Category Pricing by Competitor
Evaluating competitors’ full price distribution with sell-out performance helps brands to gauge the optimal price points to set for the right products.
In Indonesia, Zara’s Tops mainly sat in the USD 10-40 bracket, with the most SKU count in the USD 30-40 with 903 SKUs. The brand’s strategy in delivering good quality fashionable products enabled it to charge a higher price in the market. With a clear good-better-best strategy, it drove an above average sell-out for the category at 69%, despite higher price points.
Zara’s close competitor, Mango, shared a similar distribution of good-better-best pricing strategy. However, it achieved higher full price sell-out rate than Zara at 81%, backed by consumers’ preference for its pared-back and clean designs. This is in line with the shift towards minimal dressing.
Meanwhile, H&M’s pricing structure differs largely from the two brands. Its “good” pricing, at USD 0-10 bracket delivered the strongest sell-out, attracting the price-sensitive consumers. Its fashion items in the “best” tier of USD 20 and above failed to drive high sell-outs, despite priced 2x lower than its counterparts.
Analysing the degree of fashionability with varying product attributes gives greater visibility into the pricing dynamic, as illustrated in the subsequent slide.