New Year’s sales? Price hikes instead of promotions.
Many people are used to post-Christmas promotions. This year, customers were hoping to take advantage of them primarily in online stores. But it turns out that consumers who were planning to buy popular products at the beginning of January were more likely to encounter price hikes instead of promotions.
This year Dealavo once again cooperated with Deloitte, which resulted in the “Christmas Price Barometer” report. The scope of analysis were prices of products most often bought as Christmas presents in more than 1000 online stores in Poland.
What were the most important conclusions of the study?
- At the beginning of January 2021, 66% of products were more expensive compared to mid-November 2020 (a week before Black Friday).
- The average price increase during this period was 8%, while between Black Friday and New Year’s Day it was 6.2%.
- For as many as 32% of products, prices increased by more than 5%.
- In comparison, only 11% of the analyzed products saw price drops of more than 5%.
- The categories in which the average prices increased were small household appliances, consoles, toys, and products from the music category.
- Among the analyzed products, the prices of drones and laptops decreased slightly.
How can online stores stand out during this period?
As you can see, the average price cuts were not very high during this period despite high consumer expectations. How then could online stores attract customers?
Online shops could have introduced promotions on popular products whose prices were not lowered by competitors. The easiest way to spot such opportunities is by using a competitor price tracking tool like Dealavo. With such a tool, it is easy to introduce price reductions on those products for which there are no significant discounts on the market.