Online price elasticity in France by segment 2022

Based on an analysis of price-budget elasticity, work equipment and clothes was one of the e-commerce sectors most affected by inflation in France in early 2022. When comparing the prices set by online retailers and those consumers are willing to pay, a coefficient between -1 and 1 is obtained. The closer the figure gets to -1, the more inflation impact is evidenced on retail prices. In segments such as work equipment and beauty, the lower coefficient shows French consumers were looking for lower prices more than before.

Price-budget elasticity of leading e-commerce categories in France between 3rd quarter 2021 and 1st quarter 2022

Characteristic	Price-budget elasticity
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Release date

May 2022

More information

Region

France

Survey time period

Q3 2021 to Q1 2022

Special properties

price-budget elasticity coefficient between -1 and 1*

Supplementary notes

* Up to 45,000 products from 20 e-commerce categories were analyzed to find out the correlation between two key variables:
- The evolution of selling prices set by e-tailers, between Q3 2021 and Q1 2022
- The evolution of purchase prices between Q3 2021 and Q1 2022

The closer this coefficient is to 1, the more correlation there is between retail prices and what consumers can/are willing to pay. The higher the coefficient, the less the impact of inflation on purchase prices. In turn, the closer this coefficient gets to -1, the more online buyers head for lower prices than before.

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