Published
Jul 5, 2017
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Discounts and pricing strategy are key to happy global fashion shoppers says Blue Yonder

Published
Jul 5, 2017

Shoppers may be bargain-hungry and keen to take advantage of discounts around events such as Amazon Prime Day, Black Friday and Singles Day, but if retailers get it wrong, they could end up alienating the consumers they want to attract to their stores and sites.


Discounts are all very well but poor stock availability could leave shoppers unhappier than ever



That’s the conclusion of a new survey from Blue Yonder. a retail artificial intelligence solutions provider.  It spoke to 4,000 consumers in the UK, US, Germany and France and found that consumers will pile-into stores and websites in search of promised discounts on fashion goods. But they could leave with a worse impression of the retailer if they don’t bag a bargain. And the firm recommended that being more clever around pricing could mean more full-price goods are sold to start with, reducing the need for so many markdows.

EXPECTATIONS AND DISAPPOINTMENT

The survey found that shoppers are definitely incentivised by discounts to make a purchase and are willing to postpone purchases to get the best prices. But 51% of international shoppers are disappointed when they feel a product isn’t discounted enough.
 
The company said the modern shopper is much more strategic and is clear on just how much she or he is prepared to pay for an item thanks to increased price visibility, discount days and extended promotions. That puts extra pressure on stores to balance discount offers to meet customer expectations while also ensuring they make a profit. If a product is not discounted enough, retailers risk leaving customers dissatisfied and turning to competitors instead.


Fashion shoppers will spread the word if they have a good discount experience but will reject stores that disappoint them



The research found that some 79% of international shoppers are unhappy when the item they want in the sale has sold out or only ‘fringe’ sizes are available. And while 28% in the UK are disappointed if sizes aren’t available in the sale, this rises to 38% globally. UK women are more disappointed than men (35% vs 21%).

Some 51% of UK shoppers are disappointed if the colour they want is not available in a sale and 40% of UK women are very disappointed if the item they want in a sale is sold out vs 22% of men. Younger shoppers (those aged 25-34) are also the most disappointed on these occasions (43%).
 
PRICING DATA

Blue Yonder said this shows that retailers need granular data to understand their customers, how much they want to spend, what they would prefer to spend their money on and when.
 
“If retailers initially offered the right product at the right price, consumers would be more likely to make purchases at full price to avoid missing out on the latest fashion must-have in the size and colour of their choice. The offer must be compelling enough to encourage consumers to change the way they shop and not wait for the sales,” said Matt Hopkins, VP of Retail Strategy Development at Blue Yonder.
 
Furthermore, retailers are facing an age of savvy shoppers, where consumers seek out the best prices possible rather than remaining loyal to a brand or making impulse purchases. Some 70% of online shoppers spend five hours a month researching the best deals in order to get the best price, the company said.
 
In fact, 22% of UK women spend between one and three hours looking for the best prices for fashion items on the high street versus 18% of men.

Overall, 85% of consumers spend time comparing prices to find the best discounts either online, on the high street or in catalogues. Now accustomed to researching across sales channels and platforms, this highlights the role of pricing in securing conversions.
 
“Customer expectations are forcing retailers to embrace and implement new technologies to be able to satisfy demands. Price visibility has increased, leaving few places to hide when it comes to offering the best prices possible to customers for fashion items.  Retailers need to utilise these technology innovations to their advantage so they are able to optimise pricing to ensure the customer pays the best price possible daily, whilst balancing it against their own business goals,” added Hopkins.

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