To grab growing momentum online, more brands are releasing new product lines through ecommerce. Lip Lingerie is the latest range of liquid lipsticks from American cosmetics brand NYX.
Originally offering 12 shades of nude colors when it was released last year, the brand has since added an additional 12.
On Lazada Thailand, where NYX sell its products through official shop-in-shop NYX Professional Makeup, search results from product keywords ‘NYX Lip Lingerie’ results in 683 SKUs, the majority made from unofficial sellers.
What would make the consumer choose one product over the other given they are the same?
Apart from customer ratings and seller reputation, price has always been a strong factor in purchasing decisions.
Using data platform BrandIQ, we compared the selling price (price after discount) for Lip Lingerie items from the top five sellers on Lazada Thailand, including NYX’s own SiS.
From the analysis, the listing price – the price before discount – ranges from 325 THB to 590 THB; the lowest selling item provided by NYX Professional Makeup store itself.
However, when it comes to the selling price, the cheapest is provided by a third-party seller Tohkrengpang Shop.
Among the top five sellers, Tohkrengpang Shop has the second highest listed price (530 THB), but with 53% discount that it offers, the selling price for NYX Lip Lingerie on the store fell to 250 THB.
Discounts offered by the third-party sellers range from 11% – 53% of the listed price. NYX Professional Makeup is the only seller that doesn’t offer any discount for the product, elevating its price to the middle among the other top sellers.
Why does NYX not offer discounts? According to Small Business Chron, consumers tend to associate low price with low quality, particularly when the brand name is not familiar.
Low prices may drive sales for a limited time, but do not build customer loyalty.
Seems like NYX is playing the long term game.
Download the infographic here.