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Pricing Teardown: Baby & Child Industry –

Knowing what pricing strategy your competitors are using is a great way to help plan your own pricing strategy.

Granted, you want to try and differentiate yourself from your competitors. However, if you’re just starting out, or struggling to make sales, looking at your competitors is a good way to start.

So in this post, we’re going to look at five different pricing strategies one particular e-commerce retailer uses to generate sales.

We’ll look at why it’s important to offer up to date seasonal offers.

We’ll look at how personalization helps increase sales potential.

When it comes to pricing, we’ll look at why adopting a price match guarantee can be effective for boosting sales and beating your competitors.

Also, we’ll consider the importance of using a free delivery threshold to increase your average order value.

Finally, we’ll look at user-generated content and how it can be used to boost sales from other mediums.

Let’s go!

What store we’re looking at

In this pricing teardown, we’re looking at a UK retailer, Huggle. Huggle is a brand that sells products for babies and young children.

Huggle sell a range of products across 11 different top-level categories.

Huggle Top Level Categories


Because of their large number of product categories, they’re able to adopt a wide range of different strategies to boost sales.

Encourage more sales with seasonal offers

The benefit of creating seasonal offers means that your customers are able to see that you update your store often.

Huggle Seasonal Offers


What you need to keep in mind is that your customers have all the power. With the heightened number of stores across every industry growing year on year, customers are able to choose who they shop with.

So knowing that Huggle creates seasonal promotions is a good way to keep customers coming back for more.

You’ll notice also that they have a threshold for when you’re able to achieve the 15% off.

This threshold is when a customer has spent over £400.

Now at first glance, you might be thinking: “Woah, £400 is a lot of money to spend before you get a discount”

But this threshold is actually in line with the prices on their store.

If you want to start using seasonal offers and discounts on your own store, make sure you’ve thought about the type of customer you attract and the type of discount they’d appreciate and value.

It makes no sense if you only offer budget products to set a discount threshold of $400, as it’s highly unlikely a customer would ever need to spend that much.

Huggle Bed Prices


If you browse their store you’ll see that they cater towards the higher end of the market and offer their products at a premium price.

Huggle Stroller Prices


You can now see how easy it would actually be to spend £400 so having the 15% discount comes as a nice bonus.

Personalization increases sales potential

When it comes to a store like Huggle what they understand well is that a customer is usually only a customer for the time that their child is a baby.

Think about it, when their child reaches age 6, they no longer need a pushchair or other baby products.

So the thought becomes, how do you keep people as paying customers, even when they stop needing the essential baby products?

Huggle does this through their personalized gifting section.

Huggle Stroller Prices

Source: h

They have a range of different subcategories within their top-level gift category and it encourages people to buy products for others, even if they don’t have a baby themselves.

Now, if you were a previous customer of Huggle (when you had a baby), knowing that they offer gifts will entice you to come back to spend your money with them when your friends and families have babies.

If you also received good customer service during the time you were a customer, you’re more than likely going to think of Huggle as the first point of call when it comes to gifts.

You see, the thing about gifts is it stops customers having shorter lifetime values and increases the chance of life long customers.

If you want to use a gifting strategy within your e-commerce store, think about what type of products you sell that would be great as gifts.

You don’t want to make the error of putting all your products in the gifting section, you need to make it easy for people to discover, locate and purchase the perfect gift for their friend or loved one.

Price match guarantee to beat competitors

You already know that there are often discrepancies between what you’ll charge for a product and what your competitors will charge.

Now if you have a great brand image and people love to shop with your regardless, having higher prices than your competitors won’t make a difference – your loyal fans will still shop with you.

But if you cater to customers who like to shop around to see if they can get the same product cheaper elsewhere, then you might benefit from using a price-match-guarantee scheme, as Huggle does.

Price Match Guarantee Scheme


Huggle understands that their competitors might find a way to offer the same product for a cheaper price.

So instead of letting that customer go, what Huggel does is offers to price match.

So if you find an identical product for cheaper elsewhere, you can buy it from Huggle for the same price.

This strategy is effective because it keeps customers coming back for more.

Yes, they’re still able to shop around to find the lowest price, but in this instance, they do so because they know they can get the product from Huggle for the same price.

What’s more, if a customer is buying one thing from you, there’s a higher chance they might check out other products that could interest them and hence increase their average order value.

Free delivery threshold

Free shipping is a great way to increase the number of people who buy from you.

It decreases the chance of people abandoning their baskets.

Free Shipping


You’ll be familiar with filling your basket with items you like, only to get to the checkout page to find that the shipping costs are extortionate.

Huggle uses a free shipping strategy on all orders over £60.

We’ve already mentioned that Huggle caters towards a premium audience – where customers are happy to pay higher prices for their products.

Because of this, their free shipping threshold actually seems quite low.

Even at the lower end of products, you only have to buy a few to qualify for free shipping.

This means that most customers will benefit from free shipping.

If you want to use free shipping within your own store, be sure to factor this into your e-commerce expenses.

Even though the shipping is free for your customers, you still need to cover this cost.

You could do this by raising your prices slightly to account for the price of shipping everyone’s orders.

User-generated content via Instagram

You know that reviews are a great way to generate sales.

People trust their peers more than they trust you. If you were to see your friend waxying lyrical about a recent purchase, it’s likely that you too would check this out.

Huggle Social Media


Within your own e-commerce store, you can do this too through user-generated content.

User-generated content is where you take the content your customers have created and use it within your own marketing arsenal.

It shows that other people have bought your products and like them enough to talk about them with their own networks.

Huggle does this on their Instagram.

If you’ve purchased a product from Huggle and taken a photo for Instagram, they reshare it on their page.

It’s great for the customer as they include a link back to their own Instagram page and it’s great for Huggle as they get to show the world other people who are enjoying their products.

Final thoughts

When it comes to setting your prices, it’s helpful to have a proper understanding of the types of products you sell and who you sell them to.

Once you’re armed with that information, you can use it to compare yourself against your current top performing competitors.

Doing so will put you at a greater advantage and allow you to gain significant progress over your competitors who perhaps haven’t thought about their customers.

As always, remember that pricing is an ongoing activity that fluctuates as time goes on.

Be sure to always analyze your current pricing efforts to see if you could alter or change anything to increase your sales opportunities.


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