MediaMarkt

Last updated

Media-Saturn Holding GmbH
Company typeSubsidiary
Industry Retail
Founded1979
Founder
Headquarters
Ingolstadt
,
Germany
Number of locations
1,006 (October 2023)
Area served
Germany, Austria, Belgium, Hungary, Italy, Luxembourg, Netherlands, Poland, Portugal, Spain, Sweden, Switzerland, Turkey
Products Consumer electronics
Revenue €21.7 billion (2022) [1]
Parent Ceconomy
Website www.mediamarktsaturn.com

MediaMarkt is a German multinational chain of stores selling consumer electronics with over 1000 stores in ten countries in Europe. With the Saturn chain of stores it constitutes Media-Saturn Holding, owned by the retail company Ceconomy, which was demerged from Metro Group in 2017.

Contents

History

MediaMarkt was founded by entrepreneurs Leopold Stiefel, Walter Gunz, Erich Kellerhals, Markus Fernandez and Helga Kellerhals. The first store opened on 24 November 1979 in Munich. By 1985, nine other stores had opened near Munich.

In 1988 Kaufhof Warenhaus AG acquired a 54 percent majority in the holding company of the media stores founded in 1979. In 1989 expansion began in neighboring countries. MediaMarkt took over the competing retail chain Saturn in 1990, in which Kaufhof was already involved. In 1996 Kaufhof Holding, Metro Cash & Carry, Deutsche SB-Kauf AG and the German department store Asko AG (where a Metro holding company had previously each held shares) merged and formed Metro AG. Since the merger into the MediaMarktSaturn Retail Group, MediaMarkt and Saturn have been managed as independent brands in a centrally controlled group.

On November 17, 2010, the first MediaMarkt was opened on Huaihai Road, in Shanghai, China. Six more stores followed, which were realized together with Foxconn through a joint venture. In January 2013, it became known that MediaMarkt would withdraw from China because the Metro Group would not be able to raise the capital necessary for its further expansion. [2] [3]

In January 2013, Metro had around 78% of the shares. The Kellerhals family owned 21.67% of Markus fernandez through their indirectly held holding company Convergenta Invest. [4]

Since 2017 Media-Saturn Holding which consists of MediaMarkt and Saturn chains is owned by Ceconomy, a company formed through a demerger from Metro Group. [5]

In July 2017 Ceconomy bought a 24% stake in French multinational Fnac Darty. [6]

In 2018 Ceconomy sold the 46 stores in Russia to M.video in exchange for 15% in the Russian retailer. [7]

In 2023, MediaMarkt exited from three countries by selling its stores to competitors. In Portugal, it sold 10 stores to the French company Fnac. [8] In Sweden, it sold 29 stores to Power International. [9] In Greece, the remaining 25% stake in its 13 stores was sold to Public Group, [10] which had already acquired 75% of the shares in 2019. [11]

Operations

In 2012, the company launched its online shop, starting with Germany in January.

MediaMarkt store in Malmo, Sweden Media Markt, Svagertorp, Malmo.JPG
MediaMarkt store in Malmö, Sweden
Countries in which MediaMarkt operates (February 2022) European countries in which mediamarkt operates.svg
Countries in which MediaMarkt operates (February 2022)

In Italy, the MediaWorld brand is used instead of MediaMarkt.

Franchise model

Every store is 10% owned by the store manager. Store managers have discretion as to which products to stock, range, pricing, personnel and material costs.

CountryStores [12]
Germany396 [13] (includes 125 Saturn stores) [14]
Italy125 (as MediaWorld) [15]
Spain119 [16]
Turkey98 [17]
Poland80 [18]
Austria54 [19]
Netherlands48 [20]
Hungary39 [21]
Switzerland25 [22]
Belgium22 [23]
Luxembourg2 [24]

Former locations

CountryStoresClosed YearFate
Greece132023Sold to Public Group
Portugal102023Sold to Fnac
Russia462018Sold to M.Video
Sweden292023Sold to Power Sverige AB [25]

    Advertising

    MediaMarkt store in Oldenburg, Germany Media Markt Oldenburg (2018) 07.jpg
    MediaMarkt store in Oldenburg, Germany
    MediaMarkt vending machine at Hamburg Airport, Germany Media-markt-automat.jpg
    MediaMarkt vending machine at Hamburg Airport, Germany

    MediaMarkt had an aggressive advertising similar to American companies and also a few controversial commercials in the 2000s. It is known in Germany for its humorous, but sometimes crude, advertising campaigns; for example, the slogan "Lasst euch nicht verarschen" meaning "Don't let yourself be conned", literally verbal prefix for- (ver-) + ass (Arsch) + infinitive suffix -en (-en).

    The advertising campaigns of the brands MediaMarkt and Saturn are designed by the internal marketing organization redblue Marketing GmbH in Munich.

    Slogan

    MediaMarkt's main slogan "Ich bin doch nicht blöd" (I'm not stupid) has been translated into the languages of the other countries where the company operates, except Italian:

    LanguageSlogan
    German Ich bin doch nicht blöd. (I'm not stupid.)
    Spanish ¡Yo no soy tonto! (I am not a fool!)
    Dutch Ik ben toch niet gek (I'm not crazy)
    French Je ne suis pas fou. (I'm not crazy)
    Galician Eu non son parvo! (I am not a fool!)
    Greek Δεν είμαι και χτεσινός! (I was not born yesterday)
    Hungarian Mert hülye azért nem vagyok! (Because I'm not stupid)
    Italian Let's Go!, in Italy

    Non sono mica scemo! (I am not stupid!), in Italian-speaking Switzerland

    Polish Nie dla idiotów. (Not for idiots), later: Tu wszystko działa dla ciebie. (Everything works for you here.)
    Portuguese Eu é que não sou parvo! (It's not me who's a fool!)
    Swedish Allt annat känns puckat! (Everything else seems stupid!)
    Catalan Jo no sóc tonto! (I am not stupid)
    Basque Ni ez naiz inozoa! (I am not stupid)
    Turkish Bakmadan almam. (I don't buy without seeing it.)

    Criticism

    2006 World Cup advertising campaign

    Prior to the 2006 World Cup, MediaMarkt launched a campaign, claiming to be the "best fan supplier" ("Bester Fanausrüster"), with commercials showing international football fans shopping at MediaMarkt, showing exaggerated stereotypes of the participating countries, and making fun of the Austria team, which did not qualify. This included a French seductress, Dutch fans smoking marijuana in caravans, or a Saudi haggling - to pay more. German fans were portrayed with big bellies, asking for refrigerators to keep their beer cool, rather than looking for a new TV set.

    An additional series of ads, promoting a rebate of €10 for each goal Germany scores (except penalty shoot-outs), showed international soccer fans begging the Germans to score as many goals as possible - against their own team.

    When the Netherlands lost to Portugal, MediaMarkt used a quote from a 1980s show featuring Rudi Carrell, a Dutchman who was a long-time TV celebrity in Germany, to express Schadenfreude . A World Cup trophy is shown to grieving Dutch fans in their caravan with the comment "This would have been your prize!".

    Polish advertising

    MediaMarkt store in Bydgoszcz, Poland Bydgoszcz Media Markt ulica Jagiellonska.jpg
    MediaMarkt store in Bydgoszcz, Poland

    In March 2006, the "Poland version" showed moustache-wearing Polish customers praising the shop for "prices deep like Polish soul" before hugging the German sales managers, who looked quite uncomfortable in the bear hugs. Afterwards, one of the Germans pointed out that his watch was still there, and that "The Pole is an honest person, after all". Then, the three men are shown to be missing their trousers. [26]

    This commercial caused a scandal in Poland, for the widely known unfounded German stereotype of Poles being thieves. MediaMarkt argued that the advertisements also made fun of other national clichés, including Germans, and none of the other clichés were perceived as negative towards the people they presented. It aimed to exaggerate the cliché of the Polish thief to dismiss it as unjustified prejudice, MediaMarkt claimed. [27]

    The store apologised and withdrew the advert after their Polish branch asked to do so, following protests in Poland, a call from the Polish embassy in Berlin and protests from German Polonia.

    Portuguese advertising

    In January 2008 MediaMarkt launched a campaign presenting a fictitious country called "Dumb Land", where several characters with Eastern European accents were presented as being from this country, which even has an anthem. A central theme of this campaign presented a Boy Scout as an idiot. This really upset people as many consider Scouts to be responsible and valued members of society. An online petition was created to persuade MediaMarkt to withdraw the campaign and to offer a public apology. Due to this petition and a lot of pressure from the Scouting movement, MediaMarkt had to remove the Boy Scout from their campaign, including TV and radio ads.

    Turkish advertising

    Turkish Union Association in Eskişehir, Turkey motivated suspension of an advertisement campaign by the group on grounds that MediaMarkt "insulted Turkishness" by depicting consumers that purchased overpriced merchandise with animal heads. A ban of the advertisements lasted for three months in 2009. [28] There have been many accusations on their official Facebook fan page about their false product advertisements in Turkey.

    Saubillig

    A former German campaign played on the German expression "saubillig" which means extremely cheap, but literally "sow (female pig) cheap". Sau- is a common emphasising prefix in colloquial German. Inside the stores, the entrances were signposted as "Schweingang" = wordplay on the word Eingang (Entrance) and Schwein (pig), and the exit as "Sausgang" = wordplay on the word Ausgang (Exit) and the German word for sow (Sau) - the female pig.

    Controversies

    Misleading advertising methods

    Article without VAT

    MediaMarkt promised in 2005 a promotion to sell items "without VAT" (with a discount equal to VAT). The prices for these items had previously been increased in order to actually achieve the normal price. A competitor sued a branch in Mannheim. [29]

    Decoy offers

    The MediaMarktSaturn Retail Group has made bait-and-switch in the past: articles were advertised extensively at extremely low prices but were sold out within a very short time. According to case law on the law against unfair competition (UWG) advertised special offers must be available for at least two days. Consumer advocates criticized that this was often not guaranteed at MediaMarkt and Saturn. The group denied that; there were only a few exceptions despite large stocks. It is generally difficult to provide concrete evidence of such cases, since consumer protection groups do not have access to the delivery dates of the companies. [30]

    Price Guarantee

    In 2005, samples from the Frankfurter Allgemeine Zeitung in the Munich area showed that MediaMarkt or Saturn stores were more expensive in 15 out of 21 cases than local competitors. In Berlin they were 11 out of 21 cases. The MediaMarktSaturn Retail Group countered the allegations with a "price guarantee" that promised buyers a refund of the price difference if they found the product at a cheaper price in another shop. [31]

    0 -% - financing

    In 2013, 0% financing from the Spanish bank Banco Santander was criticized. A credit loss insurance that costs 10% is taken out only on a note in the small print. [32]

    The exclusive sale of Intel PCs

    According to research published by the Financial Times Germany in 2008, the MediaMarktSaturn Retail Group committed to Intel in 1999 to only sell PCs with Intel processors. The holding company received 85 million euros in purchase discounts and advertising grants from Intel in 2007 alone. The European antitrust authorities investigated the distortion of competition. Intel was fined 1.06 billion euros in May 2009 by the European Competition Commission for these and other antitrust violations. [33]

    The retail chain was moved by Intel's discount system to have only insignificant or no computers with AMD processors on offer. According to the European Commission, Intel has made direct and indirect payments to MSH since 1997. The payments were subject to the condition that, if possible, only offer Intel systems.

    Body searches

    In 2014, in Krems an der Donau in Lower Austria, theft of the MediaMarkt, which is said to have been committed by employees, not only carried out bag checks, as is common in many companies but also body searches on all employees. The unions see this as a violation of human dignity. [34] As a consequence, employees of other branches in Austria reported this procedure. This approach was blamed on the security service providers by the company. [35]

    Antitrust proceedings

    On June 13, 2014, the Austrian Federal Competition Authority (BWB) announced a decision by the cartel court on April 23, 2014, against Media-Saturn Beteiligungs gmbH. A fine of 1,230,000 euros was imposed for vertical price matching of retail prices with the electronics industry between October 2009 and early 2013. [36]

    Competitors

    The US Best Buy Group is the global market leader by sales in the consumer electronics sector. As of May 2016, MediaMarktSaturn and Best Buy have so far only competed with each other in Turkey. The Euronics retail group is the second largest competitor in Europe.

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    References

    1. ↑ "Ceconomy Annual Report 2021/22" (PDF). ceconomy.de. 30 September 2022.
    2. ↑ "Media Markt scheitert in China". manager-magazin.de. 26 July 2017.
    3. ↑ "Media Markt closes all Chinese stores - Business - Chinadaily.com.cn". www.chinadaily.com.cn. Retrieved 18 January 2020.
    4. ↑ "Media-Saturn-Mitgründer verkauft an Metro". manager-magazin.de. 28 January 2013.
    5. ↑ "Demerger of METRO Group completed - New METRO and CECONOMY commence trading at the stock exchange tomorrow". METRO AG. 12 July 2017. Retrieved 13 November 2017.
    6. ↑ "CECONOMY buys 24% Fnac Darty stake for €452 million". spglobal.com. 26 July 2017.
    7. ↑ "Germany's Ceconomy to swap Russian business for M.video stake". Reuters.com. 20 June 2018.
    8. ↑ "Fnac completes purchase of MediaMarkt Portugal". theportugalnews.com. Retrieved 1 October 2023.
    9. ↑ "MediaMarkt sees nice recovery but gives up Sweden". retaildetail.eu. Retrieved 14 February 2023.
    10. ↑ "Full absorption of Media Markt – The stores are renamed "Public+home"". naftemporiki.gr. Retrieved 29 August 2023.
    11. ↑ "Strategic deal between Public and MediaMarkt". capital.gr. Retrieved 2 July 2019.
    12. ↑ "International presence MediaMarktSaturn". mediamarktsaturn.com. 30 September 2021.
    13. ↑ https://www.mediamarkt.de/de/store/store-finder
    14. ↑ https://www.saturn.de/de/store/store-finder
    15. ↑ https://www.mediaworld.it/it/store/store-finder
    16. ↑ "MediaMarkt |Tiendas de informática, smartphones, electrónica, entretenimiento y todo para el Hogar". www.mediamarkt.es. Retrieved 4 December 2022.
    17. ↑ https://www.mediamarkt.com.tr/tr/marketselection.html
    18. ↑ https://mediamarkt.pl/sklepy
    19. ↑ https://www.mediamarkt.at/de/store/store-finder
    20. ↑ https://www.mediamarkt.nl/nl/store/store-finder
    21. ↑ https://www.mediamarkt.hu/hu/shop/rolunk.html
    22. ↑ https://www.mediamarkt.ch/de/marketselection.html
    23. ↑ https://www.mediamarkt.be/nl/store/store-finder
    24. ↑ https://mediamarkt.lu/pages/nos-magasins
    25. ↑ "Välkommen till POWER - Den Nya Eran av Elektronik i Norden | Omvandling av MediaMarkt till POWER - Power.se". www.power.se. Retrieved 29 August 2023.
    26. ↑ "Media Markt nie dla Polaków". Youtube.com. 31 March 2011. Archived from the original on 21 December 2021.
    27. ↑ "Proteste aus Polen - Media Markt zieht Fernseh-Werbung zurück". Focus.msn.de. 28 March 2006. Archived from the original on 16 May 2006.
    28. ↑ "Ads criticized for insulting Turkishness with animal heads on humans". Hurriyetdailynews.com. 22 October 2009. Retrieved 24 September 2015.[ dead link ]
    29. ↑ "Media-Markt mogelte bei Mehrwertsteuer". ftd.de. 8 November 2006. Archived from the original on 24 February 2007.
    30. ↑ "Gericht knöpft sich Media-Markt-Werbung vor". spiegel.de. 9 May 2007.
    31. ↑ Heeg, Thiemo (9 January 2006). "Die Trickser vom Media-Markt". faz.net.
    32. ↑ "Kreditversicherung wider Willen". orf.at. 23 March 2013.
    33. ↑ "Intels Praktiken schockieren Kartellrechtler". spiegel.de. 13 May 2009.
    34. ↑ "Leibesvisitation bei Mitarbeitern". orf.at. 7 January 2014.
    35. ↑ "Media Markt: Weitere Leibesvisitationen". orf.at. 9 January 2014.
    36. ↑ "BWB/K-302 Geldbußenentscheidung gegen Media-Saturn BeteiligungsgmbH". bwb.gv.at. 13 June 2014. Archived from the original on 28 September 2014.
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