Before we dive into the subject, let’s establish what ‘list price’ is just so we are on the same page. In very simple terms, list price or manufacturer’s suggested retail price (MSRP) is the full price for which a business entity is willing to sell its products, without applying any discounts or special offers. While the manufacturing and distribution costs are taken into account for arriving at the list price for consumer goods, it’s the demand vs supply dynamics and level of competition which dictate how much profit margin can be applied.
Retail has always been and will always be about choices. Brands and retailers strive to offer the widest and deepest assortment possible to attract substantial consumer traffic. Among other things, success in mass retailing heavily depends on pricing and promotions. The present day challenge for brands and retailers is to sift through the increasingly competitive, complex and ever-growing retail universe. The proliferation of open source platforms like Magento and mobile commerce solutions has led to a huge spurt in online retailers.
Predicting the future is impossible. Despite that fact, business leaders still need to be able to capitalize on future trends in order to gain a leg up on the competition and achieve business success. Unless you have the proverbial crystal ball, producing accurate insights and turning them into trends can be extremely challenging – given that there are only two reliable sources for identifying trends: Market Analysis Reports and Predictive Intelligence Tools.
Luxury is relative, they say. By all definitions, luxury is also exclusive. In times when the West discovered new routes to the East, it was in search of this same luxury. The pepper trade, the silk trade, diamonds- they came with a huge price tag. And the ones who were capable of paying for it, flaunted it with pride.
There has always been a basic concept about luxury- from the traders’ point of view. Exchanging a high quality or rare piece of merchandise for the highest price. And for centuries, the high end retail market, that accounted for 390 USD in 2012 (BCG), has been following this system.
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