78% of shoppers wait for promotions, 2021 may usher in a huge price war

According to Retail Week, 78% of shoppers worldwide will wait for promotional opportunities in 2021.

Recently, a report released by Retail Week showed that more than three-quarters of consumers said they might wait for promotional offers after the epidemic before making a purchase.

Grocery prices in the spotlight

Unfair price increases and price gouging have been a major issue during the pandemic , with three quarters ( 74% ) of shoppers believing they have experienced unfairness , according to a new research report from Acoustic and DemandTec .

Pricing issues were particularly prevalent in the grocery category , with 55% of consumers reporting having experienced unfair pricing, compared to just 27% in the health and beauty category .

Price will increasingly influence consumers ’ shopping decisions. The survey shows that consumers believe pricing has become “extremely” or “very important” in all categories they were asked about . Among them, pricing in the grocery category is the most concerned .

Online pricing becomes the main battlefield

During the epidemic, the Internet penetration rate has increased, consumer behavior has begun to change dramatically, and more and more consumers are buying goods online.

The survey results show that in 2021, consumers will continue to shop through online channels.

Before the outbreak, only 7% of consumers said they "always" or "often" shop online, while 77% "often" or "always" shop in stores. After the outbreak, 20% of consumers said they would "always" or "often" shop online, while the proportion of those who "often" or "always" shop in stores dropped to 54%.

The increase in this ratio has made online product pricing very important.

In terms of age groups, young people are more inclined to shop online. While only 3% of baby boomers shopped online or frequently before the pandemic , 13% plan to shop exclusively or frequently online in a year.

Among them, 23% of millennials and 25% of Generation X are more inclined to continue shopping online.

Price war may start

As promotions come, consumers' shopping schedules will become increasingly busy, and more and more consumers will begin to compare product costs online. Without the right strategy, retailers may face great risks.

Product pricing will have a significant impact on consumers’ purchasing decisions, therefore, the report recommends that retailers increase their investments in AI, which will help retailers stay ahead as it provides real-time competitor information and has the ability to automate promotions and price updates.

Consumers are paying more and more attention to prices. Faced with such a situation, it is particularly important for retailers to make the right decisions in 2021.

Promotions

Price war

E-commerce