How can we achieve revenue growth with competition-based pricing?

With the increase in internet penetration in India, the e-retail market grows with a CAGR of 35%. With the scope to maintain and gain market share, price competitiveness plays an important role as pricing is one of the top 3 deciding factors in the customer purchase decision journey.

The client with millions of SKUs was experiencing moderate growth as other players aggressively priced their SKUs to gain market share in the growing e-retail business. This resulted in decreased demand. The category managers were tracking top SKUs manually to counter the competition price but the approach was extremely tedious and unscalable.

The client realized that they wouldn’t be able to draw customers to their platform if they manually tracked top SKUs and were looking for a better solution.

To adapt to the fast-changing market and to understand the competition better, the client needed a solution that could provide competitive intelligence at scale with agility.

Competitive Intelligence and Dynamic Pricing

Flipkart Commerce Cloud’s Solution Suite combined Competitive Intelligence along with Dynamic Price Platform to understand the competitor prices in the market and provided the benefit of price perception to attract customers leading to a higher conversion rate.

To assist the category managers, Flipkart Commerce Cloud’s dynamic pricing solution was on boarded for the pricing. The solution, which consists of a state of art rules engine, looked at SKU’s historical data and business’s current objectives and suggested the pricing of the SKUs that optimized for the business goals around margins, revenue and competitiveness.

This was augmented with a 360° market view with help of Flipkart Commerce Cloud’s Competitive Intelligence solution, which helped in understanding the competitive landscape along with intelligent insights powered by Flipkart’s proprietary technology.

Impact

The integration of Flipkart Commerce Cloud’s cutting-edge technological solutions, enhanced with the consulting team’s e-commerce expertise of over 2 decades, helped the client to get a lead in the market.

The integration of Dynamic Pricing Solution and Competitive Intelligence Suite with client’s infrastructure allowed them to enable a smart centralized pricing system for millions of SKUs across different verticals, reducing turnaround times for the decisions by a huge margin.

Elimination of manual steps reduced manual errors in pricing execution to 0, and resulted in 50% reduction in operational costs. Executing decisions at scale and improved price perception among customers helped them observe a 10% increase in conversions and generated more revenues with increased traffic.

• 50% Decrease in OPEX
• 10% Increase in Conversions

“The competitive intelligence and pricing manager helped us achieve our targets by keeping a track of the market, and enabling quick actions to ensure competitiveness and manage customer perception” - CFO, E-commerce firm, Middle East