Experts recommend retailers to abandon "addiction"
22.05.2017 2209

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

Sneakers with Donald Trump's victory image become bestsellers

"Fight Fight Fight" is the name of a pair of high-top sneakers featuring a victorious image of Donald Trump after the attack. The shoes, which the politician released in memory of the terrorist attack in Pennsylvania, were produced in an edition of 4700 pairs, and were a commercial success. Pair…
20.07.2024 391

Birkenstock opens first store in Paris

Birkenstock's first Parisian store opens this Saturday. Two-story store with an area of ​​130 sq. meters is located in the heart of the fashionable Parisian Marais quarter, where interior showrooms, art galleries, boutiques,…
19.07.2024 508

OrthoLite expands its production center in Europe

The American insoles manufacturer has announced the expansion of its European facility, OrthoLite Europa (OEU), located in Almansa, Spain. The company strives to become closer to European partners and aims to increase…
18.07.2024 669

Almaty will host an exhibition of footwear, fur, leather and accessories Euro Shoes@CAF

From August 18 to 20, the main exhibition of the fashion industry in Central Asia - Central Asia Fashion (CAF) will be held in Almaty at the Atakent exhibition complex. For the fourth season of CAF, it is being held with the support of the Moscow International Footwear and…
17.07.2024 572

Supreme to sell for $1,5 billion

VF Corp. will sell the popular street fashion brand Supreme, significantly lower than the price of its purchase made by the corporation in 2020, against the backdrop of falling sales and declining interest in street style, writes...
17.07.2024 852
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning