Are new sunglasses retailers emerging? If so, are they aggressively pricing to win market share?
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.
Sunglasses Market Globally is forecasted to reach $38.8 Billion by 2024.
To understand this, we compiled a list of sunglasses carried by brands like Ray-ban, Oakley, Calvin Klein, etc., and collected retailers’ pricing data daily for two months. From this, we analyzed competition between leading and emerging sunglasses retailers in the US. We clustered retailers by their annual turnover –
- Leading Sunglasses Retailers- exceeding $100M
- Emerging Sunglasses Retailers- between $10M and $100M
- One-Off Sellers-less than $10M
Our analysis of products matched to variant level shows that firms 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 prices to stay cheaper vs Leading Retailers.
It’s obvious that Emerging players must adopt a unique strategy to win market share from incumbents. Our analysis demonstrated that they are aggressively competing on prices.
This also shows that price competition will become a major threat to Large retailers. A customer will purchase a sunglass 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 price against large companies like themselves. They may ignore one-off small sellers, which is fine. However, they must remain vigilant of emerging aggressive competitors. We at GrowByData strongly suggest and help retailers understand daily price trends to proactively protect their turf.
Contact GrowByData to benefit from this type of insight. If you’re priced too high, marketing performance will suffer. If you’re priced too low, margins will suffer. We provide daily accurate prices and price change recommendations.