From a Business Wire report, the sunglasses market globally is forecasted to reach $38.8B by 2024 with a CAGR of 5.5% from 2019 to 2024. Global retailers such as Belk, Neiman Marcus, Nordstrom, and Saks Fifth Avenues are some of the large sellers. We clustered all these retailers detected in google shopping in the following groups to analyze pricing strategies in clusters.
Sunglasses Market Globally is forecasted to reach $38.8 Billion by 2024.
Sunglasses Retail Price Data Tracking:
For price competition analysis of sunglasses retailers carrying brands like Ray-ban, Oakley, Calvin Klein, etc. GrowByData price intelligence software collected retailers’ pricing data from google shopping. We matched these competitors to product variant levels and tracked retail prices daily.
Price Competition Analysis:
The retail competitive analysis showed, sellers in the Leading Retailers group offer the same prices as their peers on 74% of products and priced differently on 26% of products.
Interestingly, Emerging Retailers priced the same as Leading Retailers on only 3% of products and priced slightly expensive on 7% of products. However, on 90% of products, they consistently changed reprice to stay cheaper vs Leading Retailers.
Conclusion:
It’s obvious that Emerging players must adopt an aggressive pricing strategy to win market share from incumbents. The price competition analysis of sunglasses retailers in the cluster indicates an aggressive pricing strategy of emerging retailers will become a major threat to Large retailers. A customer most often will purchase sunglasses from an Emerging Retailer vs a large incumbent if an emerging retailer has good customer reviews and offers a lower price. Leading Sunglasses Retailers risk getting caught in the crossfire of fierce price competition and losing if they aren’t actively managing this.
Large retailers like Nordstrom compare their prices against large companies like themselves. They may ignore one-off small sellers, which is fine. However, they must remain vigilant of emerging aggressive competitors.