In Germany, market researchers say they have found evidence, that discounters are nearing their peak and that the rapid upward trend is weakening and possibly even grinding to a halt. The renowned Swiss Gottlieb-Duttweiler-Institute even wants to have determined, that consumers are desperately unhappy about rock-bottom prices. And if discounters aren’t doing too good other vendors hope that brand products are going to win with consumers.

Wal-Mart and Aldi are synonyms for the word discounter. And they are neither nightmares nor do they bring salvation or happiness. Rather they are service providers which fulfil an important task in the segment of Economy products, and offer a good price/performance ration to the customer through optimum logistics, expert procurement and modern marketing techniques. Furthermore they make full use of the production capacities of major manufacturers, primarily those which are present on the market with their own classic brands. A world without high-performance discounters would let the whole consumption symmetry of fulfilment of demand and satisfaction of wants tumble down. Without significant savings at the purchase of products for the need, millions of consumers living in countries and economic markets where Wal-Mart, Aldi and other similar stores are active, could afford to purchase a lot less products and services meant for the satisfaction of wants and thus for a special quality of life.

Consumer goods markets urgently need more discounters. And these discounters endanger not a single business positioned correctly on the market. And they are also not a danger for the classic brand, because a classic brand does not need to shy away from price comparison. It is a misbelief that brands increase the price on products. This is certainly not the case if the price stands for an adequate performance, for the material and immaterial value of the product and the brand. This is always the case if product and brand are positioned in one of the four market segments defined by us (Luxury, Premium, PremiumEconomy, Economy) and if the brand rests securely on the 7-elements which define the brands existence (origin, history, profile, positioning, image, awareness and protection). Of course there are exceptions which proof the rule. These exceptions can be found positioned in the “center of the market”. This happens without a clear commitment to the performance, but with the ambition to first and foremost offer something to the consumer, of course at a higher price. However, these products no longer entice the consumer to buy, because due to his/her knowledge, the consumer has long turned away from the “center of the market” as efficient market segment.

The psychology of consumer goods markets has little in common with the theories cavorting in the manifold pseudo-scientific marketing worlds. This is why it makes sense during the development and implementation of business strategies to be guided by the realization that our markets can only offer a living space and chances for success for everyone admitting to an appreciation of values shaped by performance. The brand offers orientation and is a pace setter, even in the Economy segment, in the segment where discounters are at home. It also applies to them that in the end it is going to be the brand which decides if someone is successful. And that brands offered by discounters are subject to the same laws as those positioned in the Luxury segment or any other segment of the market.