As companies and retailers compete in an increasingly dynamic e-commerce market, the need to understand promotional benchmarks and trends has never been higher. In this Promotional Mechanics report, key questions across various business areas will be addressed in order for companies to plan, strategise and execute promotional campaigns and strategy in a more effective manner.
This report comes in PPT.
During this time period, home care products sold online were marked as on promotion based on Euromonitor’s Via’s classifications at nearly 20%. However across the leading categories within home care, there was large variance with the leading category by sales having an promotional incidence rate of over 26% while products within dishwashing infrequently went on promotion at just over 11%.
Leading up to the holiday season, promotional incidence often changed. While October showed the lowest rates of promotional incidence for home care as the holiday season approached, retailers and suppliers increase promotions online leading to November having a higher promotional incidence rate than that of October and December.
Within the Via sample, the vast majority of the promotions are communicated to the consumer by simply showing the previous price and then using a strikethrough line on the previous price and showing the new promotional price. However, nearly one in five promotions did use specific language to communicate to the consumer on the webpage a specific type of promotion.
Cross-comparing leading suppliers within home care across total promotions as well as within key home care categories indicates that promotional incidence greatly differs across players and retailers. Using benchmarks of total SKUs and promotional SKUs can highlight which players are over promoted versus which are under promoted compared to their peers. Leading players such as Procter & Gamble, SC Johnson and Reckitt Benckiser were under promoted compared to averages.
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
See All of Our DefinitionsIf you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!