relate to this view. However, our analysis is not based on official statistics but rather on the development of the four market segments defined by us for Economy, PremiumEconomy, Premium and Luxury goods. According to this, companies with clear positioning in these four segments have quantitatively, as well as on a value basis, turned over between 1 and 8 percent more than the year before. Many businesses are even able to report two-digit increases, especially those concentrated on implementing strict value strategies.

While suppliers from the classic Economy segment could look like the big winners with Premium strategies, for those businesses still trying to establish themselves in the center between Luxury and Premium goods in the upper field and PremiumEconomy and Economy goods in the lower field, the air is getting continuously thinner. One should not pay too much attention to the significance of these statistics.

In 2006 it will be even more important to develop new strategies which will uncompromisingly position products and brands with a new defined holistic concept.