The DataWeave Blog

Category: price perception

  • Standard Reporting vs. Competitive Intelligence: What Retail Leaders Need to Know

    Standard Reporting vs. Competitive Intelligence: What Retail Leaders Need to Know

    Back in the day, pricing strategies were a lot easier. These days, not only do teams need to have robust standard price reporting workflows, but they also need to have the know-how and tools to gain and act on competitive intelligence. Retail leaders should prioritize automation and strategic thinking and ensure their teams have the tools, processes, and methodologies required to monitor the competition at scale and over the long term.

    Retail leaders who recognize the distinction between standard reporting and competitive intelligence are more likely to gain team buy-in, especially when developing pricing strategies that drive results. You can’t be everywhere at once, but you can optimize pricing strategies to stay ahead of the competition.

    This article has everything you need to know about the differences between standard reporting and competitive intelligence and how to use both to make your teams more effective than ever!

    Understanding the Distinction

    Standard price reporting is much like checking the weather to see if it’s stormy before grabbing a raincoat or sunhat. You need to do it to make essential, everyday choices, but it will not help you predict when the next storm is coming. Standard price reporting deals more with the short-term and immediate actions needed as opposed to long-term strategy.

    Don’t get us wrong, standard price reporting is still an essential responsibility of a pricing team’s function—but there’s more to it. It is also lower-tech than a competitive intelligence strategy and can rely on route heuristics.

    Think of it as data-in, data-out. It deals with pricing operations like:

    • Weekly price movements: Seeing which competitors, product categories, and individual items had pricing shifts in the short-term
    • Basic price indices: Outlining benchmarks to watch how your own, and your competitors’, products are trending in the market
    • Price competitiveness metrics: Setting thresholds that show whether your products are priced below, above, or equal to your competition for general trend reporting

    Standard price reporting is fundamental for operational teams that manage price adjustments in the short term. It can also help teams remain agile and reactive to market condition changes.

    It’s likely that your team already has standard reporting strategies or tools to help them with tactical execution. But are they harnessing competitive intelligence correctly with your help?

    Characteristics of Competitive Intelligence

    While standard price reporting is like checking the weather, competitive intelligence is like being a meteorologist who measures atmospheric changes, predicts storms, and scientifically analyzes weather patterns to keep everyone informed and in the know.

    Competitive intelligence goes well beyond simply tracking price movements and benchmarking them against a single set of standards. Competitive intelligence helps steer teams in a strategic direction based on insights from the market. It can drive long-term business success and is one of your best tools to ‘steer the ship’ as a retail leader.

    Here are some of the essential elements of competitive intelligence:

    • Strategic insights: Including but not limited to understanding your competitors’ pricing strategy, promotions, and product positioning
    • Market-wide patterns: Identifying trends based on geography, product category, or individual SKU across retailers to inform broader strategies
    • Long-term trends: Taking historical market and competitor data and combining it with real-time retail data to predict future price movements as shifts in consumer behavior to inform pricing strategies

    The pricing team serves as a critical strategic partner to senior leadership, delivering the cross-functional insights and market analysis needed to inform C-suite decision-making. By equipping executives with a holistic view of the competitive landscape, pricing gaps, and emerging trends, the team empowers leadership to align pricing strategies with broader business objectives.

    This partnership enables senior leaders to guide day-to-day pricing operations with confidence—ensuring tactical execution aligns with corporate goals, monitoring strategy effectiveness, and maintaining competitive agility. Through ongoing market intelligence and scenario modeling, the pricing function helps leadership proactively position the brand, capitalize on untapped opportunities, and future-proof revenue streams.

    Different Audiences, Different Needs

    As mentioned, there is a place for both standard price reporting and competitive intelligence. They have different roles to play, and different teams find them valuable. Since standard reporting mainly focuses on day-to-day shifts and being able to react to real-time changes, operational teams find it most useful.

    On the other hand, competitive intelligence is a tool that leadership can use to shape overarching pricing strategies. The insights from competitive intelligence drive operational activities over months and quarters, whereas standard reporting drives actions daily.

    To succeed in pricing, you need to rely on a combination of tactical standard reporting and competitive intelligence for long-term planning. With both, you can successfully navigate the ever-fluctuating retail market.

    Price Reporting for Operational Teams

    Your operational team is responsible for making pricing adjustments that directly impact sales volume. Automated data aggregation and AI-powered analytics can make this process faster and more accurate by eliminating the need for manual intervention.

    Instead of spending hours identifying changes, standard reporting tools surface the most critical areas that need attention and recommend adjustments. This helps operational teams react fast to shifting market conditions.

    Key functions of standard price reporting include:

    • Daily/weekly pricing decisions: Frequent price adjustments based on market trends will help your company remain competitive across entire product categories. With automated, real-time dashboards, your pricing team can monitor broad category-level pricing shifts and make necessary adjustments accordingly.
    • Individual SKU management: Not all pricing changes happen at the category level. Standard reporting also allows teams to view price and promotion changes on individual SKUs down to the zip code. It’s important to have targeted, granular insights when a change occurs even on a single SKU, especially because these individual changes are easy to miss. Advanced product matching algorithms can tie together exact products across retailers to monitor items conjointly. By incorporating similar product matching technologies beyond standard reporting, your teams can monitor individual price changes on comparable products.
    • Immediate action items: The best standard reporting tools alert pricing teams when there has been a change in competitor pricing and give them recommendations for what to change. If a competitor launches a flash sale or an aggressive discount program, your team should know as fast as possible which product to adjust. Without this functionality, teams can miss important changes or experience a delay in action that results in lost sales or customer perception.

    Competitive Intelligence for Leadership

    For Senior Retail Executives, Category Directors, and Pricing Strategy Leaders, pricing cannot only be about reacting to individual competitor price changes. Instead, you must proactively think about your market positioning and brand perception. Doing this without a complete competitive intelligence strategy can feel like throwing darts while blindfolded. Sometimes, you’ll hit the target, but mostly, you’ll miss or only come close. Competitive intelligence tools can help you hit that target every time. They leverage big data, artificial intelligence (AI), and predictive modeling to help you derive holistic insights to understand your current positioning relative to the current and future pricing landscape.

    Core strategic functions of competitive intelligence include:

    • Strategic planning: Competitive intelligence tools can help you forecast competitor behavior, economic shifts, and category-specific patterns you’d otherwise overlook (ex, price drops before new releases, subscription or bundling trends, or seasonable price cycles). Instead of reacting to a change, your team can already have made changes or at least know what playbook to implement.
    • Market positioning: Geographic pricing intelligence built into competitive intelligence tools can help you understand variations across locations and optimize multiple channels simultaneously. This can be the foundation of regional pricing strategies that factor in local economies and consumer perception.
    • Long-term decision-making: You can use competitive intelligence technology to align your pricing strategy with upcoming seasonal trends isolated using historical data, predicted economic shifts, and changes in customer purchasing behavior. This aggregate view of the pricing landscape will help you step out of the weeds and make better company decisions.

    From Data to Strategy – Transforming Basic Price Data

    Shifting your focus from isolated, reactive data to broader market trends is the key to going from basic price reporting to real competitive intelligence. Never forget the importance of real-time data, but know it’s your responsibility as a leader to bring a broader viewpoint to operations.

    Transforming from basic price data to competitive intelligence involves:

    1. Harnessing the data
      • Pattern recognition: Your solution should help you identify repeat pricing behaviors and competitor strategies
    2. Figuring out what to do with the data
      • Strategic implications: It should help you understand how your pricing changes will affect customer perception of your brand
    3. Doing something with the insights from your data
      • Action planning: The solution should help you create proactive strategies that position you as a market leader, leaving your competition to try to keep up with you instead of vice versa

    Leveraging Technology for Competitive Intelligence

    Technology is at the heart of leveling up your standard price reporting game. If you want industry-leading competitive intelligence, you can leverage DataWeave’s comprehensive pricing intelligence solution with built-in competitive intelligence capabilities and features for your operational teams.

    You can also uncover gaps and stay competitive in the dynamic world of eCommerce. It provides brands with the competitive intelligence they need to promptly adapt to market demand and competitors’ pricing. Stay ahead of market shifts by configuring your own alerts for price fluctuations on important SKUs, categories, or brands, all time-stamped and down to the zip.

    And since our platform relies on human-backed AI technology, you can have complete confidence in your data’s accuracy at any scale. If you want to bring a new strategic mindset to your pricing team, consider adding competitive intelligence to your tech stack. If you want to learn more, connect with our team at DataWeave today.

  • Preparing for Tariff Impact: A Retailer’s Guide to Price Intelligence

    Preparing for Tariff Impact: A Retailer’s Guide to Price Intelligence

    The power to impose tariffs on foreign countries is one of the most impactful measures a government has at their disposal. The government can use this power for various reasons: to punish rivals, equalize trade, give domestic products a comparative advantage, or collect more funds for the federal government.

    Whatever the reason, tariffs have real-world impacts on brands and retailers selling in a global economy. They effectively make products more expensive for some and comparatively cheaper for others. Since tariffs can be added or removed at the drop of a hat, retail executives, category managers, and pricing teams trying to keep up have their work cut out for them.

    You’ve come to the right place if you’re wondering how to prepare for and respond to potential tariffs. The answer lies in technology that will make you flexible when you need to react to policy changes. Establishing workflows and processes embedded with pricing intelligence can help you stay competitive even when global politics intercepts your business.

    Understanding Tariff Impact

    Before diving into tariffs’ implications on pricing strategies, we need to understand how tariffs work and the current economic environment. Tariffs are a government’s tax on products a foreign country sells to domestic buyers. You might remember President Trump’s expanded tariff policy in September 2018. It placed a 10% tax on $200 billion worth of Chinese imports for three months before raising to a rate of 25% in January 2019. At that time, an American buyer would pay the original price of the goods plus the tax to the American government. Many additional tariffs and counter-tariffs by other countries were enacted during Trump’s first term in office, including the European Union, Canada, Mexico, Brazil, and Argentina, resulting in a trade war.

    Announcements of when, where, and on what new tariffs will be imposed are unpredictable. The only predictable thing is that this type of market volatility is here to stay. Pricing teams should adjust their mindsets to assume that volatility may always be on the horizon. This is because tariffs have many cost implications. Besides the flat rate imposed by the government on a certain product, tariffs have historically raised the price of all goods.

    In economic terms, tariffs create a multiplier effect. Consider a tariff placed on gasoline imported from Canada. This measure may encourage American drilling but will have immediate ripple effects throughout the economy. Everything that relies on ground transportation will increase in price, at least in the short term.

    This means that a fashion brand that sources and manufactures its entire line domestically will incur more costs since transportation will be more expensive. If fashion companies act like most companies, they will pass that added tax burden on to the consumer through higher prices. The company will make this decision based on how sensitive its consumers are to price increases, i.e., the elasticity of demand. These interwoven relationships extend across industries and products, affecting most retailers somehow.

    Of course, category exposure varies by industry and sector. Tariffs are known to impact specific industries more than others. For example, steel, electronics, and agriculture products are at risk of price fluctuations based on their reliance on imported components. These have high category exposure. Some industries reliant on domestic production with stable input costs are less prone to category exposure. These include domestic power grids, natural gas, real estate, and handmade goods. No matter which industry you’re in, however, expect some spill over.

    Preparation Strategies

    Strategies to battle disruption in retail

    Forward-thinking leaders can help position their teams for success in the face of pricing volatility brought on by tariffs. The key is to enable teams to sense disruptions quickly and provide a way to take corrective action that doesn’t diminish sales. Here are three strategies you can implement ahead of time that will help keep you competitive during tariff disruption.

    Cost Monitoring

    Start by getting a firm handle on internal and external costs. Understand and analyze fluctuations in the cost of raw materials, production, and supply chain for your business to operate. Make sure that your products are priced with pre-defined logic so changes in price on one SKU don’t create confusion with another. For example, faux leather costs rise while genuine leather stays the same. In that case, a leather version of a product should be raised to reflect the price increase in the pleather variation, not to devalue the perception of luxury.

    Next, you will want to understand historical pricing trends as well as pricing indexes across your categories. These insights can help your teams anticipate cost fluctuations before they even arise and mitigate the risk that economic shifts create, even unexpected tariffs.

    Competition Tracking

    Tracking your competition is likely already a strategy you have in mind. But how well are your teams executing this important task? If they’re trying to watch for market shifts and adjust pricing in real time without the help of technology, things are likely slipping through the cracks.

    Competitive intelligence solutions help retailers discover all competitive SKUs across the e-commerce market, monitor for real-time pricing shifts, and take action to mitigate risk. You need an “always-on” competitive pricing strategy now so that the second a tariff is announced, you can see how it’s affecting your market. This way, you can maintain price competitiveness and avoid margin erosion when competitors’ pricing changes in response to a tariff or other market shift.

    Consumer Impact Assessment

    The multiplier effect is felt throughout the supply chain when tariffs are implemented. The effect can affect consumers in a number of ways and cause them to become spending averse in certain areas. Often, during times of economic hardship, grocery items remain relatively inelastic. This is because consumers continue to purchase essentials regardless of price changes. Conversely, the price of eating out or home delivery becomes more elastic since consumers cut back on dining expenses when costs rise across their shopping basket.

    You need to establish clear visibility into the results of your pricing changes. The goal should be to monitor progress and measure the ROI on specific and broad pricing changes across your assortment. Conducting market share impact analysis will also help you determine if you are losing out on potential customers or whether a decline in sales is being felt across your competition. Impact analysis tools can help your company check actual deployed price changes in real time.

    Response Framework

    Tariff response action plan for retailers

    Once you’ve prepared your team with strategies and technologies to set them up for success, it’s time to think about what to do once a tariff is announced or implemented. Here are three real-time decision-making strategies you should consider before your feet are to the fire. Having these in your back pocket will help you avoid financial disruption.

    Price Adjustment Strategies

    Think about how you strategically adjust prices. These could include percentage increases, flat rate increases, or absorbed via other strategies like bundling. You should also determine a cost increase threshold that you’re willing to absorb before raising prices. Think about the importance of remaining price attractive to consumers and weigh the risk of increasing prices past consumers’ ability or willingness to pay.

    Promotion Planning

    Folding increased costs into value-added offerings for consumers can be a good way to retain customer sentiment and sales volume without negatively affecting profit margins. You can leverage discounts, promotions, or bundling options to sell more of an item to a customer at a lower per-unit cost.

    What you don’t want to do is panic-adjust prices in response to tariffs of competitor moves. Instead, you can use a tool competitor intelligence solutions to watch if your competition is holding prices steady or adjusting. With full information about pricing at your disposal, you can make better decisions on your promotional strategy and not undercut yourself or lose customer loyalty.

    Alternative Sourcing

    Let’s face it: putting all your eggs in one basket is bad for business. Instead of relying solely on a single supplier for production, you should have a diverse set of suppliers ready and able to shift production when tariffs are announced. If a tariff impacts Chinese exports, having a backup supplier in Vietnam can prevent added costs entirely. You can also consider strategies like bulk pricing, set pricing, or shifting entirely to domestic suppliers.

    Forward Buying

    Proactively stockpile inventory by purchasing large quantities of at-risk products before tariffs take effect. This strategy locks in lower costs and ensures supply continuity during disruptions. However, balance this with careful demand forecasting to avoid overstocking, which ties up cash flow and incurs storage costs. Use historical sales data and tariff implementation timelines to optimize order volumes—this is especially effective for products with stable demand or long shelf lives.

    Market Intelligence Requirements

    Preparing your pricing teams and giving them a framework upon which to act when tariffs are announced doesn’t have to be complicated. You can get access to the right data on costs, competitors, and consumer behavior with DataWeave’s pricing intelligence capability.

    We provide retailers with insights on pricing trends, category exposure, and competitor adjustments. Our AI-powered competitor intelligence solutions allow you to get timely alerts whenever a significant change happens. This can include changes to competitor pricing and category-level shifts that you’d otherwise react to when it’s too late.

    These automated insights can also help you track historical pricing trends, elasticity, and margin impact to construct a clear response framework in an emergency. Additionally, our analytics capabilities can help you identify patterns to power pre-emptive pricing and promotional strategies.

    Getting the right pricing intelligence strategy in place now can prevent disaster later. Think through your preparedness strategy and how you want your teams to respond in the event of a new tariff, and consider how much easier reacting accurately would be with all the data needed at your fingertips. Reach out to us to know more.

  • Beyond MAP Pricing: Strategic Approaches for Brands and Retailers

    Beyond MAP Pricing: Strategic Approaches for Brands and Retailers

    Many retailers view minimum advertised pricing (MAP) policies as a necessary evil since they present several challenges for competitive positioning. In an idealistic free market, there wouldn’t be a need for MAP policies, and healthy competition would do the work of setting the final advertised price.

    However, MAP policies aren’t beneficial only for brands; they also greatly benefit retailers. This article will examine why MAP pricing can be a strategic advantage for both brands and retailers. We’ll also look at ways brand managers and retail pricing teams can navigate MAP requirements to maintain profitability and safeguard customer trust.

    Understanding MAP Fundamentals

    Minimum Advertised Price (MAP) is a policy set by brands that requires their sales channels to price the brand’s products at a minimum dollar value. Retailers are free to price the items higher, but the advertised price is never to exceed the minimum threshold.

    This agreement is established at the outset of a relationship or new product launch and can change at the brand’s discretion. Consumers typically see only the minimum advertised price when they search for a product across competing retailers. This means retailers need to find other ways to differentiate themselves beyond offering the lowest price.

    But a retailer can still effectively price the product at a lower cost to win sales away from the competition. This comes in the form of discounts applied at checkout, bundled deals, or other promotions that affect the final cart but not the advertised price. Only the advertised price must remain within MAP guidelines. This gives retailers a way to set themselves apart from the competition while still protecting the brand.

    A minimum advertised price has three central values: one for the brand, one for the retailer, and one for both.

    1. Brand or manufacturer: A MAP policy protects the brand’s value and prevents price erosion. If a retailer consistently undercuts a product’s price to make it more competitive, customers may begin to perceive the brand as lower in value over time. It can cause the brand to appear less premium than if prices hold steady. If a customer pays full price one day and then sees the same item advertised at a lower base price the next, it can weaken brand loyalty and cause dissatisfaction.
    2. Retailer: Minimum advertised pricing policies prevent retailers from engaging in a pricing war with one another, driving the price of an item down and hurting margins. This race to the bottom is bad for business. Apart from reducing profits, it discourages sellers from investing in marketing and other activities that drive sales. It also means that smaller retailers can compete with larger retailers, effectively leveling the playing field across the market.
    3. All parties: The issue of counterfeit and unauthorized sellers on the grey market plagues retailers and brands. One of the most straightforward ways to identify these sellers that undercut prices and damage brand perception is to track who is pricing products outside of agreements. Unauthorized or counterfeit sellers can be identified by establishing a MAP policy and monitoring who sells at the wrong price. Then, official legal action can be taken to prevent those merchants from selling the product.

    Brand Perspective

    Developing a clear and precise MAP policy is an important option for brands looking to stay competitive. Make sure you outline the minimum advertised price for each product for each sales channel and do so by geography. Write clear instructions on how discounts, promotions, and sales can be applied to the advertised price to avoid misunderstandings later. Ensure you work with your legal team to fill in any gaps before presenting them to retailers.

    If you find sellers acting outside the MAP policy, you must act swiftly to enforce your MAP policy. Cease and desist orders are the most common enforcement strategy a brand can use on unauthorized sellers and counterfeiters. But there are legal considerations for authorized sellers, too. You may need to fine the retailer for damages, restrict inventory replenishment until prices have been adjusted, remove seller authorization by terminating the relationship entirely, or escalate to your legal team.

    Open communication between the brand and retailer is in everyone’s best interest to ensure minimum pricing is being used. Have explanatory documents available for your retailers’ non-legal teams to reference while they set prices. These can take the form of checklists, video explainers, or even well-informed brand representatives working closely with retail pricing teams. It’s likely that some MAP violations will occur from time to time. The importance your retail partners place on fixing those errors will help you determine how much goodwill you will give them in the future.

    Brands can consider rewarding retailers that consistently adhere to minimum advertised price policies. Rewards often take the form of more lenient promotion policies, especially during major holidays like Christmas, Prime Day, or Black Friday. However, it’s never advisable to relax the actual MAP policy to allow one retailer to advertise a lower price year-round.

    Retailer Strategies

    A retailer can take several approaches to complying with a brand’s MAP policy while still maximizing sales. First, you need a dedicated compliance process spearheaded by compliance specialists or, better yet, enabled by technology. Embedding a process that checks for MAP violations into daily or weekly operations will prevent problems before brands become aware.

    Automated price tracking tools can help discover discrepancies so that you don’t accidentally violate a MAP agreement. Make sure MAP training extends beyond your pricing team and includes marketing. Anyone who participates in promotions or events should be made aware of the agreements made with specific brands. Determine if there are alternative promotion methods available to attract customers. You could offer free shipping on certain items, bundle giveaways, or apply cart-wide discounts at checkout.

    Monitoring your competition in real time will also help you stay ahead. If you discover a competitor undercutting your prices, bring this to the attention of your brand representative. This can build loyalty with the brand and help prevent lost sales due to market share loss.

    Digital Implementation for MAP Compliance

    Pricing teams at brands and retailers manually attempting to manage MAP pricing will lag behind the competition without help. They must discover, monitor, and enforce MAP compliance simply and effectively.

    Over the past several years, there has been a seemingly exponential proliferation of online sellers, complicating the industry and making it nearly impossible to find and discover all instances of every product you sell. It’s further complicated by marketplaces like Amazon, Walmart, and eBay, which are full of individual unauthorized sellers and resellers.

    Implementing a digital tool is the first step to effectively discovering and monitoring MAP compliance, even across these marketplaces. This tool should monitor all competition for you and discover imbalances in pricing parity.

    DataWeave’s MAP Violations Merchant Analytics solution has AI-backed software that scours the web for your products. It uses identifiers like UPCs and product titles and compares imagery to find where the product is sold. Our AI-powered image recognition capabilities are especially helpful in identifying inauthentic listings that may be counterfeit products or unauthorized sellers. It also has built-in geographic and channel-specific MAP monitoring capabilities to help with localized enforcement.

    The tool can aggregate all this data and present dashboard views of your own and competitors’ pricing that are easy to digest and act on. After all, retailers need to monitor their own MAP compliance as well as the competition’s. Brands can also track competitor sellers’ networks to explore potential new retail partnerships and grow their network reach.

    The MAP Violations Merchant Analytics solution has automated violation alerts and advanced reporting built into it. This means you can get real-time alerts instead of pouring through dashboards searching for exceptions each week. For deeper insights, the dashboards provide time-stamped proof of which sellers are undercutting MAP minimums, so you have all the information you need to make a case against them. Discovering repeat offenders is easy with historical trends dashboards that show which sellers have a history of violations.

    With all this information on who is violating what—and when—enforcement becomes much more manageable. Send cease and desist orders to unauthorized sellers and start having conversations with authorized sellers acting outside of your agreement. Acting quickly will help prevent hits to your brand’s reputation, price erosion, and lost sales.

    DataWeave’s MAP solution gives you the competitive edge to effectively discover MAP violations, monitor market activity, and act quickly when an issue is discovered.

    Make MAP Compliance a Strategic Advantage

    Basic MAP compliance and enforcement isn’t simply about setting pricing policies anymore. These policies are foundational to brand strategies, maintaining good relationships with retailers, and establishing long-term profitability for your business.

    When you let MAP violations go unchecked, it can erode your margins, damage how your customers perceive your brand, and create confusion across channels. Discovering, monitoring, and acting on MAP violations is much easier with the help of tools like DataWeave’s AI-enabled MAP Violations Merchant Analytics.

    Ready to take control of MAP pricing at your company? Request a MAP policy assessment from DataWeave today!

  • Portfolio Enhancement Through Price Relationship Management: Building Coherent Pricing Across Product Lines

    Portfolio Enhancement Through Price Relationship Management: Building Coherent Pricing Across Product Lines

    Do you remember when the movie Super Size Me came out? If you missed it, it was about the harmful effects of eating fast food too often. One aspect of the film that stands out is McDonald’s clever use of pricing to encourage consumers to buy bigger—and therefore more expensive—meals.

    Hungry patrons could upgrade their meal to a Super Size version for only a few cents more. In doing so, McDonald’s was able to capitalize on perceived value, i.e., getting more product for an apparent lower total price for the volume. It encouraged restaurant-goers to spend a little more while feeling like they got a great deal. It was a smart use of strategic pricing.

    There are hundreds of pricing relationship types like this one that pricing leaders need to be aware of and can use to their advantage when creating their team’s pricing strategy and workflows. You need to maintain profitable and logical price relationships across your entire product portfolio while keeping up with the competition. After all, the gimmick to Super Size would never have worked if the upgrade had been of less value than just buying another burger, for example.

    In this article, we’ll examine more real-world examples of pricing challenges so you can consider the best ways to manage complex price relationships. We’ll examine things like package sizes, brands, and product lines and how they’re intertwined in systematic price relationship management. Read on to learn how to prevent margin erosion, improve customer perception of your brand, and keep your pricing consistent and competitive.

    The Price Relationship Challenge

    Pricing is one of the most challenging aspects of managing a retail brand. This is especially true if you are dealing with a large assortment of products, including private label items, the same products of differing sizes, and hundreds, or even thousands, of competing products to link. Inconsistencies in your price relationship management can confuse customers, erode trust, and harm your bottom line.

    Let’s take a look at a few common pitfalls in portfolio pricing that you might run into in real life to better understand the impact on customer perception, trust, and sales.

    Pricing Relationship Challenges Retailers Need to Account For

    Private Label vs. Premium Product Pricing

    Let’s consider a nuanced scenario where price relationships between a retailer’s private label and premium branded products create an unexpected customer perception. Imagine you’re in a supermarket, comparing prices on peanut butter. You’ve always opted for the store’s private-label brand, “Best Choice,” because it’s typically the more affordable option. Here’s what you find:

    • Best Choice (Private Label) 16 oz – $3.50
    • Jif (National Brand) 16 oz – $3.25

    At first glance, this pricing feels off—shouldn’t the private label be the cheaper option? If a customer has been conditioned to expect savings with private-label products, seeing a national brand undercut that price could make them pause.
    This kind of pricing misalignment can erode trust in private-label value and even push customers toward the national brand. When price relationships don’t follow consumer expectations, they create friction in the shopping experience and may lead to lost sales for the retailer’s own brand.

    Value Size Relationships

    A strong value-size relationship ensures that customers receive logical pricing as they move between different sizes of the same product. When this relationship is misaligned, customers may feel confused or misled, which can lead to lost sales and eroded trust.

    Let’s look at a real-world example using a well-known branded product—salad dressing. Imagine you’re shopping for Hidden Valley Ranch (HVR) dressing and see the following pricing on the shelf:

    • HVR 16 oz – $3.99
    • HVR 24 oz – $6.49
    • HVR 36 oz – $8.99

    At first glance, you might assume that buying a larger size offers better value. However, a quick calculation shows that the price per ounce actually increases with size:

    • 16 oz = $0.25 per ounce
    • 24 oz = $0.27 per ounce
    • 36 oz = $0.25 per ounce

    Customers expecting a discount for buying in bulk may feel misled or frustrated when they realize the mid-size option (24 oz) is actually the most expensive per ounce. This mispricing could drive shoppers to purchase the smallest size instead of the intended larger, more profitable unit—or worse, lead them to a competitor with clearer pricing structures.

    Retailers must maintain logical price progression by ensuring that price per unit decreases as the product size increases. This not only improves customer trust but also encourages higher-volume purchases, driving profitability while maintaining a fair value perception.

    Price Link Relationships

    A well-structured price link relationship ensures customers can easily compare similar offerings of the same product and size. When the pricing across different versions or variations of the same item isn’t clear or consistent, it can confuse customers and damage trust, ultimately leading to missed sales and a negative brand perception.

    Let’s break this down with an example of a popular product—coffee. Imagine you’re shopping for a bag of Starbucks coffee and you see the following pricing on the shelf:

    • Starbucks Classic Coffee, 12 oz – $7.99
    • Starbucks Coffee, Mocha, 12 oz – $9.99
    • Starbucks Ground Coffee, Pumpkin Spice, 12 oz – $12.99

    At first glance, the product is the same size (12 oz) across all options, but the prices vary significantly. One might assume that the price difference is due to differences in quality or features, but what if there’s no clear indication of why the different flavors are priced higher than the standard?

    After investigating, you may realize that the only differences are related to different variants—like “Mocha” or “Pumpkin Spice” rather than any significant changes in the product’s core attributes. When customers realize they’re paying a premium for just different flavors, without any tangible difference in product quality, it can lead to feelings of confusion and frustration.

    Retailers must ensure that price links between similar offerings are justifiable by clearly communicating what differentiates each product. This avoids the perception that customers are being charged extra for little added value, building trust and encouraging repeat purchases. By maintaining transparent price link relationships, businesses can foster customer loyalty, increase sales, and drive better overall satisfaction.

    What is the Foundational Process to Tackle the Price Relationship Challenge?

    Now that we’ve reviewed several challenges brands face when pricing their products, what can be done about them?

    If you’re a pricing leader, you must create a robust pricing strategy that considers customer expectations, competitive data, sizing, and the overall value progressions of your product assortment. These are the three foundational steps to solve your price relationship challenges.

    1. First, you need to group products together accurately.
    2. Second, you need to establish price management rules around the group of related items.
    3. Third, you should set in place a process to review your assortment each week to see if anything is out of tolerance.

    This process is difficult, if not impossible, to manage manually. To effectively set up and execute these steps, you’ll need the help of an advanced pricing intelligence system.

    Implementation Strategy

    Want to know how to roll out a price relationship management strategy? Follow this implementation strategy for a practical way to get started.

    1. Set up price relationship rules: Determine which of your products go together, such as same products with different sizes or color options. Assign different product assortment groups and determine tolerances for scaling prices based on volume or unit counts.
    2. Monitoring and maintenance: Establish rules to alert the appropriate party when something is out of tolerance or a price change has been discovered with a competitive product.
    3. Exception management: Only spend time actioning the exceptions instead of pouring through clean data each week, looking for discrepancies. This will save your team time and help address the most significant opportunities first.
    4. Change management considerations: Think about the current processes you have in place. How will this affect the individuals on your team who have managed pricing operations? Establish a methodology for rolling this new strategy and technology out over select product assortments or brands one at a time to build trust with internal players.

    DataWeave offers features specifically built to help pricing teams manage pricing strategies. These applications can help you optimize profit margins and improve your overall market positioning for long-term success. A concerted effort to create brand hierarchies within your own product assortment from the get-go, followed by routine monitoring and real-time updates, can make all the difference in your pricing efforts.

    Within DataWeave, you can create price links between your products (value sizing) and those of the competition. These will alert you to exceptions when discrepancies are discovered outside your established tolerance levels. If a linked set of your products in different sizes shows inconsistent pricing based on scaled volumes, your team can quickly know how to make changes. If a competitor’s price drops significantly, you can react to that change before you lose sales.

    DataWeave even offers AI-driven similar product matching capabilities, which can help you manage pricing for private label products by finding and analyzing similar products across the market.

    If you want to learn more about price relationship management, connect with our team at DataWeave today.

  • Maximizing Competitive Match Rates: The Foundation of Effective Price Intelligence

    Maximizing Competitive Match Rates: The Foundation of Effective Price Intelligence

    Merchants make countless pricing decisions every day. Whether you’re a brand selling online, a traditional brick-and-mortar retailer, or another seller attempting to navigate the vast world of commerce, figuring out the most effective price intelligence strategy is essential. Having your plan in place will help you price your products in the sweet spot that enhances your price image and maximizes profits.

    For the best chance of success, your overall pricing strategy must include competitive intelligence.

    Many retailers focus their efforts on just collecting the data. But that’s only a portion of the puzzle. The real value lies in match accuracy and knowing exactly which competitor products to compare against. In this article, we will dive deeper into cutting-edge approaches that combine the traditional matching techniques you already leverage with AI to improve your match rates dramatically.

    If you’re a pricing director, category manager, commercial leader, or anyone else who deals with pricing intelligence, this article will help you understand why competitive match rates matter and how you can improve yours.

    Change your mindset from tactical to strategic and see the benefits in your bottom line.

    The Match Rate Challenge

    To the layman, tracking and comparing prices against the competition seems easy. Just match up two products and see which ones are the same! In reality, it’s much more challenging. There are thousands of products to discover, analyze, compare, and derive subjective comparisons from. Not only that, product catalogs across the market are constantly evolving and growing, so keeping up becomes a race of attrition with your competitors.

    Let’s put it into focus. Imagine you’re trying to price a 12-pack of Coca-Cola. This is a well-known product that, hypothetically, should be easy to identify across the web. However, every retailer uses their own description in their listing. Some examples include:

    How product names differ on websites - Amazon Example
    Why matching products is a challenge - Naming conventions on Target
    Match Rate Challenge - how product names differ on retailers - Wamlart
    • Retailer A lists it as “Coca-Cola 12 Fl. Oz 12 Pack”
    • Retailer B shows “Coca Cola Classic Soda Pop Fridge Pack, 12 Fl. Oz Cans, 12-Pack”
    • Retailer C has “Coca-Cola Soda – 12pk/12 fl oz Cans”

    While a human can easily deduce that these are the same product, the automated system you probably have in place right now is most likely struggling. It cannot tell the difference between the retailers’ unique naming conventions, including brand name, description, bundle, unit count, special characters, or sizing.

    This has real-world business impacts if your tools cannot accurately compare the price of a Coca-Cola 12-pack across the market.

    Why Match Rates Matter

    If your competitive match rates are poor, you aren’t seeing the whole picture and are either overcharging, undercharging, or reacting to market shifts too slowly.

    Overcharging can result in lost sales, while undercharging may result in out-of-stock due to spikes in demand you haven’t accounted for. Both are recipes to lose out on potential revenue, disappoint customers, and drive business to your competitors.

    What you need is a sophisticated matching capability that can handle the tracking of millions of competitive prices each week. It needs to be able to compare using hundreds of possible permutations, something that is impossible for pricing teams to do manually, especially at scale. With technology to make this connection, you aren’t missing out on essential competitive intelligence.

    The Business Impact

    Besides the bottom-line savings, accurately matching competitor products for pricing intelligence has other business impacts that can help your business. Adding technology to your workflow to improve match rates can help identify blind spots, improve decision quality, and improve operational efficiency.

    • Pricing Blind Spots
      • Missing competitor prices on key products
      • Inability to detect competitive threats
      • Delayed response to market changes
    • Decision Quality
      • Incomplete competitive coverage leads to suboptimal pricing
      • Risk of pricing decisions based on wrong product comparisons
    • Operational Efficiency
      • Manual verification costs
      • Time spent reconciling mismatched products
      • Resources needed to maintain price position

    Current Industry Challenges

    As mentioned, the #1 reason businesses like yours probably aren’t already finding the most accurate matches is that not all sites carry comparable product codes. If every listing had a consistent product code, it would be very easy to match that code to your code base. In fact, most retailers currently only achieve 60-70% match rates using their traditional methods.

    Different product naming conventions, constantly changing product catalogs, and regional product variations contribute to the industry challenges, not to mention the difficulty of finding brand equivalencies and private label comparisons across the competition. So, if you’re struggling, just know everyone else is as well. However, there is a significant opportunity to get ahead of your competition if you can improve your match rates with technology.

    The Matching Hierarchy

    • Direct Code Matching: There are a number of ways to start finding matches across the market. The base tier of the hierarchy of most accurate approaches is Direct Code matching. Most likely, your team already has a process in place that can compare UPC to UPC, for example. When no standard codes are listed, your team is left with a blind spot. This poses limitations in modern retail but is an essential first step to identifying the “low-hanging fruit” to start getting matches.
    • Non-Code-Based Matching: The next level of the hierarchy is implementing non-code-based matching strategies. This is when there are no UPCs, DPCIs, ASINs, or other known codes that make it easy to do one-to-one comparisons. These tools can analyze complex metrics like direct size comparisons, unique product descriptions, and features to find more accurate matches. They can look deep into the listing to extract data points beyond a code, even going as far as analyzing images and video content to help find matches. Advanced technologies for competitive matching can help pricing teams by adding different comparison metrics to their arsenal beyond code-based. 
    • Private Label Conversions: Up until this level of the hierarchy, comparisons relied on direct comparisons. Finding identical codes and features and naming similarities is excellent for figuring out one-to-one comparisons, but when there is no similar product to compare with for pricing intelligence, things get more complicated. This is the third tier of the matching hierarchy. It’s the ability to find similar product matches for ‘like’ products. This can be used for private label conversions and to create meaningful comparisons without direct matches.
    • Similar Size Mappings: This final rung on the matching hierarchy adds another layer of advanced calculations to the comparison capability. Often, retailers and merchants list a product with different sizing values. One may choose to bundle products, break apart packs to sell as single items or offer a special-sized product manufactured just for them. 
    Similar Size Mappings - product matching hierarchy - Walmart
    Similar Size Mappings - product matching hierarchy - Costco

    While at the end of the day, the actual product is the same, when there are unusual size permutations, it can be hard to identify the similarities. Technology can help with value size relationships, package variation handling, size equalization, and unit normalization.

    The AI Advantage

    AI is the natural solution for efficiently executing competitive product matching at scale. DataWeave offers solutions for pricing teams to help them reach over 95% product match accuracy. The tools leverage the most modern Natural Language Processing models for ingesting and analyzing product descriptions. Image recognition capabilities apply methods such as object detection, background removal, and image quality enhancement to focus on an individual product’s key features to improve match accuracy.

    Deep learning models have been trained on years of data to perform pattern recognition in product attributes and to learn from historical matches. All of these capabilities, and others, automate the attribute matching process, from code to image to feature description, to help pricing teams build the most accurate profile of products across the market for highly accurate pricing intelligence.

    Implementation Strategy

    We understand that moving away from manual product comparison methods can be challenging. Every organization is different, but some fundamental steps can be followed for success when leveling up your pricing teams’ workflow.

    1. First, conduct a baseline assessment. Figure out where you are on the Matching hierarchy. Are you still only doing direct code-based comparisons? Has your team branched out to compare other non-code-based identifiers?
    2. Next, establish clear match rate targets for yourself. If your current match rate is aligned with industry norms, strive to significantly improve it, aiming for a high alignment that supports maximizing the match rate. Break this down into achievable milestones across different stages of the implementation process.
    3. Work with your vendor on quality control processes. It may be worth running your current process in tandem to be able to calculate the improvements in real time. With a veteran technology provider like DataWeave, you can rely on the most cutting-edge technology combined with human-in-the-loop checks and balances and a team of knowledgeable support personnel. Additionally, for teams wanting direct control, DataWeave’s Approve/Disapprove Module lets your team review and validate match recommendations before they go live, maintaining full oversight of the matching process.
    4. The more data about your products it has, the better your match rates. DataWeave’s competitive intelligence tools also come with a built-in continuous improvement framework. Part of this is the human element that continually ensures high-quality matches, but another is the AI’s ‘learning’ capabilities. Every time the AI is exposed to a new scenario, it learns for the next time.
    5. The final step, ensure cross-functional alignment is achieved. Every one from the C-Suite down should be able to access the synthesized information useful for their role without complex data to sift through. Customized dashboards and reports can help with this process.

    Future-Proofing Match Rates

    The world of retail is constantly evolving. If you don’t keep up, you’re going to be left behind. There are emerging retail channels, like the TikTok shop, and new product identification methods to leverage, like image comparisons. As more products enter the market along with new retailers, figuring out how to scale needs to be taken into consideration. It’s impossible to keep up with manual processes. Instead, think about maximizing your match rates every week and not letting them degrade over time. A combination of scale, timely action, and highly accurate match rates will help you price your products the most competitively.

    Key Takeaways

    Match rates are the foundation of pricing intelligence. You can evaluate how advanced your match rate strategy is based on the matching hierarchy. If you’re still early in your journey, you’re likely still relying on code-to-code matches. However, using a mix of AI and traditional methods, you can achieve a 95% accuracy rate on product matching, leading to overall higher competitive match rates. As a result, with continuous improvement, you will stay ahead of the competition even as the goalposts change and new variables are introduced to the competitive landscape.

    Starting this process to add AI to your pricing strategy can be overwhelming. At DataWeave, we work with you to make the change easy. Talk to us today to know more.

  • Beyond Basic Price Monitoring: Advanced Applications of Competitive Intelligence

    Beyond Basic Price Monitoring: Advanced Applications of Competitive Intelligence

    It’s up to senior leadership, whether you’re a Chief Strategy Officer, Pricing Executive, or Commercial Director, to think big picture about your company’s competitive intelligence strategy. For more junior team members, it’s easy to get caught in the “this is how we’ve always done it” mindset and continue to go through the motions of price monitoring.

    You don’t have that luxury—it’s up to you to find and implement new ways to move beyond basic price monitoring and usher your company into an era of achieving actionable insights through competitive intelligence. There is much more to gain from competitive data than simple price monitoring.

    How can retailers leverage clean, competitive data to uncover strategic insights beyond basic price comparisons? This article will help you shift your mindset from tactical monitoring to strategic insight generation. We’ll see how sophisticated analysis of clean and refined competitive data can reveal competitor strategies, regional and geographic opportunities, and overall market trends.

    It’s time to shift away from standard reporting, which should be left for your pricing owners and end users, and towards gaining competitive intelligence to shape your holistic company pricing strategy. With the right tools, you can make this shift a reality.

    Regional Price Intelligence

    One significant opportunity you should take advantage of is a greater understanding of regional price intelligence. Understanding the nuances that shape how products, categories, and other retailers’ prices according to geographical differences can set your company up to win customer trust and dollars at checkout.

    Understanding geographic and regional pricing strategies

    Geographic price intelligence helps leaders leverage market opportunities based on where sales are happening. Variations in how products and categories are priced across regions often reflect competitor tactics, local demand, and cost structures.

    Let’s consider an example that impacts a broad geography, such as the entire continental United States – egg prices. Eggs are a staple grocery item and are frequently a loss leader in stores. This means they are products priced below their cost specifically to draw customers into stores.

    However, Avian Flu outbreaks affecting millions of birds have become more common recently. These outbreaks drive the cost of eggs higher as flocks must be culled to prevent the spread of the disease. This means that retailers must act to maintain acceptable margins or losses without frightening away customers or losing their trust.

    Avian Flu has been especially bad in Iowa and California. Retailers in these regions face tough decisions during outbreaks. They need to figure out how to balance the high prices required to cover the supply shortages with maintaining consumer trust that this staple product will not be perceived as ‘overpriced.’ Customers expect retailers to be fair even when supply chain issues make it challenging to keep prices stable.

    Another example impacting the broader USA is credit card defaults. Credit card defaults are reaching levels unseen since the financial crisis of 2008. $46 billion worth of credit card balances were written off in the first nine months of 2024 alone. This unprecedented figure highlights the fact that many Americans are struggling financially. Higher-income earners continue to do ok, but lower-income families are feeling the pressure more than ever.

    Understanding the differences between the geographies you sell in can help you construct your pricing strategies better. This is especially true as consumers brace themselves for more anticipated economic hardship.

    Retailers must set realistic financial targets without overpricing their catalogs. Otherwise, they risk losing customers who would otherwise have bought their products. Competitive intelligence can help retailers understand how economic disparities impact core consumer bases.

    Pricing leaders can leverage insights around geographic variations in supply, demand, and competitor pricing to help in situations like these. With how important eggs are, changes to their price can spill over into other categories. And with credit card defaults affecting hundreds of thousands of Americans, having a way to dive into these topics can help shape overarching strategies.

    Customer perception is a recurring theme in competitive intelligence. It’s not only about the actual value your brand offers but the perceived value based on historical context, current events, and competition.

    Leveraging Regional Price Differences for Strategic Advantage

    On the topic of customer perception, there are strategic ways to use customer perception to your advantage. One of these is detecting cross-market arbitrage opportunities using competitive intelligence and actioning them.

    But what is cross-market arbitrage? It’s the practice of exploiting the differences in price across different markets or regions. As a retailer, you can use cross-market arbitrage to your advantage by finding disparities in market conditions and strategically pricing your products to entice customers or offer more value. These opportunities can be in demand, supply, or competitive pricing. Acting quickly in markets where frequent disruptions happen can drive your business forward.

    DataWeave’s advanced competitive intelligence tools can analyze regional market trends to help you respond to real-time local demand fluctuations or cost pressures.

    Local Market Dynamics

    Pricing isn’t a one-size-fits-all operation. Where and what you’re pricing truly matters. Pricing teams should take price zones into account when constructing pricing strategies. This is because pricing isn’t equivalent across locations; it’s localized. Understanding this fact is critical for category-specific considerations at the macro and micro levels.

    This map shows a retailer’s regional price differentials on a breakfast basket. With the ability to access and refine your data, you can better construct maps like this one to track local market dynamics. Determine where you need to differentiate prices based on locality, understand the strategic stance of your competitors, and plan if you start to see changes in competitive price zones.

    Map shows a retailer's regional price differentials on a breakfast basket

    Competitor Strategy Detection

    As a retailer, you should continuously monitor your competitors, whether they’re succeeding or stagnating. One example of a major retailer that is seeing growth even during this challenging economic time is Costco. Costco is an interesting case because they do not have stores in every major city or even in every state.

    Costco has its brand strategy down, and it is tied to the pricing strategy. Costco has committed to its customers to provide quality items at competitive prices, and they’ve delivered even in a volatile economy. Costco has managed to maintain competitive prices on core merchandise and make strategic pricing adjustments on items that matter most to members. Their private label brand, Kirkland Signature, highlights their value-first approach. They continue to lead with price reductions like:

    • Organic Peanut Butter: $11.49 → $9.99
    • Chicken Stock: $9.99 → $8.99
    • Sauvignon Blanc: $7.49 → $6.99

    Costco has figured out how to balance premium offerings for cost-conscious consumers with standardly priced items filling the shopper’s basket. This demonstrates that they have a pricing strategy that relies on competitive intelligence and market trends.

    With the correct data and tools, any retailer can conduct research to discover more about their competitors and gain usable insights into their implemented pricing strategies. Once established, this can act as an early warning signal so you can take action.

    For example, understanding whether a retailer operates with a stable Everyday Low Price (EDLP) strategy or a more dynamic High/Low pricing approach is crucial when building and maintaining the integrity of your pricing strategy.

    Data should be able to show you things like:

    • When holiday price decreases start to accelerate
    • How quickly a retailer responds to cost increases (especially at the category or item level)
    • The cadence of seasonal campaigns and their impact on pricing behavior

    When we move beyond the numbers, these patterns tell a story about how to win in today’s competitive retail landscape. After all, pricing isn’t just a standard reporting tactic. In its truest form, it’s a strategy rooted in understanding the bigger picture of your consumers, competition, and the economy.

    Actionable Intelligence Framework

    With a practical system to turn insights into action, your company’s pricing strategy is much more likely to drive actual results. Merely collecting data and churning out out-of-date reports won’t cut it. Instead, begin to identify patterns and insights for accurate competitive intelligence. Use this simple framework to start setting up a comprehensive competitive intelligence process.

    • Setting up monitoring systems: Leverage technology to monitor and aggregate data on your competition, market trends, and consumer behavior. Ensure the system chosen can clean and refine the data along the way so it’s ready to be analyzed.
    • Creating action triggers: Define clear thresholds and triggers based on key insights. These can be things like price changes of a certain amount, competitor moves, assortment changes, or regional and geographic trends. These triggers should prompt specific, pre-planned actions for your team to capitalize on opportunities.
    • Response protocol development: Change management is easier with a plan. Work on building out and training your teams on protocols for specific triggers. When something arises, they know the protocol to take advantage of the opportunity or mitigate the challenge effectively.
    • Performance measurement: Measure the impact of your team’s protocol-based actions with the help of pre-determined KPIs and then hone your approach to competitive intelligence based on the results.

    Competitive Intelligence at Your Fingertips

    Shifting from a latent standard reporting and price monitoring mindset to a growth mindset centered around competitive intelligence doesn’t need to be a struggle. The key is to lean on the tools that will accelerate your company’s journey to finding the right insights and putting action behind them quickly.

    Start by conducting a competitive intelligence maturity assessment to evaluate your organization’s current state and identify areas for improvement. Then, create a capability development roadmap for your company to track efficacy and progress toward your goal.

    Want to talk to the experts in competitive pricing intelligence? Click here to speak with the DataWeave team!

  • From Raw Data to Retail Pricing Intelligence: Transforming Competitive Data into Strategic Assets

    From Raw Data to Retail Pricing Intelligence: Transforming Competitive Data into Strategic Assets

    Poor retail data is the bane of Chief Commercial Officers and VPs of Pricing. If you don’t have the correct inputs or enough of them in real time, you can’t make data-driven business decisions regarding pricing.

    Retail data isn’t limited to your product assortment. Price data from your competition is as important as understanding your brand hierarchies and value size progressions. However, the vast and expanding nature of e-commerce means new competitors are around every corner, creating more raw data for your teams.

    Think of competitive price data like crude oil. Crude or unrefined oil is an extremely valuable and sought-after commodity. But in its raw form, crude oil is relatively useless. Simply having it doesn’t benefit the owner. It must be transformed into refined oil before it can be used as fuel. This is the same for competitive data that hasn’t been transformed. Your competitive data needs to be refined into an accurate, consistent, and actionable form to power strategic insights.

    So, how can retailers transform vast amounts of competitive pricing data into actionable business intelligence? Read this article to find out.

    Poor Data Refinement vs. Good Refinement

    Let’s consider a new product launch as an example of poor price data refinement vs. good data refinement, which affects most sellers across industries.

    Retailer A

    Imagine you’re launching a limited-edition sneaker. Sneakerheads online have highly anticipated the launch, and you know your competitors are watching you closely as go-live looms.

    Now, imagine that your pricing data is outdated and unrefined when you go to price your new sneakers. You base your pricing assumptions on last year’s historical data and don’t have a way to account for real-time competitor movements. You price your new product the same as last year’s limited-edition sneaker.

    Your competitor, having learned from last year, anticipates your new product’s price and has a sale lined up to go live mid-launch that undercuts you. Your team discovers this a week later and reacts with a markdown on the new product, fearing demand will lessen without action.

    Customers who have already bought the much-anticipated sneakers feel like they’ve been overcharged now, and backlash on social media is swift. New buyers see the price reduction as proof that your sneakers aren’t popular, and demand decreases. This hurts your brand’s reputation, and the product launch is not deemed a success.

    Retailer B

    Imagine your company had refined competitive data to work with before launch. Your team can see trends in competitors’ promotional activity and can see that a line of sneakers at a major competitor is overdue for sale based on trends. Your team can anticipate that the competitor is planning to lower prices during your launch week in the hope of undercutting you.

    Instead of needing to react retroactively with a markdown, your team comes up with clever ways to bundle accessories with a ‘deal’ during launch week to create value beyond just the price. During launch week, your competitor’s sneakers look like the lesser option while your new sneakers look like the premium choice while still being a good value. Customer loyalty improves, and buzz on social media is positive.

    Here, we can see that refined data drives better decision-making and competitive advantage. It is the missing link in retail price intelligence and can set you ahead of the competition. However, turning raw competitive data into strategic insights is easier said than done. To achieve intelligence from truly refined competitive pricing data, pricing teams need to rely on technology.

    The Hidden Cost of Unrefined Data

    Technology is advancing rapidly, and more sellers are leveraging competitive pricing intelligence tools to make strategic pricing decisions. Retailers that continue to rely on old, manual pricing methods will soon be left behind.

    You might consider your competitive data process to be quite extensive. Perhaps you are successfully gathering vast data about your competitors. But simply having the raw data is just as ineffective as having access to crude oil and making no plan to refine it. Collection alone isn’t enough—you need to transform it into a usable state.

    Attempting to harmonize data using spreadsheets will waste time and give you only limited insights, which are often out of date by the time they’re discovered. Trying to crunch inflexible data will set your team up for failure and impact business decision quality.

    The Two Pillars of Data Refinement

    There are two foundational pillars in data refinement. Neither can truly be achieved manually, even with great effort.

    Competitive Matches

    There are always new sellers and new products being launched in the market. Competitive matching is the process of finding all these equivalent products across the web and tying them together with your products. It goes beyond matching UPCs to link identical products together. Instead, it involves matching products with similar features and characteristics, just as a shopper might decide to compare two similar products on the shelf. For instance private label brands are compared to legacy brands when consumers shop to discern value.

    A retailer using refined competitive matches can quickly and confidently adjust its prices during a promotional event, know where to increase prices in response to demand and availability and stay attractive to sensitive shoppers without undercutting margins.

    Internal Portfolio Matches

    Product matching is a combination of algorithmic and manual techniques that work to recognize and link identical products. This can even be done internally across your product portfolio. Retailers selling thousands or even hundreds of thousands of products know the challenge of consistently pricing items with varying levels of similarity or uniformity. If you must sell a 12oz bottle of shampoo for $3.00 based on its costs, then a 16oz bottle of the same product should not sell for $2.75, even if that aligns with the competition.

    Establishing a process for internal portfolio matching helps to eliminate inefficiencies caused by duplicated or misaligned product data. Instead of discovering discrepancies and having to fire-fight them one by one, an internal portfolio matching feature can help teams preempt this issue.

    Leveraging AI for Enhanced Match Rates

    As product SKUs proliferate and new sellers seem to enter the market at lightning speed, scaling is essential without hiring dozens more pricing experts. That’s where AI comes in. Not only can AI do the job of dozens of experts, but it also does it in a fraction of the time and at an improved match accuracy rate.

    DataWeave’s AI-powered pricing intelligence and price monitoring offerings help retailers uncover gaps and opportunities to stay competitive in the dynamic world of e-commerce. It can gather competitive data from across the market and accurately match competitor products with internal catalogs. It can also internally match your product portfolio, identifying product family trees and setting tolerances to avoid pricing mismatches. The AI synthesizes all this data and links products into a usable format. Teams can easily access reports and dashboards to get their questions answered without manually attempting to refine the data first.

    How AI helps convert raw data to pricing and assortment intelligence

    From Refinement to Business Value

    Refined competitive price data is your team’s foundation to execute these essential pricing functions: price management, price reporting, and competitive intelligence.

    Price Management

    Refined data is the core of accurate price management and product portfolio optimization. Imagine you’re an electronics seller offering a range of laptops and personal computing devices marketed toward college students. Without refined competitive data, you might fail to account for pricing differences based on regionality for similar products. Demand might be greater in one city than in another. By monitoring your competition, you can match your forecasted demand assumptions with competitor pricing trends to better manage your prices and even offer a greater assortment where there is more demand.

    Price Reporting

    Leadership is always looking for new and better market positioning opportunities. This often revolves around how products are priced, whether you’re making a profit, and where. To effectively communicate across departments and with leadership, pricing teams need a convenient way to report on pricing and make changes or updates as new ad hoc requests come through. Spending hours constructing a report on static data will feel like a waste when the C-Suite asks for it again next week but with current metrics. Refined, constantly updated price data nips this problem in the bud.

    Competitive Intelligence

    Unrefined data can’t be used to discover competitive intelligence accurately. You might miss a new player, fail to account for a new competitive product line, or be unable to extract insights quickly enough to be helpful. This can lead to missed opportunities and misinformed strategies. As a seller, your competitive intelligence should be able to fuel predictive scenario modeling. For example, you should be able to anticipate competitor price changes based on seasonal trends. Your outputs will be wrong without the correct inputs.

    Implementation Framework

    As a pricing leader, you can take these steps to begin evaluating your current process and improve your strategy.

    • Assess your current data quality: Determine whether your team is aggregating data across the entire competitive landscape. Ask yourself if all attributes, features, regionality, and other metrics are captured in a single usable format for your analysts to leverage.
    • Setting refinement objectives: If your competitive data isn’t refined, what are your objectives? Do you want to be able to match similar products or product families within your product portfolio?
    • Measuring success through KPIs: Establish a set of KPIs to keep you on track. Measure things like match rate accuracy, how quickly you can react to price changes, assortment overlaps, and price parity.
    • Building cross-functional alignment: Create dashboards and establish methods to build ad hoc reports for external departments. Start the conversation with data to build trust across teams and improve the business.

    What’s Next?

    The time is now to start evaluating your current data refinement process to improve your ability to capture and leverage competitive intelligence. Work with a specialized partner like DataWeave to refine your competitive pricing data using AI and dedicated human-in-the-loop support.

    Want help getting started refining your data fast? Talk to us to get a demo today!

  • Black Friday vs Boxing Day: Which Sale Event Offered Better Deals?

    Black Friday vs Boxing Day: Which Sale Event Offered Better Deals?

    When it comes to shopping events, Black Friday stands out as one of the most anticipated dates for scoring deals. Typically occurring the day after Thanksgiving, the weekend kicks off the holiday shopping season with a frenzy of discounts. But Boxing Day, celebrated on December 26, is also well-known for its post-Christmas clearance sales.

    This Black Friday, US eCommerce sales increased by a hefty 14.6% in 2024, according to Mastercard SpendingPulse. While Black Friday leads in overall revenue generation for retailers, Boxing Day presents unique opportunities for clearing post-holiday inventory.

    For a consumer, which sale event is likely to offer the most attractive deals?

    At DataWeave, we analyzed discounts across retailers and categories to uncover the answer.

    Our Methodology

    For this analysis, we tracked pricing data across major retailers for Black Friday and Boxing Day. To provide a comprehensive analysis of Black Friday pricing strategies, we explored a matched products dataset, comparing identical 14,000+ SKUs across retailers within key categories.

    • Categories included: Consumer Electronics, Home & Furniture, Apparel, Health & Beauty, Grocery
    • Retailers included: Amazon, Target, Walmart, Sephora, Ulta Beauty, Overstock, Home Depot, Best Buy, Saks Fifth Ave, Nordstrom, Macy’s, Bloomingdale’s, Neiman Marcus
    • Timeline: November 26 (Black Friday), December 26 (Boxing Day)

    Average Discounts: Black Friday vs Boxing Day

    Our analysis reveals that Black Friday generally offered steeper discounts across most categories, although Boxing Day wasn’t far behind. Here’s a breakdown:

    Boxing Day Vs. Black Friday - Discounts Across Categories

    While Black Friday led in most categories, Apparel saw a slight edge on Boxing Day, with discounts averaging 40.22% compared to 37.67% on Black Friday. Electronics, Beauty, and Home, however, remained more lucrative during Black Friday.

    Top 5 Products Higher Discounts on Black Friday

    Diving deeper into specific products, here are our top 5 picks offering better discounts during Black Friday.

    Top 5 Products With Higher Discounts on Black Friday
    • Appliances like an Immersion blender set offering a discount of 88.29%, significantly higher than its Boxing Day offer of 86.62%. 
    • High-end electronics like the Microsoft Surface Pro 4 also saw substantial markdowns at 84.60%. 
    • In beauty and fashion, both La Roche Posay’s retinol serum and Vera Bradley’s satchel offered discounts above 80%. 
    • Even everyday essentials like paper towels enjoyed generous discounts, with markdowns reaching 82.35% during Black Friday compared to 76.47% on Boxing Day.

    Top 5 Products With Higher Discounts on Boxing Day

    Boxing Day revealed some remarkable deals across diverse categories, with certain products offering significantly better value than their Black Friday counterparts.

    Top 5 Products With Higher Discounts on Boxing Day
    • The JBL Go 2 portable speaker emerged as the standout, with an extraordinary 82% Boxing Day discount compared to just 20% on Black Friday—a dramatic 62% difference.
    • Home furnishings showed strong Boxing Day performance, with the Costway accent armchair set reaching 80.30% off.

    In Conclusion

    Black Friday reigns supreme in driving early holiday sales, offering deeper discounts and drawing larger crowds. However, Boxing Day remains critical for retailers to offload surplus inventory and attract post-holiday shoppers.

    By combining insights from both events, retailers can refine their strategies to maximize revenue and enhance customer satisfaction. For shoppers, the decision comes down to timing—shop early for better deals or wait to capitalize on clearance markdowns. The products and categories with more attractive offers tend to vary between these two sale events. Hence, as a shopper, it’s a good idea to keep track of prices all through the holiday season to take advantage of the best deals.

    Check out our comprehensive coverage of Black Friday 2024 deals and discounts across categories.

    For a deeper dive into the world of competitive pricing intelligence and to explore how our solutions can benefit apparel retailers and brands, reach out to us today!

  • Black Friday 2024 in Canada: Insights on Consumer Electronics and Home & Furniture

    Black Friday 2024 in Canada: Insights on Consumer Electronics and Home & Furniture

    Black Friday and Cyber Monday are major retail events in Canada, with 43% and 29% of the population making purchases during these sales respectively, according to a YouGov report. Consumer electronics continue to lead the Canadian retail market during these events, with 55% of surveyed shoppers choosing to buy tech products on Black Friday. Household appliances come in second, with 25% of shoppers opting for these items, while 18% prefer to shop for furniture deals.

    These statistics highlight the importance of delivering value during the Thanksgiving sales week. Retailers must cater to shoppers’ expectations with competitive pricing, attractive deals, and a seamless shopping experience. So, what unique offerings did Canadian retailers present to shoppers this season?

    To understand the pricing and discount dynamics during BFCM 2024 in Canada, DataWeave analyzed discounts across leading consumer electronics and home & furniture retailers. Using our AI-powered pricing intelligence platform, we analyzed 37,108 SKUs across these categories for major retailers including Amazon, Walmart, Best Buy, Home Depot, and Canadian Tire from the 10th to 29th November. We focused on the top 500 products ranked for each search keyword on each retail site, using targeted terms aligned with categories like “sofa” and “wearables”.

    In the following insights, the Absolute Discount represents the reduction of the selling price compared to the Manufacturer’s Suggested Retail Price (MSRP). The Additional Discount reflects how much lower the selling price is during Black Friday compared to its price a week before the sale. This metric reveals the actual or effective value of the sale event, beyond the standard discounts typically offered.

    Also check out our detailed analysis of discounts and pricing for the consumer electronics, apparel, health & beauty, grocery, and home & furniture categories across major US retailers this Black Friday.

    Consumer Electronics

    Retailers in Focus

    Consumer electronics saw robust participation from major retailers, with Amazon, Best Buy, and Walmart leading the charge. Here’s how they stacked up in terms of discounts:

    Pricing Trends Across Leading Consumer Electronics Retailers in Canada - Black Friday Cyber Monday 2024
    • Best Buy emerged as the frontrunner in absolute discounts at 31.2%, while Amazon impressed with a notable 19.7% additional discount, indicating a strong Black Friday-specific markdown strategy.
    • Walmart offered steady competition, particularly in audio and video products, which reached an average absolute discount of 37.2%. However, it’s average additional discount was only 3.1%, indicating muted BFCM-specific price reductions in this category.

    Subcategory Insights

    Diving deeper into consumer electronics subcategories, we observed varied discounting strategies.

    Pricing Trends Across Leading Canadian Consumer Electronics Retailer Subcategories - Black Friday Cyber Monday 2024
    • Audio & Video stood out as the most discounted subcategory, with Walmart leading at 37.2%.
    • In Wearables, Walmart again took the top spot with 36.4%, while Amazon offered higher additional discounts (22.4%).
    • Discounting for computers and gaming was less aggressive, highlighting strategic pricing to maintain profitability in these high-demand segments.

    Brand Performance

    Brand-level data highlighted how key players used Black Friday to drive visibility and sales.

    Pricing Trends Across Leading Canadian Consumer Electronics Brands - Black Friday Cyber Monday 2024
    • Dell led in average absolute discounts (36.7%) followed by Samsung at 36.68%
    • Audio brand JBL offered significant absolute discounts at 35.9%.
    • Apple and Lenovo offered comparatively fewer discounts but maintained strong visibility, as seen in their increase in the Share of Search during the sale period.
    Visibility Trends Across Leading Canadian Consumer Electronics Brands - Share of Search - Black Friday Cyber Monday 2024
    • MSI (laptop brand) and Bose (audio and earphone brand) experienced significant increases in visibility, with Share of Search increases of 5% and 3.6%, respectively.
    • Notably, HP faced a decline (-3.2%) in the Share of Search, suggesting missed opportunities to align promotions with consumer interest.

    Home & Furniture

    Retailers in Focus

    The home and furniture category saw competitive discounting, with Walmart, Canadian Tire, and Home Depot vying for consumer attention.

    Black Friday - Cyber Monday Trends Across Leading Canadian Home & Furniture Retailers
    • Walmart took the lead with the highest absolute discounts at 36.8%. The retailer’s additional discounts were more conservative at 3.6%. This is similar to their discount levels in Consumer Electronics.
    • Canadian Tire offered stiff competition, providing 31.6% absolute discounts and 25% additional discounts.
    • Home Depot matched its absolute and additional discounts, maintaining consistency at 24.1%.

    Subcategory Insights

    Home and furniture subcategories revealed targeted discount strategies.

    Black Friday - Cyber Monday Trends Across Leading Home & Furniture Subcategories - Canada
    • Bedding emerged as the most discounted subcategory at Walmart (50.6%) and Canadian Tire (35.3%).
    • Kitchenware saw competitive pricing, with Walmart leading at 42.9%, followed by Canadian Tire at 33.9%.
    • Canadian Tire focused on lighting, offering the highest absolute discounts in this subcategory (38.2%)

    Brand Performance

    Brand-level analysis revealed stark contrasts in discounting approaches.

    Black Friday - Cyber Monday Trends Across Leading Home & Furniture Brands - Canada
    • Furniture brands Homcom led in absolute discounts (36.4%), while South Shore stood out with the highest additional discounts (30.2%).
    • Value-oriented brands like furnishings brand Mainstays and mattress and bedding brand Zinus offered more modest discounts, focusing on consistent affordability.
    Black Friday - Cyber Monday Trends Across Leading Canadian Home & Furniture Brands - Share of Search and Visibility
    • Zinus (mattresses and sofa brand) experienced a significant 7.9% increase in the Share of Search, driven by aggressive promotions.
    • Home furnishings brands like Costway and Safavieh faced declines, reflecting the importance of aligning promotional strategies with consumer expectations.

    Insights for Retailers and Brands

    This Black Friday, Canadian retailers effectively balanced deep discounts with category-specific strategies to maximize sales. However, the fluctuating Share of Search highlights the critical need for brands to align promotions with consumer interest.

    For brands and retailers looking to stay ahead of the competition, DataWeave’s pricing intelligence platform offers unparalleled insights to refine discounting strategies and boost visibility. Contact us to learn how we can help you stay competitive in this dynamic retail landscape.

  • A Deep Dive into Consumer Electronics Pricing During Black Friday 2024

    A Deep Dive into Consumer Electronics Pricing During Black Friday 2024

    Americans spent a whopping total of $10.8 billion online this Black Friday. As Thanksgiving Week 2024 wraps up, one thing is clear: the consumer electronics category continues to dominate seasonal shopping trends. Fueled by a blend of enticing deals and high consumer demand, the sector delivered competitive discounts across subcategories like wearables, gaming, and mobile devices.

    At DataWeave, we analyzed discounting trends in the U.S. consumer electronics market during this year’s sales events. Using our AI-powered pricing intelligence platform, we tracked pricing and promotions for 22383 SKUs across Amazon, Walmart, Target, and Best Buy from November 10 to 29. We focused on the top 500 products ranked for each search keyword on each retail site, using targeted terms aligned with categories like “gaming” and “apple.” Here’s what we uncovered.

    Also check out our insights on discounts and pricing for health & beauty, grocery, apparel, and home & furniture categories this Black Friday.

    Retailers Battle It Out with Competitive Discounts

    Discount trends reveal clear leaders in terms of markdowns:

    • Walmart offered the deepest average absolute discounts at 36.9%.
    • Amazon and Target followed closely, highlighting a diverse range of deals designed to appeal to budget-conscious shoppers
    • Best Buy, the specialist consumer electronics retailer, offers the lowest discounts this Black Friday at 26.2%.
    Pricing Trends Across Leading Consumer Electronics Retailers - Black Friday Cyber Monday 2024

    Note: The Absolute Discount represents the reduction of the selling price compared to the Manufacturer’s Suggested Retail Price (MSRP). The Additional Discount reflects how much lower the selling price is during Black Friday compared to its price a week before the sale. This metric reveals the actual or effective value of the sale event, beyond the standard discounts typically offered.

    Subcategory Spotlight: Where the Best Deals Happened

    From audio & video to wearables, each retailer carved out competitive advantages across subcategories.

    Pricing Trends Across Leading Consumer Electronics Retailer Subcategories - Black Friday Cyber Monday 2024
    • Both Amazon and Walmart offered high discounts in audio & video and wearables, but Walmart led, with discounts up to 46.3%.
    • Best Buy, meanwhile, offered high absolute discounts on Mobile Devices(34%) and Storage (31%), followed by high discounts on wearables and Audio & Video.
    • Amazon maintained a balanced approach, excelling in audio & video and mobile devices.

    Brand-Level Insights: HP and Samsung Dominate

    The biggest winners this year were brands that strategically leveraged Black Friday discounts to boost visibility and sales:

    • HP took the top spot with average discounts of 36.9%, followed by Samsung at 31.4%.
    • Despite its premium reputation, Apple offered an average discount of 29.3%, signaling a shift in strategy to attract deal hunters.
    Pricing Trends Across Leading Consumer Electronics Brands - Black Friday Cyber Monday 2024

    Share of Search: Shifting Consumer Attention

    Search trends reveal how discounts shaped brand visibility:

    • Microsoft saw the largest spike in share of search (+8.6%), thanks to aggressive pricing on gaming consoles and accessories.
    • Marshall and Amazon also saw significant gains in visibility.
    • Surprisingly, HP experienced a sharp decline (-9.8%), indicating missed opportunities despite steep discounts.
    Visibility Trends Across Leading Consumer Electronics Brands - Share of Search - Black Friday Cyber Monday 2024

    Consumer Electronics: Lowest-Priced Retailer Analysis

    In the previous analysis, we focused on the top 500 products within each subcategory for each retailer, showcasing the discount strategies for their highlighted or featured items. However, to identify which retailer offered the lowest or highest prices for the same set of products, it’s necessary to match items across retailers. For this, we analyzed a separate dataset of 340 matched products across retailers to compare their pricing during Black Friday. This approach provides a clearer picture of price leadership and competitiveness across categories.

    Here are the key takeaways from this analysis.

    Category-Level Highlights

    Retailers Offering Most Value - Lowest Priced - Consumer Electronics - Black Friday 2024
    • Amazon leads with the highest average discount (41.35%), offering the most value to consumers. It is followed by Target (39.37%) and Walmart (36.15%).
    • Best Buy, the specialist consumer electronics retailer, ranks last with an average discount of 31.53%, emphasizing a less aggressive pricing strategy compared to competitors.

    Subcategory Highlights

    Lowest Priced Retailer Across Major Subcategories- Consumer Electronics - Black Friday 2024
    • Wearables: Amazon offers the steepest discounts (55.40%), followed by Best Buy (50.60%) and Walmart (45.75%).
    • Mobile Devices: Amazon also leads (37.94%), with Walmart (29.30%) in second place and Target trailing at 19.48%.
    • Gaming: Target takes the lead (37.47%), with Amazon and Best Buy offering similar discounts around 30%.
    • Computers: Target again emerges as the leader (39.18%), narrowly surpassing Walmart (36.13%).

    Brand Highlights

    Lowest Priced Retailer Across Leading Brands- Consumer Electronics - Black Friday 2024
    • Apple: Amazon dominates with 53.06%, closely followed by Walmart (50.55%), while Target and Best Buy hover around 43%.
    • Nintendo: Target edges out Amazon (37.62% vs. 36.54%), with Best Buy (33.21%) and Walmart (25.92%) trailing.
    • Beats by Dr. Dre: Amazon leads (46.07%), with Target (37.14%) as the runner-up. Best Buy and Walmart offer comparatively modest discounts around 25%.
    • Bose: Walmart emerges as the value leader (23.90%), surpassing Target (16.09%) and Best Buy (15.29%).
    • Cricut: Amazon sets a high benchmark (54.13%), with Target far behind (36.43%) for this viral portable printer brand. Best Buy (12.32%) and Walmart (10.79%) offer significantly lower discounts.

    What This Means for Retailers and Brands

    Retailers looking to stay competitive should focus on strategic discounting and enhanced brand visibility. Brands must align with consumer expectations by:

    • Leveraging platforms like DataWeave to analyze discount trends.
    • Optimizing pricing and assortment strategies for seasonal demand.

    For more insights into consumer electronics pricing, contact DataWeave to discover how our AI-powered solutions can drive success in today’s fast-paced market. Stay tuned for more category-specific analyses in the coming weeks!

  • The Apparel Market: A Closer Look at Black Friday Discounts

    The Apparel Market: A Closer Look at Black Friday Discounts

    As the holiday shopping season kicked off, savvy shoppers embraced the spirit of the season, drawn by enticing deals. The apparel category is forecasted as the second highest earning category (Source: Statista), expected to generate revenues up to $43.9 billion, closely following consumer electronics. To understand the pricing strategies of top retailers amidst the sale season, DataWeave analyzed the pricing trends for the Apparel category this Black Friday.

    We leveraged our AI-powered data platform to analyze the discounting across key retailers. Our analysis focused on the Apparel category, examining how Amazon, Walmart, Target, Saks Fifth Avenue, Nordstrom, Bloomingdales, Neiman Marcus and Macy’s differentiated themselves through their discounts.

    Also check out our in-depth insights on discounts and pricing for health & beauty, grocery, and home & furniture categories this Black Friday.

    Our Methodology

    For this analysis, we tracked the average discounts of apparel products among leading US retailers during the Thanksgiving weekend sale, including Black Friday. Our sample was chosen to encompass the top 500 ranked products in each product subcategory across during the sale.

    • Sample size: 37,666 SKUs
    • Retailers tracked: Amazon, Walmart, Target, Nordstrom, Macy’s, Bloomingdale’s, Saks Fifth Avenue, Neiman Marcus
    • Subcategories reported on: Footwear, Kid’s Clothing, Men’s Clothing, Women’s Clothing, Activewear, Plus Size Clothing, Accessories
    • Timeline of analysis: 10 to 29 November 2024

    We focused on the top 500 products ranked for each search keyword on each retail site, using targeted terms aligned with categories like “athleisure” and “plus size clothing”. Our methodology distinguished between standard discounts and Black Friday-specific ‘additional discounts’ or price reductions during the sale compared to the week before, to reveal true consumer value.

    Key Findings

    This year’s fashion discounts were unprecedented. Let’s take a look.

    Retailer Level Insights

    Discounts Across Leading Apparel Retailers - Black Friday 2024
    • Nordstrom leads with the highest average absolute discount at 59%, followed by Saks Fifth Avenue at 35.5% and Bloomingdale’s at 41.5%. Macy’s shows the lowest average discount at 24.1%, while Amazon has an average discount of 30.4%.
    • Amazon ranks lower in both average absolute and additional discounts compared to competitors, indicating a more conservative discounting strategy.

    Subcategory Analysis

    Discounts Across Leading Apparel Retailers - Subcategories - Black Friday 2024
    • Kids’ Clothing saw the deep discounts (up to 55% at Nordstrom), reflecting growing pressure on family budgets and heightened competition to attract budget-conscious parents.
    • Plus-Size Clothing emerged as a major focus, with Nordstrom leading at 53.22% average absolute discounts, signaling that retailers are increasingly prioritizing size inclusivity and appealing to a broader consumer base.
    • Footwear experienced robust discounting, particularly at Bloomingdale’s with 37% average absolute discounts, showing a competitive approach to attract customers looking for seasonal footwear deals.
    • Activewear displayed substantial discounts, with Walmart offering up to 41% on average, aligning with the trend of consumers looking for practical and comfortable attire during the winter season.

    Brand Level Insights

    Apparel brands, meanwhile, also offer telling insights.

    Discounts Across Leading Apparel Brands - Black Friday 2024
    • Top Discounting Brands: Aqua leads with an average absolute discount of 44.58%, followed by Boss at 42.33% and Burberry at 37.84%.
    • Lowest Discounts: Athletic Works shows the lowest average absolute discount at 31.23%, with a minimal additional discount of 3.73%.
    • Competitive Advantage: Brands like Ralph Lauren and Boss show strong discounts, indicating aggressive marketing during the sale.

    Share of Search Insights

    Visibility - Share of Search Trend Across Leading Apparel Retailers - Black Friday 2024
    • Top Gainers: Adidas and Nike each saw an increase of 1.20% in their share of search during Black Friday/Cyber Monday, highlighting their strong brand presence and consumer interest.
    • Top Losers: Reebok experienced a sharp decline, losing 2.60% in its share of search, while Levi’s also dropped by 0.60%.
    • Search Trends: The data suggests a strong consumer preference for activewear brands like Nike and Adidas and a decline in interest for traditional apparel brands like Levi’s.

    Who Offered Most Value This Black Friday

    In the previous analysis, we focused on the top 500 products within each subcategory for each retailer, showcasing the discount strategies for their highlighted or featured items. However, to identify which retailer offered the lowest or highest prices for the same set of products, it’s necessary to match items across retailers. For this, we analyzed a separate dataset of 418 matched products across Apparel specific retailers to compare their pricing during Black Friday. This approach provides a clearer picture of price leadership and competitiveness across categories.

    Here are the key takeaways from this analysis.

    Category-Level Analysis

    At the overall category level, Macy’s emerged as the lowest-priced retailer, offering the highest average discount of 28.72%, followed closely by Nordstrom (26.06%). The steep decline in average discounts from Saks Fifth Avenue (14.42%) and Neiman Marcus (7.93%) highlights a clear gap in discounting strategies.

    • Macy’s and Nordstrom are aggressively competitive on pricing in the overall apparel category, likely capturing consumer attention with substantial discounts.
    • Saks Fifth Avenue and Neiman Marcus may rely more on brand perception and luxury positioning rather than heavy discounting.
    Retailers Offering Most Value - Lowest Priced - Apparel - Black Friday 2024

    Subcategory-Level Analysis

    Lowest Priced Retailer Across Major Subcategories- Apparel - Black Friday 2024
    • Neiman Marcus tops the ranking with an impressive 60.85% average discount, outperforming Macy’s (52.86%) and Nordstrom (43.04%) for Men’s Clothing. We see a similar trend with Neiman Marcus offering more value across Women’s Clothing as well, compared to other retailers.
    • The competition in footwear was intense, with Neiman Marcus narrowly securing the top spot at 31.03%, slightly ahead of Saks Fifth Avenue (30.28%) and Macy’s (30.07%).
    • Saks Fifth Avenue led by a significant margin in the Activewear category, offering 39.89% average discounts, indicating a strong push in this growing segment.
    • Macy’s followed at 32.16% in Activewear, while Neiman Marcus and Nordstrom had comparatively lower discounts of 26.40% and 19.52%, respectively.

    Brand-Level Analysis

    Lowest Priced Retailer Across Leading Brands- Apparel - Black Friday 2024
    • Kate Spade New York: Neiman Marcus leads with the highest discount of 55.23%, reflecting strong price leadership in premium fashion, closely followed by Saks Fifth Avenue at 51.66%.
    • Coach: Neiman Marcus dominates with a significant 75.85% discount, showcasing an aggressive promotional strategy for this luxury brand.
    • Spanx: While Neiman Marcus leads with 28.22%, discounts across other retailers like Saks Fifth Avenue, Macy’s, and Nordstrom are clustered within a competitive range of 17–19%.
    • Montblanc: Macy’s takes the lead with 20.32%, signaling its competitiveness even in high-end accessories, with Saks Fifth Avenue and Nordstrom closely behind.
    • Ugg: Saks Fifth Avenue leads with 31.42%, focusing on maintaining price leadership for this popular brand, while other retailers remain competitive with discounts around 25–30%.

    What’s Next

    To win over price-conscious shoppers, retailers need to stay competitive and consistently offer the lowest prices.

    For a deeper dive into the world of competitive pricing intelligence and to explore how our solutions can benefit apparel retailers and brands, reach out to us today!

    Stay tuned to our blog for more insights on different categories this Black Friday and Cyber Monday.


  • Breaking Down Grocery Discounts This Black Friday

    Breaking Down Grocery Discounts This Black Friday

    As shoppers flocked online and to stores during Black Friday and Cyber Monday, the grocery category stood out as a key battleground for retailers. With inflation affecting consumer spending, discounted groceries have become a critical driver for both shopper savings and retailer competitiveness.

    In fact, according to the NRF, one of the top shopping destinations during Thanksgiving weekend were department stores (42%), online (42%),and grocery stores and supermarkets (40%). Clearly, consumers are looking to stock up in bulk on their groceries to maximize their savings.

    To understand the pricing dynamics in the grocery category, DataWeave analyzed grocery discounts across leading grocers, uncovering significant trends that shaped consumer choices during this holiday shopping period.

    Our research encompassed retailers like Amazon, Target, and Walmart, examining their discounting strategies across subcategories, alongside trends in share of search for leading CPG companies.

    Also check out our detailed analysis of discounts and pricing for health & beauty and home & furniture this Black Friday.

    Key Grocery Market Stats for Black Friday-Cyber Monday 2024

    • Retailer Discounts: Walmart offered the highest average absolute discount at 27.6%, followed by Amazon at 20.4% and Target at 14.0%
    • Subcategory Insights: Beverages Category at Walmart saw the deepest discounts, with an average of 33.4%
    • Top Gaining Brands: Cesar experienced the largest increase in share of search during the sales period (+3.89%)

    This blog will dive deeper into grocery discount trends and brand-level strategies, offering insights for retailers looking to stay competitive in the grocery sector.

    Our Methodology

    For this analysis, we tracked the average discounts offered by major U.S. grocery retailers during the Thanksgiving weekend, including Black Friday and Cyber Monday. We focused on key subcategories within the grocery segment, capturing trends in discounting strategies.

    • Sample Size: 18,324 SKUs
    • Retailers Tracked: Amazon, Walmart, Target
    • Subcategories Reported On: Fresh Produce, Dairy & Eggs, Pantry Essentials, Snacks, Frozen Foods, Meat & Seafood, Household Essentials, Beverages, Pet Products, Baby Products
    • Timeline of Analysis: November 10 to 29, 2024

    In the following insights, the Absolute Discount represents the reduction of the selling price compared to the Manufacturer’s Suggested Retail Price (MSRP). The Additional Discount reflects how much lower the selling price is during Black Friday compared to its price a week before the sale. This metric reveals the actual or effective value of the sale event, beyond the standard discounts typically offered.

    Key Findings

    Retailer-Level Insights

    Average Discounts Across Leading Grocery Retailers - Black Friday Cyber Monday 2024
    • Walmart emerged as the leader in grocery discounting, offering the highest average absolute (27.6%) and additional (18%) discounts.
    • Amazon adopted a mid-tier discounting strategy, with average absolute discounts of 20.4%.
    • Target, while more conservative, maintained competitiveness in select subcategories like baby products.

    Subcategory Insights

    Average Discounts Across Leading Grocery Retailer Subcategories - Black Friday Cyber Monday 2024
    • Pantry Essentials saw Walmart leading with an average discount of 31.2%, appealing to budget-conscious consumers stocking up for the holidays.
    • Fresh Produce showed consistent discounting across retailers, with Amazon slightly ahead at 27%.
    • Beverages stood out for significant discounting at Walmart, with an impressive 33.4% average discount.

    Brand-Level Insights

    Average Discounts Across Leading Grocery Brands - Black Friday Cyber Monday 2024
    • Lay’s led in absolute discounts (37.52%) and additional discounts (26.23%) showcasing aggressive pricing in the snacks subcategory.
    • Good & Gather maintained its competitive edge with strong discounts, appealing to price-conscious consumers seeking value.
    • Brands like Blue Buffalo (pet food brand) offered significant absolute discounts, but with a low additional discount of just 2%, the overall impact of the sale event on effective value was limited.

    Share of Search Insights

    Gains and Losses in Share of Search Across Leading Grocery Brands - Black Friday Cyber Monday 2024
    • Cesar (dog food brand), Tide (laundry staple) and Doritos saw significant gains in share of search, reflecting successful promotional strategies.
    • Brands like Pampers (baby diapers brand), Healthy Choice, (frozen foods brand) and Pedigree (pet food brand) experienced a decline, indicating less effective engagement during the sale period.

    Who offered the lowest prices?

    In the previous analysis, we focused on the top 500 products within each subcategory for each retailer, showcasing the discount strategies for their highlighted or featured items. However, to identify which retailer offered the lowest or highest prices for the same set of products, it’s necessary to match items across retailers. For this, we analyzed a separate dataset of 1433 matched products across retailers to compare their pricing during Black Friday. This approach provides a clearer picture of price leadership and competitiveness across categories.

    Here are the key takeaways from this analysis.

    Category-Level Analysis

    Retailers Offering Most Value - Lowest Priced - Grocery - Black Friday 2024
    • Walmart is the lowest priced retailer overall for the grocery category, with an impressive average discount of 44.60%. This significant discount advantage makes Walmart a leading option for value-seeking consumers.
    • Target follows with strong discounts of 36.73%, indicating solid pricing in comparison but less aggressive than Walmart.
    • Interestingly, Amazon was the most expensive in Grocery, with an average discount of only 6.3%.

    Subcategory-Level Analysis

    Lowest Priced Retailer Across Major Subcategories- Grocery - Black Friday 2024
    • Walmart leads in various subcategories such as Pet Products (21.12%), Dairy & Eggs (13.79%), Household Essentials (13.05%), Frozen Foods (15.07%), and Meat & Seafood (17.60%), showcasing its extensive value across the board.
    • Target excels in Beverages (14.58%) and Baby Products (15.00%) with competitive discounts, standing out in these specific subcategories.
    • Kroger provides notable value in Pantry Essentials (20.04%) and Fresh Produce (15.85%), although its overall average discount is lower than Walmart’s.
    • Amazon consistently ranks lower in terms of average discounts across most subcategories, highlighting it as less competitive for consumers seeking the lowest prices.

    Brand-Level Analysis

    Lowest Priced Retailer Across Leading Brands- Grocery - Black Friday 2024
    • Walmart also holds the top position for several key brands like Cheetos (14.92%) and Dannon (8.81%), making it the best option for consumers looking for budget-friendly choices across popular brands.
    • Target takes the lead for brands like Betty Crocker (25.20%) and Chobani (11.37%), showing that it can offer value for specific products.
    • Kroger maintains strong discounts for brands such as Delmonte (9.19%), but it does not outpace Walmart in the overall grocery brand comparison.
    • Amazon generally lags behind in average discounts for most brands, with Dannon (1.12%) and Chobani (2.43%) showing significantly lower discounts.

    Walmart is the lowest priced retailer in the grocery category and provides substantial value across a wide range of subcategories and popular brands. This ties in with Walmart’s ELDP pricing strategy. The retailer leads in overall average discounts and maintains its position as the go-to for price-conscious consumers. Target offers strong value in certain subcategories and brands but falls short of Walmart’s broad value based pricing advantages.

    What’s Next

    For grocery retailers, competitive pricing and targeted promotions are critical to driving sales during key shopping events. As consumers continue to prioritize value, staying ahead in the discounting game can significantly impact market share.

    For detailed insights into grocery discounting strategies and to explore how DataWeave’s solutions can help retailers optimize their pricing, contact us today!

    Stay tuned to our blog for further analyses of other categories during Black Friday and Cyber Monday.

  • Health & Beauty Deals on Black Friday 2024: Insights from Top Retailers and Brands

    Health & Beauty Deals on Black Friday 2024: Insights from Top Retailers and Brands

    The U.S. health and beauty retail sector shows remarkable resilience amid economic uncertainties, with the skincare market projected to hit $21.83 billion in 2024. Black Friday data reinforces this trend, with health and beauty products seeing a 14.6% surge in web traffic compared to last year.

    At DataWeave, we conducted an in-depth analysis of Black Friday discounting trends in the U.S. health and beauty sector. DataWeave’s AI-powered pricing intelligence platform was used to monitor pricing and discounts across Sephora, Ulta Beauty, Walmart, Target, and Amazon during Black Friday 2024. The study covered 19985 SKUs from November 10-29. We focused on the top 500 products ranked for each search keyword on each retail site, using targeted terms aligned with categories like “skincare” and “fragrance”.

    The results? Beauty leads across categories in discount depth this year, with some retailers offering significant markdowns.

    The Beauty Boom: More Than Just Looking Good

    If there’s one thing the pandemic taught us, it’s that self-care isn’t just a luxury – it’s a necessity. This Black Friday proved that beauty has become an indispensable part of consumers’ lives, with retailers offering unprecedented discounts and crafting strategic promotions to capture the growing demand.

    The Absolute Discount represents the reduction of the selling price compared to the Manufacturer’s Suggested Retail Price (MSRP). The Additional Discount reflects how much lower the selling price is during Black Friday compared to its price a week before the sale. This metric reveals the actual or effective value of the sale event, beyond the standard discounts typically offered.

    Average Discounts Across Leading Health & Beauty Retailers on Black Friday 2024

    Ulta Beauty led with 45% average discounts, followed by Sephora at 38.1% and Walmart at 35.2%. In terms of additional Black Friday discounts, Ulta maintained dominance at 35%, with Sephora following at 28%.

    Hair care emerged as the standout category, with Ulta Beauty offering up to 56% discounts, reflecting sustained demand for at-home beauty routines. Skincare saw fierce competition, with Sephora emphasizing premium discounts (37%) while Walmart focused on value pricing (32.5%).

    Average Discounts Across Leading Health & Beauty Retailer Subcategories on Black Friday 2024

    Fragrance and Makeup attracted consumers with targeted promotions from Walmart and Ulta Beauty, signaling strong demand for gifting items.

    Average Discounts Across Leading Health & Beauty Brands on Black Friday 2024

    Major beauty brands echoed the sentiment. Premium skincare brand Clinique leads with 50.6% average discounts. Meanwhile, drugstore staples like Revlon (29.1%) and Maybelline (24.4%) balanced accessibility and affordability, driving mass-market appeal. Popular beauty and makeup brand L’Oreal Paris also offered a modest 22.8% average discount, reinforcing its position as a value-oriented brand.

    Share of Search and Visibility Across Leading Health & Beauty Brands on Black Friday 2024

    The more interesting story? The massive shift in brand visibility, as our share of search rankings denote:

    • Shampoo and hair care brand Tresemmé saw an unexpected 5.5% jump in the share of search results
    • Beauty brand Herbal Essences gained 5.1% in share of search well

    Declines in share of search were noted for brands like L’Oreal Paris (-1.8%) and Pantene (-0.6%), indicating missed opportunities in promotional visibility.

    Insight: What’s driving this beauty boom? TikTok and social media continue to fuel beauty purchases, with viral products driving significant search and sales spikes. Plus, the “skinification” of hair care has turned basic shampoo shopping into a full-blown beauty ritual.

    Who Offered the Lowest Prices?

    In the previous analysis, we focused on the top 500 products within each subcategory for each retailer, showcasing the discount strategies for their highlighted or featured items. However, to identify which retailer offered the lowest or highest prices for the same set of products, it’s necessary to match items across retailers. For this, we analyzed a separate dataset of 1133 matched products across Health & Beauty specific retailers to compare their pricing during Black Friday. This approach provides a clearer picture of price leadership and competitiveness across categories.

    Here are the key takeaways from this analysis.

    Retailers Offering Most Value - Lowest Priced - Health and Beauty - Black Friday 2024
    • Bloomingdale’s emerges as the overall leader, offering the highest average discount of 14.87%, closely followed by Bluemercury (12.41%).
    • Ulta Beauty ranks third (10.94%), demonstrating competitiveness across key subcategories, while Sephora trails with the lowest average discount (7.33%), reflecting a more premium positioning.
    Lowest Priced Retailer Across Major Subcategories- Health and Beauty - Black Friday 2024
    • Ulta Beauty leads in Hair Care with the highest discount (22.62%), while Bluemercury dominates in Skin Care (13.81%), Makeup (22.98%), and Fragrance (10.6%).
    • Sephora consistently offers the lowest discounts across all subcategories, reflecting their premium positioning.
    Lowest Priced Retailer Across Leading Brands- Health and Beauty - Black Friday 2024
    • Bluemercury offers the lowest prices for luxury brands like Kiehl (27.02%) and Laura Mercier (34.87%), with Bloomingdale’s closely trailing.
    • Bloomingdale’s leads for Bumble and Bumble (13.59%) and Hourglass (23.41%), showcasing strong promotional efforts.
    • Sephora maintains a more restrained discount strategy, with notable leadership only for Estée Lauder (7.18%).
    • Ulta Beauty shines in offering the steepest discount for Briogeo (33.26%), emphasizing competitiveness in key brands.

    What’s Next for Holiday Discounting?

    For retailers, the message is clear: traditional holiday playbooks need a serious update. For shoppers, it means unprecedented opportunities to score deals in categories that traditionally held firm on pricing.

    Want to stay ahead of retail trends and optimize your holiday shopping strategy? DataWeave’s commerce intelligence platform helps brands and retailers strategically navigate these shifts. Contact us to learn more about how we can help you make data-driven decisions in this rapidly evolving retail landscape.

    Stay tuned to our blog for forthcoming analyses on pricing and discounting trends across a spectrum of shopping categories, as we continue to unravel the intricacies of consumer behavior and market dynamics.

  • Mastering Grocery Pricing Intelligence: A Strategic Approach for Modern Retailers

    Mastering Grocery Pricing Intelligence: A Strategic Approach for Modern Retailers

    When egg prices surged 70% during the 2023 avian flu outbreak, grocery retailers faced a critical dilemma: maintain margins and risk losing customers, or absorb costs and watch profits evaporate. Similarly, rising olive oil and chocolate prices also had domino effects, cascading down from retailers to consumers. In each of these scenarios, those with sophisticated pricing intelligence systems adapted swiftly, finding the sweet spot between competitiveness and profitability. Others weren’t so fortunate.

    This scenario continues to play out daily across thousands of products in the grocery sector. From breakfast cereals to fresh produce to bottled water, retailers must orchestrate pricing across a variety of categories – each with its own competitive dynamics, margin requirements, and price sensitivity patterns.

    The Evolution of Grocery Pricing Intelligence

    Imagine these scenarios in the grocery industry:

    • Milk prices spike during a supply shortage.
    • Your competitor drops egg prices by 20%.
    • Fresh produce costs fluctuate with an unseasonable frost.

    For grocery retailers, these aren’t occasional challenges—they’re Tuesday. Reacting to each pricing crisis as it comes isn’t just exhausting—it’s a recipe for shrinking margins and missed opportunities.

    Think of it this way: If you’re constantly playing defense with your pricing strategy, you’re already two steps behind. Commoditized items like milk and eggs face intense price competition, while seasonal products and fresh produce demand constant attention. Simply matching competitor prices or adjusting for cost changes isn’t enough anymore. What’s needed is a proactive approach that anticipates market shifts before they happen and turns pricing challenges into competitive advantages. This is where price management comes in.

    Price management has transformed from simple competitor checks into a strategic power play that can make or break a retailer’s market position. Weekly manual adjustments have given way to a long-term strategic view, driven by data analytics and market intelligence. Here are the basics of how price management in grocery retail works today.

    Three Pillars of Grocery Price Management

    1. Smart Data Collection: Building Your Foundation

    The journey begins with comprehensive data collection and storage across your entire product ecosystem. This means:

    • Complete Coverage Of All SKUs Across All Stores: Tracking prices for all SKUs across all stores, with particular attention to high-velocity items and volatile categories.
    • Dynamic Monitoring: Tracking prices across different time frequencies as grocery prices are highly volatile for different categories. So daily tracking for volatile items like dairy and produce, and weekly for more stable categories may be needed.
    • Competitive Intelligence: Gathering data not just on prices, but on promotions, pack sizes, and private label alternatives.
    • Infrastructure to Support Large Volumes of Data: Partnering with external data and analytics providers to bridge the gap when retailers struggle with the scale of digital infrastructure these data sets require.

    2. Intelligent Data Refinement: Making Sense of the Numbers

    Raw data alone isn’t enough—it needs context and structure to become actionable intelligence. This is called Data Refinement—the process of establishing meaningful relationships within the data to facilitate the extraction of valuable insights. This refinement stage is closely tied to the data collection strategy, as the quality and depth of the insights derived depend on the accuracy and coverage of the collected data.

    Data refinement includes several key processes:

    Advanced Product Matching

    Picture this: You’re tracking a competitor’s pricing on organic apples. Simple, right? Not quite. Yes, Universal Product Codes (UPCs) and Price Lookup Codes (PLUs) are present in Grocery to standardize product identification across different retailers—unlike the fashion industry’s endless style variations. Still, product matching isn’t as straightforward as scanning barcodes.

    Grocery Pricing Intelligence data faces a challenge when product names, weights, and details differ

    Here’s the catch: many retailer websites don’t display them. Then there’s the private label puzzle—your “Store’s Best” organic apples need to match against competitors’ house brands, each with their own unique UPC. Throw in different sizes (4 Apples vs. 1Kg of Apples), regional product names (fancy naming for plain old arugula), and international brand variations (like the name for Sprite in the USA and China), and you’ve got yourself a complex matching challenge that would make conventional pricing intelligence providers sweat.

    Grocery Pricing Intelligence data faces a challenge when different naming conventions and languages are used in different geographies

    Custom Product Relationships for Consistent Pricing and Competitive Positioning

    Think like a shopper browsing the dairy aisle. You regularly buy your family’s favorite organic yogurt, the 24oz tub. But today, you notice the larger 32oz size is on sale – except the 24oz isn’t. As you stand there, confused, you wonder: Is the sale only for the bigger size? Did I miss a promotion? Should I buy the 32oz even though it’s more than I need?

    For shoppers, this inconsistent pricing across product variations creates a frustrating experience. Establishing clear relationships between related items in your catalog is essential for maintaining consistent pricing and a coherent competitive strategy.

    Grocery Pricing Intelligence data refinement involves Custom Product Relationships for Consistent Pricing and Competitive Positioning

    Start by linking products based on attributes like size, brand, and packaging. That way, when you adjust the price of the 32oz yogurt, the 24oz version automatically updates too – no more scrambling to ensure uniform pricing across your assortment. Similarly, products of the same brand but with flavor variations should be connected to keep pricing consistent.

    Taking this one step further, mapping your competitors’ exact and similar products is crucial for comprehensive competitive intelligence. Distinguishing between premium and private label tiers, national brands, and regional players gives you a holistic view of the landscape. With this understanding, you can hone your pricing strategies to maintain a clear, compelling position across your entire category lineup.

    Consistent pricing, whether across your own product variations or against competitors, provides clarity and accuracy in your overall competitive positioning. By establishing these logical connections, you avoid the customer confusion of seemingly random, inconsistent discounts – and ensure your pricing strategies work in harmony, not disarray.

    The Role of AI and Data Sciences in Data Refinement

    On the surface, linking products based on attributes like size, brand, and packaging seems like a no-brainer. But developing and maintaining the systems to accurately and automatically identify these connections? That’s a whole different animal.

    Think about it – you’re not just dealing with text-based product titles and UPCs. There are images, videos, regional variations, private labels, and a whole host of other data types and industry nuances to account for.

    Luckily, DataWeave is one of the few companies that’s truly cracked the code. Our multimodal AI models are trained to process all those diverse data formats – from granular product specs to zany regional produce names. And it’s not just about technology; we also harness the power of human intelligence.

    See, in the grocery world, category managers are the real decision makers. They know their shelves inside and out and can spot those tricky connections in product matching, especially when they are not UPC-based. That’s why DataWeave built in a Human-in-the-Loop (HITL) process, where their AI systems continuously learn from expert feedback. It’s a feedback loop that allows our customers to pitch in and keep product relationships accurate, reliable, and always adapting to new market realities.

    So while product mapping may seem straightforward on the surface, the reality is it takes some serious horsepower to do it right. Thankfully, DataWeave has both the technical chops and the grocery industry know-how to make it happen. Because when it comes to pricing intelligence, getting those product connections right is half the battle.

    3. Strategic Implementation: Turning Insights into Action

    The true value of pricing intelligence (PI) is realized through its strategic application. Although many view PI as a technical function, its strategic significance is increasing, particularly in the context of recent economic pressures like inflation. Here’s why:

    Tactical vs Strategic Use of Data: From Standard Reporting to Competitive Analysis

    Pricing intelligence has come a long way from the days of simply reacting to daily price changes. These days, it’s not just about firefighting—it’s about driving long-term strategy.

    You can use pricing data to make quick, tactical adjustments, like matching a competitor’s sudden price drop on milk. Or, you can leverage that same data to predict market trends, optimize your product lineup, and shape your overall pricing strategy. Retailers who take that strategic view can get out ahead of the curve, anticipating shifts instead of just chasing them.

    DataWeave supports both of these approaches. Our Standard Reporting tools give pricing managers the nitty-gritty details they need—current practices, historical patterns, and operational KPIs. It’s all the insights you’d expect for making those tactical, day-to-day tweaks.

    In addition, DataWeave offers something more powerful: Competitive analysis. This is where pricing intelligence becomes a true strategic weapon. By providing a high-level view of market positioning, competitor moves, and untapped opportunities, competitive analysis empowers leadership to make proactive, big-picture decisions.

    Armed with this broader perspective, retailers can start taking a more surgical approach. Maybe you need to adjust pricing zones to better meet customer demands. Or rethink your overall strategies to stay ahead of the competition, not just keep pace. It’s the difference between constantly putting out fires and systematically fortifying your entire pricing fortress.

    Beyond Pricing: Comprehensive Data for Broader Insights

    Pricing intelligence is just the tip of the iceberg. When you really start to refine and harness your data, the possibilities for grocery retailers expand far beyond simple price comparisons. Think about it – all that information you’re collecting on products, markets, and consumer behavior? That’s a goldmine waiting to be tapped. Sure, you can use it to keep a pulse on competitor pricing. But why stop there?

    What if you could leverage that data to optimize your product assortment, making sure you’re stocking the right mix to meet customer demands? Or tap into predictive analytics to get a glimpse of future market shifts, so you can get out ahead of the curve? How about using it to streamline your supply chain, identify availability inefficiencies, and get products to shelves faster?

    Sure, pricing intelligence will always be mission-critical. But when you couple it with these other data-driven insights, that’s when grocery retailing gets really interesting. It’s about evolving from a price-matching robot to a true strategic visionary, armed with the intelligence to take your business to new heights.

    Looking Ahead: The Future of Grocery Pricing Intelligence

    The grocery pricing landscape continues to evolve, driven by:

    • Integration of AI and machine learning for predictive pricing
    • Enhanced focus on omnichannel pricing consistency
    • Growing importance of personalization in pricing strategies

    Pricing intelligence isn’t just about having data—it’s about having the right data and knowing how to use it strategically. Success requires a comprehensive approach that combines robust data collection, sophisticated analysis, and strategic implementation.

    By embracing modern pricing intelligence tools and strategies, grocery retailers can navigate market volatility, maintain competitive positioning, and drive sustainable growth. The key lies in building a pricing ecosystem that’s both sophisticated enough to handle complex data and flexible enough to adapt to changing market conditions.

    Ready to transform your pricing strategy? Check out our grocery price tracker to get month-on-month updates on grocery prices in the real world. Contact us to learn how our advanced pricing intelligence solutions can help your business stay ahead in the competitive grocery market.

  • Normalizing Size and Color in Fashion Using AI to Power Competitive Price Intelligence

    Normalizing Size and Color in Fashion Using AI to Power Competitive Price Intelligence

    Fashion is as dynamic a market as any—and more competitive than most others. Consumer trends and customer needs are always evolving, making it challenging for fashion and apparel brands to keep up.

    Despite the inherent difficulties fashion and apparel sellers face, this industry is one of the largest grossing markets in the world, estimated at $1.79 trillion in 2024. Global revenue for apparel is expected to grow at an annual rate of about 3.3% over the next four years. That means companies in this space stand to make significant revenue if they can competitively price their products, keep up with the competition, and win customer loyalty with consistent product availability.

    There are three main categories in fashion and apparel. These include:

    • Apparel and clothing (i.e., shirts, pants, dresses, and other apparel)
    • Footwear (i.e., sneakers, sandals, heels, and other products)
    • Accessories (i.e., bags, belts, watches, and so on)

    If you look at all of these product types across all sorts of retailers, there is a massive amount of overlapping data based on product attributes like style and size that are difficult to normalize.

    Fashion Attributes

    Style, color, and size are the main attribute categories in fashion and apparel. Style attributes include things like design, look, and overall aesthetics of the product. They’re very dependent on the actual product category of fashion as well. A shirt might have a slim fit attribute associated with it, whereas a belt might have a length. All these different attributes are usually labeled within a product listing and affect the consumer’s decision-making process:

    • Color (red, blue, sea green, etc.)
    • Pattern (solid, striped, checked, floral, etc.)
    • Material (cotton, polyester, leather, denim, silk, etc.)
    • Fit (regular, slim, relaxed, oversized, tailored, etc.)
    • Type (casual, formal, sporty, vintage, streetwear)

    Color Complexity in Fashion

    Color is perhaps the most visually distinctive attribute in fashion, yet it presents unique challenges for retailers. This is because color naming can vary across retailers and marketplaces. There are several major differences in color convention:

    • A single color can be labeled differently across brands (e.g., “navy,” “midnight blue,” “deep blue”)
    • Seasonal color names (e.g., “summer sage” vs. “forest green”)
    • Marketing-driven names (e.g., “sunset coral” vs. “pale orange”)
    Differences in color naming - challenges faced by fashion retail intelligence systems

    Size: The Other Critical Dimension

    Size in fashion refers to the dimensions or measurements that determine how fashion products fit. Depending on whether the product is a clothing item, shoes, or a hat, there will be different sizing options. Types of sizes include:

    • Standard sizes (XS, S, M, L, XL, XXL, XXL)
    • Custom sizes (based on brand, retailer, country, etc.)

    A single type of product may have different sizing labels. For instance, one pants listing may use traditional S, M, L, XL sizing, while another pants listing may use 24, 25, or 26, to refer to the waist measurement.

    Size Variations - challenges faced by fashion retail intelligence systems
    Size Variations - challenges faced by fashion retail intelligence systems
    Size Variations - challenges faced by fashion retail intelligence systems

    Size is a dynamic attribute that changes based on current trends. For example, there has recently been a significant shift towards inclusive sizing. Size inclusivity refers to the practice of selling apparel in a wide range of sizes to accommodate people of all body types. Consumers are more aware of this trend and are demanding a broader range of sizing offerings from the brands they shop from.

    In the US market, in particular, some 67% of American women wear a size 14 or above and may be interested in purchasing plus-size clothing. There is a growing demand in the plus-size market for more options and a wider selection. Many brands are considering expanding their sizes to accommodate more shoppers and tap into this growing revenue channel.

    Pricing Based on Size and Color

    Many fashion products are priced differently based on size and color. Let’s take a look at an example of what this can look like.

    Different colors may retail at different price points.

    A popular beauty brand (see image) is known for its viral lip tint. While most of the color variants are priced at $9.90 on Amazon, a specific colorway option, featuring less pigmented options, is priced at $9.57. This price differential is driven by both material costs and market demand.

    Different colorways (any of a range of combinations of colors in which a style or design is available) of the same product often command different prices also. This is based on:

    • Dye costs (some colors require more expensive processes)
    • Seasonal demand (traditional colors vs. trend colors)
    • Exclusivity (limited edition colors)

    An example of price variations by size is a women’s shirt that is being sold on Amazon as shown below. For this product, there are no style attributes to choose from. The only parameter the shopper has to select is the size they’d like to purchase. They can choose from S to XL. On the top, we can see that the product in size S is ₹389. Below, the size XL version of this same shirt is ₹399. This price increase is correlated to the change in size.

    Different sizes may retail at different price points.
    Different sizes may retail at different price points.

    So why are these same products priced differently? In an analysis of One Six, a plus-size clothing brand, several reasons for this difference in plus-size clothing were determined.

    • Extra material is needed, hence an increase in production costs
    • Extra stitching costs, hence an increase in production costs
    • Production of plus-size clothing often means acquiring specialized machinery
    • Smaller scale production runs for plus-size clothing means these initiatives often don’t benefit from cost savings

    Some sizes are sold more than others, meaning that in-demand sizes for certain apparel can affect pricing as well. Brands want to be able to charge as much as possible for their listing without risking losing a sale to a competitor.

    The Competitive Pricing Challenge: Normalizing Product Attributes Across Competitors in Apparel and Fashion

    There are hundreds of possible attribute permutations for every single apparel product. Some retailers may only sell core sizes and basic colors; some may sell a mix of sizes for multiple style types. Most retailers also sell multiple color variants for all styles they have on catalog. Other retailers may only sell a single, in-demand size of the product. Also, when other retailers are selling the product, it’s unlikely that their naming conventions, color options, style options, and sizing match yours one-for-one.

    In one analysis, it was found that there were 800+ unique values for heel sizes and 1000+ unique values for shirts and tops at a single retailer! If you’re looking to compare prices, the effort involved in setting up and managing lookup tables to identify discrepancies when one retailer uses European sizes and another uses USA sizes, for example, is simply too onerous to contemplate doing. Colors only add to the complexity – as similar colors may have new names in different regions and locations as well!

    Even if you managed to find all the discrepancies between product attributes, you would still need to update them any time a competitor changed a convention.

    Still, monitoring your competitors and strategically pricing your listings is essential to maintain and grow market share. So what do you do? You can’t simply eyeball your competitor’s website to check their pricing and naming conventions. Instead, you need advanced algorithms to scan the entire marketplace, identify individual products being sold, and normalize their data and attributes for analysis.

    Getting Color and Size Level Pricing Intelligence

    With DataWeave, size and color are just two of several dimensions of a product instead of an impossible big data problem for teams. Our product matching engine can easily handle color and sizing complexity via our AI-driven approach combined with human verification.

    This works by using AI built on more than 10 years of product catalog data across thousands of retail websites. It matches common identifiers, like UPC, SKU code, and other attributes for harmonization before employing a large language model (LLM) prompts to normalize color variations and sizing to a single standard.

    The data flow DataWeave uses for product sizing and color normalization

    For example, if a competitor has the smallest size listed as Sm but has your smallest listing identified as S, DataWeave can match those two attributes using AI. Similar classification can be performed on color as well.

    Complex LLM prompts are pre-established so that this process is fast and efficient, taking minutes rather than weeks of manual effort.

    Harmonizing products along with their color and sizing data across different retailers for further analysis has several benefits. Most importantly, product matching helps teams conduct better competitive analysis, allowing them to stay informed about market trends, competitors’ offerings, and how those competitors are pricing various permutations of the same product. It helps ensure that you’re offering the most competitive assortment of sizing in several colors to win more market share as well. Overall, it’s easier for teams to gain insights and exploit their findings when all the data is clean and available at their fingertips.

    Product Matching Size and Color in Apparel and Fashion

    Color and size are crucial attributes for retailers and brands in the apparel and fashion industry. It adds a level of complexity that can’t be overstated. While it’s a necessity to win consumers (more colors and sizes will mean a wider potential reach), the more permutations you add to your listing, the more complicated it will be to track it against your competition. However, This challenge is worth undertaking as long as you have the right solutions at your disposal.

    With a strategy backed by advanced technology to discover identical and similar products across the competitive landscape and normalize their color and sizing attributes, you can ensure that you are competitively pricing your products and offering the best assortment possible. Employing DataWeave’s AI technology to find competitor listings, match products across variants, and track pricing regularly is the way to go.

    Interested in learning more about DataWeave? Click here to get in touch!

  • Mastering Fuel Price Competitiveness: How First-Party Data Outperforms Third-Party in Pricing Accuracy

    Mastering Fuel Price Competitiveness: How First-Party Data Outperforms Third-Party in Pricing Accuracy

    Fuel retailers today operate in a highly competitive and volatile market. Consumer behavior is increasingly driven by price sensitivity, particularly in industries like fuel where small changes in price can significantly influence where consumers choose to fill up. The stakes are even higher when you consider the razor-thin margins many fuel retailers work with, making every cent count.

    For years, retailers have relied on third-party apps and services to provide them with location-based competitive fuel price data. These services collect pricing data based on customer transactions. While these platforms offer a convenient way for consumers to find cheaper fuel prices, their value to retailers is limited. The data they provide is often riddled with inaccuracies, lags, and incomplete coverage, leaving retailers vulnerable to missed pricing opportunities.

    In this rapidly shifting landscape, retailers need data that is not only accurate but also real-time. Solving this involves directly tapping into retailers’ own data sources (first-party or 1P data) —such as websites and apps. This is believed to be the most comprehensive and reliable source of fuel price data in the market.

    To validate this hypothesis, we conducted a comprehensive analysis comparing first-party and third-party (3P) fuel price data. Our analysis compared pricing (at the same time of the day) across more than 40 gas stations—including major players like Circle K, Costco, Speedway, and Wawa. The data was captured several times a day for over a week.

    Accurate Pricing Matters More Than Ever

    Our analysis revealed that nearly a quarter (24.4%) of the fuel pricing data provided by third-party sources was inaccurate when compared to first-party data. On average, these inaccuracies amounted to a price difference of 10.9%.

    Such discrepancies, though seemingly minor, can significantly affect consumer behavior. Inaccurate prices could drive customers to competitors who are listed with lower prices—even if the real difference is negligible. For fuel retailers, this leads to lost revenue, missed opportunities, and reduced market share.

    First-party vs Third-party Fuel Price Comparison

    The implications are clear: relying on third-party competitive data alone puts retailers at risk. With inaccurate data, retailers may fail to adjust their prices in time to respond to market changes, losing customers to competitors.

    The Core Challenges of Third-Party Data

    Third-party data comes with inherent limitations. The way this data is collected presents significant challenges for fuel retailers looking to optimize pricing strategies. Here are the main issues:

    • Inconsistent Data Frequency: Third-party pricing data is often gathered through customer card transactions. As a result, pricing data updates only when and where transactions occur. This can lead to irregular data availability, particularly in stations with lower transaction volumes. For instance, in rural areas or during off-peak hours, fewer transactions lead to fewer updates. Retailers are left with outdated data, making it difficult to keep pace with real-time price fluctuations.
    • Limited Geographic Coverage: Regions with lower transaction volumes are particularly affected by data gaps. While urban centers may enjoy more frequent updates, rural and less-frequented stations often suffer from a lack of data. This limited geographic coverage creates blind spots, making it impossible for retailers in these regions to stay competitive.
    • Potential Data Inaccuracies Across Fuel Types: Our analysis showed that inaccuracies in third-party pricing data were most pronounced for Unleaded fuel, with errors occurring nearly 80% of the time. While Diesel prices fared slightly better, inaccuracies were still frequent. This inconsistency across fuel types further complicates the challenge for retailers relying on third-party data.
    First-party vs Third-party Fuel Price Comparison by Fuel Type

    Leveraging First-Party Data

    At DataWeave, our Fuel Pricing Intelligence solution leverages real-time 1P data directly from fuel retailers’ websites and mobile apps, ensuring that retailers always have access to the most up-to-the-minute and accurate pricing information.

    Here’s why first-party data stands out:

    • Real-Time Updates: Our solution provides near-instantaneous updates across more than 30,000 ZIP codes, ensuring that retailers always have the most up-to-date pricing information. This real-time accuracy is essential for making dynamic pricing adjustments in a highly competitive market.
    • Wide Geographic Coverage: DataWeave’s first-party solution captures data across a broad geographic range, ensuring no blind spots in coverage. Retailers in rural or less-frequented areas benefit from the same level of insight as their urban counterparts, giving them the ability to optimize pricing in real-time.
    • Complementary to Existing Solutions: For retailers already using third-party data, DataWeave’s first-party solution can complement and enhance their current systems. By filling in data gaps and providing more frequent updates, our solution ensures that retailers are never left in the dark when it comes to competitive pricing.

    Retailer-Wise Variances

    Among the retailers analyzed, we found that some were more affected by third-party data inaccuracies than others. Speedway and Wawa, for instance, experienced inaccuracies in up to 28% of third-party price data. In contrast, Circle K exhibited fewer discrepancies, but even they were not immune to the challenges posed by third-party data.

    For their competition, relying on third-party data alone presents a significant risk. By switching to first-party data sources, or complementing their existing third-party data with DataWeave’s first-party solution, retailers can ensure they stay competitive in the eyes of price-sensitive consumers.

    First-party vs Third-party Fuel Price Comparison by Retailer

    In an industry as price-sensitive as fuel retail, accurate data is a strategic asset. Leveraging first-party data allows fuel retailers to:

    • Maximize Revenue: By using real-time, accurate data, retailers can avoid under- or over-pricing their fuel, ensuring they capitalize on high-demand periods while minimizing losses during low-demand times.
    • Enhance Margins: First-party data provides the precision needed to fine-tune margins, ensuring profitability even in fiercely competitive markets.
    • Boost Customer Retention: Competitive pricing fosters customer loyalty. With better data, retailers can maintain customer trust and retention, even during volatile market shifts.

    Shift into High Gear with DataWeave

    As the fuel retail industry becomes increasingly competitive, the need for accurate, real-time pricing data has never been more important. DataWeave’s Fuel Pricing Intelligence solution empowers retailers with the insights they need to stay ahead of the competition, optimize pricing strategies, and boost profitability.


    With first-party data, fuel retailers can eliminate the blind spots and inaccuracies associated with third-party sources. This shift toward data-driven pricing strategies ensures that every price adjustment is backed by real-time insights, giving retailers the edge they need to succeed.

    To learn more, talk to us today!

  • The Complete Guide to Competitive Pricing Strategies in Retail and E-commerce

    The Complete Guide to Competitive Pricing Strategies in Retail and E-commerce

    Your budget-conscious customers are hunting for value and won’t hesitate to switch brands or shop at other retailers.

    In saturated and fiercely competitive markets, how can you retain customers? And better yet, how can you attract more customers and grow your market share? One thing you can do as a brand or retailer is to set the right prices for your products.

    Competitive or competition-based pricing can help you get there.

    So what exactly is competitive pricing? Let’s dive into this strategy, its advantages and disadvantages, and how it can be used to stay ahead of the competition.

    What is Competitive Pricing?

    Competitive or competition-based pricing is a strategy where brands and retailers set product prices based on what their competitors charge. This method focuses entirely on the market landscape and sets aside the cost of production or consumer demand.

    It is a good pricing model for businesses operating in saturated markets, such as consumer packaged goods (CPGs) or retail.

    Competitive Pricing Models

    Competitive pricing isn’t a one-size-fits-all strategy. The approach includes various pricing models that can be customized to fit your business goals and market positioning.

    Here’s a closer look at five of the most common competition-based pricing models:

    Price Skimming

    If you have a new product entering the market, you can initially set a high price. Price skimming allows you to maximize margins when competition is minimal.

    This strategy taps into early adopters’ willingness to pay a premium for new project categories. As competitors enter the market, you can gradually reduce the price to maintain competitiveness.

    Premium Pricing

    Premium pricing lets you position your product as high-quality or luxurious goods.

    When you charge more than your competitors, you’re not just selling a product—you’re selling status and an experience. This strategy is effective when your offering is of superior quality or has unique features that justify a higher price point.

    Price Matching

    Price matching—also known as parity pricing—is a defensive pricing tactic.

    By consistently matching your competitors’ prices, you can retain customers who might otherwise, be tempted to switch to an alternative.

    This approach signals your customers that they don’t need to look elsewhere for what they need and can feel comfortable remaining loyal to your brand.

    Penetration Pricing

    Penetration pricing is when you set a low price for a new product to gain market share quickly. The opposite of price skimming, this strategy can be particularly effective in price-sensitive or highly competitive industries.

    By attracting customers early, you can also deter some competitors from entering the market. This bold move can establish your product as a market leader from the get-go.

    Loss Leader Pricing

    Loss leader pricing is a strategic sacrifice that can lead to greater gains in the long run.

    By offering a product at a low price—sometimes even below cost—you can attract new customers to your brand and strengthen your current customers’ loyalty.

    Eventually, you can cross-sell other higher-margin products to your loyal customer base to cover the loss from your loss leader pricing and increase sales of other more profitable products.

    Key Advantages of Competitive Pricing

    Although it’s not the only pricing strategy available, competitive pricing has some significant advantages.

    It is Responsive

    Agility is synonymous with profit in industries where consumer preferences and market conditions shift rapidly.

    Competitive pricing allows you to adapt quickly—if a competitor lowers their prices, you can respond promptly to maintain your positioning.

    It is Simple to Execute and Manage

    Competitive pricing is straightforward, unlike cost-based pricing, which requires complex calculations and spans various factors and facets.

    By closely monitoring competitors’ prices and adjusting your prices accordingly, you can implement this pricing strategy with relative ease and speed.

    It Can Be Combined with Other Pricing Strategies

    Competitive pricing is not a standalone strategy—it’s a versatile approach that can easily be combined with other pricing strategies. For example, say you want to use competitive pricing without losing money on a product. In this case, you could use cost-plus pricing to determine a base price that you won’t go below, then use competitive pricing as long as the price stays above your base price.

    Key Disadvantages of Competitive Pricing

    While competition-based pricing has its advantages, it’s not without its pitfalls. Here are some potential disadvantages of competitive pricing.

    It De-emphasizes Consumer Demand

    If you focus solely on what competitors are charging, you could overlook consumer demand.

    For example, you could underprice items that consumers could be willing to purchase for more. Or, you might overprice items that consumers perceive as low-value, which can reduce sales.

    You Risk Price Wars

    If you and your competition undercut each other for customer acquisition and loyalty, you will eventually erode profit margins and harm the industry’s overall profitability. It’s a slippery slope where everyone loses in the end.

    There’s Potential for Complacency

    When you base your prices on beating those of competitors, you might neglect to differentiate your offerings through innovation and product improvements. Over time, this can weaken your brand’s position and lead to a loss of market share. Staying competitive means more than just matching prices—it means continuously evolving and adding value for the consumer.

    4 Tips for a Successful Competitive Pricing Strategy in Retail

    Here are four competition-based pricing tips for retailers:

    Retailer Tip #1. Know Where to Position Your Products in the Market

    For competitive pricing to work, you must understand your optimal product positioning in the overall market. To gain this understanding, you must regularly compare your offerings and prices with those of your key competitors, especially for high-demand products.

    Then, you can decide which competition-based pricing model is suitable for you.

    Retailer Tip #2. Price Dynamically

    Dynamic pricing is a tactic with which you automatically adjust prices on your chosen variables, such as market conditions, competitor actions, or consumer demand.

    When it comes to competitive pricing, a dynamic pricing system can track your competitors’ price changes and update yours in lockstep.

    Price-monitoring tools like DataWeave allow you to stay ahead of the game with seasonal and historical pricing trend data.

    Retailer Tip #3. Combine Competitive Pricing with Other Pricing Strategies

    Competitive pricing can be powerful, but it doesn’t have to stand alone. You can enhance its benefits with complementary marketing tactics.

    To illustrate, you can bundle products to offer greater value than what your competitors are offering. You can also leverage loyalty programs to offer exclusive discounts or rewards so customers keep returning, even when your competitors offer them lower prices.

    Retailer Tip #4. Stay in Tune with Consumer Demand

    Competition-based pricing aligns you with your competitor, but don’t lose sight of what your customers want. Routinely test your pricing strategy against consumer behavior to ensure that your prices reflect the actual value of your offerings.

    5 Tips for a Successful Competitive Pricing Strategy for Consumer Brands

    If you’re thinking about how to create a competitive pricing strategy for your brand, consider these five tips:

    Brand Tip #1. Identify Competing Products for Accurate Comparisons

    The first step in competitive pricing is to know the value of what you’re selling and how it compares to that of your competitors’ products. This extends to private-label products, similar but not identical products, and use-case products.

    Product matching ensures your pricing decisions are based on accurate like-for-like comparisons, allowing you to compete effectively.

    Brand Tip #2. Understand Your Product’s Relative Value

    Knowing how your product competes on value is key to setting the right price. If your product offers higher value, price it higher; if it offers less, price it accordingly. This ensures your pricing strategy reflects your product’s market placement.

    Brand Tip #3. Consider Brand Perception

    Even if your product is virtually the same as a competitor’s, your brand’s perceived value may be different, which plays a crucial role in pricing.

    If your brand is perceived as premium, you can justify higher prices. Conversely, if customers perceive you as a value brand, your pricing should reflect affordability.

    Brand Tip #4. Leverage Value-Based Differentiation

    When your prices are similar to competitors’, you must differentiate your products by expressing your product value through branding, packaging, quality, or something else entirely.

    This differentiation will compel consumers to choose your product over other similarly priced options.

    Brand Tip #5. Stay Vigilant with Price Monitoring

    Your competitors will update their pricing repeatedly, and you will, too.

    It can be difficult and time-consuming to monitor your competitive pricing, so you’ll need a system like DataWeave to monitor competitors’ pricing and manage dynamic pricing changes.

    This vigilance ensures your brand remains competitive and relevant in real time.

    4 Essential Capabilities You Need to Implement Successful Competition-Based Pricing

    You’ll need four key capabilities to implement a competitive pricing strategy effectively.

    AI-Driven Product Matching

    Product matching means you’ll compare many products (sometimes tens or hundreds) with varying details across multiple platforms. Accurate product matching at that scale requires AI.

    For instance, AI can identify similar smartphones to yours by analyzing features like screen size and processor type. DataWeave’s AI product matches start with 80–90% matching accuracy, and then human oversight can fine-tune the data for near-perfect matches.

    You can make informed pricing decisions once you know which competing products to base your prices on.

    Accurate and Comprehensive Data

    A successful competition-based pricing strategy depends on high-quality, comprehensive product and pricing data from many retailers and eCommerce marketplaces.

    By tracking prices on large online platforms and niche eCommerce sites across certain regions, you’ll gain a more comprehensive market view, which enables you to make quick and confident price changes.

    Normalized Measurement Units

    Accurate price comparisons are dependent on normalized unit measurements.

    For example, comparing laundry detergent sold in liters to laundry detergent sold in ounces requires converting either or both products to a common base like price-per-liter or price-per-ounce.

    This normalization ensures accurate pricing analysis.

    Timely Actionable Insights

    Timely and actionable pricing insights empower you to make informed pricing decisions.

    With top-tier competitive pricing intelligence systems, you get customized alerts, intuitive dashboards, and detailed reports to help your team quickly act on insights.

    In Conclusion

    Competitive pricing or competition-based pricing is a powerful strategy for businesses navigating crowded markets, but you must balance competitive pricing with your brand’s unique value proposition.

    Competitive pricing should complement innovation and customer-centric strategies, not replace them. To learn more, talk to us today!

  • Back-to-School 2024 Pricing Strategies: What Retailers and Brands Need to Know

    Back-to-School 2024 Pricing Strategies: What Retailers and Brands Need to Know

    As summer winds down, families across the US have been gearing up for the annual back-to-school shopping season. The back-to-school season has always been a significant event in the retail calendar, but its importance has grown in recent years. With inflation still impacting many households, parents and guardians are more discerning than ever about their purchases, seeking the best value for their money.

    The National Retail Federation has forecasted that this season could see one of the highest levels of spending in recent years, reaching up to $86.6 billion. As shoppers eagerly stock up on back-to-school and back-to-college essentials, it’s crucial for retailers and brands to refine their pricing strategies in order to capture a larger share of the market.

    To understand how retailers are responding to the back-to-school rush this season, our proprietary analysis delves into pricing trends, discount strategies, and brand visibility across major US retailers, including Amazon, Walmart, Kroger, and Target. By examining 1000 exactly matching products in popular back-to-school categories, our analysis provides valuable insights into the pricing strategies adopted by leading retailers and brands this year.

    Price Changes: A Tale of Moderation

    The most notable trend in our analysis is the much smaller annual price increases this year, in contrast to last year’s sharp price hikes. This shift is a reaction to growing consumer frustration about rising prices. After enduring persistent inflation and steep price growth, which peaked last year, consumers have become increasingly frustrated. As a result, retailers have had to scale back and implement more moderate price increases this year.

    Average Price Increases Across Retailers: Back-to-School 2022-24

    Kroger led the pack with the highest price increases, showing a 5.3% increase this year, which follows a staggering 19.9% rise last year. Walmart’s dramatic price increase of 14.9% is now followed by a muted 3.1% hike. Amazon and Target demonstrated a similar pattern of slowing price hikes, with increases of 2.3% and 2.7% respectively in the latest period. This trend indicates that retailers are still adjusting to increased costs but are also mindful of maintaining customer loyalty in a competitive market.

    Average Price Increases Across Categories 2022-24: Back-to-School USA

    When examining specific product categories, we observe diverse pricing trends. Electronics and apparel saw the largest price increases between 2022 and 2023, likely due to supply chain disruptions and volatile demand. However, the pace of these increases slowed in 2024, indicating a gradual return to more stable market conditions. Notably, backpacks remain an outlier, with prices continuing to rise sharply by 22%.

    Interestingly, some categories, such as office organization and planners, experienced a price decline in 2024. This could signal an oversupply or shifting consumer preferences, presenting potential opportunities for both retailers and shoppers.

    Brand Visibility: The Search for Prominence

    In the digital age, a brand’s visibility in online searches can significantly impact its success during the back-to-school season. Our analysis of the share of search across major retailers provides valuable insights into brand prominence and marketing effectiveness.

    Share of Search of Leading Brands Across Retailers During Back-to-School USA 2024

    Sharpie and Crayola emerged as the strongest performers overall, with particularly high visibility on Target. This suggests strong consumer recognition and demand for these traditional school supply brands. BIC showed strength on Amazon and Target but lagged on Kroger, while Pilot maintained a more balanced presence across most retailers.

    The variation in brand visibility across retailers also hints at potential partnerships or targeted marketing strategies. For instance, Sharpie’s notably high visibility on Target (5.16% share of search) could indicate a specific partnership.

    Talk to us to get more insights on the most prominent brands broken down by specific product categories.

    Navigating the 2024 Back-to-School Landscape

    As we look ahead to the 2024 back-to-school shopping season, several key takeaways emerge for retailers and brands:

    1. Price sensitivity remains high, but the rate of increase is moderating. Retailers should carefully balance the need to cover costs with maintaining competitive pricing.
    2. Strategic discounting can be a powerful tool, especially for lesser-known brands looking to gain market share. However, established brands would need to rely more on quality, visibility, and brand loyalty.
    3. Online visibility is crucial. Brands should invest in strong SEO and retail media strategies, tailored to different retail platforms.
    4. Category-specific strategies are essential. What works for backpacks may not work for writing instruments, so a nuanced approach is key.
    5. Retailers and brands should be prepared for potential shifts in consumer behavior, such as increased demand for value-priced items or changes in category preferences.

    By staying attuned to these trends and remaining flexible in their strategies, businesses can position themselves for success in the competitive back-to-school retail landscape of 2024. As always, the key lies in understanding and responding to consumer needs while maintaining a keen eye on market dynamics.

    Stay tuned to our blog to know more about how retailers can stay aware of changing pricing trends. Reach out to us today to learn more.

  • Do Amazon’s Competitors Lower Prices During Prime Day?

    Do Amazon’s Competitors Lower Prices During Prime Day?

    As the retail landscape continues to evolve, events like Amazon Prime Day have become more than just shopping extravaganzas—they’ve transformed into strategic battlegrounds where retailers assert their market positions and brand identities. Prime Day 2024 was no exception, serving as a crucial moment for retailers to showcase their pricing prowess, customer loyalty programs, and category expertise.

    In an era where consumer expectations for deals are at an all-time high, the impact of Prime Day extends far beyond Amazon’s ecosystem. Retailers like Walmart, known for its “everyday low prices,” Target with its emphasis on style and value, and Best Buy, the electronics specialist, have all adapted their strategies to compete. These companies didn’t just react to Prime Day; they proactively launched their own pre-emptive sales events, with Target Circle Week, Walmart July Deals and more, effectively extending the shopping bonanza and challenging Amazon’s dominance.

    For Prime Day, we analyzed over 47,000 SKUs across major retailers and product categories to publish insights on Amazon’s pricing strategies as well as the performance of leading consumer brands. Here, we go further to delve into the discounts offered (or not offered) by Amazon’s competitors during Prime Day. Our analysis reveals that some retailers chose to compete on price during the sale for certain categories, while others did not.

    Below, we highlight our findings for each product category. The Absolute Discount is the total discount offered by each retailer during Prime Day compared to the MSRP. These are the discounts consumers are familiar with, displayed on retail websites prominently during sale events. The Additional Discount, on the other hand, is the reduction in price during Prime Day compared to the week prior to the sale, revealing the level of price markdowns by the retailer specific to a sale event.

    Consumer Electronics

    In the Consumer Electronics category, Best Buy stood out as a strong competitor, offering an Additional Discount of 5.9%—the highest among all competitors analyzed. This is unsurprising, as Best Buy is well-known for its focus on consumer electronics and is likely aiming to reinforce its reputation for offering attractive deals in order to maintain its strong consumer perception in the category.

    Discounts offered on the Consumer Electronics category across retailers during Amazon Prime Day USA 2024

    Walmart was a close second with a 4.3% Additional Discount while Target reduced its prices by only 2% during the sale.

    Apparel

    In the Apparel category, Walmart’s Additional Discount was 3.1%, demonstrating its willingness to be priced competitively on a small portion of its assortment during the sale, without compromising much on margins.

    Discounts offered on the Apparel category across retailers during Amazon Prime Day USA 2024

    Target, on the other hand, opted out of competing with Amazon on price during the sale, choosing instead to maintain its Absolute Discount level of around 11%.

    Home & Furniture

    The Home & Furniture category showcased diverse strategies from retailers. Specialty furniture retailers such as Overstock and Home Depot provided Additional Discounts of 3.9% and 2.5%, respectively, compared to Amazon’s 6.9%. This indicates a clear intent to maintain market share and remain top-of-mind for consumers despite Amazon’s competitive pricing.

    Discounts offered on the Home & Furniture Category Across Retailers during Amazon Prime Day USA 2024

    Although Target didn’t significantly lower its prices during the sale, its Absolute Discount remains substantial at 18.9%. This suggests that Target’s markdowns were already steep before the event, which could explain the lack of further reductions during the sale.

    Health & Beauty

    The Health & Beauty category saw minimal participation from Amazon’s competitors, with the exception of Sephora, which reduced prices by 3.7% during Prime Day.

    Discounts offered on the Health & Beauty Category Across Retailers during Amazon Prime Day USA 2024

    Ulta Beauty chose not to adjust its prices, likely reflecting its strategy to uphold a premium brand image. Walmart, on the other hand, offered a modest Additional Discount of 2% on select items. Given Walmart’s generally affordable product range, its total discount remained relatively low, around 3.5%.

    In Conclusion

    During Prime Day, Walmart was the only major retailer that made an effort to compete, albeit modestly. Target, on the other hand, largely chose not to offer any additional markdowns. However, several category-specific retailers, such as Best Buy in Consumer Electronics, Overstock and Home Depot in Furniture, and Sephora in Health & Beauty, aimed to retain market share by providing notable discounts.

    What this means for consumers is that even on Amazon’s Prime Day, it’s not a bad idea to compshop to identify the best deal.

    For retailers, the key takeaway is the importance of quickly analyzing competitor pricing and making agile, data-driven decisions to improve both revenues and margins. By utilizing advanced pricing intelligence solutions like DataWeave, retailers can optimize their discount strategies, better navigate pricing complexities, and drive revenue growth — all while staying prepared for major shopping events and beyond.

    Reach out to us today to learn more!

  • How Digital Shelf Analytics Can Fix Common Revenue Growth Management Challenges for Consumer Brands

    How Digital Shelf Analytics Can Fix Common Revenue Growth Management Challenges for Consumer Brands

    As consumer goods brands increasingly turn to eCommerce marketplaces as a source of profitable growth, it becomes harder for teams to grapple with the complexity of revenue growth management.

    This complexity emerges from multiple fonts: there are hundreds, and even thousands, of competitors to consider when formulating strategies for managing pricing, promotion, and assortment changes. The world is currently experiencing a period of unprecedented supply chain instability, shifting more consumers away from traditional retail and into eCommerce shopping. And finally, consumer buying patterns, preferences, and trends are constantly shifting.

    Revenue growth management (RGM) and net revenue management (NRM) were once less complex processes; but that is no longer the case. Now, some 80% of consumer brand CEOs report that they “aren’t satisfied with their RGM results.”

    Gathering data, analyzing it, and acting on it quickly stand out as major challenges that businesses must overcome to grow their market share, earn more profits, and capitalize on market shifts in real time. In this article, we’ll dive into RGM and NRM, the obstacles business teams face, and explore how using technology for digital shelf analytics can help bridge the gap.

    What is Net Revenue Management (NRM) or Revenue Growth Management (RGM)?

    Every consumer goods company aims to increase profits and grow market share. This requires a concerted effort in RGM and net revenue management (NRM) strategy. Whether a company has a specific team dedicated to this task or relies on the abilities of business analysts or merchandisers, this function is crucial.

    It’s worth mentioning that though the terms NRM and RGM are often used interchangeably, there are subtle differences. While both net revenue management and revenue growth management focus on maximizing overall revenue for the brand, NRM typically has a narrower focus and is specific to optimizing profitability through product pricing, promotion, product mix, and cost management. RGM strategies are a bit broader and tend to look at the top line to grow market share and expand the customer base.

    The Challenges Revenue Teams Face

    Differentiating between ‘good growth’ and ‘bad growth’ is central to NRM and RGM. Net revenue management and revenue growth management teams need the data and tools in place to determine if growth in one area is coming at the expense of another so as not to cannibalize business. Tracking and analyzing extensive data to successfully take action on opportunities and determine whether strategies are working as intended consumes a tremendous amount of mental bandwidth. The fact that these decisions are incredibly time-sensitive only compounds the issue.

    To cope, many teams in charge of NRM or RGM employ digital shelf analytics strategies to help speed up data aggregation and analysis to make sure they’re capitalizing on potential opportunities.

    eCommerce has added a whole new layer of complexity to consumer goods sales. Instead of a few relatively stable prices at big-box stores, a single item for sale may experience high price volatility, with dozens of minute pricing changes occurring online each day. In some cases, consumers become blind to price volatility, letting brands increase prices, but consumer sentiment, the overall price elasticity of the product, and dozens of other factors go into determining the final price of an online product. Net revenue teams need to modernize and adapt to changing eCommerce environments to competitively price, promote, and grow their revenue.

    Here are the top three challenges standing in the way of net revenue management and revenue growth management teams and solutions to address these issues.

    Challenge 1: Incomplete or Inaccurate Data

    Incomplete and inaccurate data are critical for Net Revenue Management and Revenue Growth Management teams to get under control when attempting to modernize in a digital-centric selling environment. As more competitors enter the market, many brands find it hard to make strategic decisions without the complete picture.

    Data may be incomplete or inaccurate because a brand is analyzing only part of the market, such as Amazon or another enterprise-scale eCommerce marketplace. Additionally, they might not be analyzing all types of online media, such as branded ads, sponsored search listings, or sponsored category listings.

    Most importantly, another pitfall is the lack of hyperlocal data. Generalized data across regions, states, ZIPs, and stores can skew the decision-making process and result in poor outcomes.

    Overcoming Incomplete or Inaccurate Data

    In order to get the full picture, consumer brands need to ensure they have a view of the entire competitive landscape across their channels. This includes gathering data down to the case pack, the unique product identifier, and the geography, including ZIP and store. They also need the respective MSRP by SKU, the unit normalized price, and the selling price at a specific moment in time. This is done by aggregating brick-and-mortar store information available online, such as when stores list curbside pickup SKUs and pricing online.

    Individual teams cannot manually gather all this detailed data. The growth in eCommerce means there is simply too much data to find and aggregate. Instead, they can employ digital shelf technology to get more data from more sites. Teams can leverage AI to better match product listings, ads, and even visuals to avoid missing data on listings that lack common attributes, such as UPCs for normalization.

    To add to this, advanced pricing intelligence systems can cache URLs to help teams audit and verify their data, avoiding delays and confusion when ad hoc requests arise.

    Challenge 2: Difficulty in Making Sense of the Competitive Landscape

    Once net revenue management and revenue growth management teams have gathered all of the available data, it’s time to make sense of it. This is a monumental challenge, and ends up being the stage where most NRM and RGM teams flounder. Disparate marketplaces include different product attributes and images. This makes it extremely complicated to sync competitors’ data to ready it for analysis, especially if this analysis is carried out manually in Excel. These are some of the attributes that teams need to harmonize in order to make sense of the competitive landscape:

    • Product identifiers (UPC, SKU, Internal Code)
    • Size, case, pack, volume, bundled offerings
    • Language
    • Currency
    • Stock Status (Whether the product is available or not)
    • Platform-specific attributes such as ‘Amazon’s Choice,’ ‘Best Seller,’ etc.

    Teams also need to group and classify various categories of promotions. These can include sponsored listings, banner ads, coupons, bank offers, and others. Each of these categories needs to be tracked separately. This vast array of data points across hundreds of sites creates a big data problem for teams.

    Making Sense of the Competitive Landscape

    The best way to overcome this challenge is to task a digital shelf analytics system with gathering and harmonizing data automatically across the consumer goods competitive landscape. Competitive and market intelligence tools can help break down an overwhelming amount of data, matching similar products across competing brands and analyzing their various strengths and weaknesses. Once the technology matches complex product attributes and identifiers, it becomes easier for teams to gain insights and exploit findings. In a sense, the data needs to be cleaned before analysis can occur.

    Technology can gather data in multiple ways, and the best systems employ several methods to get the best matches. Data consumption modes include API integrations, CSV and Excel file uploads, and proprietary scrapers that view websites independently of direct inputs. Having all the data in a single place helps net revenue management and revenue growth management teams gain indicative insights on product popularity, pricing, and sales, on their own and competitor products.

    Challenge 3: Lack of Timely Visibility

    The final challenge that many net revenue management and revenue growth management teams face is something of a ‘silent killer’ — timeliness. Even if they successfully gather data across the entire competitive landscape and harmonize that data into a format for easy analysis, a lack of timeliness can render even the best actions irrelevant.

    Speed is of the utmost importance when there are market changes. If a product goes viral and competitors raise prices in response to increased demand, without timely visibility, the trend may be over before a consumer goods brand can successfully increase its prices for the duration of the trend. This can mean lost margins.

    Another example is analyzing data and incorporating lagging promotional and sales data into analyses. This can skew pricing strategies because timely data is not accessible to inform decision-making. Many teams waste time firefighting due to a lack of timely pricing and promotional intelligence data.

    Get Near Real-Time Insights for Faster Decision Making

    Using technology that allows for net revenue management and revenue growth management teams at consumer goods brands to establish update frequencies can be a game changer. Teams can set update frequencies based on their need. They can set up the system to check a fast-moving product daily, while a slow-moving item might only need to be checked weekly, monthly, or even quarterly. This allows teams to focus on the highest-impact products first and address the largest exceptions before they lose out on an opportunity. Managing exceptions with a digital shelf analytics platform saves teams significant time instead of poring over low-impact changes in the data.

    Digital Shelf Analytics for Net Revenue Management

    Modernizing a consumer goods brand’s net revenue management or revenue growth management processes requires advanced digital shelf analytics. DataWeave provides consumer goods companies with the technology they need for quick and accurate pricing, promotional, and assortment intelligence. By tracking over 200 million products each day, users can be sure they get the widest and most timely view of the competitive landscape. DataWeave’s deep industry knowledge is baked into every aspect of its platform.

    Learn more by requesting a demo today!

  • Competitor Price Monitoring in E-commerce: Everything You Need to Know

    Competitor Price Monitoring in E-commerce: Everything You Need to Know

    Picture this: You wake up one morning to discover that your top competitor reduced their prices overnight. And now your shopper traffic has tanked and your sales have taken a hit.

    Unfortunately, this is a common scenario because your customers can compare prices online in seconds—and loyalty lies with the budget.

    So, how can you protect your business? Price monitoring.

    Price monitoring solutions can help you keep abreast of competitor price changes—which, of course, will help you improve your pricing strategies, retain your customers, and maximize your profits.

    How? In this article, we’ll explore:

    • What is price monitoring
    • The key benefits of price monitoring for retailers and brands
    • What a capable price monitoring solution can do

    What Is Price Monitoring?

    Price monitoring is the process of tracking and analyzing your competitor’s prices across various online and offline platforms. By monitoring competitors’ prices, you can understand market price trends and adjust your prices strategically—which, in turn, helps you remain competitive, increase margins, and improve customer retention.

    5 Benefits of Price Monitoring

    Competitor price monitoring can help you:

    1. Gain a competitive edge: Competitor price tracking allows you to adjust your prices to remain attractive to consumers.
    2. Maximize revenue: With timely pricing data, you’re empowered to identify optimum price points that strike a delicate balance between maximizing revenue and maintaining customer loyalty.
    3. Retain customers: Consumers are looking for the most value for their dollar, so maintaining consistently competitive pricing is crucial for retaining loyal customers.
    4. Understand promotional effectiveness: Price monitoring helps businesses evaluate the effectiveness of their promotions and discounts. By comparing the impact of different pricing strategies, businesses can refine their promotional tactics to maximize sales and customer engagement.
    5. Understand market movements: By analyzing historical pricing data, you’re better positioned to anticipate future pricing changes — and adjust your strategies accordingly.

    4 Essential Capabilities of Price Monitoring Software

    Here are four capabilities to look for when choosing a price monitoring system.

    1. AI-Driven Product Matching

    Product matching is the process of identifying identical or similar products across different platforms to ensure accurate price comparisons.

    If your price monitoring solution can’t reliably match your products with competitors’ across various sales channels at scale, you’ll end up with poor data. Inaccurate data will then lead you to make misinformed pricing decisions.

    Product matching needs to be accurate and comprehensive, covering a wide range of products and product variations—even for including private label products.

    For example, AI-driven product matching can recognize a specific brand and model of sneakers across multiple online stores—even if product descriptions and images differ. Here’s how it works in a nutshell:

    • Sophisticated algorithms and deep learning architecture enable AI to identify and match products that aren’t identical but share key characteristics and features.
    • Using unified systems for text and image recognition, the AI matches similar SKUs across hundreds of eCommerce stores and millions of products.
      The AI zeroes in on critical product elements in images, like a t-shirt’s shape, sleeve length, and color.
    • The AI also extracts unique signatures from photos for rapid, efficient identification and grouping across billions of indexed items.

    DataWeave’s AI algorithm can initially match products with 80–90% accuracy. Then, humans can bring contextual judgement and make nuanced decisions that the AI might miss to correct errors quickly and push for accuracy closer to 100%. By integrating AI automation with human validation, you can achieve accurate and reliable product-matching coverage at scale.

    2. Accurate and Comprehensive Data Collection and Aggregation

    The insights you derive are only as good as the data you collect. However, capturing comprehensive pricing data is tough when your competitors operate on multiple platforms.

    For truly effective price monitoring insights, you need consistent, comprehensive, and highly accurate data. This means your chosen price monitoring system should:

    • Scrape data from various sources, such as desktop and mobile sites and mobile applications.
    • Pull data from various online platforms like aggregators, omnichannel retailers, delivery intermediaries, online marketplaces, and more.
    • Handle data from different regions and languages.
    • Collect data at regular intervals to ensure timeliness.

    DataWeave’s online price monitoring software covers all of these bases and more with a fast, automated data source configuration system. It also allows you to painlessly add new data sources to scrape.

    Instead of incomplete or inaccurate data, you’ll have comprehensive and up-to-date data, allowing you to respond quickly to market changes with confidence.

    3. Seamless Normalization of Product Measurement Units

    You can’t compare apples to oranges—or price-per-kilogram to price-per-pound.

    For price monitoring to be accurate, there must be a way to normalize measurement units—so that we’re always comparing price-per-gram to price-per-gram. If we compare prices without taking into account measurement units, our data will be misleading at best.

    Let’s take a closer look. Say that your top competitor sells 12oz cans of beans for $3, and you sell 15oz cans for $3.20. At first glance, your larger cans of beans will appear more expensive—but that’s not true. If we normalize the measurement unit—in this example, an oz—the larger can of beans offers more value to customers.

    Unit of measure normalization facilitates sound price adjustments based on accurate and reliable data. For this reason, every business needs a price tracking tool that can guarantee accurate comparisons by normalizing unit measurements—including weight, volume, and quantity.

    4. Actionable Data and an Intuitive User Experience

    Knowledge is only powerful when applied—and price monitoring insights are only useful when they’re accessible and actionable.

    For this reason, the best price monitoring software doesn’t just provide insights based on accurate and comprehensive data, but it also provides several ways to understand and deploy those insights.

    Ideal price monitoring solutions provide customized pricing alerts, intuitive dashboards, detailed reports, and visuals that are easy to interpret—all tailored to each particular team or a team member’s needs. These features should make it easy for team members to compare prices against those of competitors in specific categories and product groupings.

    Your price tracking tool should also permit flexible API integrations and offer straightforward data export options. This way, you can integrate competitive pricing data with your pricing software, Business Intelligence (BI) tools, or Enterprise Resource Planning (ERP) system.

    4 Ways Retailers Can Leverage Price Monitoring

    Retailers can use price monitoring tools to remain competitive without compromising profitability—here’s how:

    1. Track Competitors’ Prices

    Competitor price monitoring helps you avoid being undercut—and, as a result, maintain market share. By tracking competitor prices in real-time, you can adjust prices to remain competitive, especially in dynamic markets. Ideally, you should monitor both direct competitors selling the same products and indirect competitors selling similar or alternative products. This way, you’ll have a complete picture of market prices and can make more informed pricing adjustments.

    2. Understand Historical and Seasonal Price Trends

    As a retailer, you may want to analyze historical data to identify price patterns and predict future price movements—especially in relation to holidays and seasonal products. Knowing what’s coming, you’re better positioned to plan for pricing changes and promotional campaigns.

    3. Implement Dynamic Pricing

    Dynamic pricing is the process of adjusting prices based on real-time market conditions, product demand, and competitors’ prices—allowing you to respond faster to market changes to maintain optimized prices.

    4. Optimize Promotional Strategies

    Price monitoring tools can track retail promotions across numerous online and offline sales avenues, providing insight into the nature and timing of competitors’ promotions. This data can help you determine which promotions are most effective—and which aren’t—allowing you to improve your own promotions and discounts, and allocate marketing resources where it matters most. This is especially beneficial during peak sales periods.

    3 Ways Brands Can Employ Price Monitoring

    Here are three ways brands can use price monitoring to remain profitable, protect brand equity, and gain a competitive edge.

    1. Maintain Consistent Retail Prices

    Minimum advertised price (MAP) policies are designed to prevent retailers from devaluing a brand while ensuring fair competition among retailers. Price monitoring applications allow your brand to track retailers’ prices to detect MAP policy violations. Data in hand, you can maintain consistent pricing across online sales channels, physical stores, and retail stores’ digital shelves — and, critically, protect your brand equity.

    2. Improve Product and Brand Positioning

    When you understand how your products’ prices compare to those of competitors, you can set prices to improve brand positioning. For example, if you want to position your brand as luxurious and high-quality, you need to set higher product prices than budget-friendly alternative products.

    3. Ensure Product Availability

    You can use a price monitoring solution to track product availability to ensure products are always in stock, even across different physical stores and online marketplaces. If a product is frequently sold out, you can adjust production levels or help retailers to improve their inventory management.

    Key Takeaways: E-commerce Price Monitoring

    Price monitoring software allows you to compare your products’ prices with competitors. This valuable data can help you:

    • Optimize revenue through timely price changes and dynamic pricing
      Avoid being undercut by competitors
    • Improve pricing strategies and promotions to increase sales and retain customers
    • Maintain consistent prices across sales channels

    To learn more, check out our article, What is Competitive Pricing Intelligence: The Ultimate Guide here or reach out and talk to us today!

  • How Retailers and Brands Can Navigate Skyrocketing Olive Oil Prices in 2024

    How Retailers and Brands Can Navigate Skyrocketing Olive Oil Prices in 2024

    Olive oil, renowned for its complex flavor and myriad health benefits, holds a significant place in the global market, valued at $14.64 billion in 2023. It is anticipated to reach $19.77 billion by 2032, with a steady compound annual growth rate (CAGR) of 3.42%.

    This growth is fueled by:

    • Increased consumer demand for healthier oils.
    • Olive oil’s rising popularity in skincare products.
    • Greater retail availability.

    Interestingly, this market expansion occurs alongside rising olive oil prices, mainly due to a notable decrease in production. Eight European Union countries, which are the main producers, saw a dramatic drop in output from an average of 2.17 million tons to just 1.50 million tons in 2022—a 30.88% decline. Unfortunately, this drop in production comes as no surprise.

    Erratic weather patterns, rising temperatures, and exacerbating drought conditions in the Mediterranean basin have taken their toll. These climate changes disrupt the growing cycles of olive trees, leading to poorer crop yields and lower-quality olives.

    In the US, where olive oil constitutes 19% of all cooking oils sold and 40% of sales value due to its premium pricing, the market is expected to grow at an impressive CAGR of 11.31% between 2024 and 2032. This forecast is significant despite a recent dip in domestic consumption, which may further decline due to economic pressures. As a result, consumers must make difficult choices as they battle inflation, shrinkflation, and thin budgets.

    DataWeave’s Analysis of Rising Olive Oil Prices

    At DataWeave, we utilized our advanced AI-powered data aggregation and analysis platform to scrutinize the pricing trends of olive oils across key US retailers over the past year. Our analysis covered 130+ SKUs from major chains including Walmart, Kroger, Giant Eagle, and Target.

    The data revealed a notable escalation in olive oil prices, with consumers facing a sharp 25.8% increase from April 2023 to April 2024.

    This trend of rising costs was consistent across all analyzed retailers. Specifically, Walmart and Giant Eagle each reported a substantial 30% increase in their olive oil prices over the past year. In contrast, Target and Kroger experienced somewhat more modest hikes, at 20% and 15% respectively.

    Further investigation into individual brands within our sample highlighted that no brand is immune to the impacts of the ongoing supply shortages. Walmart’s own Great Value brand saw an exceptional 60% surge in prices. Other prominent olive oil brands such as Carapelli, Terra Delysia, and Bertolli also faced significant price increases, ranging from 20% to 50%.

    This across-the-board rise in prices underscores the widespread effect of supply constraints on the olive oil market, affecting both premium and private label brands alike.

    What Strategies Can Retailers and Brands Employ?

    In a market where consumer preferences and price sensitivities are rapidly evolving, retailers and brands must adopt versatile strategies without compromising on profit margins.

    Diversifying Brand Selection

    Retailers can enhance their appeal by offering a diverse range of olive oil brands, thereby stimulating competition among brands based on price, quality, innovation, and customer satisfaction. A well-curated selection that includes well-known brands like Filippo Berio and Bertolli, alongside emerging labels such as Terra Delyss, and premium options like Carapelli, allows retailers to meet a wide array of consumer preferences and budgets.

    For premium outlets, it might be beneficial to introduce more economical options than typically offered to attract budget-conscious consumers. Employing advanced assortment intelligence tools can provide retailers with crucial data, helping them make informed decisions about which brands to stock and promote, ensuring they meet consumer demand effectively while managing inventory costs.

    Data-driven Pricing

    With rising olive oil prices, competitive pricing is more crucial than ever. Retailers must strive to balance competitiveness with margin preservation. It’s essential for retailers to not just passively respond to market price increases but to actively ensure that their offerings are competitively priced relative to the market.

    This involves using sophisticated pricing intelligence tools, such as those provided by DataWeave, which track market trends and competitor pricing actions. These tools enable retailers to implement dynamic pricing strategies that respond promptly to market conditions and consumer demand shifts, helping to optimize sales and profitability.

    Diversifying Sourcing

    The traditional powerhouses of olive oil production, Spain and Italy, are now facing stiff competition from countries like Turkey and Tunisia. This shift is influenced by various factors, including currency fluctuations and changing trade policies, such as the imposition of tariffs on European olive oils by significant importers like the US. Retailers can take advantage of these changes by diversifying their sourcing strategies to include olive oil from non-traditional regions.

    The 2022/2023 season saw remarkable production levels from countries outside the Mediterranean basin, with Iran and China setting new production records. By broadening their supply chains to incorporate these emerging markets, retailers can benefit from lower production costs and introduce unique products to their consumers, enhancing both competitiveness and profit margins.

    Double Down on Private Labels

    Large retailers have successfully used their scale to develop strong private-label brands that can buffer consumers from price hikes in the olive oil market. By focusing on expanding and promoting their private-label offerings, retailers can provide cost-effective alternatives to national brands.

    Private labels generally have lower price points, making them particularly attractive during times of economic pressure and market volatility. Additionally, the development of private labels allows retailers to control more of their supply chain, from pricing to packaging, enabling them to offer high-quality products at competitive prices, thereby retaining customer loyalty and enhancing market share.

    Navigating Market Pressures

    High olive oil prices impact the entire supply chain, presenting varied challenges and opportunities:

    • Producers benefit from higher revenues but face increased pressure to maintain quality and yields in challenging climates. Adapting to these conditions with sustainable practices is crucial.
    • Exporters and Importers navigate tighter margins and greater risks due to tariffs and volume restrictions, requiring agility and strategic planning to adapt to market changes.
    • Retailers must carefully balance competitive pricing with rising procurement costs, affecting consumer affordability and potentially leading to shifts in buying patterns.
    • Consumers may seek cheaper alternatives or reduce their olive oil consumption, which influences overall market demand and pricing stability.

    These dynamics underscore the necessity for retailers and brands to adopt innovative and proactive strategies to navigate the volatile olive oil market effectively. By focusing on adaptive pricing, diversified sourcing, and customer engagement, businesses can enhance their resilience and secure long-term success in this competitive landscape.

    To learn more, talk to us today!

  • How Monitoring and Analyzing  End-User Prices can Help Retailers and Brands Gain a Competitive Edge

    How Monitoring and Analyzing  End-User Prices can Help Retailers and Brands Gain a Competitive Edge

    Retailers and brands are constantly engaged in a fierce battle over prices and discounts. Whether it’s major events like Amazon Prime Day, brand-led sales, or everyday price wars, they depend on pricing intelligence and digital shelf analytics to fine-tune their strategies. With a variety of offers such as sales, promotions, and bundles, determining the actual cost to the customer becomes a complex task. The price set by the brand, the retailer’s offer, and the final amount paid by the customer often vary significantly.

    In their analysis, retailers and brands frequently focus on the listed price or the final sale price, overlooking a critical factor: the “end-user price.” This includes all discounts, taxes, and shipping costs, providing a more accurate picture of what customers are truly willing to pay at checkout.

    Grasping this end-user price is vital for both retailers and brands. For retailers, it helps them stay competitive and refine their promotional strategies. For brands, it offers insights into competitive positioning, net revenue management, and shaping customer price perception.

    However, emphasizing the end-user price is challenging, as it involves comprehending all the intricate elements of pricing.

    How end-user pricing is calculated

    The list price, also known as the manufacturer’s recommended retail price (MSRP), is the initial price set by the brand. This may not always be displayed on marketplaces, especially in categories like grocery. The selling price, on the other hand, is the amount at which a retailer offers the product, often reduced from the list price. The end-user price is the actual amount the customer pays at checkout, which includes taxes, promotions, and other factors that affect the final cost.

    The process involves 3 key stages:

    Step 1: Identifying and categorizing promotional offers

    The first critical step in calculating end-user pricing is to identify and categorize the various promotional offers available for a given product that can reduce the final amount paid by the consumer. These promotions span a wide range of types:

    • Bank Offers: Involving discounts or cash back incentives when paying with specific bank credit or debit cards. For instance, a customer may receive 10% cashback on their purchase by using a specific bank’s card.
    • Bundled Deals: Combining multiple products or services at a discounted bundle price. A common example is a smartphone bundle including the phone itself, a protective case, and earphones at a reduced total cost.
    • Promo Codes/Coupons: Customers can enter promo codes or coupons during checkout to unlock special discounted prices or percentage-off offers, like 20% off a hotel booking, or even a special brand discount personalized for their needs (think loyalty offers and in-app promotions).
    • Shipping Offers: These include free shipping or reduced shipping fees for certain products or orders, such as free delivery on orders above a set amount.
    • TPRs (Temporary Price Reductions): TPRs play a significant role in the strategies of most retailers. Brands and retailers use them to encourage shoppers to purchase more of a product or to try a new product they wouldn’t usually buy. A TPR involves reducing the price of a product by more than 5% from its regular shelf price.

    By accurately identifying and classifying each type of promotion available, brands can then calculate the potential end-user pricing points.

    Step 2: Accounting for location and fulfilment nuances (delivery, in-store pickup) that impact final pricing

    Product pricing and promotional offers can vary based on the consumer’s location or ZIP code. Additionally, customers may opt for different fulfilment modes like delivery, shipping, or in-store pickup, which can further impact the final cost. Accurately calculating the end-user price necessitates considering these location-based pricing nuances as well as the chosen fulfilment method.

    In the example below, the selling price is $4.32 for one retailer (on the left in the image) after a discount for online purchase. In another case with Meijer, the item total shows $17.91, but the consumer ends up paying $15.74 after taxes and fees are applied (on the right in the image).

    Step 3: Applying each eligible promotion or offer to the selling price to determine potential end-user price points

    With the various promotional offers and discounts categorized in the previous steps, retailers and brands can now apply each eligible promotion to the product’s selling price. This involves deducting percentages for bank cashback, implementing bundled pricing, applying coupon code discounts, and incorporating shipping promotions.

    For retailers, this step allows them to calculate their true effective selling price to customers after all discounts and promotions. They can then compare this end-user price against competitors to ensure they remain competitively priced.

    For brands, by systematically layering every applicable offer onto the baseline selling price, they can accurately calculate the multiple potential end-user price points a customer may pay at checkout for their products across different retailers and regions.

    Why the end-user price matters

    Optimizing pricing strategies using the end-user price can benefit retailers and brands in several ways:

    • Price Competitiveness: By monitoring end-user pricing, retailers can adjust for discounts and promotional offers to attract customers, while brands can refine their pricing models to stay ahead in the market.
    • Customer Acquisition and Loyalty: Offers, promotions, and discounts directly impact the final price paid by customers, playing a crucial role in attracting new customers and retaining existing ones. For example, Walmart’s competitive pricing in groceries boosts customer loyalty and repeat purchases.
    • Consumer Perception: End-user pricing significantly shapes how consumers perceive both retailers and brands. Competitive pricing and promotional transparency enhance reputation and conversion rates. Amazon, for instance, is known for its competitive pricing and fast deliveries, which strengthen its consumer perception and satisfaction.
    • Sales Volumes: The final checkout price influences affordability and perceived value, directly affecting sales volumes. Both retailers and brands benefit from understanding this, as it guides consumer purchasing decisions and drives revenue streams.
    • Brand Perception: Consistent and transparent pricing enhances the perception of both the retailer and the brand. This not only strengthens the value proposition but also builds consumer trust and fosters long-term loyalty.

    While the listed and selling prices are readily available, calculating the true end-user price is quite complex. It involves meticulous tracking and application of various types of promotions, offers, location-based pricing nuances, and fulfillment costs – an uphill task without robust technological solutions.

    Track and Analyze end-user prices with DataWeave

    DataWeave’s end-user price tracking capability empowers retailers and brands with the insights and tools necessary to comprehend the complexities of pricing dynamics. For retailers, it offers the ability to monitor end-user pricing across various products and categories compared to competitors, ensuring competitiveness after all discounts and enabling optimization of promotional strategies. Brands benefit from informed pricing decisions, optimized strategies across retail channels, and a strengthened position within their industries.

    Our intuitive dashboard presents classified promotions and corresponding end-user prices across retailers, providing both retailers and brands with a transparent, comprehensive view of the end-user pricing landscape.

    Within the detailed product view of DataWeave’s dashboard, the Price and Promotions panel showcases diverse promotions available across different retailers for each product, along with the potential end-user price post-promotions.

    Harness the power of DataWeave’s sophisticated Pricing Intelligence and Digital Shelf Analytics to gain an accurate, real-time understanding of your end-user pricing dynamics. Make data-driven pricing decisions that resonate with customers and propel your brand toward sustained success.

    Find out how DataWeave can empower your eCommerce pricing strategy – get in touch with us today or write to us at contact@dataweave.com!

  • Augmenting AI-powered Product Matching with Human Expertise to Achieve Unparalleled Accuracy

    Augmenting AI-powered Product Matching with Human Expertise to Achieve Unparalleled Accuracy

    In today’s expansive omnichannel commerce landscape, pricing intelligence has become indispensable for retailers seeking to stay competitive and refine their pricing strategies. The sheer magnitude of eCommerce, spanning thousands of websites, billions of SKUs, and various form factors, adds layers of complexity. Consequently, ensuring the accuracy and reliability of competitive insights presents a formidable challenge for retailers aiming to leverage pricing data effectively.

    At the core of any robust pricing intelligence system lies product matching. This process enables retailers to recognize identical or similar products across competitors. Once these matches are identified, tracking prices is a relatively more straightforward task, facilitating ongoing analysis and informed decision-making.

    Accurate matching is crucial for meaningful price comparisons and tailoring product assortments. The challenge is matching products is often complicated, especially for non-local brands, niche categories, or items lacking consistent global identifiers. It becomes even trickier when trying to match very similar but not identical products. A comprehensive approach that compares and analyzes multiple attributes like product titles, descriptions, images and more is essential.

    Artificial intelligence algorithms are commonly used to automate product matching, leveraging machine learning techniques to analyze patterns in images and text data. While AI can adapt and improve over time, the question remains: Can it fully address the complexities of product matching on its own?

    The reality is that many retailers still struggle with incomplete, inaccurate, or outdated product data, despite these AI-powered product matching solutions. This can lead to suboptimal pricing decisions, missed opportunities, and reduced competitiveness.

    Challenges in an ‘AI-only’ Approach to Product Matching

    While AI plays a vital role in automated product matching solutions, there are complexities that AI alone cannot fully address:

    Subjectivity in Matching Criteria

    Some product categories have subjective or hard-to-quantify criteria for determining similarity. AI learns from historical data, so it may struggle with nuanced aspects like:

    Aesthetics, style, and design: In the Fashion and Jewellery vertical, for example, products are matched according to attributes like style, aesthetics, design – all of which have some subjectivity involved.

    Quantity/packaging variations: In the grocery sector, variations in product packaging and quantities can introduce complexities that require subjective decision-making. For example, apples may be sold in different packaging like a 0.5 kg bag or a pack of 4 individual apples. Determining if these different packaging options should be considered equivalent often involves making a qualitative judgment call, rather than a clear-cut objective decision.

    Matching product sets: For categories like home furnishings, the focus is often on matching coordinated sets rather than individual items. For example, in the bedroom category, matching may involve grouping together an entire set of complementary furniture like a bed frame, dresser, and wardrobe based on their cohesive design and style. This goes beyond simply making one-to-one product associations, requiring more nuanced judgments about aesthetic coordination.

    Contextual Factor

    Products can have regional preferences, cultural differences, or evolving trends that impact how they are matched. AI may miss important context like Local/regional product names or distinct brand names across countries.

    For instance, in the image we see Sprite (in the US) is branded Xubei in China. Continuous human curation is needed to help AI adapt to this context.

    High Accuracy & Coverage Expectations

    Retailers rely on AI powered and automated pricing adjustments based on product matching for insight. To ensure that pricing recommendations and updates are accurate, accurate product matching is crucial. For this, simply identifying similar top results is not enough – the process must comprehensively capture all relevant matches. While AI excels at finding the top groupings with around 80% accuracy, even small matching errors can have significant consequences.

    As AI matching improves, customer expectations may rise even higher. If AI achieves 90% accuracy, for instance, SLAs may demand over 95%. Reaching such a high level of accuracy is very challenging for AI alone, especially when faced with incomplete data, contextual nuances, evolving trends, and subjective matching criteria across products and categories.

    The solution is to combine the power of AI with human expertise. This is the key to achieving true data veracity – the accuracy, freshness, and comprehensive coverage required for precise and reliable product matching.

    Human-in-the-Loop Approach for Elevated Product Matching

    Human intelligence and quality testing can elevate the AI powered product matching process by addressing key challenges:

    • Matching Validation: AI algorithms may identify product matches with 80-90% accuracy initially. Having humans validate these AI-suggested matches allows for correcting errors and pushing the accuracy close to 100%. As humans flag issues, provide context, and re-label incorrect predictions, it allows the AI model to learn and enhance its reliability for complex, high-stakes decisions.
    • Applying Contextual Judgment: For subjective matching criteria like aesthetics, design, and categorizing product sets, human discernment is needed. Humans can make nuanced judgments beyond just quantitative rules, ensuring meaningful apples-to-apples product comparisons. Their contextual understanding augments AI’s capabilities.
    • Continuous Learning Via Feedback Loop: Product experts possess rich category knowledge across markets. Integrating this human insight through an iterative feedback loop helps AI models quickly learn and adapt to changing trends, preferences, and context. As humans explain their match assessments, the AI continuously enhances its precision over time.

    By combining AI’s automation and scale with human validation, judgment, and knowledge curation, pricing intelligence solutions can achieve the accuracy and coverage demanded for actionable competitive pricing insights.

    DataWeave’s Data Veracity Framework: A Scalable Workflow Combining AI and Human Expertise

    Given the vast number of products, retailers, and brands that exist today, any product matching solution must be highly scalable. At DataWeave, we bring you such a scalable workflow to address these complexities by integrating human expertise with AI-driven automation. The image below outlines our approach for combining AI with human intelligence in a seamless, scalable workflow for accurate product matching:

    Retailers and brands can benefit in several ways with this workflow, as listed below.

    Several Rounds of Data Verification Due to Hierarchical Validation Teams

    The workflow employs a hierarchical validation team of Leads and Executives to efficiently integrate human expertise without creating bottlenecks. Verification Leads play a pivotal role in managing the distribution of product matches identified by DataWeave’s AI model to the Verification Executives.

    The Executives then meticulously validate these AI-suggested matches, adding any missing product associations and removing inaccurate matches. After validation, the matched product groups are sent back to the Leads, who perform random sampling checks to ensure quality.

    Throughout this entire workflow, feedback and suggestions are continuously gathered from both the Executives and Leads. This curated input is then incorporated back into DataWeave’s AI model, allowing it to learn and improve its matching accuracy on an ongoing basis.

    This hierarchical structure ensures that human validation seamlessly scales alongside the AI’s matching capabilities. Leveraging the respective strengths of AI automation and human expertise in an iterative feedback loop prevents operational bottlenecks while steadily elevating overall accuracy.

    Confidence-based Distribution of Matched Articles for Validation

    The AI model assigns confidence scores, differentiating high-confidence (>95%) and low-confidence matches. For high-confidence groups, executives simply remove incorrect matches – a quicker process. Low-confidence matches require more human effort in adding/removing matches.

    As the AI model improves over time with feedback, the share of high-confidence matches increases, making validation more efficient and swift.

    Automated, Standardized Process with Iterative Feedback Loop

    The entire workflow is standardized and automated, with verification metrics seamlessly tracked. At each step, feedback captured from both leads and executives flows back into the AI, enhancing its matching accuracy and coverage iteratively.

    DataWeave’s closed-loop system of AI automation with hierarchical human validation allows product matching to achieve comprehensive accuracy at a vast scale.

    Unleash the Power Accurate and Comprehensive Product Matching

    In summary, combining AI and human expertise in product matching is crucial for retailers navigating the complexities of omnichannel retail. While AI algorithms excel in automation, they often struggle with subjective criteria and contextual nuances. DataWeave’s approach integrates AI-driven automation with human validation, delivering the industry’s most accurate product matching capabilities, enabling actionable competitive pricing insights.

    To learn more, reach out to us today!

  • Why Localized, Store-Specific Pricing and Availability Insights is Critical for Consumer Brands

    Why Localized, Store-Specific Pricing and Availability Insights is Critical for Consumer Brands

    Brands are becoming increasingly proficient in monitoring and refining their presence on online marketplaces, utilizing Digital Shelf Analytics to gather and analyze data on their online performance. These tools offer invaluable insights into enhancing visibility, adjusting pricing strategies, and improving content quality on eCommerce sites.

    Yet, as the retail landscape shifts towards a more integrated omnichannel approach, it’s crucial for brands, particularly those in CPG, to apply similar strategies to their offline channels. For brands that count physical stores among their primary sales channels, gaining localized insights is key to boosting in-store sales performance.

    Collecting shelf data from offline channels presents more challenges than online. Traditional methods, such as physical store visits, often fall short in reliability, timeliness, scale, and level of coverage.

    However, the world of eCommerce provides a solution. As part of the effort to facilitate options like buy-online-pickup-in-store (BOPIS) for shoppers, major retailers make store-specific product details available online. Consumers often go online and select their nearest store to make purchases digitally before choosing a fulfillment option like picking up at the store or direct delivery. Aggregating this store-level information offers brands critical insights into pricing and inventory across a vast network of stores, enabling them to make informed decisions that improve pricing strategies and supply chain efficiency, thus minimizing stockouts in crucial markets.

    Further, as consumers increasingly seek flexibility in how they receive their purchases—be it through in-store pickup, delivery, or shipping—brands need to adeptly monitor pricing and availability for these different fulfilment options. Such granular insight empowers brands to adapt swiftly and maintain a competitive edge in today’s dynamic retail environment.

    Why does monitoring pricing and availability data across stores matter to brands?

    • Hyperlocal Competitive Strategy: This allows brands to adjust their pricing strategies based on regional competition. By understanding the local market, brands can decide whether to position themselves as cost leaders or premium offerings. In particular, this is indispensable for Net Revenue Management (NRM) teams.
    • Targeted Marketing Initiatives: Understanding regional price and availability enables brands to customize their marketing efforts for specific markets. By aligning their strategies with local demand trends and inventory levels, brands can more effectively engage their target audiences.
    • Efficient Inventory Management: By keeping a close eye on store-level data, brands can better manage their stock, ensuring high-demand products are readily available while minimizing the risk of overstocking or running out of stock.
    • Minimum Advertised Price (MAP) Monitoring: While brands cannot directly control retail pricing, staying updated on pricing trends helps them adjust their MAP to reflect the competitive landscape, consumer expectations, cost considerations, and regional differences. A strategic approach to MAP management supports brand competitiveness and profitability in a fluctuating market.

    DataWeave’s Digital Shelf Analytics solutions equip brands with the necessary data and insights to do all of the above.

    DataWeave’s Digital Shelf Analytics is location-aware

    DataWeave’s Digital Shelf Analytics platform stands out with its sophisticated location-aware capabilities, enabling the aggregation and analysis of localized pricing, promotions, and availability data. Our platform defines locations using a range of identifiers, including latitudes and longitudes, ZIP codes, or specific stores, and can aggregate this data for particular states or regions.

    The strength of the platform lies in its robust data collection and processing framework, which operates seamlessly across thousands of stores and regions. This system is designed to operate at configurable intervals—daily, weekly, or monthly—allowing brands to keep a vigilant eye on product availability, pricing strategies, and delivery timelines based on the selected fulfillment option.

    Unlike many other providers, who may provide limited insights from a sample of stores, our solution delivers exhaustive analytics from every storefront. This comprehensive approach grants brands a strategic edge, facilitating efficient inventory tracking, precise pricing adjustments, and rapid responses to fluctuating market dynamics. It cultivates brand consistency and loyalty by enabling brands to adapt proactively to the changing landscape.

    Aggregated store-level digital shelf insights via DataWeave

    In the summarized view shown above, a brand can track how its various products are positioned across stores and retailers like Walmart, Amazon, Meijer, and others in the US.

    Using DataWeave, brands can easily see important metrics like availability levels, prices, and other metrics across these stores gaining immediate visibility without having to physically audit them. the brand can track the same metrics for products across competitor brands and inform its own pricing, stock, and assortment decisions.

    Store-level availability insights

    We provide a comprehensive view of product availability, highlighting the distribution of out-of-stock (OOS) scenarios across various retailers and pinpointing the availability status throughout a brand’s network of stores. This capability enables swift identification of widespread availability issues, offering a bird’s-eye view of where shortages are most pronounced. By simply hovering over a specific location, detailed information about stock status and pricing for individual stores becomes accessible.

    Such insights are crucial for brands to adapt their strategies, mitigate risks, and ensure they meet consumer needs despite the ever-changing retail ecosystem.

    Store-level pricing insights

    Retailers often adopt different pricing strategies to deal with margin pressure, local competition, and surplus stock. Grasping these pricing dynamics at a hyperlocal level enables brands to tailor their strategies effectively to maintain a competitive edge.

    Our platform offers an in-depth look at how prices vary among retailers, across different stores, and throughout various regions. This analysis reveals the nuanced pricing tactics employed by retailers on a regional scale.

    For example, brands might see that some retailers, like Kroger and Walmart in the chart below, maintain consistent pricing across their outlets, demonstrating a uniform pricing strategy. In contrast, others, such as Meijer and Shoprite, might adjust their prices to match local market conditions, indicating a more localized approach to pricing.

    With DataWeave, brands can dive deeper into the pricing landscape of a specific retailer, examining a price map that provides detailed information on pricing at the store level upon hovering over a given location.

    By presenting a historical analysis of average selling prices across different retailers, we equip brands with the insights needed to understand past pricing strategies and anticipate future trends, helping them to strategize more effectively in an ever-evolving market.

    Digital Shelf Analytics that work for both eCommerce and brick-and-mortar store data

    While established brands have made strides in gathering online pricing and availability data through Digital Shelf Analytics solutions, integrating comprehensive insights from both brick-and-mortar and eCommerce channels often remains a challenge.

    DataWeave stands out for its capacity to collect data across diverse digital platforms, including desktop sites, mobile sites, and mobile applications. This capability ensures that omnichannel brands can have a holistic view of their pricing, promotional, and inventory strategies across all locations and digital landscapes.

    Leveraging localized Digital Shelf Analytics to understand the intricacies of pricing and availability at the store level allows brands to fine-tune their approaches, swiftly adapt to local market shifts, and uphold a unified brand presence across the digital and offline spheres. This strategic agility places them in a favorable competitive position, enhancing customer satisfaction and trust, which are crucial for sustained success.

    Know more about DataWeave’s Digital Shelf Analytics here.

    Schedule a call with a specialist to see how it can work for your brand.

  • How DataWeave Enhances Transparency in Competitive Pricing Intelligence for Retailers

    How DataWeave Enhances Transparency in Competitive Pricing Intelligence for Retailers

    Retailers heavily depend on pricing intelligence solutions to consistently achieve and uphold their desired competitive pricing positions in the market. The effectiveness of these solutions, however, hinges on the quality of the underlying data, along with the coverage of product matches across websites.

    As a retailer, gaining complete confidence in your pricing intelligence system requires a focus on the trinity of data quality:

    • Accuracy: Accurate product matching ensures that the right set of competitor product(s) are correctly grouped together along with yours. It ensures that decisions taken by pricing managers to drive competitive pricing and the desired price image are based on reliable apples-to-apples product comparisons.
    • Freshness: Timely data is paramount in navigating the dynamic market landscape. Up-to-date SKU data from competitors enables retailers to promptly adjust pricing strategies in response to market shifts, competitor promotions, or changes in customer demand.
    • Product matching coverage: Comprehensive product matching coverage ensures that products are thoroughly matched with similar or identical competitor products. This involves accurately matching variations in size, weight, color, and other attributes. A higher coverage ensures that retailers seize all available opportunities for price improvement at any given time, directly impacting revenues and margins.

    However, the reality is that untimely data and incomplete product matches have been persistent challenges for pricing teams, compromising their pricing actions. Inaccurate or incomplete data can lead to suboptimal decisions, missed opportunities, and reduced competitiveness in the market.

    What’s worse than poor-quality data? Poor-quality data masquerading as accurate data.

    In many instances, retailers face a significant challenge in obtaining comprehensive visibility into crucial data quality parameters. If they suspect the data quality of their provider is not up to the mark, they are often compelled to manually request reports from their provider to investigate further. This lack of transparency not only hampers their pricing operations but also impedes the troubleshooting process and decision-making, slowing down crucial aspects of their business.

    We’ve heard about this problem from dozens of our retail customers for a while. Now, we’ve solved it.

    DataWeave’s Data Statistics and SKU Management Capability Enhances Data Transparency

    DataWeave’s Data Statistics Dashboard, offered as part of our Pricing Intelligence solution, enables pricing teams to gain unparalleled visibility into their product matches, SKU data freshness, and accuracy.

    It enables retailers to autonomously assess and manage SKU data quality and product matches independently—a crucial aspect of ensuring the best outcomes in the dynamic landscape of eCommerce.

    Beyond providing transparency and visibility into data quality and product matches, the dashboard facilitates proactive data quality management. Users can flag incorrect matches and address various data quality issues, ensuring a proactive approach to maintaining the highest standards.

    Retailers can benefit in several ways with this dashboard, as listed below.

    View Product Match Rates Across Websites

    The dashboard helps retailers track match rates to gauge their health. High product match rates signify that pricing teams can move forward in their pricing actions with confidence. Low match rates would be a cause for further investigation, to better understand the underlying challenges, perhaps within a specific category or competitor website.

    Our dashboard presents both summary statistics on matches and data crawls as well as detailed snapshots and trend charts, providing users with a holistic and detailed perspective of their product matches.

    Additionally, the dashboard provides category-wise snapshots of reference products and their matching counterparts across various retailers, allowing users to focus on areas with lower match rates, investigate underlying reasons, and develop strategies for speedy resolution.

    Track Data Freshness Easily

    The dashboard enables pricing teams to monitor the timeliness of pricing data and assess its recency. In the dynamic realm of eCommerce, having up-to-date data is essential for making impactful pricing decisions. The dashboard’s presentation of freshness rates ensures that pricing teams are armed with the latest product details and pricing information across competitors.

    Within the dashboard, users can readily observe the count of products updated with the most recent pricing data. This feature provides insights into any temporary data capture failures that may have led to a decrease in data freshness. Armed with this information, users can adapt their pricing decisions accordingly, taking into consideration these temporary gaps in fresh data. This proactive approach ensures that pricing strategies remain agile and responsive to fluctuations in data quality.

    Proactively Manage Product Matches

    The dashboard provides users with proactive control over managing product matches within their current bundles via the ‘Data Management’ panel. This functionality empowers users to verify, add, flag, or delete product matches, offering a hands-on approach to refining the matching process. Despite the deployment of robust matching algorithms that achieve industry-leading match rates, occasional instances may arise where specific matches are overlooked or misclassified. In such cases, users play a pivotal role in fine-tuning the matching process to ensure accuracy.

    The interface’s flexibility extends to accommodating product variants and enables users to manage product matches based on store location. Additionally, the platform facilitates bulk match uploads, streamlining the process for users to efficiently handle large volumes of matching data. This versatility ensures that users have the tools they need to navigate and customize the matching process according to the nuances of their specific product landscape.

    Gain Unparalleled Visibility into your Data Quality

    With DataWeave’s Pricing Intelligence, users gain the capability to delve deep into their product data, scrutinize match rates, assess data freshness, and independently manage their product matches. This approach is instrumental in fostering informed and effective decisions, optimizing inventory management, and securing a competitive edge in the dynamic world of online retail.

    To learn more, reach out to us today!

  • The Indian E-Commerce Showdown: Unveiling the Price War Between Flipkart’s Big Billion Days and Amazon’s Great Indian Festival

    The Indian E-Commerce Showdown: Unveiling the Price War Between Flipkart’s Big Billion Days and Amazon’s Great Indian Festival

    India’s homegrown eCommerce giant Flipkart, now backed by Walmart, reported a record 1.4 Billion customer visits during the early access phase and throughout the seven days of its premier shopping event, the Big Billion Days, launched on 8th October 2023. Competing with Flipkart, Amazon’s Great Indian Festival sale event started on October 8th as well and saw a whopping 95 Million customer visits to the website within the first 48 hours of the event.

    For consumers, the most pressing question was, “Who offered more attractive deals and lower prices during these sale events?”

    To answer this question, we leveraged our proprietary data aggregation and analysis platform and analyzed the prices and discounts on Amazon and Flipkart across key product categories..

    The details of our sample are mentioned below:

    • Number of SKUs Analyzed: 30,000+
    • Websites: Amazon.com and Flipkart.com
    • Categories: Apparel, Home & Furniture, Electronics, Health & Beauty
    • Dates: 7th Oct 2023 to 22nd Oct 2023

    Key Findings

    Based on our analysis, the Big Billion Days by Flipkart showcased relatively higher price reductions across categories compared to the Great Indian Festival sale by Amazon. The Apparel category on Flipkart saw the highest average discount at 50.6%. The Health & Beauty category had the lowest discount across Flipkart at 39.4% and Amazon at 33%.

    Overall, Flipkart offered higher discounts in each product category. It is clear that the retailer invested heavily in leveraging its supplier partnerships with key brands or sellers to enable them to offer higher discounts, thereby attracting more customers.

    Next, let’s take a closer look at each product category.

    Apparel

    While a majority of retailers expected demand for apparel and clothing to dip this festive season in India, eCommerce giants like Amazon and Flipkart are likely to recognize the strong consumer inclination towards apparel during this period.

    In the detailed assessment of Apparel sub-categories, Women’s Dresses, Women’s Tops, Men’s Shirts, Men’s Shoes, and Women’s Innerwear emerged as the segments showcasing the most substantial discounts during the sale events. While Flipkart offered higher average discounts across all sub-categories, Amazon offered competitive discounts as well.

    We observed significant differences in the average discounts across brands between Flipkart’s Big Billion Days and Amazon’s Great Indian Festival. Reinforcing the significant discounts on the Shoes subcategory, brands like Red Tape, Arrow, Adidas, Reebok, Nike, and more offered extensive discounts on both Flipkart and Amazon. Notably, Adidas and Reebok offered better deals on Amazon’s Great Indian Festival as compared to Flipkart.

    One8 by Virat Kohli had a significantly lower discount on Amazon compared to Flipkart, indicating an exclusive partnership.

    For brands, however, reducing prices is just one approach to entice shoppers. They must also guarantee their prominent presence and easy discoverability within Amazon and Flipkart search results. To gain insight into this, we monitored brands’ Share of Search across various frequently used search terms in addition to the discounts they provided. The Share of Search denotes the portion of a brand’s products within the top 20 search results for a specific search query.

    Our data indicates that Jockey and Speedo gained in Share of Search on Flipkart, but reduced discoverability on Amazon. Van Heusen fell behind in search results on Flipkart but showed a higher Share of Search on Amazon.

    Home & Furniture

    With demand for home and furniture products picking up in October, right before the festive season, Amazon and Flipkart offered significant discounts in this category.

    Discounts on both Amazon and Flipkart hovered around 50%. Across a few subcategories, Flipkart offered slightly lower discounts compared to Amazon. Only Luggage, Rugs, Sofas, and Entertainment Units saw lower markdowns on Flipkart during the Big Billion Days. 

    Dishwashers and Washer/ Dryers saw higher discounts on Amazon compared to Flipkart. The significant discounts on these products on Amazon possibly point to changing consumer preferences, as demand for these products is traditionally low in India, but seems to be growing.

    When it comes to Home & Furniture brands, Nasher Miles, Safari, Aristocrat, VIP, and American Tourister, luggage brands mostly, offered higher discounts on Flipkart, followed closely by Amazon.

    In terms of Share of Search, Skybags had high discoverability on both Flipkart and Amazon. The brand leveraged a strategy of offering big discounts this festive season as well as ensuring prominent placement in search results. Wildcraft lost out on its discoverability on Flipkart in contrast to its prominence on Amazon. Duroflex saw lower searchability on Amazon compared to Flipkart’s Big Billion Days.

    Consumer Electronics

    The Consumer Electronics and Appliances Manufacturers Association (CEAMA) expected an uptick in sales of consumer electronics products this festive season in India. With more consumers buying premium products using credit cards and EMIs, demand for expensive, high-end electronics was expected to increase.

    Again, average discounts in this category hovered around 50% on Flipkart and Amazon.

    Across electronics subcategories, Smartwatches, Earbuds, and Drones had the highest markdowns with Flipkart leading the pack during the Big Billion Days. Amazon offered relatively higher discounts at 44.9% on the TV subcategory, compared to Flipkart’s 40.6%.

    Speakers, Laptops, Smartphones, and Tablets also saw lower markdowns on Amazon compared to Flipkart. Amazon was the official partner for the launch of many high-level smartphones and products in September-October, contributing to the higher markdowns in the subcategory.

    Across brands, Lenovo’s discounts were the most differentiated between the two sites, with the brand offering higher discounts on Amazon (45.4%) compared to Flipkart (24.7%). Noise offered the highest discounts at 72.5% on Amazon and 52.8% on Flipkart. Brands like Boat and Zebronics, also saw lower discounts on Flipkart.

    Mi and JBL offered deeper discounts on Flipkart’s Big Billion Days. Apple meanwhile stands out with only 11.83% discounts on Amazon, but the brand offered impressive 31.4% discounts on Flipkart.

    Samsung dominated the Share of Search on Amazon at 15.7%, compared to only 2.6% on Flipkart. Apple and Lenovo also saw higher discoverability on Amazon. On Flipkart, JBL and Skullcandy stand out as brands with high search visibility.

    Health & Beauty

    The Health & Beauty category saw the lowest markdowns with only 39.4% discounts on Flipkart and 33% on Amazon.

    In the subcategories analyzed, Electric Toothbrushes had relatively high markdowns across both sites. Staple and lower priced subcategories like Toothpaste had the lowest markdowns across both sale events, with Amazon offering only 17.4% average discounts.

    Across brands, Beardo, a leading beard care brand, offered significantly higher discounts on Amazon compared to Flipkart. Most other well-known brands, including Nivea and Vaseline, saw higher discounts on Amazon compared to Flipkart. Only Tresmme and Dove were exceptions with higher discounts on Flipkart.

    In terms of Share of Search, once again, Beardo was the most discoverable brand in this category. Brands like Dove, Pond’s, Swiss Beauty, and Tresemme saw a lower Share of Search on Flipkart compared to Amazon.

    Navigating the Competitive Landscape: How To Thrive During Sale Events

    Amazon and Flipkart’s strategic pricing during the Big Billion Days and the Great Indian Festival Sale reflects a balance of profitability, inventory, and competition. Competitive pricing insights empower retailers to make informed decisions, optimize strategies, and thrive during high-stakes sale events with timely and relevant insights at a massive scale.

    To learn more about how you can leverage competitive pricing insights to stay ahead of the game during sale events, reach out to us today!

  • Why Unit of Measure Normalization is Critical For Accurate and Actionable Competitive Pricing Intelligence

    Why Unit of Measure Normalization is Critical For Accurate and Actionable Competitive Pricing Intelligence

    Competitive pricing intelligence is pivotal for retailers seeking to analyze their product pricing in relation to competitors. This practice is essential for ensuring that their product range maintains a competitive edge, meeting both customer expectations and market demands consistently.

    Product matching serves as a foundational element within any competitive pricing intelligence solution. Products are frequently presented in varying formats across different websites, featuring distinct titles, images, and descriptions. Undertaking this process at a significant scale is highly intricate due to numerous factors. One such complication arises from the fact that products are often displayed with differing units of measurement on various websites.

    The Challenge of Varying Units

    In certain product categories, retailers often offer the same item in varying volumes, quantities, or weights. For instance, a clothing item might be available as a single piece or in packs of 2 or 3, while grocery brands commonly sell eggs in counts of 6, 12, or 24.

    Consider this example: a quick glance might suggest that an 850g pack of Kellogg’s Corn Flakes priced at $5 is a better deal than a 980g pack of Nestle Cornflakes priced at $5.2. However, this assumption can be deceptive. In reality, the latter offers better value for your money, a fact that only becomes evident through price comparisons after standardizing the units.

    This issue is particularly relevant due to the prevalence of “shrinkflation,” where brands adjust packaging sizes or quantities to offset inflation while keeping prices seemingly low. When quantities, pack sizes, weight, etc. reduce instead of prices increasing, it’s important that this change is considered while analyzing competitive pricing.

    Normalizing Units of Measure

    In order to effectively compare prices among different competitors, retailers must standardize the diverse units of measurement they encounter. This standardization (or normalization) is crucial because price comparisons should extend beyond individual product SKUs to accommodate variations in package sizes and quantities. It’s essential to normalize units, ranging from “each” (ea) for individual items to “dozen” (dz) for sets, and from “pounds” (lb), “kilograms” (kg), “liters” (ltr), to “gallons” (gal) for various product types.

    For example, a predetermined base unit of measure, such as 100 grams for a specific product like cornflakes, serves as the reference point. The unit-normalized price for any cornflake product would then be the price per 100 grams. In the example provided, this reveals that Kellogg’s is priced at $0.59 per 100 grams, while Nestle is priced at $0.53 per 100 grams.

    Various Categories of Unit Normalization

    1. Weight Normalization

    Retailers frequently feature products with weight measurements expressed in grams (g), kilograms (kg), pounds (lbs), or ounces (oz).

    2. Quantity or Pack Size Normalization

    Products are also often featured with varying pick sizes or quantities in each SKU.

    mounting hardware kit

    3. Volume or Capacity Normalization

    Products can also vary in volumes or capacities with units like liters (L) or fluid ounces (fl oz).

    DataWeave’s Unit Normalized Pricing Intelligence Solution

    DataWeave’s highly sophisticated product matching engine can match the same or similar products and normalize their units of measurement, leading to highly accurate and actionable competitive pricing insights. It standardizes different units of measurement, like weight, quantity, and volume, ensuring fair comparisons across similar and exact matched products.

    Retailers have the flexibility to view pricing insights either with retailer units or normalized units. This capability empowers retailers and analysts to perform accurate, in-depth analyses of pricing information at a product level.

    In some scenarios, analyzing unit normalized pricing reflects pricing trends and competitiveness more accurately than retail price alone. This is particularly true for categories like CPG, where products are sold in diverse units of measure. For instance, in the example shown here, we can view a comparison of price position trends for the category of Fruits and Vegetables based on both retail price and unit price.

    The difference is striking: the original retail price based analysis shows a stagnation in price position, whereas unit normalized pricing analysis reflects a more dynamic pricing scenario.

    With DataWeave, retailers can specify which units to compare, ensuring that comparisons are made accurately. For example, a retailer can specify that unit price comparisons apply only to 8, 12, or 16-ounce packs, as well as 1 or 3-pound packs, but not to 10 and 25-pound bags. This precision ensures that products are matched correctly, and prices are represented for appropriately normalized units, leading to more accurate pricing insights.

    To learn more about this capability, write to us at contact@dataweave.com or visit our website today!

  • DataWeave Launches PricingPulse: Empowering Retail Leaders With Comprehensive and Strategic Pricing Insights

    DataWeave Launches PricingPulse: Empowering Retail Leaders With Comprehensive and Strategic Pricing Insights

    In the evolving retail landscape, success often hinges on a singular focal point: pricing. A recent Statista survey revealed that 70% of US online users prioritize competitive pricing in their digital shopping choices. In this cutthroat arena, where surpassing rivals is paramount, a deep comprehension of pricing nuances is no longer just an edge, but a necessity.

    Retailers are increasingly adopting pricing intelligence solutions that meticulously dissect competitor pricing data in comparison to their own, down to the SKU level. This analysis empowers their pricing teams with the insights they need to price their products competitively on a day-to-day basis.

    However, in a landscape where a staggering 50 million price changes occur daily, reliance on a reactive pricing intelligence solution, though effective in many ways, often falls short. To develop a strategic and predictive pricing engine, retailers also need the ability to track historical pricing relative to market conditions, competitor actions, seasonality, promptness of competitor pricing actions, and more. This would be particularly useful for senior retail pricing and business unit leaders as they look to gain a strategic perspective on their competitive pricing health. However, even today’s leading providers of retail pricing intelligence solutions lack in this area. This results in a relatively myopic view of competitive pricing even in large retail organizations.

    Introducing DataWeave’s PricingPulse

    DataWeave’s PricingPulse helps retail leaders better understand their competitive pricing strategies in comparison to relevant market dynamics over time. The capability bridges the gap between day-to-day competitive pricing operations and long-term strategic pricing analysis and actions, enabling senior retail pricing leaders to untangle the complexities of their pricing strategies. Delivered as a dashboard, the view offers an elevated vantage point for industry-wide pricing dynamics, empowering retailers with the foresight needed to navigate market shifts, predict vulnerabilities, and capitalize on new opportunities.

    PricingPulse is provided to all DataWeave retail customers as an add-on to our Pricing Intelligence solution.

    The insights offered by PricingPulse enable retailers to answer pivotal questions about competitor pricing behaviors, price leadership across categories, timing of price changes, and the effectiveness of capitalizing on price improvement opportunities. Some of the questions that PricingPulse offers answers to include:

    • How frequently are my competitors changing prices and for which products?
    • How does my price leadership vary across key product categories?
    • Which day of the week or month do my competitors change their pricing most and least frequently?
    • How well do I seize on price improvement opportunities over time?

    Strategic Pricing Views Via PricingPulse

    In the following section, we share a few views available to retail leaders via our PricingPulse dashboard. For a complete list of insights available on the dashboard, request a demo today.

    Competitive Price Leadership Across Retailers and Categories

    This view provides retailers with an overview of the price leaders across various product categories and how it changes with time. More often than not, retailers would aim to gain price leadership in certain categories, while maintaining healthy margins in others.

    Retailers can also gauge their consistency and effectiveness in maintaining a competitive edge for key categories over time. They can fortify areas of strength and identify opportunity areas to optimize their pricing.

    In addition, the dashboard tracks a retailer’s price index across categories, a measure that determines its price competitiveness.

    The price index is determined by dividing the retailer’s price by the lowest price offered by any of its competitors. A ratio lesser than 1 indicates that the retailer is the lowest priced in the market. This measure is also presented for competitors, providing insights into competitors that are most attractively priced in the market. A timeline trend of this metric helps track how price leadership among retailers changes over time.

    Price Change Trends

    This view provides a summary of the level of price changes by a retailer and its competitors over a period of time, which includes the average magnitude of price changes as well as the proportion of the retailer’s assortment that underwent these price changes.

    In addition, the number of price changes each month are provided for each retailer. This is further broken down into the total number of price changes during each day of the week.

    These insights help retailers determine which competitors are most and least active in their pricing activities, how aggressive the pricing actions are, and if there are any specific price change patterns followed in terms of the days of the week or month.

    Price Improvement Opportunities and Actions

    The dashboard actively reports on price improvement opportunities, which could include either a price increase opportunity or a price decrease opportunity, for a retailer and its competitors across categories over time. A price increase opportunity occurs when a product is significantly under priced (by more than 2%) and a price decrease opportunity occurs when a product is significantly overpriced (by more than 2%).

    Further, the retailer gains insight into how many price improvement opportunities were actually acted on within 15 days of the opportunity presenting itself. This “action rate” helps retailers quantify how well they seize on price improvement opportunities, which eventually result in higher sales and margins. The dashboard also reports on the average number of days it took for a retailer to act on a price improvement opportunity, thereby quantifying the responsiveness and agility of pricing teams.

    This is especially useful for pricing leaders to “audit” or evaluate the performance of their pricing teams. When similar insights are viewed for a set of competitors as well, retailers can better understand the level of sophistication of their competitors’ pricing operations.

    Ready to Elevate Your Pricing Game?

    The launch of DataWeave’s PricingPulse marks a significant advancement in the realm of pricing solutions for retail leaders. As the retail landscape undergoes continuous transformation, the significance of precise pricing strategies cannot be overstated. PricingPulse is the first and only pricing view in the industry to bridge the gap between tactical pricing decisions and comprehensive strategic analysis.

    In a world where agility and foresight are crucial, PricingPulse equips retail leaders with the ability to predict competitor actions, optimize pricing strategies, and stay ahead of the competition.

    If you are a senior pricing leader or retail business unit head, reach out to us today to either sign up or learn more!

  • Navigating the Turbulent Home and Furniture eCommerce Market in 2023 with the Power of Competitive Intelligence

    Navigating the Turbulent Home and Furniture eCommerce Market in 2023 with the Power of Competitive Intelligence

    The home and furniture retail industry is going through a turbulent time. As inflation reared its head mid-2022, leading retailers in the category have been grappling with the higher costs associated with producing and distributing their products, as well as reduced shopper demand. The rising costs of raw materials, transportation, and labor have had a direct impact on the pricing dynamics within the industry. For example, reports indicate container rates soared to nearly 10 times pre-pandemic levels towards the end of 2021.

    Furthermore, shoppers’ spending power has been constrained, while higher interest rates have suppressed demand. Retailers have had to adapt their assortment and pricing strategies to cater to a wider range of shopper preferences driven by changing lifestyles and a growing emphasis on sustainability. Post-pandemic, demand has been primarily driven by affluent shoppers.

    Towards the end of 2021, due to supply delays and disruptions, retailers heavily stocked up on available products. However, when demand subsequently decreased in 2022, they were left with a significant amount of unsold stock that was purchased at high rates. This put them in a difficult situation, as they had an excess of products but were unable to sell them even at reduced prices without impacting their profit margins. Additionally, staying competitive in a rapidly changing market environment was equally important.

    Given this context, it is crucial for home and furniture retailers to adopt a data-driven approach that utilizes competitive and market insights to consistently maintain or increase their online sell-through rates. DataWeave’s Commerce Intelligence solution offers exactly that, empowering retailers across various industry segments to stay updated on evolving consumer trends and competitor actions.

    To gain a better understanding of the pricing strategies employed by leading home and furniture retailers throughout the past year, we leveraged our proprietary data aggregation and analysis platform to track and analyze the pricing of a wide range of products across multiple retailers and subcategories within the industry.

    Our Research Methodology

    • Number of SKUs: 400,000+
    • Key retailers tracked: Amazon, Wayfair, Home Depot, Overstock, Target, Walmart
    • Key categories reported: Home and Office, Bed and Bath, Bathroom, Bedroom, Decorative, Dining Room, Kitchen, Garden & Patio, Hardware
    • Timeline of analysis: April 2022 to April 2023

    Our Findings

    Interestingly, our analysis indicates that average prices in the home and furniture category rose by around 5% between March 2022 and April 2023. However, there have been seasonal fluctuations in the prices over the course of the year.

    Among the various subcategories, the most substantial price surge was observed in home office equipment, with an uptick of 9.3% in January 2023 when compared to March 2022. The surge in demand for home office furniture, fueled by the widespread adoption of work from home arrangements, played a pivotal role in depleting inventories and consequently driving up prices. Additionally, the shift towards collaborative workspaces and the gradual expansion of office environments have contributed to the sustained demand for office furniture.

    Avg. price changes MoM across home and furniture subcategories from April 2022-23.

    While prices for several subcategories rose significantly, others experienced subdued growth, such as bed and bath. The subcategory experienced the lowest price increment, registering a modest 2.8% increase annually. This can be attributed to the impact of a subdued housing market and a decrease in first-time buyers, which may partly be due to the global recession and inflationary pressures.

    Moreover, retailers overestimated the demand for home furniture during the holiday season, leading to an overstocking of inventory. Consequently, prices experienced a dip from October to December 2022. In fact, this was a common trend across all home and furniture subcategories. As retailers emerged from the holiday season, prices rose to their highest level in January 2023, and have stayed relatively stable since.

    Some of these trends vary among retailers as each faces different challenges and responds in distinct ways.

    Wayfair, for example, shows a significant dip in pricing after October 2022, with prices stabilizing in 2023. This could be in response to the retailer’s shrinking consumer count, losing 5 million of its 1.3 billion consumers in 2022 due to declining demand.

    Avg. price change MoM within the home and furniture sector across retailers from April 2022-23.

    In fact, online furniture retailers like Wayfair and Overstock reported declines in annual revenue in 2022, as the furniture sector continued to normalize from the high spending seen during COVID-era lockdowns. Wayfair reported that its 2022 net revenue was $12.2 billion, down almost 11% from the year prior. The company also laid off 10% of its workforce in August 2022. Overstock’s reported annual net revenue in 2022 was $1.9 billion, a 30% decrease year-over-year.

    Interestingly, both companies took contrasting approaches in response to this situation. Wayfair opted for aggressive cost-cutting measures, including layoffs and a reduced marketing budget. On the other hand, Overstock focused on attracting new customers through influencer marketing and improving their app, aiming to expand their customer base. With a strategy geared towards younger buyers, Overstock allocated a larger marketing budget than ever before. Our data supports the fact that Overstock did not rely on price reductions to entice shoppers.

    Target has consistently maintained lower price increases compared to Walmart, defying the common perception of Walmart being more conservative in its pricing. Notably, Amazon also stood out minimal price increases throughout the year, being surpassed only by Wayfair since November 2022.

    As price sensitive shoppers increasingly compare prices before making a purchase decision, retailers need to ensure they are priced competitively in the market on a consistent basis to liquidate stock and gain market share without compromising significantly on margins.

    A Sophisticated and Versatile Product Matching Solution is Essential to Achieving Price Leadership

    Product matching plays a vital role in monitoring competitive prices and analyzing price leadership. Within the home and furniture category, there is often a multitude of representations for the same product across various online platforms. Furthermore, eCommerce websites offer a wide array of options, including variations in size, color, material, and similar products. Without an accurate and comprehensive method of matching these products, it becomes impossible to track and compare prices effectively, especially on a large scale. Thus, a versatile product matching engine tailored to the unique requirements of the home and furniture sector becomes essential.

    DataWeave offers an industry-leading product matching platform that harnesses advanced AI models specifically trained to identify and leverage multiple product attributes extracted from titles, descriptions, and images to accurately match products across websites. Additionally, our platform intelligently matches similar products based on a diverse range of extracted attributes. This empowers our retail partners to gain competitive pricing intelligence not only on exact product matches but also on similar and substitute products, as well as their respective variants.

    With our competitive pricing intelligence solution, retailers in the home and furniture industry can confidently analyze and track prices, ensuring they stay at the forefront of price leadership in their market.

    To learn more, reach out to us today!

  • The Rapid Rise of Alcohol eCommerce in the UK

    The Rapid Rise of Alcohol eCommerce in the UK

    Alcohol eCommerce has been rapidly growing over the years, and like a lot of other industries, the pandemic accelerated its growth. Convenience, safety & home delivery became important criteria for customers in the post pandemic era and so the sale of alcohol via eCommerce went up. Kantar reported that UK booze sales were up £261m & online and convenience stores were the biggest winners. The latest IWSR Drinks Market Analysis Report 2022 reported on another interesting trend – when ordering alcohol online, consumers prefer using websites v/s apps in most parts of the world except China and Brazil. In the UK the largest chunk of online alcohol purchases happens on a retailer website instead of an app. 

    Platform used for last online alcohol purchase. Source

    To get a better understanding of this, we tracked 2 grocery retailers and 3 grocery Q-Commerce apps in the UK to get insights into Alcohol sales, pricing, trends & more! 

    Methodology

    • Data Scrape time period: Feb 2022 – June 2022
    • Grocery Retailers tracked: Tesco & Ocado
    • Grocery Apps tracked: Gorillas, Weezy & Getir
    • Category tracked: Alcohol

    Which retailer was the Price Leader in the alcohol category? 

    Before the pandemic Tesco was the only Big 4 retailer to increase their alcohol market share & Waitrose was the biggest loser, with its share of booze sales falling from 5.4% to 4.7%. Maintaining Price Leadership is a critical element and plays a big role in increasing sales & market share because consumers will buy the most competitively priced product. We wanted to track and see which retailer was the Price Leader in the alcohol category – i.e., had the most number of lower-priced items in the alcohol category. We also wanted to see if & how Tesco’s position had changed post pandemic. 

    Price Leadership
    • Tesco enjoyed price leadership in the Alcohol category from Feb – June 2022 with 38.9% products priced the lowest. This, followed by Ocado at 33.8%. Gorillas had price leadership for the least amount of products in the alcohol category at 5.6%. Tesco was the clear winner! 
    • Tesco’s Price Leadership kept declining through the months though – at the beginning of the year in Feb, Tesco had 44% products priced the lowest but by June, that number fell to a little over 36%. Ocado showed a reverse trend – in Feb they had price leadership on 32% items and by June that number rose to 35.3%.
    • One player Tesco could’ve potentially lost price leadership to was Getir. In Feb, Getir had price leadership on only 8.2% products but that increased gradually over the months to land on 14.5% in June. 

    Which retailers focused on Discounts to perk up alcohol sales? 

    Discounts are a great way to draw in inflation-hit shoppers. Loyalty card discounts, reward vouchers, and other promotional strategies retailers offer help make their products more competitive & attractive to customers. To stay competitive, retailers need to be aware of the discounts their competition is offering. They also need to understand the risk of deep discounting and the impact on margins. We wanted an insight into alcohol related discounts in the UK so we dug into our data. Here’s what we saw. 

    Average discounts across months by retailers
    • A host of European and UK based startups like Jiffy, Dija, Weezy, Zapp, Getir & Gorillas launched with the promise of delivering groceries the fastest & cheapest. 
    • Our data showed that Gorillas offered discounts in line with the competition, however, Getir likely went the deep discounting route. 
    • Getir offered the highest discounts across all months. And in the month of April they offered almost 9% more discount than Ocado – the retailer with the 2nd highest discounts. 
      Like we discussed above, Getir gained price Leadership from Feb to June. Deep discounting could have potentially played a role. 
    • Gorillas on the other hand had the lowest, almost non-existent discounts.

    Let’s look at Price Index trends across 5 months 

    We tracked the Price Index (PI) across these 5 retailers to measure how alcohol prices changed over a 5 month period from Feb – June 2022. 

    Note: Retailers selling at the 100% mark were selling at an optimal price & did not undercut the market. The pricing sweet spot is 95% – 105%. Anything lower would compromise margins, and higher would mean the retailer was not competitive. 

    Price Index across months by retailers
    • Weezy had a Price Index that was the most optimal, sitting in the 100% – 102% range.
    • Gorillas had the lowest Price Index, between 89% – 91%.
    • Getir had a low price index in Feb (96.1%) but slowly kept increasing to cross 110% in April, May & June.
    • What was interesting to see was the competition between the 2 retail giants Ocado & Tesco. Ocado had a lower price index at the start of the year at 105.1%, while Tesco was at 109.8%. In the subsequent months, Ocado kept increasing prices to be competitive with Tesco and Tesco decreased prices to likely match Ocado’s pricing. By June BOTH Tesco & Ocado had the exactly the same price index – 108.7%

    Which retailers were the quickest to make price changes?

    Competitive pricing is critical to eCommerce success. Competitive pricing involves tracking your competitor’s pricing & strategically tweaking your own prices without hurting margins. We tracked the month-wise average Price change from Feb – June across all 5 retailers to see which retailer was making price changes and at what frequency. 

    Average price change across months by retailers
    • Most retailers did not make massive prices changes, they were ballpark competitive with each other from a pricing standpoint. 
    • However, Gorillas made significant changes in the month of March when they dropped prices by 3.8% and in May when they increased prices by 5.5%!
    • In May, the same month Gorillas made a big price hike, Weezy dropped their prices significantly by 10% widening the gap between the 2 retailers. 

    Which retailers avoided lost sales by maintaining stock availability?

    Having a near real time view on stock availability is crucial to driving sales. Customers can buy products only when they’re available! So, we went ahead, looked into our data to see how each of these retailers managed stock availability from Feb to June.

    Average availability across months by retailers
    • Our data showed varying availability levels across retailers with Ocado having the highest availability across all 5 months. They had a robust stock at the beginning of the year at 100% but kept dwindling through the months to land at 95.8% by June. 
    • Tesco had a sharp drop in availability in May & June – from 97% at the beginning of the year to the 92-93% range.
    • Gorillas had the lowest availability across months between 90 & 94%.
    • Weezy consistently maintained availability at 95% across all 5 months.

    Conclusion

    For the most part, the UK market has a positive outlook towards buying alcohol online thanks to changes to shopper behavior arising from the pandemic. As per the IWSR Drinks Market Analysis Report 2022 in website-led markets, such as the UK, breadth of product range is important to customers along with price. These 2 play a key factor in purchase decisions. By contrast, consumers in app-driven markets have different preferences. While price matters, it is less important than convenience and speed. 

    As an alcohol retailer, if you need help tracking your competitor prices, discounts and product assortment, reach out to the team at DataWeave to learn how we can help!

  • Prime Day India 2022 – highlights from the 2 day annual shopping festival!

    Prime Day India 2022 – highlights from the 2 day annual shopping festival!

    Amazon India’s much-awaited annual two-day shopping event, Prime Day, kicked off with a bang on July 23rd & 24th this year & was one of the most successful Prime Day events yet! Amazon reported that more than 32,000 sellers saw their highest ever sales day during the event. Interestingly 70% of these sellers who received orders during Prime Day were based in Tier 2 cities in India, further validating how the post-pandemic eCommerce boom has spread across the country. Also, Indian exporters saw 50% business growth on Amazon on Prime Day as customers across markets like North America, Europe, Australia, and Japan continued to purchase Made In India products.
    It was a great 2 days for Indian sellers, but what about customers who were waiting in anticipation for the great deals typically offered on Prime Day? We dug into our data to take a look at the deals, discounts, and brands that shone bright on Prime Day in India.

    Methodology

    • In addition to Amazon IN, we also tracked Flipkart on 23 & 24th July 2022, on Prime Day.
    • Categories tracked – Electronics, Grocery, Fashion & Beauty.
    • We looked at Additional Discounts offered on Prime Day: Additional Discount is the extra discount on an item during Prime Day when compared to the Pre-Prime Day price. 
    • We also looked at Post Prime Day Discounts, which were the discounts offered after the 2-day event ended.

    Amazon v/s Flipkart – who offered better discounts?

    Prime Day discounts are legendary. And across the globe, during Prime Day retailers try and compete to see if they can offer better deals than Amazon. Forbes even published an article on the 36 Prime Day competitor sales that were way more enticing than what Amazon had to offer. In India, we wanted to see if Amazon’s homegrown rival Flipkart might give it a tough fight, so we tracked the volume of discounts across categories on both retailers. 

    Discounts on Amazon & Flipkart across categories
    Discounts on Amazon & Flipkart across categories
    • Out of the 4 categories we tracked, in spite of Prime Day, Amazon offered discounts higher than Flipkart in only 2 categories – Electronics & Beauty. 
    • … while Flipkart offered higher discounts than Amazon in the Grocery & Fashion category. For groceries, Flipkart offered a 3.2% additional discount v/s 2.2% on Amazon. However, in the Fashion category, the difference was marginal – 8.1% on Amazon v/s 8.6% on Flipkart
    • Post-event, both Amazon & Flipkart went back to the original pre-event prices. This made it clear that Flipkart was tracking and making price changes based on their closest competitor. It’s what smart eCommerce businesses do to stay ahead in the race. 
    • Interestingly, post-event, in the fashion category, not only did Amazon revert to the original pre-event price, they even increased prices by close to 2%.

    Let’s take a look at discounts across 4 categories & the Brands that WON in each category.

    From Electronics to Fashion, Beauty & Groceries, let’s deep dive into the data to see which products were highly discounted within each category and brands that sprinted ahead to win the race on Amazon on Prime Day 2022.

    ELECTRONICS

    Tech publication Gadgets360 reported on the biggest Smartphone deals right from Brands like Samsung, Redmi, Oppo, and more. There were some fab deals on earphones too with Boat taking the lead. We wanted to take a look at electronics on Amazon and see which products had the heaviest discounts & if discounts were more lucrative than Prime Day 2021

    Discounts on Electronics on Prime Day
    Discounts on Electronics on Prime Day
    • Amazon India released highlights from Prime Day and reported that Smartphones & Electronics were among the categories that saw the most success in terms of units sold.
    • From the 6 product categories we tracked within electronics, we saw the highest additional discounts on Smartwatches (13.4%), followed by Bluetooth headphones (10.5%)
    • TV, Smartphones, cameras, and laptops had an additional discount of between 3 – 5.5%

    ELECTRONICS Brands that had the highest Share of Search on Amazon during Prime Day

    Research shows that on Amazon, the first 3 products garner 64% of business generated. This is why it is critical for brands to appear in the top few listings when consumers are searching for products. Being on top helps shoppers find your brand with ease & increases the chances of a sale. 

    On Prime Day 2022, Amazon India reported that the top-selling consumer electronics brands were HP, Lenovo, Asus, and Boat to name a few. Our assumption is, these brands must’ve had a high Share of Search (SoS), which played a massive role in increasing sales, so we looked into our data to see which brands had the highest SoS against specific keywords related to electronics. 

    Brand Visibility against the Keywords
    Brand Visibility against the Keywords
    • Our data aligned with what Amazon reported. HP had high sales, perhaps because they occupied the premium #1 spot in the laptop category with a 44% SoS! Simply put, this means of the 100 laptops that appeared on a page, against a search for the keyword laptop, 44 products were listed by HP! Consumers always gravitate towards buying products they can find with ease. 
    • Lenovo had a 32% SoS for Laptops. Asus at 14% 
    • The top selling smartphone brands reported by Amazon included OnePlus, Redmi, Samsung, Realme & iQOO – our data showed that 3 out of these 5 brands were in the top 5 listings on Prime Day! Redmi had a whopping 30% SoS against the keyword smartphone, Samsung at 15%, and iQOO at 5% – clear validation that a high SoS can positively impact sales.

    BEAUTY & GROOMING

    Now let’s look at discounts in the beauty & grooming category. 

    Discounts on Beauty Products on Prime Day
    Discounts on Beauty Products on Prime Day
    • The highest additional discounts were given on shampoos (9.3%), followed by Lipsticks (6.6%)
    • Shaving kits for men were at an additional discount of 3.4%. Hair gel at 4.9% & Face Masks at 4.3%

    BEAUTY Brands that had the highest Share of Search on Amazon during Prime Day

    Brand Visibility against the Keywords
    Brand Visibility against the Keywords

    In the beauty category, Amazon India reported that top-selling brands included Head & Shoulders, Dove, Biotique, L’Oreal, Sugar Cosmetics, and Mamaearth to name a few. Once again, we looked into our data to see the sort of brand visibility & SoS each of these brands had.

    • All the top-selling brand’s Amazon reported on we noticed appeared in the top 5 search results. 
    • Head & Shoulders & Dove were the top 2 listings against the keyword Shampoo at 26% & 16% SoS respectively. Biotique came in at #5 with a 7% SoS
    • Bombay Shaving Company, Gillette, and Axe were the top grooming brands for men in the Shaving Kit category. 
    • Lakme made a clean sweep with a 19% SoS against the keyword lipstick, which speaks volumes, considering the aggressive competition from D2C beauty brands in India today.

    GROCERY

    According to the New eCommerce in India report by consulting firm Redseer, grocery has been a major contributor to the growth of ecommerce in India & Amazon Fresh used Prime Day to grab a larger piece of that pie! As part of the Prime Day sale, Amazon Fresh also pushed discounts on groceries, as well as fruits and vegetables. We tracked products that fell into the “snack” category, and here’s what we saw.

    Discounts on Snacks on Prime Day
    Discounts on Snacks on Prime Day
    • Given changing lifestyles & healthy food fads, it was no surprise that we saw the highest additional discounts were given on Healthy Snacks (3.2%) & Diet Food (2.7%)
    • Chocolates and chips saw much lower additional discounts at 1.2% each.
    • Drinks were additionally discounted by 2.5% during Prime Day.

    SNACK Brands that had the highest Share of Search on Amazon during Prime Day

    Brand Visibility against the Keywords
    Brand Visibility against the Keywords
    • Cadbury had a 69% share of search against the keyword Chocolate, leaving some of its key competitors way behind. Amul had a 20% SoS, while Hershey’s was at just 4%. 
    • According to an article in the Economic times, YogaBar tripled sales in FY22, which is why we were not surprised to see the brand at #1 when users were searching for “Healthy Snacks” during Prime Day. YogaBar products typically enjoy high visibility year-round, which clearly helped with brand awareness on Amazon & sales.

    FASHION

    Amazon reported that Men’s t-shirts and polos, denims, Kurtis, tops, and dresses for women, designer wear, and clothing for kids were some of the most-loved fashion categories on Prime Day. We looked into our data to see the trends that emerged.

    Discounts on Fashion on Prime Day
    Discounts on Fashion on Prime Day
    • From the categories we tracked, women’s handbags had the highest additional discount (11.8%), followed by watches (9.1%)
    • Sneakers & jeans had additional discounts in the ballpark of 7% and sunglasses at 4.4%

    FASHION Brands that had the highest Share of Search on Amazon during Prime Day

    Brand Visibility against the Keywords
    Brand Visibility against the Keywords
    • Some of the usual suspects made it to the top 5, but what really stood out for us were brands that popped up against the keyword Jeans. While Levi’s came in at #2 with an 11% SoS, 2 Private Label Amazon brands featured in the top 5! Symbol at 27% SoS and Inkast Denim at 9%
    • Against the keyword Handbag, Lavie had a massive lead at 38% v/s the #2 brand – Caprese, at 13%
    • Boat found a #2 spot against the keyword watches, racing way ahead of the age-old popular brand Fastrack at #5 with a 4% SoS.

    Conclusion

    Amazon Prime Day 2022 in India came to a successful close as shoppers across India discovered the joy of the 2 day celebration with the best deals, savings, new launches, and more. Prime members from 95% of pin codes in India made purchases, there were 1000’s of deals and 500+ new product launches from brand partners & sellers. Nearly 18% more sellers grossed sales over INR 1 crore, and close to 38% more sellers grossed sales of over 1 lakh vs Prime Day 2021. Local neighborhood shops that sell on Amazon witnessed 4x sales growth. And start-ups and brands under the Amazon Launchpad program witnessed a growth of 3x. All in all, a successful event for everyone involved! 

  • Prime Day Germany 2022 – highlights from the 2 day annual shopping festival!

    Prime Day Germany 2022 – highlights from the 2 day annual shopping festival!

    In 2022, Amazon sold 300 million products during Prime Day – selling roughly 100,000 items per minute. Since Amazon started Prime Day in 2015 to celebrate its 20th birthday, the shopping festival has grown into a holiday and rivals Black Friday and Cyber Monday in the U.S. and Singles’ Day in China. 

    According to RetailDetail, the leading B2B retail community in Benelux, Amazon is planning a 2nd Prime Day shopping festival in the autumn, just a few months after its annual Prime Day event. The retailer has asked its sales partners to prepare for a promotional event in the autumn where they have until the beginning of September to propose attractive discounts, with at least 20% discounts. This year’s second Prime Day may occur in October, with or without the same name. 

    But before that, let’s examine what happened in Germany this year on Prime Day 2022.

    Methodology

    • We tracked Amazon.de both before & on 12 & 13th July 2022, on Prime Day.
    • Categories Tracked – Electronics, Wine & Spirits, Grocery, Furniture, Fashion, and Beauty. 
    • We looked at Additional Discounts offered on Prime Day: Additional Discount is the extra discount on an item during Prime Day when compared to the Pre-Prime day price.
    • We also looked at Post Prime Day Discounts, which were the discounts offered after the 2-day event ended.

    What kind of Discounts did Amazon.de offer?

    Amazon Prime Day will be significant, especially for customers hoping to get discounts amid soaring inflation. Both Amazon as well as other sources reported that electrical and electronic items were the most popular purchases, followed by general retail products. Electrical and electronics saw the value of transactions soar 90% on the first day. Mobile phones and accessories were the most popular, with transaction values almost doubling to 96% on day one.

    Discounts across Categories on Amazon.de
    Discounts across Categories on Amazon.de
    • Based on trends from past events, Amazon likely knew electronic items were going to be best sellers. Keeping this in mind, they made sure to offer high discounts in the electronics category. They offered a 6.5% additional discount on electronics on Prime Day. And once the sale ended, they continued to discount electronics by 1.3%.
    • The Fashion category also had a fair bit of discounts and came in at a close second at 5.9%
    • Looks like Amazon discounted everyday use items minimally. Groceries had an additional discount of just 1.8% on Prime Day, and wine and spirits had 2% extra discount.  
    Discounts on Electronics Category on Amazon.de
    Discounts on Electronics Category on Amazon.de
    • Within Electronics, in the four categories we tracked, we saw the highest additional discounts were offered on Bluetooth earphones (10.6%) and Smartwatches (9%)
    Discounts on Fashion Category on Amazon.de
    Discounts on Fashion Category on Amazon.de
    • Jeans and Sunglasses had the highest discounts at 8.6% & 7.6% respectively.
    • Sneakers & Watches too had additional discounts of 6.6% on Prime Day.
    • Post the Prime Day event, Amazon retained an average of 1.5% discount across all products in the fashion category instead of pricing them at the original price. 
    • However, in the case of women’s T-Shirts, they increased the price by 1.7% from the pre-event price.

    Discounts across Price Tiers

    Retailers must consider several factors when making strategic discounting decisions, including customer buying behavior, the type of discount offered & the volume of discount offered. The best discounting approach will vary depending on the product and other factors like the original selling price of the product.

    Now let’s compare the discounting strategy Amazon used in the Electronics v/s Fashion category on Prime Day.

    Discounts across Price Ranges
    Discounts across Price Ranges
    • Interestingly, in both the Electronics and Fashion categories, Amazon increased prices for the lowest-end products between the €0-10 range by 3.6% and 13.2%, respectively, during the sale instead of discounting them! Maybe this was a strategy to drive consumers to higher-value products with greater discounts? 
    • Another similarity in strategy was that most of the mid-priced items had maximum discounts. In electronics & fashion both, the maximum discounts were given to products between the € 30-100 range. 
    • Here’s a difference that stood out – for Electronics in the higher price range between €100 – 500, the volume of discounts dropped a bit which meant Amazon gave moderate discounts on high-end electronics. But the trend flipped for Fashion as luxury fashion items were made to look more attractive with higher discounts.

    Monitoring stock availability during key sales days is critical

    Brands need to have the right stock availability, especially during sale events, because more customers shop online during sales. What’s worse, non-availability of products may drive customers to competitors that are stocking the same product.  Out-of-stock situations lead to missed opportunities & lost sales! Let’s take a look at our data and see how Amazon planned product availability across categories on Prime Day. 

    Availability Analysis across Categories on Prime Day
    Availability Analysis across Categories on Prime Day
    • Amazon was betting big on 2 categories – Electronics & Home. This meant they needed to keep a keen eye on availability in these categories, especially since they forecasted the highest sales to be generated here.
      … it was no surprise that the Furniture category had almost 100% availability during Prime Day! Electronics too had a high availability at 94% during the event.
    • Generally, our data showed that availability across multiple categories we tracked seemed robust and above 80% in more cases. Only Beauty & Grocery had 79% availability.

    Conclusion

    Prime Day sales reached an estimated 12 billion U.S. dollars worldwide, 9.8% higher than last year, making it the most successful shopping event in Amazon’s history. If you’re a brand selling on Amazon or a retailer trying to compete with Amazon, reach out to us at DataWeave to know how we can help!

  • Prime Day UK 2022 – highlights from the 2 day annual shopping festival!

    Prime Day UK 2022 – highlights from the 2 day annual shopping festival!

    Prime Day launched in 2015 as a celebration of the 20th anniversary of Amazon’s founding & has quickly become the biggest shopping event of the year for Amazon. Prime Day is a great opportunity for customers to snag fantastic deals on products they might not otherwise consider buying. Last year, Amazon Prime Day was a tremendous success, with Prime members spending billions of dollars on discounted items. In 2022 alone, global sales during the event reached a new record high of $12 Bn.

    18 countries participated in Prime Day this year, including the US. We did a deep dive into what happened in the UK – the discounts Amazon offered and categories with the highest discounts as well as checked to see if other retailers tweaked their pricing strategy to compete with Amazon on Prime Day.

    Methodology

    • In addition to Amazon UK, we tracked some key retailers on 12 & 13th July 2022, on Prime Day.
      Retailers tracked – eBay UK, OnBuy, Selfridges, ASOS.com, Net-A-Porter 
    • Categories tracked – Electronics, Wine & Spirits, Grocery, Furniture, Fashion, Beauty. 
    • We looked at Additional Discounts offered on Prime Day: Additional Discount is the extra discount on an item during Prime Day when compared to the Pre-Prime day price. 
    • We also looked at Post Prime Day Discounts, which were the discounts offered after the 2-day event ended.

    Did other retailers compete with Amazon on Prime Day?

    Traditionally, as Amazon’s Prime Day sale approaches, other retailers adjust their prices by offering summer deals or getting creative with offers. However, we did not see aggressive strategies from other retailers this year. In the US, Walmart always has a sale during Amazon’s Prime Day. The Wall Street Journal reported that Walmart announced there wouldn’t be an annual promotional event on Prime Day 2022 this year.

    Another report published by Forrester stated that major retailers scaled back their promotions, and overall offers from other retailers were less than impressive. We took a look at the data we gathered in the UK to see if this trend aligned. 

    Discounts offered on Prime Day on Amazon v/s other retailers
    Discounts offered on Prime Day on Amazon v/s other retailers
    • Our data showed that most retailers we tracked offered negligible discounts (in the range of 0.1 – 1.5%) and did not really try and compete or match the discounts Amazon was offering. 
    • However, ASOS was the one retailer that competed heavily with Amazon in the Fashion & Beauty category. While Amazon offered an average additional discount of 7.7% in the Fashion category, ASOS offered 13.2%. And in the beauty category, Amazon offered 6.7%, while ASOS offered 15.2%.
    • When we looked at post-prime day discounts, we saw that as soon as Prime Day ended, ASOS went back to the original price and stopped offering a discount which clearly shows they were keeping an active eye on out their competitors pricing. In fact, ASOS was offering up to 80% off almost everything on the site until Prime Day.

    Which were the popular categories that offered the most discounts?

    During Prime Day, shoppers saw tons of deals on essential gadgets. Tech deals were a massive hit and saw big discounts on everything from TVs, laptops, smartwatches, phones, and tablets. We look at the data we collected to see if we saw a similar trend. 

    Discounts on Amazon UK across categories
    Discounts on Amazon UK across categories
    • Amazon offered discounts across categories and reported that some of the best-selling categories were Consumer Electronics & Home. 
    • Our data too showed that the highest additional discounts were offered in electronics – Bluetooth Earphones at 18.4%, followed by Smartwatches at 14.9% and Laptops as well as Cameras, both at 12%.
    • Low discounts were offered on Alcohol, with Beer at 0.9% and Wine at 1.3%, respectively.
    • Relatively attractive discounts were seen in the Fashion & Beauty category – Sunglasses (9.1%), Shampoo (9.7%), & Watches (9.4%)
    Discounts on Amazon UK in the Electronics category
    Discounts on Amazon UK in the Electronics category

    Electronics being the hot favorite – we wanted to deep dive into the data and get more insights on Amazon’s pricing & discounting strategy here. Discounts can entice customers to buy more, encourage customer loyalty, or clear out old inventory. However, businesses must be careful since too much discounting can eat into profits. They also have to be mindful of which products should be discounted and by how much. 

    • Our data showed that the highest discounts (between 13 – 18%) were given on electronics priced between the £ 20-100 price range.
    • Electronics priced higher, between the £ 100 – 500 pound price range, were discounted less than 10%
    • However, high-value premium electronics over £ 500 were discounted slightly above 10%

    How did Amazon manage stock availability during Prime Day?

    Keeping track of inventory is especially important during big sales like Prime Day when thousands of customers are actively looking for deals.  There’s nothing worse than them finding the item they wanted is out of stock (OOS). OOS leads to lost sales, a situation that must be avoided at all costs. Read about how a small short term stock out on Amazon led to long term negative impacts for one of our customers. And let’s also look at the data and see what product availability looked like on Prime Day.

    • Overall, Amazon maintained robust availability across categories, and re-stocking was constant both before, during & after the event. 
    • Furniture, Fashion & Electronics had the highest availability. No surprise there since Amazon estimated that Home/ Furniture would be one of the best-selling categories.
    • Grocery saw average availability – perhaps cause some of these products are perishables, so it’s best to be mindful about overstocking.

    Which Brands Won on Prime Day?

    If there is one thing to remember about improving your product visibility on Amazon, it’s that it all boils down to the usage of the right keywords. Using relevant keywords makes your product appear higher up in search when customers are running searches on Amazon for those products. And the higher up a product appears in search, the higher the chances of a sale! 

    Let’s take a look at some popular categories and which brands had the highest Share of Search (SoS) during Prime Day.

    • Corona, San Miguel, and Becks were the top 3 brands optimized for the keyword Beer. However, what’s really important to note is both Corona & Becks had 20% SoS that was completely organic. San Miguel had a 20% SoS too, but it was sponsored ads that gave them this artificial boost. 
    • While a whole bunch of other brands had a 10% SoS most of them achieved this via Sponsored Ads. Youngever was the only brand that achieved this completely organically. They must have made sure they optimized key KPIs like content, ratings & reviews & product availability to achieve this result.
    • There were deep discounts on a wide range of Lenovo laptops. For example, the Lenovo IdeaPad duet Chromebook and Lenovo IdeaPad Flex 3 Chromebook were available at £100 off. Our data, too saw Lenovo & Asus fight for the top spot.
    • Asus sponsored 28% of products before Prime Day, hoping to capitalize on the pre-sale frenzy. During the event, they sponsored only 13% of products, bringing down their total SoS from 31% before the event to 13% during the event. 
    • Lenovo followed the opposite strategy; they sponsored just 6% of products before the event and during the event sponsored a whopping 25% which made them “almost” dominate the Laptop category during Prime Day.
    • Then there was Microsoft, with the highest SoS at 38%, of which all of it was organic!
    • The Smartphone SoS battle was clearly between Samsung & Xiaomi. Samsung was a consistent #1 at all 3 time periods (Before, During & After Prime Day) with the highest total SoS. Xiaomi came in at a close second. 
    • Samsung had an exciting strategy – they went heavy on sponsorships before and after the event. Their sponsored SoS was 31% & 39% respectively. And SoS of 13% during the event. 
    • Xiaomi’s strategy was just the opposite. Their sponsored SoS was 16% before the event. And 17% after the event, which was moderate compared to their Sponsored SoS during the event at 25%, which was much higher than Samsung’s 13%
    • Critical to note, Xiaomi’s organic search visibility before, during, and after the event was 0%. It definitely should be a concern area for any brand.
    Share of search
    Share of search
    • Both before & after the event, Cadbury had the highest visibility for the keyword Chocolate. During the event, they were not in the top 5 brands.
    • During Prime Day, Nestle won the top spot and had a 29% SoS. However, before the event, they were at #3 and after at #2. Artificially boosting visibility might’ve had something to do with this.

    Conclusion

    Prime Day sales reached an estimated 12 billion U.S. dollars worldwide, 9.8% higher than last year, making it the most successful shopping event in Amazon’s history. If you’re a brand selling on Amazon or a retailer trying to compete with Amazon, reach out to us at DataWeave to know how we can help!

  • U.S. Prime Day Deals 2022: Promotion Intelligence First Look

    U.S. Prime Day Deals 2022: Promotion Intelligence First Look

    As inflation hits another 40-year high at 9.1 percent, U.S. consumers geared up for their first sign of hope and relief in the form of anticipated discount buys – 2022 Amazon Prime Days, or so we thought. While Prime Days have grown to become a promotional period almost as important as Black Friday to digital shoppers, the combination of economic uncertainty, inflationary pressures, and supply chain challenges seemed to alter the discount strategy expected given activity seen during 2021 Prime Days.

    Our analyst team has been hard at work aiming to provide a ‘first look’ at 2022 Prime Day Promotional Insights, tracking discounts offered across 46,000+ SKUs within key categories like Electronics, Clothing, Health & Beauty and Home, on seven major retailer websites – Amazon, Target, Best Buy, Sephora, Ulta, Lowe’s and Home Depot. Our analysis compares prices seen during Amazon Prime Day 2022 on July 12th, to pre-Prime Day maximum value prices seen in the ten days leading up to Prime Days, to determine the average change in discounts offered during the promotional period. Below is a summary of our findings.

    Competitive Promotions Give Amazon a Run for their Money

    Amazon offered the greatest average discount enhancements for Electronics at 5.6 percent followed by Health & Beauty items at 5.1 percent, and Home products at 4.2 percent versus pre-Prime Day discounts seen across the categories considered within our analysis. The only category reviewed where average discounts were greater on a competitor’s website was on Target.com within the Clothing category. As seen below, Clothing on Target.com average discounts were 6.8 percent greater than pre-Prime Day offers, which was 2.6 percent higher than the average discounts offered for Clothing on Amazon.

    Target Capitalizes on Growth Opportunity in Clothing Category

    Diving deeper into the details of where Target won within the Clothing category, you can see a majority of their promotional activity took place within Women’s Accessories where discounts offered were 18.5 percent greater than those seen pre-Prime Day 2022, which was almost 15 percent greater than the discount enhancements seen on Amazon for Women’s Accessories. In fact, Women’s Shoes and Sneakers were the only two categories where the average discounts offered were greater on Amazon than on Target.com.

    Overall, the discounts offered on Target.com within the Clothing category were primarily concentrated within items priced $40 and lower, but what was most interesting is that within the $10 and under price bucket, Target offered average discounts of over 11 percent whereas Amazon increased prices for these items on average by over 9 percent.

    While most of the Clothing available on both Amazon and Target.com during Prime Days 2022 were offered without a price change, the greatest discount percentages tracked were within the range of 10-25 percent off on Amazon whereas Target chose to offer the bulk of their promotions at 25 percent off an up.

    Strategic Promotional Strategies Defined at the Electronics Subcategory Level

    When it comes to the Electronics category on Prime Day, the big question is always who will win the battle of the brands. Below shows the difference in average pricing and promotions discounts offered between products manufactured by Samsung versus Apple across each retailer platform, noting discounts were almost 3 percent greater on average for Apple versus Samsung products on Amazon, and Apple discounts were almost 5 percent greater on Amazon versus than those seen on Target.com.

    Amazon wasn’t going all in on Apple however, as we saw ‘Alexa’ devices (Amazon products) available on Best Buy and Target websites also, but the discounts were almost 4 percent greater on Amazon versus Target and over 7 percent greater than the discounts seen on BestBuy.com.

    While the average discounts offered within the Electronics category were greatest on Amazon (5.6 percent) versus Best Buy (3.9 percent) and Target (3.4 percent) as noted within the first chart of this blog and across brands and technologies considered above, the discounts offered on Amazon were strategically focused between 10-25 percent as seen below.

    Amazon’s Electronics promotions were also targeted at smaller price points, items priced between $20-500, whereas Best Buy and Target offered greater promotions for electronics priced $500 and up than Amazon.

    Below is a snapshot of price buckets tracked for Electronics available on BestBuy.com, highlighting where most of the promotional activity was targeted at products priced $50 and up during Prime Days 2022, with discounts ranging from 10 percent up to greater than 25 percent greater than pre-Prime day prices.

    The standout categories were TVs on Target.com with discounts averaging nearly 12 percent greater than those seen pre-Prime day, and smartphones on BestBuy.com with discounts averaging just over 11 percent greater than those seen pre-Prime Day. The category with the greatest average discount enhancements seen on Amazon during Prime Days 2022 was for Wireless Headphones with an average discount of 8.7 percent.

    Home is Where Amazon’s Heart Was on Prime Day

    Amazon dominated offers within the Home categories, especially for products within mid ($40-100) and higher price ranges (items priced $200-500), with the bulk of the discounts offered between 10-25 percent. There was little to no promotional activity seen across all price points on Lowe’s or Home Depot’s websites within the categories we tracked, and most other competitive offers on Home products were seen on BestBuy.com for products priced from $50-500. Even a subcategory like Tools offered deeper average discounts on Amazon (4.7 percent) than discounts seen on HomeDepot.com (1.1 percent) or Lowes.com (0 percent).

    For Large Appliances, Amazon was the only retailer to off any significant discount across each major subcategory with the greatest average discount being on Ovens at 6 percent, followed by Refrigerators at 4 percent. One caveat with this category, when we reviewed Large Appliance prices two weeks prior to Prime Days, we saw average price increases around 16.7 percent occurring on Amazon.

    During Prime Days 2022 however, Amazon also offered top average discounts for small appliances, except for on Instant Pots which appeared to have greater average discounts on Target.com (5.9 percent versus 4.2 percent on Amazon), and Vacuum Cleaners which appeared to have the best promotion of appliances small and large at 13.8 percent average discount on BestBuy.com. Another subcategory deeply discounted on BestBuy.com was weighted blankets, which averaged discounts around 18.5 percent versus Amazon’s average discount at only 6.2 percent.

    Health & Beauty Retailer Pricing Strategies Revealed

    Given the importance Health & Beauty Brands placed on Prime Day sales last year, we had anticipated to see more offers, especially within pure-play beauty retail channels, than we did for this booming category.

    Amazon drove most of the Health & Beauty offers seen averaging 5.1% discounts versus other retailers only offering less than 1% on average, but discounts were aimed at a targeted group of SKUs on Amazon, bringing the average discount lower overall. Most of the promotions offered on Amazon fell within mid-range price points ($20-50) and were discounted between 10-25 percent versus pre-Prime Day prices.

    Target.com offered the most comparable discounts to Amazon for Health & Beauty products on average, but their strategy primarily focused on items within the $20 and lower price range with discounts ranging primarily between 10-25 percent.

    More 2022 Prime Day Insights Coming Soon

    We know the significance visibility to critical pricing and promotional insights play in enabling retailers and brands to offer the right discounts to stay competitive, especially during promotional periods like Prime Days. While this blog is intended to provide a ‘sneak peek’ into 2022 Prime Day insights for the U.S. market, we will be providing more extensive, global coverage and will proactively share new insights with the marketplace as they become available throughout the month of July.

    Be sure to also check out our Press page for access to the latest media coverage on Prime Day insights and more. Don’t hesitate to reach out to our team if there is any particular category you are interested in seeing in more detail, or for access to more information on our Commerce Intelligence and Digital Shelf solutions.

  • 7 Key Metrics that QSRs want (but may not get) from Food Delivery Apps

    7 Key Metrics that QSRs want (but may not get) from Food Delivery Apps

    The Quick Service Restaurant market is projected to be valued at $691 billion by 2022. As the QSR industry grows and the market becomes even more competitive, restaurant chains continuously seek ways to increase sales via food aggregators to market their business. To improve ROI and sales, having data and insights into key metrics could help QSRs to boost their success rate.

    QSRs would like to know how they stack up against their competition regarding discoverability on cluttered food aggregator apps. Restaurants want to know the gaps in their product assortment to understand what drives customers to their competitors. Getting insights into delivery time and competitors’ delivery fees will help QSR improve delivery ETAs and optimize fees. They can also set competitive pricing with insights into their competitors’ pricing. In addition, they can use data to optimize their ad spending on food apps and improve marketing ROI.

    In this blog, we will discuss the relationship between QSRs and food aggregators and how getting data about key metrics from these food delivery platforms can help QSRs scale their revenue. 

    Data: The Key Ingredient to increasing sales

    According to Statista, online food ordering revenue is expected to grow at a robust CAGR of 10.39% between 2021 and 2025. Food Aggregators apps like Uber Eats, DoorDash, and GrubHub offer convenient meal delivery options from various QSRs within a single app. Food aggregators provide a multitude of benefits for QSRs. They give access to a huge customer base, quick delivery, and an easy entry into quick commerce, helping QSRs increase visibility. Although QSRs rely on food aggregator platforms for hassle-free ordering, tracking, and delivery, they can’t always rely on them to share critical data that could help them optimize their operations & increase sales. 

    Online food ordering revenue
    Online food ordering revenue

    1. Data on Product Assortment

    QSRs need assortment insights to understand their competitor’s menu assortment. Assortment analytics plays a crucial role in ensuring that QSRs aren’t losing sales because their competitors are offering cuisines and dishes that they aren’t. Understanding gaps in menus helps QSRs to better plan their menu. However, food aggregator apps can’t share competitors’ assortment data with QSRs for a multitude of reasons, guidelines, and privacy laws. Thankfully, at DataWeave, our QSR intelligence solution can! We help restaurants improve their assortment by sharing insights into the dishes and cuisines their competitors’ have on display.

    Menu Assortment
    Menu Assortment

    2. Data on QSR Discoverability

    QSRs would love to know how to increase discoverability on food aggregators, as it will help them to appear ahead in search results and beat the competition. Improving visibility on these apps directly impacts sales and drives more orders for restaurants. Some aggregators offer discoverability information but give it on demand, usually after 20-30 days, making it irrelevant due to the enormous time gap. They also don’t provide information about the change in the discoverability of your competition. All these data points are so critical, and understandably so, Food Apps can’t share this level of information with restaurants. However, DataWeave’s QSR Intelligence solution can! It provides real-time discoverability insights into your restaurant and competitor’s visibility so that the data is actionable, and QSRs can use insights to improve visibility. 

    Read how DataWeave’s QSR Intelligence helped an American QSR Chain and how their ranking on search results page on Ube rEats, DoorDash & Grubhub impacted outlet discoverability & sales!

    3. Data on Pricing & Promotions

    Pricing a QSR’s menu is tricky. If you price too high, you’ll turn off new customers. If you price too low, you’ll cut margins & may even come off as low-qualify. Customer Price Perception is greatly influenced by the Price-Quality relationship. To add to this, restaurants are often up against stiff competition from restaurants with similar cuisine offerings so it’s critical that prices are competitive. Understanding competitor pricing doesn’t imply that you have to beat their prices. You can compensate for any price differences by offering higher quality cuisines, better customer service, and quicker delivery. Once again, food apps can’t share competitors’ pricing data with QSRs. But DataWeave’s QSR & Pricing Intelligence solution can! QSRs can use these insights to drive more revenue & margins by pricing their menu right.

    4. Data on Delivery Time

    QSRs must be able to deliver hot meals, in a timely manner to customers because customers want to quickly dig into the delicious food they ordered. Quicker deliveries within the ETA will also help earn the trust and loyalty of customers. However, food aggregators don’t share information on the delivery times with restaurants – not their own delivery time or their competitors. DataWeave can help QSRs to understand their peak hours and optimize their service to ensure quick ETAs. They can also get detailed insights into competitors’ delivery times to make sure they’re competitive. This is important because customers will often pick restaurants with quicker ETAs.


    Read how DataWeave’s QSR Intelligence helped an American QSR Chain understand the correlation between delivery time & sales volumes

    Delivery time trend by urbanity
    Delivery time trend by urbanity

    5. Data on Delivery Fee

    As a thumb rule, customers will always compare delivery fees across apps. They’re conscious of delivery dollars included in their bill and often choose a restaurant with lesser delivery fees. This makes it even more critical for restaurants to understand how they stack up against their competitors. Understanding competitors’ delivery fees could potentially help QSRs to optimize their rates. And once again, food aggregators can’t share information on competitors’ delivery fees with restaurants. However, DataWeave’s QSR Intelligence can provide all delivery-related insights – be it Delivery etas or fees. 

    Delivery fee trend by urbanity
    Delivery fee trend by urbanity

    6. Data on Ad Performance & ROI

    Getting ad analytics will help QSRs better manage their budgets & increase the ROI on their Ad spends. For example, wouldn’t it be great if QSRs were able to understand which ad formats or promotions led to the most sales? Or which carousal ads had the most visibility in key zip codes where your QSR is expected to do maximum business? Or even insights into a competitor’s ads and promotions on food apps. Knowing this information will help restaurants spend sensibly when buying media on Food Apps & get the most bang for their advertising buck. Food apps do provide standard ad analytics – a number of clicks, CTR, and so on, but for more complex, insightful & actionable insights, there’s DataWeave’s QSR Intelligence! 

    Read how DataWeave’s QSR Intelligence helped an American QSR Chain understand the ROI delivered on ad spends across Food Delivery apps.

    Insightful & actionable insights for QSR Chains
    Insightful & actionable insights for QSR Chains
    Insightful & actionable insights for QSR Chains
    Insightful & actionable insights for QSR Chains

    7. Data on Outlet Availability / Availability Audit

    To avoid lost sales, being available & “open for business” on Food Apps during peak lunch & dinner hours is critical. Also on weekends, when order volumes are usually high. Sometimes because of technical glitches, QSR outlets appear unavailable on Food Apps. A glitch like that can lead to lost business, and the longer the glitch stays undiscovered, the greater the impact on revenue. While Food Aggregators do their best to make sure all QSRs are up and running on their app, using DataWeave’s QSR Intelligence, restaurants can now do an outlet audit to make sure that’s the case. With just a mere 2.8% unavailability, we saw a 28% drop in the sales for one of our QSR customers! That’s how critical Availability insights are. 

    Conclusion

    Analyzing and optimizing sales, delivery, discoverability, availability & customer data is one of the fastest ways to help grow your QSRs revenue. However, the biggest challenge QSRs face is that it isn’t always easy to get this information. With DataWeave’s QSR Intelligence now some of that data is a little more accessible as we discussed in this blog. And additionally, here are the 7 Tricks we recommend QSRs to use to win on Food Apps. 

  • eCommerce in South Africa: Data-Driven approach to getting ahead

    eCommerce in South Africa: Data-Driven approach to getting ahead

    What an exciting month we’ve had at DataWeave! Our team flew down to gorgeous Cape Town, South Africa to attend the 8th edition of #EcomAfrica! After months of Zoom calls and virtual events, it was a refreshing change to see our customers in person and meet some of the movers and shakers in eCommerce and some of the top South African brands. 

    Top eCommerce Companies in South Africa
    Top eCommerce Companies in South Africa

    My last visit to South Africa was before the pandemic. Things have changed since then, & the difference was stark! The eCommerce landscape had a paradigm shift during Covid-19 and grew exponentially. My customers spoke to me about the new opportunities, growth potential as well as challenges that came in because of this boom. For one, eCommerce in South Africa has become more competitive than ever – from online retail to grocery and food delivery to even alcohol delivery! All retail businesses seem to have jumped onto the eCommerce bandwagon.

    A recent Deloitte report found that over 70% of South Africans shop online at least once a month & 2 out of 3 respondents said they plan to increase their frequency of online shopping. 65% said they know what they want, search online & check all stores that stock the product to compare prices. Price is one of the key factors that influence consumer purchase decisions. Other critical factors include delivery fee, delivery time, promotions & discounts & product assortment to name a few. In order to stay ahead in this highly competitive arena, both retailers and brands need to make data-driven decisions about critical KPIs like pricing to stay ahead of the competition.

    Increased Online Shopping & Online Shopping Frequency
    Increased Online Shopping & Online Shopping Frequency

    We’ve been working with customers in South Africa for over 4 years now, even before the pandemic. So on Day 2 of the event – S.Krishnan Thyagarajan “Krish”, President & COO, Dataweave had a chance to share our learnings and experience from all these years and how user data is critical to getting ahead & winning the eCommerce race in South Africa.

    For the purpose of Krish’s keynote address, we tracked pricing insights for a finite set of categories across key South African retailers like Checkers, Pick n Pay, EveryShop, Incredible, Makro, Waltons, Shoprite & Dis-Chem to name a few over a period of 16 months from Dec 2020 to April 2022. We highlighted price increase and decrease opportunities and how each retailer reacted in order to stay competitive, increase sales and protect margins. 

    BATTLE of the eCommerce GIANTS!

    Key Highlights from the Keynote

    • Increasing prices where an opportunity exists helps retailers increase their margins exponentially. Pick n Pay had the highest action rate (73%) when it came to capitalizing on price increase opportunities v/s Dis-Chem at 11%. 
    • When it came to price decrease opportunities (in order to stay competitive with rival brands) Takealot was the most responsive retailer – they capitalized on 30% of the opportunities, followed by Pick n Pay at a close second (28%) and Shoprite & Dis-Chem at just 4%.
    • Most retailers took between 1 – 5 days maximum to make price changes which means responsiveness to the market among all retailers is high making it more important for online retailers to always be on their toes.  
    • The 2 categories where most retailers capitalized on Price Increase Opportunities were Sauces & Condiments and Crackers & Biscuits.

    Want to watch the Keynote video on Demand? Click here to register & watch.

    Price Increase & Decrease Opportunities
    Price Increase & Decrease Opportunities

    Bonus video content! 

    • Watch the Impact of price increase & decrease opportunities on Private Label brands! 
    • See how product stock availability impacts price changes over a 16-month period. 
    • Find out which brands are in the lead in the Skin Care, Pet, Baby, Laundry & Cleaning Aid categories 

    If you’re an online retailer in South Africa & need insights on staying competitive with the right pricing, product assortment, delivery time, delivery rates, and the other key influencers that affect customers’ choice of online retailers, sign up for a demo with our team at DataWeave to know how we can help!  

  • The Rise of South African eCommerce : The Growth, & the Future

    The Rise of South African eCommerce : The Growth, & the Future

    2020 onwards, the South African economy was crippled due to the pandemic and lockdowns. However, according to StatsSA, South Africa’s online retail market share grew to 2.8% in 2020, double that in 2018. After the pandemic, South Africa’s eCommerce industry grew by 66% in 2020 compared to the year before. This increase was primarily because of restrictions on traditional stores that led to a 30% reduction in in-store purchases. 
    According to a Deloitte study, over 70% of South Africans shop online at least once a month because of convenience. Household appliances, footwear, clothing, electronics, and health products are the most popular categories among South African online customers.

    Top Categories
    South African Ecommerce
    South African Ecommerce


    These eCommerce stores account for 15% of online revenue in South Africa

    1. Takealot.com: Revenue US$602 million 
    2. Superbalist.com: Revenue US$85 million 
    3. Woolworths.co.za: Revenye US$57 million

    In this blog, we will discuss emerging eCommerce trends in South Africa and their impact on the various retail segments. 

    Trends to watch in 2022

    Trends to watch
    Trends to watch

    1. Quick commerce

    Quick delivery, especially when it comes to groceries, medicines, and food has become a customer expectation now. Q-commerce, a trend that capitalizes on optimizing delivery time, has become common in food tech companies and is now gaining traction in grocery delivery too, especially after the pandemic. UberEats, Checkers, Pick ‘n Pay, and Jumia is some of the country’s biggest Q-commerce players.

    2. Omnichannel eCommerce

    Omnichannel experience has taken center stage for retailers in South Africa after the pandemic. According to Nielseniq’s study, 30% of South African consumers indicated they had shifted their shopping habits to online shopping from in-person grocery store visits between March 2021 and 2022. 

    3. Digital Payment Trends

    The digital payment ecosystem in South Africa has seen a massive growth trajectory after the pandemic. Customers seamlessly use digital payments across shopping, entertainment, groceries, food, health, and wellness – a trend we suspect is here to stay.

    4. Buy Now Pay Later

    Buy now pay later is an interest-free mode of payment that is popular worldwide for helping customers who cannot make high-value purchases. Consumers don’t have to pay any price upfront and pay off the amount in interest-free installments over a predefined period. The BNPL is forecasted to account for 13.6% of global eCommerce payments by 2024.

    5. Chatbots

    Quick response to customer queries and problems is instrumental in increasing conversion rate and sales. However, it can be difficult to respond to emails and instant chat 24/7 for small businesses. This is where automated chatbots are helping South African retailers answer customer questions promptly and correctly.

    The 4 Fastest-Growing Retail Segments

    4 Fastest-Growing Retail Segments
    4 Fastest-Growing Retail Segments

    1. Online Retail

    eCommerce & online retail grew 20% YOY after the pandemic. Retailers saw a huge increase in the adoption of online shopping by consumers. Traditional brick-and-mortar stores looked for omnichannel opportunities to keep up with online retailers. Mr. Price, a clothing retailer in South Africa, saw a surge in online sales by a massive 90% between April and June 2020. There is a similar success story where OneDayOnly, another South African online retailer, saw 40% growth during the same period.

    … but this growth surge brought in some challenges for retailers too. With more and more customers shopping online, competition increased. Price-sensitive customers would constantly compare prices across online retailers before making a purchase. It became critical for retailers to price their products right to beat the competition & win the sale, without hurting their margins! 

    2. On-Demand Grocery Delivery

    Groceries saw an increase of 54% from 2019 driven by the pandemic & lockdown restrictions.

    South African eCommerce companies offer a wide range of on-demand services, from taxi rides and grocery orders to liquor delivery. Retailers fulfill orders from stores to offer affordable rates and quick delivery across South Africa. It replicates the instant gratification of purchasing products from brick and mortar stores and the added benefits of the hyper convenience of shopping from a mobile or a computer. 

    Read quotes from our customers at Talabat, Glovo & Grab Food – we worked closely with them & helped them in their efforts to scale through this global Q-Commerce boom.

    3. Online Food Delivery

    According to Statista, revenue in the online food delivery segment in South Africa is projected to reach US$0.87bn in 2022. As competition heats up and more and more players enter the market, staying competitive is becoming increasingly challenging for food delivery businesses.

    Bolt Foods SA said they grew 50% month on month in mid-2021 and said they had to bet on making sure they were offering competitive prices in order to get ahead. Additionally, in their quest to have a stronger competitive advantage, Bolt Food says it is also offering customers a very low delivery fee, lower than Uber Eats & Mr. D since delivery costs are a major consideration for customers when using food delivery apps.

    The right price, product assortment, delivery fee, and delivery eta are critical to scaling a Food Delivery business. If you’re in the food-tech business, reach out and we can tell you how DataWeave’s Food Delivery Intelligence can help you scale quickly and profitably! 

    4. Social Commerce

    With approximately 41.19 million South African customers engaging in online activity, there is a huge shift in user behavior as customers get comfortable purchasing directly via social platforms instead of online retailers or physical stores. Social commerce uses networking websites such as Facebook, Instagram, and Twitter as vehicles to promote and sell products and services.

    What matters to South African online shoppers?

    Between June and November 2020, South African consumers mostly used online retailers monthly (42%), food delivery services weekly (36%), and online classifieds less than once a month (34%). 

    Here is a summary of things that matter to South African shoppers when they shop online:

    1. Easy product discovery and competitive pricing

    Most customers start their online shopping with a product in mind and look for discounts and sales across retailers. More than 67% of respondents of a survey have said that they go to a specific online store and search for the product they want. Almost the same share of consumers said they compare online stores to find offers for products they want. Price plays an important part in product selection. 

    In order to offer the most competitive pricing, retailers in South Africa need to keep a keen eye on competitor pricing. They need to identify gaps and opportunities to make price changes to not only offer the most attractive price to customers but also drive more revenue and margins by pricing products right.

    2. Reliable Delivery time

    81% of South African consumers say that unreliable delivery time is one of the reasons that affect their choice of an online store. Quick delivery time has become a differentiator in the eCommerce space, where ‘next day delivery or even ‘same-day delivery’ have become the norm. South African online shoppers want reliable delivery times that suit their busy schedules. 

    Read more here, about how DataWeave helped an America QSR understand the correlation between their delivery time & sales volumes! 

    3. Low delivery fee

    86% of South African customers believe that high delivery fees impact their online stores’ choices. The high delivery cost is a problem for low-income customers and customers who shop daily.
    If you want to track how your delivery fee compares to your competition and how it’s impacting your sales, our Food Delivery Intelligence solutions are for you!

    4. Customer Service

    Your company’s customer service should be responsive, smooth, omnichannel, and hassle-free. 78% of South African customers are frustrated with delays in customer support from online retailers. Slow response times and lack of communication in case of delays, delivery, and refunds hamper the customer experience drastically.

    Customer Service
    Customer Service

    Conclusion

    eCommerce in South Africa is growing at unprecedented rates. There has been a surge in the appetite of South Africans for online shopping and online retailers across the board are gearing up to meet this demand. 

    If you’re an online retailer in South Africa & need insights on staying competitive with the right pricing, product assortment, delivery time, delivery rates, and the other key influencers that affect customers’ choice of online retailers, sign up for a demo with our team at DataWeave to know how can help!  

  • How Inflation has hit the Retail Industry

    How Inflation has hit the Retail Industry

    Inflation has resurfaced after a decade of tranquil price increases. The persistent COVID-related supply chain disruptions have been a driving factor in increasing consumer costs since some commodities are harder to come by. While inflation is a normal economic phenomenon, the current 3.81% inflation rate has increased the cost of living for families across the globe.

    Global Inflation Rate
    Global Inflation Rate. Source: Statista

    Worldwide inflation is expected to remain near 5.0% in early 2022 before gradually easing in response to industrial and agricultural commodity price declines. Additionally, the global consumer price inflation peaked from 2.2% in 2020 to 3.8% in 2021 and will average 4.1% in 2022 before subsiding to 2.8% in 2023.

    In this blog, you’ll learn about the impact of inflation on the Retail Industry. 

    What is Inflation?

    Inflation is an economic term that describes an overall increase in the price of goods and services in an economy, and a by-product of inflation is the devaluation of the currency used within that economy. For example, a clothing retailer that used to pay $8 for a t-shirt two years ago will now have to pay $10 for that exact product. The t-shirt hasn’t changed at all. However, it has become 25% more expensive. Inflation and the devaluation of currency are part of the reasons why they’d now pay $2 more for that same T-shirt.

    Also Read: Top 7 strategies to sell effectively on Amazon

    Impact of inflation on Retail

    FMCG

    The Fast-moving consumer goods (FMCG) sector will continue to grow because there is growth in household goods spending despite the Russia-Ukrainian crisis, global interest rate, and rising fuel prices. In fact, the demand for consumer packaged goods rose sharply in countries heavily affected by the pandemic. However, the FMCG sector will see a rise in prices of commodities because crucial resources such as cooking oil, tea, cocoa, etc., become scarce. The persistent shock to the supply chain has forced various FMCG companies to increase their prices. For instance, Mondelez, a Fortune 500–listed snack and beverage company, announced a 6-7% price increase. 

    Inflation for Fashion & Pharma Industry
    Inflation for Fashion & Pharma Industry

    Fashion

    The global fashion industry posted a 20% decline in revenues in 2019–20. Inflation in fashion is caused by transportation bottlenecks, material shortages, rising shipping costs, and straining supply and demand. The global fashion industry will see complete recovery in 2022. COVID-caused supply and demand constraints have eased, but shoppers will have to reconcile to price jumps in everything from bags to shoes.

    Pharma

    Pharmaceuticals are recognized as an essential commodity and therefore have a massive impact on the household budget. Vizient has projected a 3.09% increase in the inflation rate in drug prices from July 1, 2022 – June 30, 2023. It shows how inflation has a direct impact on prescription drug costs. Notably, retail prices for some of the most widely used prescription drugs are expected to increase 2x as much as inflation. The demand for pharmaceutical drugs has been higher post-pandemic, ensuring that consumers’ total demand and spending in this vertical will remain unchanged. 

    Comparison of New, Used & Electric cars
    Comparison of New, Used & Electric cars
    Highest & Lowest Inflation in Beauty category. Source: nielseniq.com

    Automotive

    The rise of both new and used cars has been steeply increasing partly because of the shortage of semiconductors and the backlog from the closure of factories during COVID-19. According to the Bureau of Labor Statistics, there has been a 24.4% inflation in the used car purchase prices and an 8.8% increase in the new car purchase price. Rising oil prices across the globe and the historical oil crisis fuelled by the Ukraine-Russia war have strained many people’s budgets. However, the automobile market is seeing an uptake in demand for electrical vehicles (EVs). EVs represented 14% of car sales between January and June 2021. 

    Beauty

    COVID-19 brought new challenges to the cosmetics industry, chief among this being face-covering required by law. In light of social distancing and lockdowns across the globe, consumers were buying less makeup. The rising cost of labor, energy, and raw materials used in beauty products have resulted in a “once-in-two-decade” backdrop for price hikes. The cost of palm oil, a common material in beauty products, has soared 82% in two years due to Indonesian labor shortages. Nevertheless, consumers will spend more time outside the house. Beauty price per unit changes shot up 17% in-store and online in 2021.

    5 Things that will help retailers during inflationary times

    1. Observe Competition

    Retailers should follow their competitors closely—when they start to raise/lower prices, consider following suit. Using competitive data to gauge price changes will help in managing price parity. However, excessive discounts and lower prices to gain an advantage over your competitor could backfire in various ways. For example, low pricing may convey that your products aren’t as good as your competitors’, impacting your long-term brand image. Moreover, lowering prices to sell more doesn’t necessarily mean higher profits, especially during high inflation. To leverage this strategy effectively, retailers must first identify SKUs that have the highest impact on their pricing.

    2. Build a structured and targeted pricing strategy

    An effective pricing strategy that leverages differences in product, channels, and customers will help retailers to maintain long-term value for their business and customers. However, customers might react differently to a steep price increase. Broad price increases will demonstrate insensitivity and erode customer trust. Instead, retailers can thoughtfully tailor their inflationary price increases for each customer and product segment with a competitive pricing strategy. With a competitive and historical pricing strategy, brands can examine their customers’ end-to-end profitability and willingness to pay relative to a comparable peer set. 

    Price Competitiveness for the right items
    Price Competitiveness for the right items

    3. Rethink commercial positioning

    The pandemic and rise of inflation during 2020–2021 have profoundly impacted how consumers live and what they value. Understanding how your consumer’s needs have shifted and used a promotion strategy to manage today’s inflationary pressures is crucial. As new behaviors emerge post-pandemic, retailers must prepare for the potential top-line impact of demand shifts. Rethink commercial positioning and review marketing and packaging strategies, including the potential use of nonuniform and, in some cases, nonprice mechanisms.

    4. Ensure price competitiveness on the right items

    The Key-Value Item (KVIs) list should be reviewed again, considering changing shopper needs and habits during the pandemic, plus the supply and demand shock that the industry is currently experiencing. Price-sensitive and vulnerable shoppers are finding this inflationary period particularly tough, so brands might require an even deeper investment in KVI pricing. Reinvest base prices on essential products to drive volume for your best price-sensitive (PS) customers. Compete only where you need to be without overspending. Online channels should continue to reflect in-store prices and diverge during this time. Pricing Optimisation software enables best practices to simultaneously manage a high number of price increase requests.

    5. Revisit promotions to conserve costs and preserve stock availability

    Increasing the number of promoted products is a reflexive response to inflation, but it’s not the right response for building sustainable sales or longer-term loyalty. Inflationary times offer an excellent opportunity to reset promotional strategies to save money and margin. Retailers can increase sales and seize opportunities with a promotional pricing strategy. Increased promotional activity has a knock-on effect vs pricing position in high-low strategies and erodes overall value perception, creating a vicious circle of more promotions equals poorer value.

    Conclusion

    Today’s economic climate and associated pricing pressures are challenging for retailers and customers. Some companies have responded by announcing an increase in prices across product categories. Companies can manage pricing margins responsibly and profitably during inflation. Determining how and where new opportunities exist can help companies control inflation, drive growth, and remain profitable.

    Need help to arrive at the right pricing & discounting strategies to counter inflation? Sign up for a demo with our team to know how we can help!  

  • What is Customer Price Perception and why it is important

    What is Customer Price Perception and why it is important

    Finding the right price often requires a trade-off between margin and price perception. Brands may want to defeat competitors’ prices on all their products, but that can often lead to losses because sales directly link to price perception. Instead of trying to stay competitive across the board on all products, brands must identify key value categories (KVCs) and key-value items (KPIs) whose prices buyers tend to remember and price those products competitively. In this scenario, they can make up for lowered prices on key products by fixing higher prices on other products. 

    Consumers’ perception of price fairness largely determines their experience with a brand. Brands selling online can often have a disconnect between their prices and what customers expect their prices to be. However, that does not mean spiraling downwards by getting trapped in discounting cycles and heavy promotions that can harm your bottom line. Instead, brands require real-time monitoring across thousands of stock-keeping units (SKUs) to identify key categories and items they need to price with care. In this blog, you’ll learn about price perception and the factors that influence it. 

    What is Price Perception?

    Price perception is the perceived worth of a product or service in the consumer’s mind. It is one of the leading variables in the consumer’s buying process. Buyers are unaware of the true cost of production for the products they buy. Instead, they make buying decisions based on an internal feeling about how much certain products are worth and which brand offers them the best value. To offer competitive prices and yet obtain a higher price for products, brands often pursue marketing strategies to improve the price perception of their brand and products.

    Price Perception
    Price Perception

    However, brands should not fall into the trap of assuming that price perception is a competitor’s price index. It’s not about offering the lowest price on certain SKUs. Not every brand strives to offer the lowest prices. Some brands take a slightly different approach to ensure the right value for their products. For example, take a look at Trader Joe’s, a grocery chain that has never claimed low costs. They’ve always taken a holistic approach to their pricing and customers to build a loyal following. And it worked well for them. Trader Joe’s can boast one of a high-value perception score, despite not having rock-bottom prices. 

    Marketplaces such as Walmart and Amazon may not have the best prices on every item. Still, customer perception is that they will have the lowest prices and will often shift the share of sales towards such platforms over businesses that offer the same or even lower prices. 

    Some things to consider:

    • What do your customers think of your brand?
    • What are the key factors that are driving your customers’ price perceptions?
    • Is your product mix properly aligned with your brand perception?
    • Are you communicating the most important and relevant information to your customers?
    • Is your message being received and understood?
    • Who do your customers see as your competitors, and why?

    Also Read: 11 Reasons why your eCommerce Business is fail 

    What is Price Positioning?

    Price positioning is pricing products or services within a certain price range. It indicates where certain services or products lie in relation to competitors’ pricing and in the mind of different customers. A brand’s price positioning has a huge impact on whether the products are seen as priced low or not. The following is a great way to understand the price-value matrix:

    Price Positioning
    Price Positioning

    Your brand’s position in this matrix will depend on your pricing objectives, competition, and customer loyalty. Price positioning helps the marketing and operating teams understand customers’ perceptions of your brand and convince customers to buy your products. Brands need a holistic approach toward setting prices for their products in order to drive conversions through intelligent pricing and competitive insights. 

    Factors that influence Price Perception

    Price-Quality Relationship

    Price is often an indicator of product quality. The general rule is that the higher-priced products are perceived to have better quality, implying that brands should consider a rational quality-price relationship in their pricing or promo strategy. For example, it might not be best practice to have similar prices for both good and low-quality products because customers will perceive low-quality products as overpriced and might not purchase from you.

    Price-Consciousness

    Customers aren’t price conscious about every product. Instead, they are only price conscious about certain products under the best price guarantee or BGP. For instance, if buyers find your BGP products more expensive than your competitors, the cheaper products in your assortment will still be perceived as expensive. 

    Value-Consciousness

    During markdown periods, ensure that you are not undermining the efforts to shape and maintain price perception by offering extreme or complex discounts. In an attempt to clear stocks, promotions simply confuse the shopping experience for customers and further deteriorate trust in your brand. Your promotional offers should keep price perception during the holiday season or clearance sales by offering a simplified promotional program. Start by understanding which price mechanics and SKUs work best for your target customer segment. You should also reduce over-communication on hero deals else buyers will assume that you incorrectly price products during new seasonal launches. 

    Prestige Sensitivity

    Gerald Zaltman, a Harvard professor, argues that 95% of all purchasing decisions are subconscious. Luxury brands are a great example of how psychology directly links to price perception. Customers buy premium or luxury products to demonstrate their social status. In this scenario, buyers don’t hesitate to buy expensive products from certain brands even if they are explicitly overpriced. Thus, brands selling premium products will have to ensure pricing is coherent with buyers’ expectations. 

    Every customer wants to know they’re getting the best value. They use the highest and lowest prices in a range to understand how expensive a product or brand is. So, by removing high price point lines with low volume, customers will see more minor price points around the store. Brands must merchandise entry price points to help customers identify the lowest prices and improve the perception of their product ranges. 

    Product Range
    Product Range

    How to adjust Price Perception

    Here are three ways for brands to improve price parity:

    • Marketing to influence Price Perception

    An efficient pricing management strategy will focus on competitiveness and establishing the right price perception among your customers. You can influence customers’ price perception by improving the look and feel of your online stores since simpler designs are often reflections of lower prices. Another great way to influence price perception is to offer loyalty and reward programs that also improve brand loyalty and reinforces the vision of an economy store irrespective of the prices of your products.

    • Competitive Analysis

    Brands can understand price differences after a competitive analysis. Customers often search for similar products across brands to find the best deals, and you will be able to understand customer opinion through competitor analysis.

    • Price Management Automation

    A price monitoring platform can help brands to stay on top of promotions and discounts offered by their competitors. A price intelligence software will help brands associate products by similarity criteria and compare the pricing of their products with those of competitors. It offers a detailed view of the market and ensures that brands take care of their bottom line.

    Conclusion

    When a consumer comes across a similar low-priced product or service from a different brand, they may see it as a good deal or might perceive it not worthy of their time or money. What consumers think about your brand’s price is just as important as the actual price of that product. A buyer may sense a company as “upscale” and assume that they have high prices, or they may see a brand as a discount retailer whose prices are too high for its reputation. At times, consumers might also see cheaper alternatives as inferior. It’s not easy for a brand to understand its customers’ perception of price vs. value it offers. Brands need a long-term, dynamic pricing strategy that matches the demands and trends of a global, competitive market. And in order to drive sustainable growth, they need to make smarter pricing and promotion decisions with insights into competitive pricing. 

    Learn how DataWeave can help make sense of your and your competitor’s pricing & promotional strategies and help your brand build the right Price Perception. Sign up for a demo with our team to know more.

  • Top 7 strategies to sell effectively on Amazon

    Top 7 strategies to sell effectively on Amazon

    According to MarketingCharts, 63% of online shoppers start their buying journey on Amazon. This shows that customers believe they will find the products they are looking for with competitive prices and excellent customer service on Amazon. Amazon is one of the most dominant eCommerce marketplaces with 197 million users and 112 million Amazon Prime members. Brands can sell on Amazon to capitalize on this vast customer base by showcasing and promoting their products properly. 

    In this article, we’re going to take a look at the top 7 strategies to sell effectively on Amazon:

    1. Boost Product Discoverability using Ads

    Amazon Advertising helps sellers, brands, and agencies to drive profitability by making sure product discoverability is high & shoppers are able to find their brand with ease. The ads on Amazon fuel product discovery and improve conversion rate. The advertising options on Amazon are designed to help brands increase exposure, generate incremental sales, boost organic rankings, and drive growth.

    Amazon has three PPC programs: sponsored product ads, sponsored brands ads, and sponsored display ads. Brands can increase visibility on Amazon with these three paid campaigns. You can sponsor products or your brand for related searches on Amazon. Businesses only pay for clicks received. 

    Sponsored products are for individual product listings that appear on shopping results pages and product detail pages. Sponsored brands are for showcasing brand portfolios such as logo, custom headline, and a selection of products on the shopping results page. The last is sponsored display, a self-service advertising solution for displaying ads on and off Amazon. 

    Promotions for Brand and SKU's
    Promotions for Brand and SKU’s

    2. Improve your Amazon SEO using effective Product Descriptions

    To effectively sell on Amazon, businesses first have to understand the A9 algorithm. Amazon uses A9 Algorithm to decide which products are ranked in search results, emphasizing sales conversions. This algorithm helps Amazon promote listings that are more likely to result in sales. 

    Keywords in product descriptions are one of the main driving factors that the Amazon A9 algorithm looks for in determining relevance to search queries and setting rankings on its results pages. Therefore, brands must integrate high volume and significantly relevant keywords as part of their listings. Crafting product descriptions with the right keywords will provide compelling reasons for buyers to purchase the product and for the A9 algorithm to better rank the brands. Brands can analyze and optimize their content to improve discoverability across Amazon. Accurate product descriptions help users make informed decisions and allow brands to deliver a consistent customer experience.

    Detailed Descriptions and Highlights
    Detailed Descriptions and Highlights

    3. Improve your Product Visuals

    Avoid using standard visuals when displaying your products in Amazon’s image gallery. Product images are the hook that encourages visitors to click on your products. However, Amazon has specific image requirements that you’ll need to adhere to while presenting products. When shopping on Amazon, potential buyers are looking for high-definition and clearly visible photos. Thus, you will need diversity in images if you want your product and photos to stand out.

    In addition to images, brands can make their product descriptions better through video content. Videos help your brand to stand out, build a more personal relationship with customers, and lead to increased sales. One study on eCommerce sellers found that using product videos increases sales for online stores by 144%.

    Product Images
    Product Images

    4. Switch to Intelligent Pricing & Win the Buy Box

    Intelligent and competitive pricing is the most essential lever for revenue growth. With advanced technology like AI and analytics, brands can get insights into competitive pricing and develop an intelligent pricing strategy to calculate real-time changes in pricing optimally. 

    Amazon wants to give the consumer the best value for their money and thus has a Buy Box option. The white box on the right side of the Amazon product detail page is called the Buy Box, and customers can directly add items for purchase to their cart. However, not all sellers are eligible to win the Buy Box. 

    Thanks to Amazon’s customer-obsessed approach and high competition, only businesses with excellent seller metrics have a chance to win a share of Buy Box. Amazon weighs low prices with high seller metrics. If your brand has near-perfect performance metrics, having higher prices can still get you a share of the Buy Box. In contrast, brands with mid-range metrics will probably need to focus on offering the most competitive price.

    But, why is the Buy Box important? According to BigCommerce, 82% of sales on Amazon go through the Buy Box, and the rate is even higher for mobile purchases. Getting insights into your competitor’s pricing with our Digital Shelf Solution will help you improve seller metrics and find the right pricing strategy for your products.

    5. Provide Plenty of Social Proof

    Testimonials can increase sales page conversions by 34%. Social proof has emerged to be of great importance in the eCommerce world, and it isn’t limited to recommendations from people customers know in the “real world.” A survey conducted by BrightLocal revealed that 31% of consumers reported that they read more online reviews in 2020 than ever due to Covid-19. 

    Product ratings and reviews on Amazon are at the center of the recommended products section, product listing page, and search results. Interestingly, customer feedback also has a huge impact on a brand’s ODR or Order Defect Rate. It is one of the most critical measurements tracked by Amazon. ODR is a measure of customers who have had a negative experience with you as a seller. Amazon uses it to assess a brand’s health as a seller. The ODR indicator is driven by customer feedback, so review management is the primary step for brands to avoid an Amazon ODR warning and improve their order defect. 

    6. Go Global

    The Amazon marketplace is available in countries and markets worldwide, allowing brands to explore new territories and sell their products globally. Each foreign territory has a unique Amazon site that resonates with its culture and audience, making it easy for global sellers to compete with other brands. If your eCommerce brand has the operation capacity to expand globally, Amazon offers state-of-the-art international logistic capabilities. 

    Brands can expand in European countries like France, Italy, Netherlands, Germany, Spain, etc., and Asia Pacific locations like India, Japan, and Australia. Amazon is also available in emerging eCommerce locations like the Middle East, Brazil, Turkey, and Singapore. 

    7. Build a Branded Store

    One of the best strategies to stand out on Amazon is to feature your products on a branded Store. Amazon has free tools that allow grants to build an online store where brands and sellers can showcase products and connect with customers. These stores look different from the typical Amazon listing layout and also have the option to create detailed pages with A+ content. 

    Build your Brand Page
    Build your Brand Page

    For instance, Netgear, a company that offers technology-related products has an excellent branded store on Amazon. The brand has embedded images and videos that address buyers’ needs and how users’ lives are affected by using their products. The most attractive feature about this store is that they have integrated the value offered by their products into new use cases because of the current pandemic. For example, they’ve used phrases like “Make Online Learning fast and fun” and “Work from office at office speed.” Additionally, the categories and search tab help buyers search for specific products easily.

    Creating branded stores allows you to build a beautiful brand experience for customers and offers a multi-page, immersive shopping experience. Brands can pick unique designs, integrate promotions, and use rich media to create a custom curation of handpicked products. 

    Conclusion

    Amazon has 9.7 million sellers worldwide, of which 1.9 million are actively selling on the marketplace. The competition on Amazon is fierce, and it’s continuously increasing. Despite a large number of active sellers on Amazon, only a tiny fraction generates a significant portion of its total sales. Fewer than one in ten active Amazon sellers generated over $100,000 in annual sales, and only one percent of them hit the $1 million sales mark. Use these strategies to develop a comprehensive understanding of the Amazon platform and how to sell effectively on the platform while maximizing your presence amid rising competition. 

  • eCommerce Performance Analytics for CPG Private Label

    eCommerce Performance Analytics for CPG Private Label

    The combination of economic uncertainty, inflation, and perceived affordability has increased consumer’s willingness to buy and try more private label products, challenging National brands to differentiate their eCommerce strategies, especially those related to price positioning, in other ways.

    Our previously released report, Inflation Accelerates Private Label Share and Penetration, confirmed 8 out of 10 brands with the highest SKU count carried across all grocery retailer websites to be private label, signaling the strength of their digital Share of Voice. Given the growing shift in consumer preference toward private label brands, we are providing access to the latest trends seen from September 2021 through March 2022. Below you will find a summary of what the data revealed about the growing presence of private label brands on the Digital Shelf.

    Private Label Account and Category Penetration

    We analyzed private label penetration at an account level to understand which private label brands have the greatest presence on retailer digital shelves, and to see which retailers may be leaving product assortment opportunities on the table.

    Private Label Penetration Across Retail Grocer Websites

    As a retailer, it is important to understand how your private label penetration stacks up against the industry average at a category level, especially given the performance tracked for retailers included within our analysis and the vast number of SKUs they offer online (over 20,000).

    Private Label Penetration by Category Across Retail Grocer Websites

    The Private Label and National Brand Price Gap Widens

    Private label brands tried out of necessity mid-pandemic increased in popularity as grocery prices continued to rise, providing an opportunity for retailers to increase brand affinity and loyalty for their online shoppers. Retailers alike were able to keep affordability at the forefront of their strategies and maintain a price gap of 23% or more, despite inflationary pressures to increase prices.

    Private Label / National Brand Price Gap by Retailer

    Looking at the results at a category level, we can see that Meat is the only category found within our analysis where private label brands are priced higher than National brands at an average of 8% greater. The Alcohol & Beverages category tends to always see the greatest price gap between private label and National brands given the price variances by unit (ranging from under $10 to over $100), in this case averaging a 148% price gap.

    Private Label & National Brand Price Gap by Category

    Private Label Total Basket Value Comparison Across Retailers

    While SKU-level pricing is extremely important to product strategy, for a retailer, it is equally as important to be as mindful of the total basket value even more so now as consumers further their private label loyalty across various categories. A few SKU-level missteps in pricing decisions can exacerbate cart abandonment and negatively impact shopper loyalty in a world where prices can be compared instantly in the palm of your hand.

    Based on our analysis, Walmart and H-E-B private label products offered the lowest priced total basket of goods at $42.90 and $45.06 respectively, whereas AmazonFresh and Safeway offered the highest total at $73.19 and $69.52 respectively.

    Private Label Item Level Price Comparison by Retailer

    Inflation-driven Price Changes are on the Rise with Room to Grow

    Based on the 20,000+ SKUs analyzed, we saw a continual price increase every month since September 2021 when comparing future monthly prices to those we tracked in September. The greatest price increase happened in March 2022 at 12.5% on average, however, there are still 48% of SKUs that have yet to see a price increase even as inflationary pressures rise.

    When viewing the split between National and private label brand price increases in March 2022 versus September 2021, we saw National brands increased prices on average by 13% where private label brand prices only increased an average of 7%.

    Private Label & National Brand Price Change
    Private Label & National Brand Price Change (%)

    Price decreases are still occurring across all categories, despite inflation, but to varying degrees ranging from 5% for Deli items to 17% for Dairy & Eggs. Within the Dairy & Eggs and Pantry categories, private label brands reduced prices for an additional 10% of total SKUs compared to National brands.

    The greatest category of opportunity for price increases within private label were found within Beauty & Personal Care with 67% of private label products yet to see a price change since September 2021.

    Price Change (%) by Category and Brand Type

    Private Label Price Change Correlation to Product Availability

    The category with the greatest magnitude of price increase seen within private label brands occurred within Baby at 16.3% followed by Home at 14.3% on average. Private label products within Home and Baby categories were also showing the lowest availability rates, 75.9% and 79.5% respectively, indicating a high demand for these items even as prices increased.

    The private label categories with the smallest price increase on average were Dairy & Eggs at 2.4% and Other Foods and Pantry at 3.4% and 3.6%, respectively.

    Private Label Price Change Magnitude & Availability
    Private Label Price Change Magnitude & Availability

    While in many accounts both private label and National brands struggled with stock availability in March 2022, National brand availability is much lower (around 10% on average) than private label availability.

    H-E-B had the lowest overall product availability at 76% across both private label and National brands on average. Only Walmart had lower availability for Private Label at 75% compared to 93% for National brands, but they also had the greatest price gap between private label and National brands.

    Private Label & National Brand Product Stock Availability

    The Future of eCommerce Growth for Private Label

    Our greatest learning from this analysis is that it’s time for retailers to start thinking and planning more like the National brands they carry when it comes to positioning their private label brands for success. Successful retailers are taking this time to reset their private-label strategies and transfer short-term switching behavior into long-term customer loyalty.

    Retailers playing catch up have the opportunity to address some of the gaps highlighted throughout this analysis, for example, relative to pricing and assortment changes. Below are some of the highlighted opportunities:

    • Though inflation is driving price hikes, more than 50% of products analyzed have yet to see a price increase indicating an opportunity to protect margin
    • Narrowing the price gap between a store’s brand and National brands should not be the only focus as competitive private label brands are becoming a greater threat at a category and basket level
    • Modifying and expanding assortments as demand increases for private label can improve customer retention and loyalty, especially for cross-shopping consumers

    According to The Food Industry Association (FMI), only 20% of food retailers currently promote private brands on their homepages, and only 48% include detailed product descriptions indicating even more opportunities left on the table for retailers to optimize private label digital performance.

    Many leading retailers are leveraging real-time digital marketplace insights and eCommerce analytics solutions like ours to further their online brand presence and optimize sales performance. This report highlights only a small sample of the types of near real-time insights we provide our clients to effectively build competing strategies, make smarter pricing and merchandising decisions, and accomplish eCommerce growth goals. Be sure to reach out to our Retail Analytics experts for access to more details regarding the above analysis.

    For access to a previously recorded webinar presented in partnership with the Private Label Manufacturers Association and conducted by DataWeave’s President and COO, Krish Thyagarajan, click here.

  • What Historical Pricing Data can tell you & how to use it

    What Historical Pricing Data can tell you & how to use it

    For many brands, pricing strategy boils down to guesswork — shooting in the dark and hoping consumers are willing and happy to pay. However, the ‘throw it at the wall, and see what sticks’ pricing strategy leads to big pricing mistakes. Pinning down an optimal price for products requires a clear picture of ideal customers, understanding each customer segment’s behavior, a solid grasp of your product’s value, and an analysis of competitors. Pricing analytics can help brands track a wide range of pricing metrics with cutting-edge analytical tools and use insights to get ahead of their competition. This analysis uses historical data to understand how previous pricing and promotion activities affect brand, sales, and customer price perception. It often involves identifying opportunities and weaknesses in competitors’ pricing strategies and exploiting them to improve sales and revenue. 

    Pricing analytics helps brands understand how product pricing and promotions affect profitability and the steps they can take to optimize their pricing structures. Brands can leverage their pricing and consumer data to design appropriate pricing models for achieving their sales goals.

    Here is a brief overview of pricing analytics, its benefits, and ways to improve sales with historical pricing analytics.

    What is historical pricing data analytics?

    historical pricing data analytics
    Historical Pricing Data Analytics

    Pricing analytics uses historical pricing and demand data to understand how pricing activities have affected profitability and overall brand. It also helps to optimize a brands’ pricing strategy for maximum revenue. Manual tracking of pricing for brands with numerous product lines, multiple selling points, different customer tiers, and complex product bundles is a huge challenge. Brands from every sector and industry vertical, manufacturing and distribution to retail and eCommerce, can benefit from pricing analytics.

    There are three types of pricing analysis:

    Descriptive

    Descriptive pricing analytics involves analyzing historical data to evaluate how customers have perceived and reacted to pricing fluctuations in the past. It analyzes metrics such as month-on-month sales growth, average revenue per customer, year-on-year pricing changes, or changes to the number of registrations to a particular service over a specific period. 

    Predictive

    Although brands can’t accurately predict how pricing changes will reflect sales, they can use predictive pricing analytics to get insights into the best possible chance of doing so. Predictive pricing analyzes historical data with statistical algorithms and machine learning to predict the price and trends of products in the future. It also helps brands to optimize their prices with future goals.

    Prescriptive

    Prescriptive pricing analytics is the opposite of descriptive analytics. Unlike descriptive analytics that helps brands explore their historical data to understand customer response after an event, prescriptive analytics help brands design better and more informed strategies. With prescriptive analytics, brands can shape their growth strategies to achieve more sustainable results over the long term.

    Benefits of historical pricing data analytics

    Benefits of historical pricing data analytics
    Benefits of Historical Pricing Data Analytics

    Acquire insights into customers price perception

    While analyzing the metrics to understand pricing optimization, brands can also gather valuable insights into their customer’s price perception. Pricing analytics helps brands understand which customer segments are the most (and least) profitable and how each segment responds to specific pricing strategies. With historical pricing data analytics, brands can also intelligently link pricing and promotions by first determining customer price sensitivity then gauging the effectiveness of promotions. 

    Fully Optimized Pricing

    Historical pricing analytics means eliminating guesswork from deciding the optimal pricing for a given product. By analyzing historical pricing data, brands can discover how their past pricing and promotional decisions impact profitability. Based on this historical data, they can also test various pricing strategies like value-based and dynamic pricing. It also allows brands to learn which customer segments are most likely to respond positively to price change. These insights from pricing analytics will drive more effective (and profitable) pricing decisions.

    Recognize pricing tiers that work the best

    Many brands have gaps in their pricing strategy — underpriced or overpriced tiers, pricing leaks, markup errors, or neglected upsell opportunities. Tiered pricing models are prevalent in subscription-based brands where brands offer tiers to meet the needs of diverse customer segments. With historical pricing analytics, brands can improve their pricing tiers and get insight into the right number of tiers and optimal prices for each. Pricing analytics will comb a brand’s historical data to find tier pricing mistakes to improve sales and revenue.

    Planning Pricing Strategies and Promotions

    Promotional pricing decisions are critical for any brand, as pricing perception is directly linked to consumer demand and profits. Brands have to carefully plan promotions that include variables such as list prices, special offers, advertisements, and discounts while ensuring profit margins. With predictive analytics, brands can determine optimal discount levels, keep a close eye on the competition, and announce promotional offers when customers are likely to purchase. Historical pricing analysis also helps predict revenue and determine optimal locations and platforms for promotional ads.

    Discover profitable channels

    Not all sales channels bring equal revenue to your brand. Historical pricing analysis can help you determine the most effective quality, volume, and revenue channels. Brands must understand which marketing and sales channels bring quality leads that convert to paying customers. It also helps to determine which eCommerce channels are most profitable so you can optimize your budget and identify channels you should be investing in as a part of future customer acquisition strategies. 

    Metrics to track

    Metrics to track
    Metrics to Track

    Here are a few pricing analytics metrics that can help brands to understand customer behavior towards pricing:

    Willingness to Pay (WTP)

    WTP, also known as price sensitivity, is the maximum price your potential customers are willing to pay for your service or product. It is an essential part of pricing strategy since you have no other way of understanding whether your product can yield an augmented product value. Numerous factors are responsible for a customer’s willingness to pay, and it’s not static. Brands must track willingness to pay for all customer segments to ensure that the product is priced competitively and drives maximum profit while staying in line with current market conditions. 

    Feature Value Analysis

    Feature value analysis, also known as relative reference analysis, measures the most important features to customers in relation to other features of a product or service. Analyzing critical features to customer segments will help brands price products based on basic or premium components. It can also help to better bundle your services or products so you can drive the most revenue. 

    Average Revenue per User (ARPU)

    The average revenue per user is the revenue generated from the sum of active users divided by the total number of users in a monthly time frame. Delving deeper into ARPU can help brands compare numbers with rivals and check how all products or customer segments perform. 

    Lifetime Value (LTV)

    Lifetime Value offers a complete picture of a user’s journey and the average revenue that the user will generate throughout their engagement as a customer with your brand. It helps brands determine various economic decisions such as marketing budgets, profitability, forecasting, and resource allocation. 

    Customer Acquisition Cost (CAC)

    A successful and profitable brand needs to balance its customer acquisition cost or CAC. It is about spending the right amount of resources and time to drive new customers without jeopardizing their lifetime value and revenue. Correct calculation of CAC helps brands to quantify their sales funnel and determine the efficiency and profitability of their strategies.

    Conclusion

    Historical pricing analytics is a powerful tool, and it can make a huge difference to a brand’s potential by increasing sales and unlocking incredible profitability in a relatively short time. Historical analysis of pricing and promotions data will help brands get better marketing returns than relying on traditional pricing approaches. 

    Leveraging pricing analytics will prevent brands from blindly reacting to competitor price changes and support solutions for scaling up price transformation efforts. By using historical pricing data, brands can more effectively segment their customers for marketing and promotion strategies. Properly utilizing predictive analytics and past sales data can help cut costs and keep profit margins high by adjusting production and prices according to market trends.
    Need help tracking your competitor prices? Or want historic pricing insights for your own brand? Or need to track the efficacy of your online promotions?
    Sign up for a demo     with our team to know how DataWeave can help!