The Very Group Enhances Pricing Strategy and Market Competitiveness with Wiser’s Data
The Very Group is a leading UK-based online retailer, offering a wide range of products from electronics to toys, beauty products and home goods. With a vast catalog and thousands of daily transactions, staying competitive in such a fast-paced environment is critical to their success. The company serves millions of customers, and pricing plays a pivotal role in driving sales and customer loyalty.
As competition intensified and online retail platforms grew, The Very Group needed a data-driven approach to optimize pricing strategies and meet market demand. Andy Dawson, Retail Capability Lead at The Very Group, recalls, “Before Wiser, we didn’t have a standardized market data provider, which made it difficult to react quickly to competitor price changes.”
Recognizing these challenges, The Very Group partnered with Wiser to harness real-time market intelligence and pricing data, empowering the retailer to make informed decisions and remain competitive in a rapidly changing retail landscape.
Challenges
The Very Group faced several significant challenges prior to partnering with Wiser. The primary issues included:
- Lack of Real-Time Market Data: The absence of a reliable market data provider meant that The Very Group struggled to keep pace with competitor price changes, especially in fast-moving categories like electronics and toys. Category Managers would notice a drop in their rate of sales without understanding the root cause, only to find out later that competitors had lowered their prices. They were losing sales simply because they couldn’t react fast enough
- Inconsistent Pricing: With over 200 merchandisers managing approximately 50,000 live products, the company struggled to maintain a consistent pricing strategy. Pricing decisions were subjective, with little standardization across the business, making it difficult to articulate overall pricing performance. Andy Dawson reflects, “It became clear that there was no overarching pricing strategy. Every buyer was setting prices based on their judgment, which led to confusion and missed opportunities.”
- Competitive Pressure: As online shopping surged, The Very Group encountered growing competition from other retailers. Consumers would use Google Shopping to compare prices, easily switching between retailers, in search of the best deal. With limited visibility into prices and availability at competing retailers, The Very Group struggled to respond strategically, leading to a significant impact on sales performance.
Solutions
To address these challenges, The Very Group partnered with Wiser, leveraging their market intelligence and pricing solutions to optimize operations and maintain a competitive edge.
- Real-Time Price Monitoring: Wiser provides The Very Group with real-time market intelligence, allowing them to monitor competitor pricing and adjust their own strategies accordingly. This helped standardize the approach to pricing across product categories. Teams now review product performance against competitors daily, focusing on optimizing both sales and margins. This shift from reactive to proactive price management has transformed how the team operates.
- Advanced Matching Capabilities: The Very Group can now flag bundled products when comparing prices, to avoid giving away too much margin by matching prices on non-equivalent items or true like-for-like comparisons. This has allowed for more informed pricing decisions and better margin protection when comparing products in the market
- Strategic Availability Data: Insights into product availability allows The Very Group to avoid unnecessary price matching when competitor products are out of stock, which ultimately avoids eroding margins by lowering prices unnecessarily and negatively impacting profitability
- Market Strategy and Competitive Analysis: Beyond pricing adjustments, Wiser’s data enables The Very Group to engage in informed discussions with suppliers about cost prices and promotional funding. Additionally, using Data Science models, they can analyze historical pricing patterns to uncover broader market strategies. These models reveal which retailers follow others on price, allowing The Very Group to strategically decide where to focus their competitive efforts and stay ahead in key categories.
PRODUCTS USED:
"We’ve been with Wiser for seven years, and I can’t imagine the business operating without it."
Andy Dawson
Retail Capability Lead
Results
Since partnering with Wiser, The Very Group has seen significant benefit impact their business operations:
- Increased Competitiveness: With access to real-time market data, The Very Group can now monitor and adjust their pricing to stay competitive in critical categories. They change prices across 500+ lines daily to match market trends. A notable example is the Barbie Dream House, a high-ticket item priced around £250, while most toys typically range between £20 and £30. After an initially successful launch, sales began to drop, posing a significant stock risk. Wiser’s data revealed that competitors were promoting the same product at a lower price. Instead of fully matching competitor prices, The Very Group strategically lowered their price just enough to attract loyal customers while protecting their margins. This approach allowed them to effectively trade through the stock and avoid the risk of overstocking during the peak season.
- Improved Price Strategy Consistency: The Very Group have now standardized their pricing approach, bringing both consistency and accountability across their vast product range. Real-time competitor insights have ensured that pricing decisions are now data-driven and based on accurate, up-to-date market information, rather than relying on ad-hoc judgments. This has not only reduced the manual work involved in setting prices but also allowed the company to act more swiftly and strategically in response to market changes, ultimately improving operational efficiency and enhancing overall pricing consistency.
- Clear-As-You-Go Approach: The Very Group has shifted away from relying on large seasonal sales and adopted a “clear as you go” strategy, where promotions and discounts are managed dynamically throughout the year. Driven by Wiser’s market data, this approach has enabled The Very Group to manage inventory more efficiently, minimizing large stock clearances, and stabilizing cash flow. This is especially important for products with a limited lifecycle, such as electronics, where new models are introduced regularly. By leveraging Wiser data, The Very Group can adjust pricing earlier in the product lifecycle to maximize sales on current models before they become outdated, avoiding the need for deep discounts. Andy Dawson explains, “For products like TVs, we’ve moved from big mid-season or end-of-season sales to managing volume throughout the year, ensuring we clear stock before new models arrive.”
- Proactive Promotional Planning: Wiser’s market data has also been critical in helping The Very Group navigate key promotional periods. By analyzing historical price trends and competitor data, The Very Group can accurately forecast the best times to adjust prices or launch promotions. This data-driven approach ensures they stay competitive during major sales events, such as Black Friday, while strategically managing pricing throughout the year. Using Wiser’s insights, The Very Group has not only optimized margins but also minimized the risks associated with large discount events, allowing them to balance profitability with competitive pricing.
Conclusion
The Very Group’s long-standing collaboration with Wiser has transformed its approach to pricing, enabling the company to maintain a competitive edge in a rapidly evolving market. Over the past seven years, Wiser has become an integral part of The Very Group’s success, providing the market insights and data-driven tools that drive both sales performance and operational efficiency. As Andy from The Very Group shared, “We’ve been with Wiser for seven years, and I can’t imagine the business operating without it.”
Beyond just providing data, Wiser has proven to be a proactive partner, committed to understanding The Very Group’s unique business needs. This close collaboration goes beyond the transactional, with Wiser running pilot studies, tailoring solutions, and adapting to ensure their offerings align perfectly with The Very Group’s goals. Andy Dawson notes, “What stands out is the transparency and openness of the relationship. Wiser isn’t just a corporate supplier; they’ve taken the time to learn how we operate, helping us solve business challenges quickly and effectively.”
The strength of this partnership is reflected in The Very Group’s high level of trust in Wiser, which plays an invaluable role in driving customer retention, fuelling growth, and supporting their long-term success.
For retailers looking to optimize pricing strategies and secure a competitive advantage, Wiser offers the perfect solution.
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