The German retail sector is currently facing major challenges: Digitalisation, growing customer expectations and ongoing price pressure require companies to make constant adjustments and strategic decisions. The role of offer communication is becoming increasingly important in this environment, not only to reach customers, but also to build trust and long-term relationships.
Ingo Wienand: Mr Sanktjohanser, Mr Frenk, thank you very much for your time. The German retail market is facing major challenges. How do you see these developments and what does this mean for the communication of offers?
Josef Sanktjohanser: The retail sector has changed considerably in recent years. The pressure is enormous and the pandemic has further intensified the competitive situation. There is intense competition in Germany between discounters and full-range retailers, and in the course of this development, price remains the decisive factor for many customers. Product communication plays a key role here, as it is the lever that attracts the consumer's attention. But that alone is not enough; it is at least as important for retailers to develop an awareness of their social responsibility, for example when it comes to fair prices.
Alfons Frenk: I think that sums it up. Price is the top priority in purchasing decisions - that hasn't changed over the years. The communication of offers has a corresponding significance, but it can and should communicate more than just prices. Retailers should also differentiate themselves through product range design, for example in terms of regionality, sustainability or health promotion. Customers want products that match their lifestyle and have increasingly high expectations. This means that communication must emphasise both the price and the values that define the brand.
Ingo Wienand: What trends does this mean for the future of retail and for product communication?
Josef Sanktjohanser: Digitalisation is certainly the biggest trend that is changing the industry. The optimisation of processes and the development of new concepts, such as pick-up services or checkout-free shopping, offer retailers enormous potential. At the same time, bricks-and-mortar retail plays an important role in customer loyalty and significantly characterises the shopping experience. The central issue of price remains unchanged by these developments. We see a high level of price sensitivity, and offer communication will continue to play a central role in the future because it appeals to customers and provides them with guidance.
Alfons Frenk: The exciting thing about digitalisation is that it presents retailers with new opportunities, but also new responsibilities. Customer expectations have risen and they want to be addressed in a targeted manner. For product communication, this means always finding the right mix and adapting to changing consumer expectations.
Ingo Wienand: In your opinion, how does MEDIA Central support retailers in this?
Alfons Frenk : From my point of view, MEDIA Central is characterised by its proximity to retailers. Over the years, it has developed a deep understanding of the needs and challenges of the market and has positioned itself accordingly. This is fundamental, especially in the fast-moving times of digitalisation, in which requirements change rapidly. As a result, product communication is becoming increasingly complex, and MEDIA Central has the knowledge and flexibility to support retailers and guide them through these changes. The recently announced merger with Flipp also contributes to this: With Flipp's expertise in digital drive-to-store marketing, MEDIA Central can further strengthen brick-and-mortar retail.
Josef Sanktjohanser: " When we started working together around 12 years ago, MEDIA Central specialised almost exclusively in print. Today, the company offers a wide range of solutions, from print to digital. This is particularly valuable in times when retailers need additional measures to reach their customers.
Ingo Wienand: Thank you very much, Mr Frenk and Mr Sanktjohanser, for your insights and, in particular, for your twelve years of active support for our company, during which you have helped drive the development of MEDIA Central with your strategic vision and as important advisors!
The latest partnership with Flipp emphasises our aspiration to not only react to changes, but to actively help shape them. Digitalisation offers great opportunities here, and we have positioned our expertise in such a way that we can support retailers in every phase of the transformation - be it with traditional advertising measures or through targeted digital campaigns.