That inexpensive it’s in fashion This strategy, popularized by airlines a few years ago, has caught on with consumers looking for the cheapest fares, especially in times like these.

El Corte Inglés is the latest company to adopt this formula. “Aliada”, its new private label, will offer all the products in the basic shopping basket at the lowest price in its establishments.

The low-cost strategy involves a drastic change in the way the product or service is offered, and its success lies in massive and frequent consumption. Before throwing a line inexpensiveit is important to consider the risks involved.

  • Insufficient success. Low cost cannot be applied to niche companies, but must reach a very high level of consumption because the profit margin is lower and a higher sales volume is required to compensate.
  • copycat. The risk of counterfeiting is the main problem that SMEs using this strategy can have. It is advisable to differentiate yourself in the market for reasons other than price. Otherwise there is a risk that larger companies will copy the model and offer the same but cheaper.
  • Preaching in the desert. The idea may be very good, the prices very competitive… but what’s the point if your target audience doesn’t know about it? You need to identify a sufficiently broad segment of customers, what they are willing to pay, and tell them that your business is the answer to their demand.
  • Bad picture.inexpensive That doesn’t necessarily mean inferior quality. In order for the product not to be perceived as something inferior to the competition, it is important to maintain quality guarantees in the essential elements of the store.