After years of soggy inflation and the long reign of Japan's tight-fisted s...
TOKYO - After years of soggy inflation and the long reign of Japan’s tight-fisted shoppers, businesses in the world’s third-largest economy are adopting new methods to lift prices, from artificial intelligence to simple packaging tweaks.
Demand-based dynamic pricing, however, has allowed some Japanese retailers to discretely bump up prices without triggering the kind of customer backlash seen in more blatant attempts at repricing in the past. Using the technology, the Marinos sold tickets for a popular seating area for a March 2 match at 7,400 yen, two weeks before the game, but cut prices to as low as 4,000 yen to fill empty seats as the match approached.
“The system provides us information on competitors such as the pace of reservation, which is great. It’s a big advantage,” said Hironobu Bun, revenue manager at Centurion International.Economists believe it will take more meaningful structural changes to Japan’s economy to revive stagnant prices, which will in turn help businesses deal with sticky overheads and restore profits.
At the same time, other businesses are looking at more cosmetic ways to drive the consumer to accept higher prices.
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