Rieker
Experts recommend retailers to abandon "addiction"
22.05.2017 1534

Experts recommend retailers to abandon "addiction"

Consulting company Oliver Wyman, which provides services, including to large Russian retailers, recommends that retailers reduce the number of promotions in order to get rid of the risks associated with industrial dependence, Vedomosti writes.

It is no secret that with the decline in purchasing power caused by the crisis, many retail players often began to resort to various kinds of discounts in order to stimulate demand for their products. As a result, promotional campaigns reached such a level that buyers ceased to be value. In addition, customers accustomed to discounts believe that the regular price is no longer profitable. Often, retailers evaluate the effectiveness of a promotional campaign only by the growth of goods per share, experts at Oliver Wyman note, which means that side effects, for example, the effect on sales of other goods and brands and a shift in demand, are ignored. The net effect should also take into account marketing costs, additional labor costs and costs in the supply chain due to the need to handle over-volumes.

On average, according to Oliver Wyman, promotions reduced sales growth by 18% over the past five years (data based on a study of Eastern European networks). At the same time, upon reaching a critical share of promotional sales, every additional 10% increase in turnover entails a loss of 1% net profit, consultants at Oliver Wyman calculated.

Consulting company Oliver Wyman, which provides services, including to large Russian retailers, recommends that retailers reduce the number of promotions in order to get rid of risks, ...
3.3
5
1
1
Rating

Latest News

Salvatore Ferragamo once again demonstrates the F-shaped heel

Salvatore Ferragamo's 2021 F-heel follows the curved heel of the original once created by the brand's founding father. The unique shape of the heel creates the impression that the wearer's foot is flying through the air.
05.03.2021 99

Turkish shoe exhibition Eksposhoes Antalya will be held from 18 to 20 May

Despite the pandemic and the associated restrictions on international travel, Turkey's borders remain open to guests from Russia, and the Eksposhoes Antalya shoe exhibition is once again ready to host Russian buyers.
05.03.2021 106

Lacoste has released a new model of unisex sneakers in retro style

French sportswear brand Lacoste's Match Break sneaker is a combination of an archival silhouette and state-of-the-art technology. The design of the retro sneaker combines clean lines with a calm color scheme.
03.03.2021 141

Rendez-Vous introduces its new spring / summer 2021 footwear collection

In the current collection of the Rendez-Vous chain of footwear and accessories stores, shoes from such brands as Kenzo, Vagabond, MM6, Giovanni Fabiani, Marc Jacobs, Converse, Dr. Martens, See by Chloe, Nike, Nando Muzi, Guess, Loriblu, ...
03.03.2021 157

Rieker sells 24 pairs a year. Shoes Report's Youtube channel published an interview with Riker Vostok CEO Shahin Asadov

Despite the pandemic, German footwear brand Rieker is celebrating a good year and expects sales to rise in the coming season.
03.03.2021 690
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning