Against a reported positive end to 2012 for many retailers, the headlines in January have been a vivid reminder of how tough the market is for many retailers. The focus on price we’ve seen over the past few years is set to continue in 2013. That said our retail pricing intelligence and reported financial results suggest that the lowest price isn’t everything but customers perception of value is.
As a result price positioning has become more important than ever. Price isn’t everything but the clever use of competitive pricing intelligence, alongside differentiation through product offering, service and customer experience are all key factors. So being the lowest price may not be necessary, but being accurately priced against direct competitors is critical.
To help start the year we’ve published new retail pricing analysis that shows the competitive position of retailers in a wide range of categories. Please download the report by clicking on the box at the top if this article.
As we look forward to 2013, price positioning will continue to be a key business driver with additional channels influencing shopping behaviour. The first of these is the increase of marketplace pricing. As the number of retailers adding or extending their marketplace offerings continues, the ability to price position becomes more difficult. Pricing intelligence is also available for the marketplace sites so competitive pricing analysis can be produced as the impact of these sites grows.
2013 will also see an increase in the influence of mobile shopping. Transaction rates are growing rapidly, but still make up a very small share of the market from a revenue perspective. What is more compelling is the influence the mobile devices have on consumers shopping behaviour. Consumers have access to ever increasing amounts of information while shopping in-store, this of course includes pricing intelligence. Having a plan to manage this behaviour will be important part of the marketing process. We’ll continue to develop this analysis based on the feedback we get and publish a new report at the beginning of Q2 2013.
I hope that you find the report useful and would welcome any feedback you have.
Adrian Hobbs (firstname.lastname@example.org)