Sales Strategy Of International Big Discount Season And Price Discrimination

Every year in July is the season of summer "shopping". It is because the international big brands have the "discount season" business model of medium rare.

In many European countries, the "discount season" is formulated by the government, including price reduction, price reduction or even unified shopping bags.

From the economic point of view, the "discount season" is not only simply selling discounted goods, but by forming a strong market dominant resource by standardizing the collective behavior of merchants.

This year's situation is different. An analysis of this newspaper shows that the global financial situation triggered by the US subprime mortgage crisis has resulted in a worse economic environment at home and abroad. In order to return the funds to digest inventory, the big cards generally had a "discount season". These short to one week to a month's advance discount period affect the turnover rate of countless retailers.

Some people say that the luxury discount is due to the fact that they sell too much.

The more advanced "discount season" seems to be a contrast to the price of luxury goods, which, on the one hand, raises the selling price and, on the one hand, the discount in advance. It is hardly known that this is the pricing strategy of Price Discrimination.

Discrimination here is the term of economics, which is not derogatory like racism or sexism.

Through this strategy, merchants can divide them into different consumer groups according to their consumption ability, separately pricing and earning more profits.

A commodity priced at 5000 yuan is still selling its original price a day ago. It may well be 50 percent off directly after a day, which may make the former consumers feel aggrieved, but it will make the latter laugh.

Therefore, discount is a mixed blessing for consumers.

But for businesses, the proper skills are to seize the customers who are willing to pay the high price before the discount, and at the same time not to give up the customers who are willing to pay a lower price. If price discrimination can bring enough new customers, they can expand sales and create as many profits as possible.

The problem now is that last year, many brands that were too optimistic about the economic situation increased their stockings this year, and this year's economic environment has led to a sharp decline in their spending power and consumption desire, resulting in a sharp increase in inventories.

Therefore, the discount as soon as possible is only to divide the consumers into two groups quickly, and find the consumers with greater elasticity of demand as soon as possible.

That is to say, the earlier the discount, the greater the discount, the more attractive consumers will be.

For many luxury brands, it is very important to compete for this huge group.