Once upon a time, being able to beat competitors on price alone gave discount retailers a significant advantage. However, low prices are no longer a novelty, with the rise of e-commerce and global trading.
What can retailers do to keep on top of their game?
More and more discount retailers are starting to look beyond price to explore what their products actually mean to consumers. Why are they purchasing them? How do they enhance their lifestyles?
When prices are competitive all around, retailers need to provide the most compelling argument regarding the benefits that they add to people’s lives. Do they help them accomplish their goals through the stationary they supply? Do they make their desired lifestyle affordable? Do they make their daily lives more comfortable? Understanding and communicating exactly how your business adds value to people’s lives will provide your customers with a reason to shop with you, rather than your competitors.
Think about Bunnings’ tagline – “lowest prices are just the beginning…”, or IKEA’s “make up for living” campaign. While both brands are known for low prices, they clearly demonstrate that the lifestyle gain will extend beyond the money saved.
How does your brand enhance people’s lifestyle?
Written by:
Lana Bruskina – Strategy and Insight Manager
For further information on THINK Global Research, please contact Kristy Ihle (Managing Director) at info@thinkglobalresearch.com.
