Study: price sensitivity decreases while consumer confidence remains strong

The company First Insight, Inc. announced the results of its latest study on prix elasticity, "Decoding Price Elasticity: Emerging Opportunities.”While commercial wars and prices in the current climate continue to affect the sensitivity of consumers to prices, the report highlights the importance of understanding the elasticity of demand and knowing how to compensate for the potential impact of prices andprice fluctuations.

By using exclusive data on the elasticity of demand for the price over a period of two years, the new study showed that elasticity and prices sensitivity were falling in all categories, including women's clothing, forMen, for children and household items.A previous study published in 2017 revealed many possibilities for retailers to take advantage of an increase in prices.

The study examined the price trends and the price elasticity of hundreds of thousands of articles treated via insights, the company's predictive analysis platform, which allows retailers and manufacturers to select, Tarifer, market and buy new products without sales history.The study examined data between September 2017 and April 2019, as well as other exclusive sources, and establishes comparisons with the original study of 2017, by identifying the categories in which the elasticity of demand could have changed.

À travers InsightSuite, la société collabore avec des détaillants et des marques telles que Marks & Spencer, Dick Sporting Goods, Corkcicle, Rue21, Kohl’s et Crocs.

The main conclusions of the report are as follows:

Overall, elasticity gradually decreases for women's clothing and offers retailers to maintain or increase their prices.In subcategories including handbags, bathing clothes, shoes and jewelry, retailers have increased their prices according to demand, but there are opportunities to increase prices in night clothes,Outdoor clothes, stockings, tops, lingerie and dresses, where retailers have lowered their prices.These trends reflect the growing power of expenditure of millennials, which reach higher income based on a strong economy and exceed baby boomers as the largest generation of buyers in history.

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According to a recent study by Euromonitor, sales of men's clothing continue to grow while men are increasingly interested in their external appearance, their fashion trends and their specific brands.While retailers increase their prices in parallel with the drop in the elasticity of the categories of shoes, pants and underwear, prices have decreased for top clothes and accessories, for which buyers are less sensitive to prices.In addition, the price of high men has increased, while these buyers are more sensitive to prices.Retailers should consider reducing the price of these items to avoid a drop in potential sales and excess stocks.

Like many parents, especially children of generation Y, are later waiting in life when they have more income available to have children, they are less concerned with prices when buying clothes for their children.This reduces the elasticity of almost all categories of children's clothing.The retailers have largely adhered to these trends, because dresses, sleeping clothes and stockings show upward prices.The shoes, which have a significant increase in the elasticity of prices compared to the previous report, are also well managed, the retailers reacting with lower prices.The only poorly managed exception concerns children's highs, where price elasticity is declining, which represents an opportunity for retailers to generate larger income.

According to the study, elasticity has decreased considerably in all categories of residential goods, with the exception of household items.While in the furniture sector, where retailers increase their prices in parallel with the drop in elasticity, retailers are wrongly lowering prices in the categories of decoration and textiles while elasticity decreases.In household items, where elasticity continues to increase, retailers better manage this risk than the previous report and lower their prices in accordance with consumer expectations.

The full report can be downloaded here www.firstinsight.com/decoding.

Source: https://www.firstinsight.com/– 03/10/19