I loved this TV spot because it got me thinking for hours afterwards.
It’s worth watching before reading the rest of the post because it may spoil the reveal in the ad.
By way of background: Lidl is a supermarket chain in Europe. In the UK it is seen as occupying a down market position from the major supermarket brands. There strong expectations that Lidl will soon force the bigger chains into a price war they can ill afford.
At a really simple level the ad shows Lidl are trying to open up the A, B, C1 demographic with their whimsical photography and middle class imagery.
However I love this ad because it shows Lidl opening up a second front: against the Farmers Market / Local shop / Artisan producer. Intuitively to me this is a mistake. That’s because I think consumers will rank PRICE far lower when making these buying decisions. I think they are ranking much higher provenance, integrity, food miles and craft. My contention is that over the coming years this new purchase behaviour will expand beyond just speciality grocery items into will expand into substantial amounts of food shopping. This will be especially so for the middle and higher demographics AND in Urban areas.
This is a contention of mine. A prediction. But this trend is a key part of my PERSONAL investment thesis lying behind me participating in the latest angel round for Hubbub. I look forward to seeing over the coming years if the data supports the thesis…