So we’re barely two weeks into autumn, and already the mid-season Sales have kicked in on the high street, with 50%-off banners everywhere.
Discounting has become the Class A drug of the retail world with more and more retailers launching new season collections earlier than ever, then heavily discounting within a matter of weeks.
This short-term sales strategy leads to not only low margins and financial instability, but also long- term brand damage. What used to be highly respected fashion and lifestyle brands and retailers have become little more than discount outlets.
But what about the customer? Everyone loves a bargain, but research suggests customers are not spending more as a result of heavy discount activity. At IndiaCoco we completely agree with the view that confident collections, not heavy discounting, wins over customers.
Why should customers buy into your brand if you have no confidence in your products, and overwhelm the retail environment with discount messaging rather than proper merchandising?
Unfortunately it’s a slippery slope, and once brands start to chase the short-term wins rather than investing in the long-term future of their brand, there’s rarely any turning back.
- Claire Harper, Founder of kidswear etailer IndiaCoco