Balancing global consistency with local pricing needs.
Unclear pricing methods, weak governance, and inefficiencies limited performance.
Our client, a global player in luxury fashion and leather goods, faced several challenges regarding its international pricing strategy. The primary issue was that local price positioning lacked strategic intent, relying on legacy decisions that neither reflected the company’s current objectives nor accounted for local consumer preferences. Additionally, no established processes and governance had been defined around pricing and exchange rate management, resulting in inefficiencies and delay in taking action.
Our client aimed to address these issues by setting a clear methodology and associated rules for defining their price positioning strategy while clarifying pricing governance and responsibilities.
Redesigning pricing strategy and improving efficiency.
We refined global pricing structures and governance for greater agility.
We started the process by conducting a thorough review of our client's current pricing strategy and operational procedures. Through a series of workshops and comprehensive data analysis, we identified key criteria that should influence local price positioning and indexes across selected categories and geographies. These focused on the categories ready-to-wear, leather goods, and shoes in France, the USA, and the APAC region.
Additionally, we conducted a competition benchmark to understand local practices in terms of price positioning and consider local specificities in our final recommendations. Based on these insights, we defined new pricing indexes at both the category and geography levels, enabling our client to better exploit local consumer preferences, while defining a more solid rationale behind the price positioning.
Finally, we refined the governance around pricing, i.e. process, key instances, stakeholders to involve, deliverables expected along the year, etc. We also established stricter exchange rate management practices and governance to ensure better control and management of currency-related risks.
More transparency and control in pricing.
Our client is set for a significant boost in performance.
Our collaboration enabled to define clear guidelines for price setting and positioning, providing our client with a solid framework for decision-making in this crucial area. Meanwhile, the updated pricing and exchange rate management governance ensured greater transparency and control over pricing-related processes.
Our projections indicate an impressive growth outlook for our client:
- + 5pts net sales
- + 3pts gross margin
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