Netherlands: Supermarkets losing by not advertising for immigrants

Dutch supermarket formulas ignore billions of possible revenue by not or barely preparing advertising directed at the non-western immigrant consumer.

Dutch supermarkets can tap a billion market if they could get the non-western immigrant consumer to commit to them. This can be done by advertising which is purely aimed at this consumer groups. This is the result of a study by Melissa Kamstra, graduating from Amsterdam College (Hogeschool van Amsterdam), prepared for copywriting bureau Accent Grave.

The non-western immigrant consumer is currently not or barely approached by the Dutch supermarkets. In the Netherlands the total market for ethnic products is good for about 3 billion euro and the expectation is that it will double over the next ten years. Dutch supermarkets end up with barely a sixth of this turnover.

According to the study supermarkets lose big opportunities. The margin for ethnic assortment is about 30%-35%, and the number of non-Western immigrants is expected to increase by 1 million. They spend 25%-35% of their average income on daily shopping.

There are several reasons for the lack of advertisement directed at non Western immigrant consumers by supermarkets. The distribution of non-western immigrant plays a part, but also the location of the supermarkets and the competition of foreign food shops.

Additionally supermarkets don't want to exclude groups and therefore don't make specific advertisements for non-western immigrants. It's unclear at the moment how supermarkets should communicate with non-western immigrants and the group of non-western immigrants is regarded by the supermarkets as too small to make advertisement.

According to the study supermarkets can start by using holidays of non-western immigrants in order to attract this group and in this way command respect and appreciation by the potential client groups.

Source: Distrifood (Dutch)

See also: Netherlands: Immigrants 28% of supermarket entrepreneurs, Netherlands: Immigrant supermarket chain, Netherlands: More halal food