While the young and internet savvy generation of India is driving the ecommerce businesses, the retail space is organised as well as unorganised too.
Both online and offline players have their own pros and cons. Contradictory to offline business that allows customers to ask for their preferred prices during the course of bargaining/negotiations on the MRPs, in online businesses bargaining is not the option. But because of the convenience of e commerce, customers find it more attractive as they allow browsing in with one’s own time and shop from home. However, it is also tough to build customer interactions as there is no face to face reciprocity. These online players must put really serious efforts to establish themselves as a trustworthy brand amongst its target customers.
Back in the day, retail stores were more dominant in the market. Retail pricing was pretty straightforward too. However, with the rise of online channels, the landscape of the retail world is somewhat affected. Online players if marks their product at a discounted price, it can affect the way offline retailers marks their cost. According to a survey, more than 55% customers would want to walk into a store to actually see, touch and feel the products before purchasing it. This proves that offline retailers are equally important too.
Although, a customer would always prefer for consistent pricing for products across all selling channels or medium. However, this is not always feasible. Most of the times, pricing inconsistencies can be seen across online and offline channels. Large retailers can afford to keep pace with the lower pricing offered by others (online channels/competitors). But other merchants can end up facing losses.
Thus, ecommerce must get hold of the offline pricing model of any product before it determines its price on the online platform. This will help the ecommerce players to finalise a price which will not only help them to acquire and retain customers to generate profit and but also help offline retailers to survive in the cut throat competitive market despite brand loyalty. Pricing products suitably can create a business foundation that will help them to establish themselves in the competitive market.
At ResearchFox, we understand the requirements of our clients and help with both qualitative and quantitative diversified authentic market research services which can help understand real time trends in the market. Apart from exhibiting the outspoken needs and requirements, ResearchFox helps discover a lot more what they hadn’t even thought to ask. Ecommerce businesses can gain insights and access to real time information from audiences-offline retailers, wholesalers and distributors in the B2B market, which will help them to sync up with real time trends and optimise pricing strategies accordingly.
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