Beauty commerce is a booming sector. By 2019, online purchases of personal care and beauty products are expected to increase by more than eight percent. As a result, online retail in beauty products is growing about four times faster than stationary retail. And in light of increasing offerings, it is also becoming ever easier for consumers to compare prices. For shop operators, the most important weapon in this competitive environment is active price management. This will ensure long-term margins while at the same time gaining important shares in revenue.
Against this background, we have examined in our “blackbee pricing report: Beauty and wellness” eight major German online retailers of personal care and beauty products with regard to their price management The selection ranges from large, international marketplaces, department store groups and multichannel retailers right through to the modern-day pure players. The respective companies were monitored over the period of May to July 2017. To this end, we evaluated the data from our market analysis solution blackbee.
Online shops: Irregular pricing
The main finding of our study was that, so far, only a quarter of the online shops examined have implemented a strategic price management system. It was also noted that each provider follows its own pricing pattern. Amazon, for example, prices its products fairly consistently and actively, whereas the price movements in other online shops fluctuated widely. Also of interest was that over the course of a week, prices across all shops tended to be lowered rather than increased.
The “blackbee pricing report: Beauty and wellness” makes clear that the majority of German online beauty retailers have not yet optimally exploited their valuable pricing potential. In order to remain lastingly competitive in the highly competitive eCommerce market, a systematic pricing has now become indispensable. Only those who maintain overview of the vast amount of data on prices, products and competitors, and use this to their own benefit, can secure competitive advantages and be successful in the market longer term.
Would you like to know more about pricing in beauty commerce? We will gladly send you the “blackbee pricing report: Beauty and wellness“! Contact us now.