Le « low cost » : un levier pour le pouvoir d’achat (in french)

The French businessman, Charles Beigbeder, plunges into the emerging low-cost world from a new angle, that is, as a potential means to counter the chronic decline of purchasing power. From this study, he draws conclusions which would be useful to any corporate leader seeking ways to optimize a business.

The detailed analysis describes the operating practices of low-cost players in a variety of sectors, such as air transportation, hotels, supermarkets, computers, and even personal services, and sheds light on stimulating ways to cut costs. The author specifically analyzes how lower costs can be combined with a value perception that remains acceptable to customers. The cost gap between low-cost Ryanair and traditional player Air France is perceived to be 77 percent, without affecting the value perception in the same proportion. In fact, the price difference is actually only about 40 percent.

This new way of looking at costs not only triggers substitution, redistributing market share across market players, but also has a powerful attraction effect, increasing the total size of the market. Since the emergence of “low cost” options, people now more easily consider taking a plane for a weekend getaway, for example.

This is a study that eliminates many preconceived notions about the topic and serves as a stimulating source of inspiration.