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Tag: strategy

  • LVMH deputy CEO shares strategy to manage tariffs

    LVMH deputy CEO shares strategy to manage tariffs

    French luxury powerhouse LVMH may have the ability to increase prices on their premium products by 2-3% annually without significantly impacting demand. This insight comes from the company’s deputy CEO, Stephane Bianchi, who shared the information during a recent parliamentary hearing in France. The discussion aimed to explore the group’s potential strategies for counteracting potential tariffs.

    Price Elasticity of Luxury Goods

    According to Bianchi, customers purchasing the group’s most exclusive items, such as high jewelry, are likely to tolerate modest price increases. However, he also warned that there are limitations to this tolerance, emphasizing that price elasticity for these products is not infinite.

    Recent developments in global trade politics have also influenced LVMH’s pricing strategies. The US president recently postponed a plan to impose 50% tariffs on imports from the European Union. Instead, negotiations are set to continue between Washington and the 27-nation European bloc, with a new deadline set for July 9th.

    Challenges with Raising Prices on Lower-Priced Products

    While price increases may be feasible for high-end goods, the same cannot be said for some of the lower-priced items in LVMH’s offerings. Specifically, the company may face issues with raising prices for its beauty products and cognac, according to Cecile Cabanis, the group’s finance chief. She indicated a lack of ability to adjust the prices of these items, stating that “the capacity to raise prices is not there.”

    Questions & Answers

    What is LVMH’s strategy for offsetting potential tariffs?
    LVMH’s strategy for offsetting potential tariffs includes the potential to increase prices on their premium products by 2-3% annually without significantly impacting demand.

    What are some limitations of this pricing strategy?
    Though price hikes may be absorbed by buyers of high-end products, there are bounds to their tolerance. Additionally, the company may struggle to adjust prices for lower-cost items, such as beauty products and cognac.

    How have global trade politics influenced LVMH’s pricing strategies?
    Recent developments, such as the US president’s decision to postpone tariffs on European imports, have influenced LVMH’s approach. This decision allows for further negotiations and potentially impacts the group’s pricing strategies for products sold in the US market.

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  • Alibaba Attributes Robust Growth to Innovative AI-Driven Strategy

    Alibaba Attributes Robust Growth to Innovative AI-Driven Strategy

    Alibaba Group continues to shine brightly in the tech world, leveraging its “user first, AI-driven” strategy to deliver impressive growth figures for the quarter and fiscal year that concluded on March 31, 2025. In a landscape ripe with innovation, Alibaba’s ability to harness artificial intelligence has been a game-changer, showcasing the immense potential of technology in retail.

    Strong Financial Performance

    The company reported a 6% rise in revenue, totaling an impressive $138.07 billion (RMB996.3 billion) for the fiscal year. Even more striking was the net profit, which shot up by 62% to reach $17.95 billion (RMB129.5 billion), signaling a robust performance amid fierce competition. The Cloud Intelligence Group also shone brightly, boasting an 18% increase in revenue, with AI-related products enjoying a stunning triple-digit growth for the seventh consecutive quarter.

    Success in Customer Engagement

    In a testament to enhanced user experience and effective monetization, Taobao and Tmall’s customer management revenue climbed by 12%. The Taobao and Tmall Group also reported a solid 9% increase in revenue, marking the fastest growth seen in seven quarters. “Our relentless focus on AI and cloud technology is not just driving our core business growth; it is destined to be a cornerstone of our long-term success,” remarked CEO Eddie Wu.

    Shareholder Returns

    The financial health of the company wasn’t just for the company itself. CFO Toby Xu shared that Alibaba repurchased $11.9 billion in shares this fiscal year, resulting in a 5.1% reduction in outstanding shares, while also approving dividends amounting to $4.6 billion. Clearly, the company is not just focused on growth, but also on delivering value to its shareholders.

    As Alibaba continues to soar with AI at its helm, one can’t help but wonder if robots will one day be shopping on Taobao themselves!

    Questions & Answers

    What drove Alibaba’s revenue growth this fiscal year?
    Alibaba’s revenue growth was largely driven by its “user first, AI-driven” strategy, which enhanced customer engagement and monetization.

    How much did Alibaba report in net profit?
    Alibaba reported a staggering net profit of $17.95 billion (RMB129.5 billion), reflecting a 62% increase compared to the previous year.

    What actions did Alibaba take to enhance shareholder value?
    Alibaba repurchased $11.9 billion in shares, reducing outstanding shares by 5.1%, and approved dividends totaling $4.6 billion.

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  • L’Oréal Appoints First Chief Innovation and Prospective Officer, Signaling Bold Future Ahead

    L’Oréal Appoints First Chief Innovation and Prospective Officer, Signaling Bold Future Ahead

    L’Oréal is entering a new era as it welcomes Delphine Viguier Hovasses to its executive ranks. Starting July 1, 2025, she will assume the role of the company’s first Chief Innovation and Prospective Officer, a position tailor-made for steering the beauty giant’s innovation teams and the Strategic Prospective Department. Hovasses’ appointment signifies a robust commitment to bolstering L’Oréal’s leadership in the beauty sector through forward-thinking strategies that blend technology, science, and product development seamlessly.

    Hovasses is no stranger to the L’Oréal family; she began her journey with the company as an engineer in 1997. Over the years, she has forged a remarkable path, marked by her leadership prowess and marketing savvy, with a particular emphasis on innovation. In a notable achievement in 2019, she became the first woman to take the helm of L’Oréal Paris globally. Since then, she has overseen the launch of blockbuster products like the Elsève Glycolic Gloss and Panorama Mascara, solidifying the brand’s reputation as the leading name in beauty.

    Her influence extends beyond product innovation. Hovasses directed major initiatives like “Le Défilé” at Paris Fashion Week and amplified L’Oréal’s presence at the Cannes Film Festival. She’s also a vocal advocate for societal issues, evidenced by her leadership in the Stand-Up program against street harassment, which has empowered nearly 3 million individuals worldwide.

    As Delphine Viguier Hovasses steps into her new role, fans of L’Oréal can eagerly anticipate a wave of cutting-edge innovations poised to reshape the beauty landscape. Who says corporate appointments can’t be exciting? After all, the future of beauty is in capable hands!

    Questions & Answers

    Who is Delphine Viguier Hovasses?
    Delphine Viguier Hovasses is the newly appointed Chief Innovation and Prospective Officer of L’Oréal, effective July 1, 2025.

    What are her main responsibilities in her new position?
    She will lead L’Oréal’s innovation teams and the Strategic Prospective Department, steering the company’s future-focused strategies in technology, science, and product development.

    What milestones did she achieve during her career at L’Oréal?
    Hovasses became the first woman to lead L’Oréal Paris globally in 2019 and has successfully launched major products while advocating for social initiatives like the Stand-Up program against street harassment.

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  • Banque Cramer Reduces Operations Amidst Shifting Retail Landscape

    Banque Cramer Reduces Operations Amidst Shifting Retail Landscape

    In a landscape marked by fluctuating market conditions, Banque Cramer, the Geneva-based private bank, reports a decline in net profit for the fiscal year 2024, even as it sees a notable increase in assets under management. Under the leadership of new CEO Thomas Müller, the bank is poised to undertake modernization efforts to streamline its operations.

    Growth in Assets, Downturn in Profit

    The bank’s assets under management grew by an impressive 15%, reaching 3.7 billion Swiss francs. However, this positive development contrasts sharply with the bank’s declining bottom-line results. According to the annual report released this Wednesday, net profit slid from 9.1 million francs the previous year to 7.2 million francs. Additionally, operating profit saw a significant drop from 14.8 million francs to 10.4 million francs.

    Key Factors Behind Profit Dip

    Two primary factors contributed to the downturn: a decrease in income from trading activities, which fell by 3.7 million francs, and a reduction in net interest income of 3.6 million francs. On a brighter note, the bank experienced growth in commission and service income, which increased from 20.6 million francs to 22.3 million francs.

    Despite these challenges, Banque Cramer successfully attracted net new money amounting to 158.2 million francs; however, this is substantially lower than the 398.2 million francs garnered in the previous fiscal year. The bank also effectively managed to reduce operating costs by 1.3 million francs, bringing them down to 32.9 million francs.

    Strong Financial Foundation

    Banque Cramer maintains a robust equity base, with a total equity of 93.4 million francs at the end of 2024. The bank’s Tier 1 capital ratio stood at a strong 31.9%, while the Liquidity Coverage Ratio (LCR) reached an impressive 363.4%.

    As Banque Cramer initiates modernization strategies under its new CEO, the future could signal increased resilience in an evolving financial landscape. The developments at the bank not only reflect current consumer trends but may also influence broader dynamics in the retail banking sector. This strategic pivot could enhance the bank’s competitiveness, benefiting both its clients and the overall market.

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  • Revolut Targets Swiss Market with Yield-Focused Retail Strategy

    Revolut Targets Swiss Market with Yield-Focused Retail Strategy

    Revolut is enhancing its presence in Switzerland by introducing flexible money market funds and virtual Swiss IBANs tailored for business clients.

    In an exciting development for the Swiss business landscape, Revolut has announced the launch of a product suite designed to empower companies with new financial tools. By offering flexible money market funds in multiple currencies and virtual Swiss IBANs, Revolut aims to enhance financial management for businesses of all sizes.

    Flexible Money Market Funds

    Starting immediately, Swiss customers using Revolut Business accounts—specifically those on Grow, Scale, or Enterprise subscriptions—can diversify their liquidity investments. Available in euros, US dollars, and British pounds, this offering democratizes access to financial products that were once primarily available to large corporations.

    Revolut highlights the attractive yield of its GBP-denominated fund, which offers variable returns of up to 4.08 percent (as of April 27, 2025). “This innovative fund allows business clients to grow their assets effectively,” stated Revolut in their announcement.

    Introducing Virtual Swiss IBANs

    In addition to flexible funds, Revolut is now providing virtual Swiss IBANs to streamline payment processes for businesses. The key features of this service include no costs for deposits and withdrawals, daily yield payouts, and convenient access to funds. James Gibson, Head of Revolut Business, expressed enthusiasm about these offerings, stating, “We are excited to support businesses of all sizes in managing their money efficiently and without high fees.”

    Strong Growth Momentum

    Revolut’s expansion into Switzerland is backed by impressive growth metrics. The company reports nearly 80 percent increase in monthly transaction volumes and a 63 percent rise in business deposits, reflecting a strong demand for its services among local enterprises.

    Future Considerations

    While Revolut is rolling out a broader range of services, such as FX forwards and enhanced integration with Swiss accounting software, the reception of foreign currency money market funds remains uncertain amid current market volatility. Over the past year, the Swiss franc has appreciated against major currencies, with the US dollar dropping approximately 9.5 percent against the franc, and the euro and pound also seeing declines.

    As Revolut continues to innovate, its new offerings stand to significantly impact the retail sector in Switzerland by providing businesses with cost-effective financial solutions. This expansion not only aligns with current consumer trends favoring digital banking but also reflects a broader shift in how companies manage their finances in an increasingly volatile economic environment.

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  • A&M Boosts Brand Growth with New Permanent Office in Vietnam

    A&M Boosts Brand Growth with New Permanent Office in Vietnam

    Alvarez & Marsal (A&M) has officially inaugurated its new office in Ho Chi Minh City, enhancing its presence in Southeast Asia. This strategic move comes as Vietnam emerges as a key market characterized by substantial economic transformation and evolving consumer trends, particularly in financial services, retail, and manufacturing sectors.

    A Strategic Expansion Into a Thriving Market

    As A&M broadens its influence throughout Southeast Asia, with established offices in Australia, Singapore, Indonesia, and Malaysia, the firm identifies Vietnam as a vital hub ripe with opportunities. “Vietnam has reached a pivotal moment in its economic journey,” said Utsav Garg, Managing Director and Head of Southeast Asia and Australia. “Our decision to establish a permanent presence in the country reflects our belief in Vietnam’s long-term growth potential and our commitment to supporting companies in achieving sustainable success.”

    Addressing the Complexities of Business Growth

    With Vietnam increasingly integrating into global supply chains, local enterprises are recognizing the need for robust advisory support. A&M offers a suite of services focused on corporate transformation, performance enhancement, and restructuring. As Douglas Jackson, Managing Director and Head of Vietnam at A&M, emphasizes, “We do not merely provide recommendations; we engage closely to implement strategies that yield tangible results.”

    Focus on Practical Solutions with a Hands-On Approach

    Differentiating itself from typical consulting firms, A&M’s “Muddy Boots” philosophy champions active collaboration with clients to develop and execute practical solutions. This approach aligns perfectly with Vietnam’s competitive economic landscape, where actionable insights are paramount.

    Jackson noted that the Ho Chi Minh City office has seen about 50% annual growth, underscoring the increasing demand for A&M’s services. The firm is committed to building a robust local workforce by combining Vietnamese talent with global industry experts, ensuring a balance of local insights and international best practices.

    Dedicated to Supporting Vietnam’s Economic Resilience

    The diverse challenges and opportunities in Vietnam—ranging from regulatory changes to digital advancements—necessitate a reliable partner like A&M. With over 300 professionals across Southeast Asia and Australia, including 70 senior directors with significant industry experience, A&M is poised to deliver both strategic insights and practical solutions tailored to the unique market needs.

    Moving forward, A&M’s continued investment in local talent and its dedication to execution will further position the firm as a trusted ally for businesses navigating Vietnam’s dynamic economic landscape. This expansion not only supports A&M’s growth strategy but also speaks to the potential for enhanced resilience and value creation within the retail sector and beyond.

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  • Renault Introduces New Nouvelle Vague Brand Strategy

    Renault Introduces New Nouvelle Vague Brand Strategy

    Renault is gearing up to give it’s brand a new direction. The French carmaker has adopted “Nouvelle Vague” strategy targeting to maximize its number of electrified vehicles by 2030 in a bid to move towards sustainable development. More than 2000 engineers from five companies will work on cybersecurity, artificial intelligence, data processing, software, and microelectronics. Then, Renault’s Re factory in Europe will recycle or upcycle up to 1.20 lakh units every year. Nearly 80 percent of those recycled materials will be reused in new batteries.

    By 2030, Renault is targeting to become world’s best automotive manufacturer when it comes to the percentage of recycled materials in new vehicles. The company will also introduce seven electrified models in C and D segments. It has also unveiled the new Arkana coupe SUV that marks and the new-generation Megane E-TECH Electric. The company has also announced that the E-TECH Hybrid technology will continue to power upcoming C and D segment vehicles. Renault has been leading in the EV segment in Europe with almost 4 lakh vehicles sold to date. In Europe, France, Spain, Italy, Germany, and the United Kingdom – will continue to be its key markets. The company will also try and increase local dominance in Brazil, Russia, Turkey, and India.

    The brand has also unveiled its new logo and the Megane will be the first model to wear it. The latest iteration was created in 1992 and Renault felt that it began to look a little dated, even though it was reworked in 2015. The new brand logo adores a streamlined design, with neither typogram nor brand signature. The new logo is an open-ended shape and Renault says that it reflects the brand’s openness and transparency. It was co-designed with Landor & Fitch consultants and will be phased in on all Renault brand vehicles and across the Renault network. By 2024, the entire Renault range will sport the new logo.

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  • Miniso plans to roll out new sub brands and concepts

    Miniso plans to roll out new sub brands and concepts

    Miniso has unveiled a new “X strategy” business plan to diversify its business and launch multiple brands this year. The Chinese discount variety store said it will focus on the toy market this year with “Art Toy” as a new strategic product category. The retailer entered the toy sector last year with its new sub-brand “TopToy”, with nine new stores.

    The brand will also ramp up its expansion plan in China and overseas with focus on digitalization. As China is in recovery post-Covid-19, Miniso said it will expand its footprint domestically, mostly in Tier 3 cities and even rural areas. As part of its digitalization strategy, Miniso will launch unmanned stores in China, with products also soon available on all online channels including its self-owned online stores, WeChat mini-programs, and flagship stores on major e-commerce platforms.

    Miniso’s international expansion plan will see the opening of stores in high-populated countries, including India, Indonesia, the US, Mexico and Spain. “Covid-19 is a catalyst that has accelerated our digital transformation and embrace of online channels,” said Robin Liu, chief marketing officer of Miniso. “We will keep broadening our online sales channels.”

  • What Volkswagen India’s SUVW Strategy Entails

    What Volkswagen India’s SUVW Strategy Entails

    How many times have you seen a Volkswagen Beetle and not given it another look? Well, the answer is zero and that’s because its design is timeless, ageless. That’s also why we can’t help but look at the new-gen models from Volkswagen India like the Jetta, Polo, Vento, Polo GTI or now even the Tiguan, T-Roc, and even the Tiguan AllSpace. It’s the design of all these cars evoke the same reaction – wow!

    And it’s because these cars have a strong lineage. They all are a culmination of what the company has been able to learn in so many years of being part of the global automotive fraternity. That’s why you see the technology funnel down to cars like the Polo GT TSI making it one of the best hot hatches in the country. In fact, it was the car that started the hot hatch trend in India and remains to date one of the most loved driver’s car in the country.

    But with SUVs fast becoming a trend in global markets, VW had to go back to the drawing board and figure out what it could do. It’s not as if the company had no SUV in the market earlier. Remember the Touareg? Yes, the one with the V6 engine. But it was ahead of its time, in fact, Indian buyers weren’t looking at buying SUVs back then, they were more into sedans. But as the market matured, VW India adapted to the change. The big step then in the SUV direction was in 2017, when the company introduced customers to the 5-seater Tiguan.

    With the Tiguan, Volkswagen tested the shores to understand the response and yes, it was a good one. The fact that you get German engineering, precision driving capabilities and of course great build quality, customers knew exactly what to expect from these products. And that was one reason why there’s a more strong focus on bringing in SUVs to India under the India 2.0 Project.

    With the Group investing ₹ 8000 for the India 2.0 project, there was going to be a strong focus on three aspects a) building cars with a high amount of localization content, b) align the business to make sure that service costs come down, and finally, make cars in India for the world!

    The company has already inaugurated a tech center in Pune in 2019 which will look into the development of these upcoming products but the attention is more on the new localized MQB-A0-IN platform. Just like the modular architecture of the MQB platform, where a number of body styles are made on a single platform, the A0-IN will also serve a similar purpose but given the high level of local content on the cars, all the products based on it will be price competitive. To put things into perspective, currently, the localized content in VW cars like the Polo and Vento is around 82 percent that will go up to 95 percent and that’s a massive leap.

    The Volkswagen Taigun will be one of the first SUVs to be built on the new localised MQB-A0-IN platform.

    The first car to be based on this platform is going to be the Taigun which was showcased just ahead of the Auto Expo 2020 and you got to see the car in the flesh back then. And this car will lead the charge for everything that comes post it. Now, the Tiguan AllSpace and the T-Roc have already had their fair share of success, so yes, it’s perfect timing for the Taigun to enter the market. The SUVW strategy then is falling into place and in 2021, we’ll see the Taigun and one more product coming to India. We can’t wait to drive everything that comes our way!

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  • Standard Chartered Taps Microsoft for Digital-First Strategy

    Standard Chartered Taps Microsoft for Digital-First Strategy

    As its preferred cloud platform provider, Microsoft will help the bank make its vision for virtual banking, next-generation payments, open banking and banking-as-a-service a reality.

    Standard Chartered has established a three-year strategic partnership with Microsoft to accelerate its digital transformation through a cloud-first strategy, according to an announcement on Tuesday.

    As part of the partnership, Standard Chartered will adopt Microsoft Azure as its preferred cloud platform to meet its need for resilient data centers and cloud services with the highest security and regulatory standards. The bank will also leverage Microsoft’s artificial intelligence (AI) and analytics capabilities to automate banking processes and deliver hyper-personalization of its products and experiences for customers, and its employees globally will also adopt Microsoft’s collaboration, office productivity and document management tools to advance digital workplace transformation.

    «he pandemic has shone a spotlight on the need for businesses and banks to be resilient from a risk mitigation, cost, and security perspective. With the increasing trend of an always-on digital economy, commercial and consumer clients are looking for applications and services that empower them to do online banking from anywhere, flexibly and efficiently,» Bhupendra Warathe, chief technology officer, cloud transformation at Standard Chartered, said about the bank’s digital-first strategy.

    The bank’s core banking and trading systems and new digital ventures such as virtual banking and banking as-a-service will be cloud-based by 2025, and it will also adopt a cloud-first principle for all new software developments and major enhancements, the announcement said.

    The first set of capabilities to move to Azure will be Standard Chartered’s trade finance systems, which will facilitate seamless cross-border trade for the bank’s corporate and institutional clients.

    Covid-19 has further accelerated drive to digitize banking services, and we are determined to be at the forefront,» Standard Chartered group CEO Bill Winters said in a LinkedIn post about the announcement.

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  • Pricing Tactics to Boost Sales in E-Commerce

    Pricing Tactics to Boost Sales in E-Commerce

    More than 80% of the purchasing decision depends on price. Especially in the ultra-fast e-commerce arena where businesses showcase and change their prices every 3 to 6 hours. But before changing prices out of the blue you must know that there are certain conditions to do that. Decrease your prices to very low and you’ll leave a lot of money on the table raise them up high and you’ll end up hunting flies.

    The Importance of Pricing

    Let’s start by going through each insight down below to understand why pricing needs more attention ever than before.

    • 90% of consumers invest their time to hunt the best online deals.
    • 80% of “first-time” consumers say it’s important to be able to see and compare prices from different sellers.
    • 70% of consumers believe they’ll get a better deal online than in brick&mortar stores.
    • 50% of consumers will purchase products left in shopping carts if those products are offered at a lower price.

    As you can see pricing is very, very important.

    Let’s get into some tactics on how you can approach pricing to increase your profits margins and sales numbers.

    Charm Pricing

    Have you ever heard about the power of 9s? That is the strategy, where you end a price with a “9” instead of a “0” on the price tag. This is a very common tactic especially in physical stores, but you may also come across it in online stores as well.

    Here’s why! Our brain perceives $50.00 and $49.99 as different values. According to consumer perception, $49.99 seems closer to $40.00, which is cheaper than $50.00 and product prices ending with a “9” are considered “the” deal to not miss.

    Prestige Pricing

    This is suitable for high-end, luxury, emotion-triggering products, where you should apply round prices such as $500, $750, opposite of charm pricing. Setting round prices on products which evokes emotions converts better.

    A study by Kuangjie Zhang and Monica Wadhwa, claims that “A rounded price ($100.00) encourages consumers to rely on feelings when evaluating products, while a non-rounded price ($98.76) encourages consumers to rely on reason. When a purchase is driven by feelings, rounded prices lead to a subjective experience of feeling right,”

    Bundle Pricing

    This psychological trick makes online shoppers search for getting an extra item with the purchased product at the same price. This presents a golden opportunity for the wise e-commerce seller. To reduce this pain and encourage online shoppers to buy your products, use bundling, set your prices accordingly and get these customers to reach deeper into their pockets.

    For example, Amazon has an advanced bundling strategy; it always suggests two or three related items that you may want to purchase at the same time. Most of the online shoppers jump onto these types of offers because they’re amazed by the simplicity of purchasing them all at the same time. Bundle two or three items together with a single price set an adequate discount, and you can start selling less-popular items.

    What’s Next?

    All of the tactics above are some part of the common approaches laid out from the people of Prisync. To learn more about other pricing strategies take the time to read most of their blog posts. When you’ve successfully implemented a strategy, you’ll either address your customer’s emotions or logic. Either way, you will start winning and boosting your conversion rates, sales, and eventually revenue. And if you want to automate that, we recommend you start using a pricing software sooner before its too late.

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  • Qualtrics Empowers Companies to Take Control of Brand Strategy

    Qualtrics Empowers Companies to Take Control of Brand Strategy

    Qualtrics, the leader in experience management announced the launch of Qualtrics Brand Tracking, a breakthrough brand monitoring solution on the Qualtrics XM PlatformTM that promises to transform how companies manage their brand strategy across their organisation.

    Built on the Qualtrics Experience Management (XM) PlatformTM, Brand Tracking integrates with Qualtrics’ customer, employee, and product experiences to enable a comprehensive view of insights and actions that shape the core experiences of any organisation.

    In today’s fast-moving market, companies are now looking to own their brand tracking programme with insights that are instant, embedded, and adaptable. Qualtrics Brand Tracking arms organisations with the technology necessary to fully leverage one of their most valuable assets – their brand.

    “Over the past year, we’ve been partnering closely with hundreds of brands across the world to help design and run their brand tracking programs on the XM Platform. With built-in expert methodology, guided program set-up, and dashboards on every device, Qualtrics Brand Tracking is now available to empower every organisation from startups to billion dollar enterprises, making tracking and optimising their brand easier than ever,” said Kelly Waldher, vice president of Brand Experience, Qualtrics.

    With Qualtrics Brand Tracking, SoFi – one of the fastest growing financial services companies in the industry – is transforming the way they use brand insights to drive growth in their business. As SoFi continues to grow, the company is able to quickly and easily design their brand tracking programme, constantly monitor key brand indicators, combine response data with social media feedback, and embed prescriptive actions in their business processes.

    • Brand Tracking provides instant results. With Brand Tracking, results are instant through live, automated mobile and web dashboards. Organisations no longer have to wait months for critical insights. With Qualtrics’ pre-built programmes and dashboards, anyone in the organisation can launch a powerful, world-class brand tracker and start seeing results within hours.
    • Brand Tracking empowers companies to connect their entire organisation to one platform with embedded technology.Breakthrough insights are available through embedded technology allowing companies to connect their entire organisation to one platform. From social reputation data, campaign data, media buy data, and other brand-related data subsets, Qualtrics Brand Tracking makes it faster to act on detailed insights that will drive top-line growth.
    • Brand Tracking is adaptable and flexible. Like all projects on XM Platform, Qualtrics Brand Tracking is adaptable to evolving business needs and is easily customisable. Making edits to existing methodology and programmes no longer require expensive change orders. Companies now have the ability to customise studies, across their organisation, with a few clicks.
  • Understanding shopping centre traffic trends to adapt consumer strategies

    Understanding shopping centre traffic trends to adapt consumer strategies

    Kepler Analytics is in a unique and privileged position. We have our sensors in over 60 retail brands within 1,700 locations across Australia. We collect traffic and other consumer behaviour measures. By aggregating and anonymising our information we can provide the retail industry with benchmark measures on traffic, sales, conversion and other related KPIs focussed on understanding sales and the drivers of retail sales.

    The Kepler Retail Radar newsletter is published every 6-8 weeks. We try to keep our analysis relevant and deliver helpful insights which assist in understand historical performance but also highlight where learnings can be implemented to deliver better retail results in future.

    Below are the key learnings from October 2018 to the End of February 2019, calculated on a Year on Year, Like for Like Basis.

    • There is a sustained drop in foot traffic into shopping centres in general.
    • Those consumers visiting the centres are doing so with a greater propensity to purchase – there is less of a browsing element than in the past.
    • Retailers are converting a higher percentage of inside traffic (in store traffic) into sales – due to the more serious nature of the ‘buying trip’ and the greater ability of store staff to satisfy their needs – either there is a lower ratio of staff:customer giving more time to focus on each sale opportunity or better abilities to convert (as these stores have been using the Kepler Conversion Programme for some time).
    • The reduction in dwell time and repeat visits and the increase in ATV reaffirm the premise that customers come into stores better equipped to make the purchasing decision than before – it takes less time and less visits to get to the buying decision point.
    • Retailers should consider tweaking their sales approach – it might not be a case of ‘how can I help you?’ but rather ‘what can I help you with?’ – subtle change of focus acknowledging the customer can done their homework and is prepared to buy.

    Where have all the browsers gone?

    The key metrics reveal that whilst centre traffic was down by approximately -8% in October and November (and Black Friday did little to stem the decline), the rate of decline has increased to -17.5% in February
    2019.

    The desire for customers to enter stores as they pass by (Shopfront Conversion) is also in decline, though it is improving. Whilst the rate of Year on Year decline in February 2019 is -1% on prior year, the November
    2018 result reached its nadir at -4.7%. Black Friday delivered its promise to drive the bargain shoppers into store… just not as many stores as retailers would have liked.

    The combination of these two elements means that retailers are having to cope with as much as a -18.4% change in their store traffic levels. This could well lead to catastrophic sales results. And those customers that do enter, are spending -7.6% less time in store. The impacts for merchandising and service focus can also be felt.

    Thankfully stores have been able to offset most of this decline through huge boosts in the Sales Conversion. Once a customer has entered a store, their propensity to purchase has increased by as much as +18.2%. For those retailers that had a softer than desired Christmas 2018, contemplate the result you would have had if your staff, stores (not to mention your online assets to support consumer research pre-visit) had not delivered a +17% change in sales conversion.

    The final piece that has returned sales for Australian stores into a marginally positive result is boosts in the average purchase value. These real aggregated figures show that a change in ATV of +3.8% are what is required to maintain
    even the smallest LFL growth.

    Your store staff are now facing vastly lower potential customers who are more aware of what they want, and willing to spend less time to find it. At the same time, they need to convert a greater proportion of them, and at higher values just to stay flat. Both simple and complex, all at the same time.

    The ability for Australian retailers to respond to these changes are critical. Awareness of the underlying factors that deliver the sales capability and potential of stores is the starting point. Modifying and supporting positive behavioural shifts both at a store and support office level are now the fundamental drivers of sales parity.

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  • How to get the right online pricing strategy in 2019

    How to get the right online pricing strategy in 2019

    More than 70 per cent of e-commerce retailers are leaving money on the table – and it all comes down to a single digit in their online pricing strategy.

    ‘Left-digit bias’, or the economic behavior where consumers use the leftmost-digit of a price tag in guiding their decision making, is an age-old observation in the brick-and-mortar world. (For example, $5 is perceived as significantly more expensive than $4.99, while $4.99 is perceived as just one cent more than $4.98.)

    While this concept isn’t new – research was conducted as early as 1936 – with consumer spending increasingly moving online, the more pressing question now is whether the same principle can be applied to online businesses.

    It turns out the answer is “yes.” In looking at more than six years of anonymised data from 100,000+ online businesses operating on Stripe, we discovered that the left-digit bias holds the same sway over consumers online, as it does offline. And this is especially acute across subscription businesses models, such as media streaming services and even software-as-a-service.

    Today, more than 70 per cent of online businesses worldwide are not taking advantage of this pricing model, potentially costing their businesses millions of dollars. Meanwhile, online merchants that have made the switch to an optimal pricing model stand to gain a potential revenue uptick of several percentage points or more.

    Here are some key takeaways for online businesses looking to tune up their pricing strategies in 2019 and take advantage of left-digit bias:

    0 is the most popular pricing strategy:

    Despite the popularity of prices ending in 9 offline, the most popular pricing strategy for online merchants is actually 0. The only exception here were items priced in euros.

    Pricing ending in 9 are only second-most popular, with 27 per cent of subscription prices ending in 9.

    Prices ending in 5 are also popular, perhaps because the number is an optically pleasing midpoint.

    While these are the patterns for pricing among merchants, it does not mean that they are optimal for consumers, as we’ll see below.

    It’s time to bring back 9:

    Cross referencing merchant pricing with merchants that received the most website traffic and those that are VC-funded revealed that more sophisticated businesses are more likely to set prices ending in 9 compared to other online businesses.

    While correlation doesn’t equal causation, it is reasonable to assume that these more ‘popular’ businesses are likely larger, more well-funded, or have made it a priority for them to analyse a different online pricing strategy.

    This could be an opportunity for smaller firms that do not have the same resources to analyse pricing strategies to take advantage of the left-digit bias identified by their larger or better funded counterparts.

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    Left-digit bias applies to luxury items too:

    There is a widely-held opinion that only sale items should end in 9. However, this misconception may actually be causing merchants to miss out on significant gains.

    According to the study, left-digit pricing was found to be influential with both luxury ($700, $800, $900 and greater in cost) and non-luxury items. In fact, new customers cluster at these higher-priced cutoff points, buying products whose prices end in 9.

    Implementing your pricing strategy:

    For online businesses looking to test the 9-digit pricing in the new year, there are a few considerations to keep in mind:

    • Larger online merchants with the benefit of higher volumes should consider testing 9-digit pricing on a portion of their offerings. The evidence shows that pricing items and subscriptions in such a way stimulates consumer buying behaviour for items as inexpensive as $0.99, all the way up to the hundreds of dollars.
    • Smaller, high-growth merchants should simply consider 9-digit pricing as a smart default. At lower volumes, running pricing experiments can take a much longer time and are prone to data ‘noise’. Instead, these businesses ought to consider 9-digit pricing as standard practice, helping to potentially level the playing field against larger competitors.

    Pricing is key in today’s competitive market, especially for lean online businesses. It can set a business apart from competitors and close a transaction with a fickle consumer. This is especially crucial in an industry where revenue gains of even a few percentage points can go a long way to ensuring long-term growth and success.

  • Victoria’s Secret parent to close stores as sales stagnate

    Victoria’s Secret parent to close stores as sales stagnate

    L Brands, the parent of Victoria’s Secret, saw its share price fall 8 per cent after releasing disappointing results and halving its dividend payout. The US-headquartered company is struggling to arrest declining revenue in its flagship lingerie network, where same-store sales fell 8 per cent in January, contributing to a 1 per cent drop in overall sales. Online sales, however, rose by 8 per cent.

    Overnight, subsequent to releasing its results, the company said it would close 53 stores in North America. Earlier this year it said it would reintroduce swimwear to its range after an absence of several years to increase foot traffic in stores.

    Net sales for the year to February 2 were US$13.237 billion compared to $12.632 billion for the 53 weeks ended February 3 last year. Adjusted to take account of the extra week, sales rose 3 per cent in the latest year.

    But after excluding significant one-off items, the company’s adjusted net income this year was $786.7 million compared to $919.5 million for the 53-week period last year.

    As a result of that decline, L Brands cut its quarterly dividend from 61 cents per share paid last year to just 30 cents.

    Analyst Randal Konik of Jefferies said L Brands’ banners “are not wanted anymore”.

    “Keep in mind that comps remain negative despite very high promos, which means true brand demand is even worse than reported as some consumers buy things when they are given away for free or marked down by more than 50-75 per cent,” he said.

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