Conclusion
War is brutal. Price wars are no different in that regard, but have become commonplace in the retail industry. Health and beauty manufacturers find themselves particularly vulnerable to the endless loop of promotions as customers seek cheaper prices on various goods more so than they seek a particular brand. Health, beauty, and hygiene-related industries are particularly prone to deflation related to too many discounts, affecting retailers and manufacturers alike.
Promotional power may have switched from manufacturers to retailers recently, but with great power comes great responsibility. The beauty, health and hygiene sector may be in dire need of reform when it comes to price wars, but other industries can also find themselves caught up in a race to the bottom at some point - history tends to repeat itself if lessons are not learned and methods are not changed. Retailers must understand their role in price wars and implement effective communication and pricing strategies to prevent them from occurring in the first place. By doing so, the entire industry benefits from newfound stability, cooperation, and potential revenue increase.
