A question most retailers are asking themselves is that how can they remain competitive when mobile technology is gradually shaping the price-conscious consumer’s buying habits?
Most consumers are making use of the internet to find the best deals on the items they want to buy. With easy access to technology, finding the best prices on electronics, fashion, food and drinks has never been easier.
Those leading the charge of this new shopping culture are the Millennials who are really blending the whole world using mobile technology.
We are definitely becoming a Price-conscious nation!
A recent research sample of 2000 people from the UK revealed, that 855 of the shoppers do some bargain hunting whenever they want to buy something offered in more than one store. For the case of those aged between 16 and 24 years, the same research indicated 95% chose to hunt for bargains and this demonstrates a rise of the price aware consumer.
In the past, for a customer to find the best deals and bargains, they had to do their own independent research. This was achieved by either going to the shops and manually going through all the items in order to find the best prices.
With the current technological advances, shopping has been made easier, consumers now have instant to access live prices at once. The smart devices are making the work of the shoppers smarter giving consumers access to online comparison website, barcode scanning apps and online voucher codes to compare the prices of more than one supplier.
Cue the bargain hunter
According to research, half of the shoppers prefer to use a price comparison site when looking for a bargain. Four out of ten people prefer to use a voucher code so as to save money. Among the millennial generation, the figure again increased to 55% using the comparison sites while six out of ten use voucher codes.
Interestingly most people lack interest when it comes to barcode scanning apps and researches has shown that only one out of ten millennials use them.
The rapid increase in the use of mobile technology is not only used to enhance convenience and habits of the shoppers but is also very useful when it comes to pricing of the products.
Almost all the customers are now aware that if they spend some time online and in-store using their smart devices, they can save a lot of money on the devices they want to purchase.
An average person can spend about 30 minutes in-store looking for the best deal on any fashion item they want to purchase. For extreme cases, one in every seven people admits that they can spend more than one hour in-store looking for that bargain.
As far as savings are concerned, 25% of the millennials believe that they can save more than 30% of the total cost when they do thorough research.
The showroom boom
The idea of showrooming has not helped the matters since it only encourages the use of mobile technology in more bricks-and-mortar stores.
In most cases, the showrooms do not give the customers a chance to buy in-store but instead, it pushes them to buy the items they want online using their smart devices such as smartphones and tablets, if they can’t wait to go home and buy it at that time.
This idea is being accepted by the young generation of shoppers since they are very comfortable using their smart devices for such purposes. Researches have revealed that 25% of the young generation aged between 16 and 25 years admit that they prefer using their smart devices whether a tablet or mobile phone to buy these items online while still in-store.
This implies that there is a line between the online and offline and it is difficult to distinguish. Therefore, retailers have to take this into account when targeting their customers.
During the build-up seasons such as Christmas, Black Friday and Cyber Monday, retailers must ensure that they have all the bases covered so as to optimise their sales.
All the retailers must understand the shifts in the demand and shopping landscape and engineer their prices to match the customer’s’ needs. Due the availability of the internet, prices are nowadays more transparent than ever before and the retailers risk losing businesses if they do not adapt quickly to the customers desires in terms of prices.
Retail pricing of the future
We can see that shopping habits are changing, dynamic pricing will be the future of retail prices. Whether on clothes, fashion items, or food and drinks, dynamic pricing can make an impact on the number of sales and bottom line. In the age of Amazon, Dynamic pricing is taking over in retail and beyond.
The idea of the digital native millennials becoming savvy when it comes to getting the best deals using mobile technology, is having a real impact on the retail industry. This is because what the consumer is willing to pay is setting the pace for future standards.
Retailers must revisit their pricing strategies and ensure that they are always responding to the needs of the modern shoppers. They have to act now in the current crowded market so they can stay ahead of their competitors!