European SMEs face unfair competition

The business sector has become extremely competitive since the pandemic, where every company has had to come up with innovative products to impress customers. The social media revolution has made brands more human by providing them with entertaining and authentic marketplace solutions to promote their products and services.

Since then, competition has remained very strong, especially in Europe, where companies are already facing difficulties. According to Statista, the majority of companies struggle to hire employees who fit their corporate culture, struggle with administrative burdens and have limited access to financing. Unfortunately, most of these problems have been seen in SMEs, which explains the problem of unfair competition.

Fortunately, creativity and ingenuity are essential qualities of European companies, which have therefore been able to take advantage of market research. Here’s how.

European Commission’s ongoing research

The European Commission is renowned for its interest in understanding how different factors influence citizens’ quality of life, from sustainability to consumer behaviour. That’s why it regularly conducts interesting research and provides valuable, free information to individuals and businesses.

One of the most recent studies focuses on car rental intermediaries’ compliance with European legislation. The study’s findings include the failure of these companies to disclose the risks to which customers are exposed if they do not take out optional insurance, for example, and many other flaws in the system.

Consulting these studies is important for European companies because they can access reliable information and solve certain problems in the sector they represent. However, for a more precise perception of a company’s statistical chances of winning the competition, agencies such as Savanta market research offer a wide range of services such as research and consulting, campaign evaluation and concept testing.

Unparalleled presence on social networks

European companies learned from this experience a few years ago, when offline presence was more important than social media, but things quickly changed. Take the case of Volkswagen, the German carmaker known for its reliable and high-performance vehicles.

A few years ago, the company was criticized for one of its marketing clips that gave the impression of a “lack of sensitivity and diversity” when promoting the Golf 8 car model. After the negative reaction on the Internet, the company apologized and deleted the clip, stating that the intention was far from what it implied.

Since then, the company’s social media coverage has improved significantly, with the latest strategy being a unique focus on customers’ personal stories. Volkswagen’s international communications initiative includes real-life stories from Volkswagen drivers that have also appeared on TV and social media. The campaign has successfully engaged with customers and shown how close a company can become to its customers.

In-depth knowledge of social media users

Most European countries, such as Romania, Switzerland and France, are known for having impressive internet speeds. Therefore, the number of social media users in Europe is significant, especially in northern and western Europe, where around 80% of the population is frequently online, according to Statista.

However, each country is different in terms of social media usage. For example, there are 497 million Facebook users in Europe, and the platform is more widespread in the UK than in Germany. Instagram, on the other hand, is very popular in Germany.

Media and advertising spending is therefore different in each region. The UK leads the trend, spending at least $12.16 billion per year on social media advertising, while France is much less interested in these applications.

A unique digital cohesion

If we compare the social media strategies of American and European companies, we see that the latter aim to bring people together despite their proximity. In contrast, American brands rely heavily on customer reviews, which can sometimes be reliable or not.

That is why European companies are prioritizing a brand identity that resonates with the target audience. The well-known telecommunications company Deutsche Telekom released a clever ad during the Euro 2024 period, which caused a stir among Europeans. The campaign titled “No fiber, no football” takes viewers on an exciting and quirky journey among people in different cut scenes that range from conviviality to complete solitude.

Euro 2024 was one of the best opportunities for companies to showcase their creativity, which captured the attention of spectators and customers. Different brands collaborated to support Euro 2024, such as Lidl or Adidas, associating the image of a brand with global events.

Focus on the power of Generation Z

The rise of Gen Z humor has given rise to a new type of marketing focused on entertainment. It can be difficult to describe this trend, especially for millennial customers and users, but the new generation is reshaping the way companies approach selling and promoting their products by adding a touch of absurdity.

Memes are the hottest things to post on your social media site if you are a renowned company, that is why the internet is flooded with this type of content. This allows young talents to be easily hired by companies as they understand the story behind these trends, so communities grow with simple humor and hard work.

If you log into social media apps like TikTok and check out Zara Dior or L’Oréal, you’ll see how companies focus on authentic product reviews, behind-the-scenes interviews with celebrities, and funny stories about how the products are made. So, what matters to these brands is how customers perceive them, regardless of their branding. Most companies want to be as friendly and approachable as possible, because that means consumers are more satisfied with their interactions with them.

What is your view on the European marketing ecosystem?

The pandemic has been one of the most challenging times for marketers in Europe, as they have had to get creative to keep businesses relevant in the face of competition. This has left many SMEs struggling to keep up with trends. Yet, as the European mindset is all about improvisation and imagination, we have noticed how these businesses have been able to break out of the monotony they have been in for some time by leveraging market research, social media and Gen Z’s humour.