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Beyond the Low Cost Business
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Will the second decade of the 21st Century see the end of the low-cost phenomenon? It will certainly not be easy for European consumers to stop demanding the low prices that they have become so used to over the previous ten years. But excessive efforts by many companies to bring down prices could sound the death knell for very low prices, as they will simply become unsustainable in many sectors, with costs forcing prices back up. Obviously there will always be customers who want lower prices and somebody will have to meet the demand, but emphasis on selling at the lowest price possible may turn out to be very costly. Clients are consistently demanding lower prices at the time of each purchase and companies can only react by reducing costs. This volume shows that the only way to do this, is to reinvent the business model. New consumers, new pricing, new brands, new strategies.
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