1. Market situation
The Belgian energy market is dominated by 5 big players who have a combined market share of almost 85%. These market share levels do not fluctuate a lot. Energy is a commodity with very little differentiation on product level and very little emotional involvement. Previous acquisition and changing brand names have shown very little impact on sales nor on loyalty.
On top of that, the level of people switching each year is limited. In 2018 only 1 in 5 Belgian households switched from energy provider. The competition to acquire this small number of customers is fierce. To ensure their claims are being heard, they spend heavily in media. Four heavyweights are responsible for three quarters of the media investment in the entire energy category. The competition's positioning is divided over mainly 2 axes: claiming green energy and providing energy efficiency solutions (smart meters, check-ups…).
Mega is a fairly new energy provider on this competitive market. They offer the same energy as the big companies but at a better price. Through group purchases, via comparative websites and by taking over the customer portfolio of local energy providers that decided to quit (such as Enovos, Belpower, Energy people, Comfort Energie, Zeno), they succeeded in growing their client base. This resulted in a market share of 4,22%.