To join the membership rights, please fill in the name and email of the contact person. We will provide new product information and market news on a regular basis. We hope to increase the opportunities for cooperation between the two parties and ensure the security of all member information.
Inflationary pressures and shortages in the supply chain in December, coupled with the growing trend of consumers to "buy less and buy quality", price reductions and discounts are no longer the biggest incentives for consumers, they seem to be The locality has increased the confidence of the current "full price sale" in the retail market.
E-commerce data firm Edited analyzed marketing emails from more than 500 retailers in the U.S. and the U.K. and found that the word "new" was used 15 percent more than "sale," a keyword that used to be used by industry players to capture Customer eyeballs, but its use in email has recently dropped 23% in a year.
This year, it seems easier than ever to maintain prices. In the past, big sales during the year-end holidays were usually very strong, but the shortage of stocks caused by the epidemic and the psychology of price increases expected under the pressure of inflation made wholesalers no longer want to easily reduce prices.
Edited's chief marketing officer Julia Prather pointed out that there have been some structural changes in the fashion industry, spurring the industry towards a new full-price approach.
• Offensive in the current season: In traditional fashion schedules, brands must launch new swimwear products in January, but they will not be available for sale until July. Today, more new brands challenge old thinking and production and sales models, and are more inclined to in-season of seasonal items.
• Sustainable goals: Fashion brands are deeply aware of the negative impact of the clothing industry on the environment, actively seek more sustainable solutions, and convey the concept of environmental protection to consumers. In order to achieve the goal of sustainability, one of the execution methods is to avoid excessive production and avoid excess inventory. After all, reducing prices and clearing them will only reduce profits.
• Data orientation: Before the pandemic, retailers had begun to incorporate data into their business models. Based on these data, retailers now know better when and how to use price promotions. It also allows for more flexibility in promotion planning, such as selling only a green oversized T-shirt on sale instead of a store-wide sale.
Prather said that if the clothing industry can use full-price sales to ensure profits, while effectively using data-driven promotions, it may be possible to pass on inflation-induced price increases to consumers.
British high street retailer Next also confirmed it was aware of a change in the way consumers shop, although the extent to which inflationary pressures will affect consumer buying habits remains to be seen in the coming months.
Next said the inventory it sold at the end of the 2021 quarter was down 18% from two years ago, largely due to better-than-expected full-price sales over the same period.
Although they also experienced an increase in UK operating expenses, mainly from wage inflation, transport and labour costs. But they are confident in raising retail prices (Next has planned to increase prices by at least 3.7% in the first half of the year and more than 6% in the second half), because they found that consumers tend to choose to buy small quantities of products with medium and high prices, rather than price cuts. Discounts, and now consumers are more concerned about the quality of products.
British high street brand Next official website also exclusively sells Victoria's Secret, Gap and Laura Ashley home brands.