Consumer patterns are shifting more rapidly than ever before, according to retail pricing solution firm Revionics — and investing in technologies that keep consumers wanting may be the move that makes or breaks retailers in 2021.
And for Revionics, which was acquired by retail solution firm Aptos last year, the current mood is transformation. Matthew Pavich, managing director, global strategic consulting at Revionics, an Aptos Company, told WWD, “The retailers who used the disruption of 2020 as an opportunity to build a better tomorrow by investing in the right analytics and solutions to capture these changing patterns in real time are the ones who will be more successful in the years to come.”
Here, Pavich talks to WWD about its leadership in the retail pricing market, overall industry evolution and lasting trends from the coronavirus pandemic that could redefine the retail space.
WWD: Let’s talk about Revionics. What’s the story behind the brand?
Matthew Pavich: Revionics is the global leader in retail pricing solutions. We help transform our retail partners into pricing-fluent organizations through solutions, analytics and consulting. We have successfully driven value for retailers across all segments and in every major global region and we’re proud of the long-term strategic relationships we’ve established with many of our top customers. We were founded in 2002 at a time when there were already some key players in the retail price optimization market, but Revionics brought key differentiations to the market that truly set us apart.
WWD: How is Revionics differentiated in the market? Why is it a standout solution for the life cycle pricing optimization journey?
M.P.: We are a standout solution for life cycle pricing optimization for several reasons. We have the top science in the industry and our model has continuously been improved and refined for almost two decades to meet the needs of retailers everywhere. Simply put, our science has already solved modeling challenges years ago that other newer optimization providers still don’t even know is a challenge. In addition, we are a life cycle pricing provider.
Numerous other providers may offer some elements of life cycle pricing, but very few have a robust suite inclusive of base, promotion and markdown pricing. Although our solutions are the industry leader, we also differentiate ourselves through our analytics and consulting, which guides our clients along their pricing journey and helps them build the right strategies, processes and pricing organizations using the best practices and the most cutting-edge analytics available. There simply aren’t any contenders in our space that offer both the solutions and consulting that Revionics has to offer.
WWD: What are some of the trends or issues facing the industry right now?
M.P.: The disruption of 2020 led to or accelerated many trends in retail. Some of the more obvious examples was e-commerce growth and an increased willingness of consumers to try new brands and products.
The one unmistakable trend from 2020 that will continue into the new year is that consumer patterns are shifting more rapidly than ever before. The retailers who used the disruption of 2020 as an opportunity to build a better tomorrow by investing in the right analytics and solutions to capture these changing patterns in real time are the ones who will be more successful in the years to come.
When faced with enormous change and challenges, it is critical to evolve in order to survive. I think it is fair to suggest that the past several months have produced some of the best innovations in retail. This trend should continue as retailers try to adapt to and define the “new normal.” In all cases, having the right solutions and analytics that inform key initiatives will be critical and no longer a “nice to have” as the world becomes more dynamic and complex. Lastly, it’s important to remember that retailers are not just giving customers a pair of jeans or a blouse — they’re also providing an experience that will drive loyalty.
WWD: It’s been a very tough year for retail. What advice would you give to retailers/brands in distress?
M.P.: There is no “one-size-fits-all” solution for retailers due to the unforeseen circumstances of this past year. However, there is a lot that a retailer can do to make the most of its macro-economic situation and drive the best possible results moving forward. Because consumer behavior and demand has shifted so drastically in the past several months, it is highly advised that retailers take the time to reassess everything using the best analytics available.
Now is the time to question that assortment strategy, pricing zone structure, key item approach, category pricing roles, etc. are up-to-date and meeting today’s challenges. If you have excess inventory from the holidays, consider promotions around those products to free up rack space.
It is highly probable that promotional effectiveness is sub-optimal, and a thorough review of promotion strategy needs to be considered to account for a changing marketplace. In all cases, the best retailers are evolving and adopting new strategies, solutions and processes to get the most out of the hand they have been dealt — and to build the foundation for long-term profitability in the years to come.
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