The “right” purchasing power
"Increasing purchasing power shouldn't come at any price. Respecting consumers must not prevent us from protecting producers and their margins, as well as the planet," reminds Cédric Dufour, CEO of Rakuten France and Rakuten TV. "The notions of disposable income, inflation and price are naturally central to meeting immediate needs, but this strictly quantitative approach obscures a fundamental dimension: that of quality."
The right price
"Good" purchasing power cannot be achieved at any price. It must be sustainable and based on partnership. Offering discounted prices is laudable, but if it means squeezing margins in a way that is unsustainable for certain players in the chain, it makes no sense, because it is not economically tenable.
Another approach, adopted by some e-commerce platforms is possible: to offer a "fair price", reducing intermediation costs to a minimum, but ensuring a fair distribution of value between all economic players. Thanks to this logic, retailers and brands can access consumers under fair conditions. Take the example of Black Friday, a ritual often disparaged, but which makes a major contribution to purchasing power, by enabling consumers to do their Christmas shopping at the best possible price. Promotions are often the result of a collective effort by the entire upstream chain. For example, when retailers offer "cashback", they themselves invest in purchasing power, by reducing their margins to lower the real price. The effort is thus shared to lower the price and make the sale happen, without crushing the seller's margin. Some consumers are thus able to buy products that would otherwise be inaccessible to them. It's a win-win situation: first and foremost for consumers and brands, but also in the long term for retailers, despite the many promotions they run."
Circularity and second-hand
"Good purchasing power is also based on an increasingly circular economy. The steady increase in second-hand goods, as we saw again with the resale of Christmas presents, is positive for the environment. All we're doing is passing on goods, without making the planet pay the high price of new every time. But it's also good for the wallet: all second-hand sales are in fact shared and collective purchasing power, enabling us to buy the things we need at a more advantageous price, and therefore to better respect our budget. It's a win-win situation that we absolutely must encourage."
Quality, sustainability guarantee
"Finally, good purchasing power means respecting the consumer. Buying new, like buying second-hand, must not be a bargain purchase, with no regard for the most basic guarantees. Unfortunately, "low cost" is all too often a low-quality purchase. Over and above the most elementary questions of product safety and respect for human rights during the manufacturing process, this is counterproductive, as it encourages repurchasing. Buying better quality means buying less regularly, as products last longer. Every purchase must also be accompanied by the possibility of refund or exchange, transaction security and a commitment to fight fraud and counterfeiting.
This is a real challenge for e-commerce platforms, but let's not lump them all together. While some non-European players are free from laws, regulations and tax constraints, many European platforms promote a model of trust. Let's bet that consumers won't be fooled.
Good purchasing power is not just about buying more, but buying better. It's based on a fair distribution of value within economic chains, and an awareness of environmental and quality issues. It's much more than an economic issue. It's a pressing social issue," says Cédric Dufour, CEO of Rakuten France and Rakuten TV.
By Cédric Dufour , CEO of Rakuten France and Rakuten TV
Source : Opinion column in Les Echos.