Category Archives: pricing

11 Feb 2013

Sign-up discounts: Bad strategy for eCommerce firms

Raj Bhatt

A lot of eCommerce players in the Indian eCommerce industry offer  up to 25% discount coupons on sign-up which give discounts up to Rs. 2000 (~$35). These include Jabong, Myntra, and fashionara, among others. The logic that these players might be using for this strategy may be:1) The discount coupons allow them to acquire new [...]

acquisition, coupons, CPA, discount, Ecommerce, fashionara, gross margin, India, Jabong, loyalty, Myntra, pricing

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04 Feb 2013

JC Penney’s pricing experiments (continued)

Raj Bhatt

I had written about JC Penney’s failed experiments with reducing discount sales a few weeks ago (click here). I had made 4 points:1) Everyday Low Price needs to be tested before being implemented2) Need to continue store-in-store concept3) Need good exclusive designers4) Website needs major overhaul I heard that they are getting discount sales back [...]

discounts, EDLP, JC Penney, JCP, pricing

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14 Nov 2012

JC Penney’s experiments with pricing and holiday season discounting

Raj Bhatt

Around a year ago, JC Penney’s CEO Ron Johnson announced their ‘Fair and Square ‘ pricing policy, to wean customers off discounts and move towards a three-tiered pricing strategy that focused on ‘Everyday Low’, ‘Monthly’ and ‘Best’ price levels. This was supposed to reduce the number of annual promotions from 590 to 12, thereby simplifying [...]

discounting, everyday low pricing, JC Penney, pricing, recommendation engine

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31 Aug 2012

Will Windows 8 hybrids kill laptops and ultrabooks?

Raj Bhatt

Most PC companies are lining up tablets, hybrids and Touch-screen ultrabooks using the Windows 8 and Windows RT operating systems to be launched in October 2012 (click here for a Technically Personal article on the topic). I wonder whether the Windows 8 hybrids will kill the Ultrabooks category? and what will happen to good old [...]

desktop, HP, hybrid, laptop, pricing, Samsung Series 7, Spectre XT, SSD, tablet, ultrabook, Windows 8

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14 Aug 2012

Pricing issues for Abercrombie & Fitch

Raj Bhatt

I had blogged 3 years ago (click here) about why Abercrombie & Fitch should consider using selective (and end of season discounts) to increase volume so that it does not have an inventory pile-up. Most of the world might have considered me silly for saying that… A&F was hot, had raging sales growth and industry-high [...]

Abercrombie Fitch, apparel, discount, fashion retail, margins, pricing

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06 Aug 2012

Customized database marketing for Indian e-commerce

Raj Bhatt

Most of the players in the Indian e-commerce market are losing money. My friend, Sanjay Dattatri has blogged about the challenges facing Indian e-commerce (click here). As he points out, Indian consumers are price-sensitive, dis-loyal and ill-behaved. I tend to agree with him. As Sanjay points in another blog post, pricing sanity needs to prevail [...]

customized marketing, database marketing, e-commerce, flipkart, healthkart, India, indiaplaza, pricing, snapdeal

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06 Jan 2012

Cold winter for Indian apparel retailers

Raj Bhatt

Many Indian apparel retailers are offering discounts ranging from 40% to 60% three weeks ahead of schedule this season (newspaper article). Sales have been impacted by 20-30% due to higher excise duty taxes and higher cotton prices which have led to a 10-15% rise in product prices. Could this situation have been foreseen by the [...]

apparel retail, elasticity, markdown, pricing

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01 Sep 2009

Turning around a newspaper

Raj Bhatt

Apologies for not writing for so long…I had switched from the practice of writing a blog article to tweeting (or Re-tweeting) my thoughts in 140 characters. I am back now to the longer form of expression. I had blogged a few months back(click here) saying that newspapers should examine putting a value on content. I [...]

content, newspaper, pricing, subscription

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10 Mar 2009

Interesting blog post on pricing

Raj Bhatt

Sorry for being dormant for some time now. I have been busy for the past few days. My friend, Sat Duggal and his colleague, Hunter Hastings, from the EMM Group, have posted an interesting blog post titled “Should you cut prices?“. I think it is a brilliant article… enjoy!

pricing

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15 Jan 2009

Should Abercrombie discount?….Part Deux

Raj Bhatt

I had blogged a few days back on whether Abercrombie should discount its apparel (Read here). In my opinion they should consider selective discounts on slow-moving seasonal inventory so that they don’t have to conduct a fire sale at the end of the season. Looks like the Abercrombie pricing issue is attracting more attention (click [...]

Abercrombie, apparel, pricing

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