Abstract
Higher Demand in Retail Markets Provides Greater Scope for Growth
Refrigeration systems suppliers that prioritise and target high growth
sectors such as the retail markets are likely to benefit from increased sales
and exponential profit margins. Since the refrigeration market is closely linked
to fast developing sectors such as food and beverage and retail, it is
inevitable that economic progress in these segments should lead to growth
opportunities. The expendable income of eastern European customers and their
post-communist desire for commercial goods have led to a boom in the retail
markets. The corresponding growth in the supermarket and hypermarket chains has
stimulated every product sector in the refrigeration market including the
compressors and condensers that are used in display cabinets.
This new research service from Frost & Sullivan examines the central and
eastern European refrigeration system markets and provides an analysis of the
developments in the retail market with a focus on supermarket chains. It
provides insights into the new legislation and explanations of how eastern
European countries deal with new requirements. The research outlines the
competing suppliers and their position in the refrigeration market along with
the major drivers and restraints that impact growth, in order to facilitate
effective marketing strategies.
Superior European Union Standards Fuel Need for New Product Replacements
Accession to the European Union (EU) has increased the general standard for
consumer goods, creating a demand for newer and better-quality products. This
effect was most evident in the commercial and industrial segments, especially in
the food industry where vendors were forced to update their production and
storage facilities to comply with EU regulations. Meat producers, brewery
owners, and dairy manufacturers that desired to export products to western
European markets had to upgrade to EU requirements.
"Many end users, especially in the display cabinets market, prefer to
have one supplier compelling other manufacturers to produce a broad product
range at competitive prices," says the analyst of this research service.
Since the eastern European markets are extremely price-sensitive, successfully
tackling this challenge by providing new economical product ranges is expected
to attract more customers. Achieving these low prices is made easier by the
cheap labour available in these regions.
Dynamic Growth in the Central and Eastern European Markets
Economic and demographic forecasts indicate that the eastern European markets
are likely to continue their current dynamic growth, and this is expected to
positively impact the refrigeration systems market. Since the majority of sales
are for the retail market and other food industry-related sectors, this
increases demand in the refrigeration systems markets. People in this region can
now afford to go out more, and spend time in bars and cafes, and they form a
major part of the customer group for the refrigeration industry.
The markets in this region are growing at a faster rate than that of their
western counterparts. Though the average prices are similar, increasing
competitiveness and a limited number of investors are lowering prices in more
developed countries. "The main strategies undertaken by the market leaders
in response to increasing competitiveness are the introduction of cheaper
products and aggressive pricing policies," notes the analyst.
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