Retailers: Don't Get Stuck in the Deep Discount Dilemma
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Retailers are running scared. In every sector, from apparel to electronics to groceries, they’re afraid of becoming the 40%-off brand. Shoppers are so trained to wait for discounts that the slippery slope has become an avalanche.
Digital has been part of the problem. Mobile apps make it easier for consumers to “showroom,” compare prices and hunt down deals; omnichannel retailing means thousands of low-overhead e-storefronts compete with the mall. Consider this: An Accenture study found that 46% of consumers plan to make more purchases online in the future. Meanwhile, a study by Google found that 84% of smartphone owners use their phone to help them shop while in the store. The good news is they buy more; the bad news is, they’re using those phones mostly to compare prices (53%) and find offers (39%). Alas, digital has become the gateway to discount addiction.
But digital enables the solutions, too. Consider digital tools to deliver something that means as much –or more — than price. Make your brand about the value add, not the cents off.
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