Do you have a price strategy this Christmas?
There were some interesting consumer shopping predictions highlighted in the recently released “Adobe Digital Index 2015 Holiday Shopping Predictions“, that might help you determine your price strategy for the important Christmas selling period. The report revealed that between now and end of the year, shoppers in the UK are expected to spend a whopping £18 billion on-line. The report focuses on what is more important to consumers this holiday season and one of the major findings is that consumers are more price sensitive this year, despite their healthy on-line spending plans. The main driver for spending online still comes down to lower prices and better deals, this important dynamic needs to be reflected in your price strategy.
Lower prices and free shipping top the list
Total ecommerce spending for this Christmas season in the UK is expected to be around £18 billion, which is a 7% increase over the previous year. The average spend per ecommerce user in the UK will be around £300. Most of the UK consumers are expected to shop online because of lower prices and good deals, this has been the major driver for online shoppers.
The big day – Black Friday
The biggest day during the holiday season is going to be November 27th, 2015 with total spend on expected to be around £500 million. The percentage of early shoppers in the UK is expected to remain at a stable 28% during the year of 2015.
Product reviews important
Almost 50% of the UK consumers say that product reviews were among the top influencers when they were considering a major purchase. Consumers in the UK say that nearly 36% of their 2015 holiday purchases will require consulting a product review before purchasing the product. This figure jumps to 42% for consumers between the ages of 18 to 34.
The importance of social media
More people are turning to social media to find the best products for this Christmas season. 43% of the participants said that they will rely on social media to choose the best products this holiday season. This is a significant increase from the 25% figure of last year. This is likely due to the fact that social media is a useful tool for promotion awareness.
When defining your price strategy you need to have a good understanding of your target customer and be aware of the key drivers that drive consumer behaviour. Consumers continue to place low prices and free shipping at the top of their list of priorities. Retailers need to ensure they are pricing their products competitively and should consider offering free shipping to maximise their conversion rates.
Are you prepared for Black Friday ? This one day is fast becoming every bargain hunters favourite day of the year – consumers will be expecting to see offers and promotions, so you need to communicate your specials clearly in you store and in your social media activities.
We provide our customers with tools and technology that saves time and saves money by automating the price management process. Our retail price intelligence software helps our customers to define effective price strategy that maximises sales and margins by tracking competitor prices and market price trends.