Women’s Jeans in Colombia February 2024 – Competitive Pricing Study.

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In the ever-changing fashion market, understanding pricing dynamics is crucial for the success of any brand. Recently, I have conducted a comprehensive study on the pricing of women’s jeans in Colombia (see presentation at the end), whose findings offer valuable insights for brands, consumers, and sector analysts. This study, carried out using Web scraping techniques on February 9, 2024, analyzed 94 brands and 3923 SKUs across 5 different online marketplaces (Mercado Libre, Dafiti, Éxito, Falabella, and Linio), revealing interesting trends and critical price segmentations for the marketing strategy of brands and retailers in the sector.

Market Segmentation by Prices

The analysis identified five price segments based on the net price after applying discounts:

  • Accessible Entry: $10.19 to 20.36, noted for its accessibility.
  • Competitive Core: $20.37 to $28.52, where the main competition is concentrated.
  • Accessible Premium: $28.53 to $38.20, offering better quality at accessible prices.
  • Selective Exclusivity: $38.21 to $70.06, for high-end products.
  • Exceptional Luxury: $70.07 or more, the highest segment for exclusivity and superior quality.

Similarly, this study revealed a Critical Threshold at $10.18, below which low prices could raise doubts about the product’s quality.

Brand Distribution and Pricing Strategies

The distribution of brands in each segment varied, with brands like Koaj, Atypical, Seven Seven, Levi’s, and Tommy Hilfiger leading in their respective segments. Surprisingly, 44 of the 94 brands are present in 3 or more price segments, which could complicate their market positioning.

Discounts and Value Perception

The average discount on women’s jeans was 35%, with 53% of the SKUs advertised with some form of discount. Some brands offered very pronounced discounts of up to 70%.

This reflects a strategy by brands to rotate inventories and clear out their year-end balances, although such high discounts run the risk of eroding the brand’s perceived value.

In this sense, it is suggested that brands monitor the effects of discounts on the quality-price perception according to the segment or segments they aim to compete and position themselves in.

Conclusion

This study underscores the importance of an informed and segmented pricing strategy to effectively compete in the Colombian women’s jeans market. It highlights the complexity of managing value perception and the need for clear positioning for brands in a diversified market.

This analysis is just the beginning of a broader dialogue on pricing strategies for this and other categories. I conclude by inviting my readers to share this content and suggest products for future analyses. A deep understanding of pricing is essential for success in today’s competitive market, and together we can unravel the complexities it entails.

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