Here are some strategies that will be
Posted: Sun Jan 19, 2025 4:57 am
How can you keep everything in mind?
The brands that will win will be those that are best able to follow a delicate balancing act (which can be applied to companies in any sector ).
Reaching out to consumers who have lost purchasing power
According to the BoF-McKinsey State of Fashion 2023 survey , 45% of fashion industry executives plan to update their product assortment mix to adapt to reduced consumer spending power.
Meanwhile, 72% plan to increase retail prices to help their companies manage the inflationary environment.
essential to combat the decrease in consumption:
Developing diverse customer profiles : It will be crucial to analyze how customer groups in different demographics will change their behaviors, and then seek to adapt strategies in response with new distribution slovenia consumer mobile number list channels, pricing strategies or product categories.
Activate “off-price” channels (such as outlets) : these channels will remain crucial to meet the needs of customers who want to acquire quality brands and products, but at lower prices. Obviously, for all brands (and especially luxury ones) it will be important to manage these carefully, without devaluing their brand perception
An example of a high-price brand that has exploited these channels in an exemplary way? Ralph Lauren, who uses off-prices only for the resale of merchandise that has not been successful, instead of selling low-margin, high-volume products like many other brands.
Exploring the 3Rs : It will be important to evaluate how new models such as resale , repair and rental of objects can be integrated into one's value proposition, to allow consumers to show off precious jewels without having to buy them or perhaps give new life to family jewels.
Providing these opportunities to your customers will also be essential to respond to the new explosion of special events and important occasions.
Open up to new payment methods : with young people willing to spend less and less, it will be important to meet the needs of this segment of consumers by integrating short-term financing such as Buy Now Pay Later, or by introducing new discounts and special offers.
Brands that want to preserve their margins by passing on cost increases to customers will need to understand the risks, including the potential loss of customers to lower-priced rivals.
The brands that will win will be those that are best able to follow a delicate balancing act (which can be applied to companies in any sector ).
Reaching out to consumers who have lost purchasing power
According to the BoF-McKinsey State of Fashion 2023 survey , 45% of fashion industry executives plan to update their product assortment mix to adapt to reduced consumer spending power.
Meanwhile, 72% plan to increase retail prices to help their companies manage the inflationary environment.
essential to combat the decrease in consumption:
Developing diverse customer profiles : It will be crucial to analyze how customer groups in different demographics will change their behaviors, and then seek to adapt strategies in response with new distribution slovenia consumer mobile number list channels, pricing strategies or product categories.
Activate “off-price” channels (such as outlets) : these channels will remain crucial to meet the needs of customers who want to acquire quality brands and products, but at lower prices. Obviously, for all brands (and especially luxury ones) it will be important to manage these carefully, without devaluing their brand perception
An example of a high-price brand that has exploited these channels in an exemplary way? Ralph Lauren, who uses off-prices only for the resale of merchandise that has not been successful, instead of selling low-margin, high-volume products like many other brands.
Exploring the 3Rs : It will be important to evaluate how new models such as resale , repair and rental of objects can be integrated into one's value proposition, to allow consumers to show off precious jewels without having to buy them or perhaps give new life to family jewels.
Providing these opportunities to your customers will also be essential to respond to the new explosion of special events and important occasions.
Open up to new payment methods : with young people willing to spend less and less, it will be important to meet the needs of this segment of consumers by integrating short-term financing such as Buy Now Pay Later, or by introducing new discounts and special offers.
Brands that want to preserve their margins by passing on cost increases to customers will need to understand the risks, including the potential loss of customers to lower-priced rivals.