How to disrupt designer prices to gain fashion market share slices
Is your price strategy the best one to gain fashion market shares?
Fashion designer prices are often high due to markup.
But today’s consumers refuse to be ripped off.
Full transparency is the only right strategy for
Because you will win the love and trust of fashion shoppers that way.
This is “disruption” because the big majority of fashion brands still doesn’t do it but advanced and successful players, like Everlane, are famous for “price transparency.” And they do have followers already.
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Price Strategy: Benchmarking
The only right price is the one customers are willing to pay according to their needs, desires, and perceptions of value. And today, the new customer is very well informed and savvy.
As your customers horizontally benchmark your competitors, you should do too.
That is how you can find your sweet spot.
The really smart retailers – Europeans like Zara, Asians like Uniqlo – they’re not using the word luxury, but I can tell you, I know denim really well, and the same denim that Uniqlo uses is $1,000 in a designer store on 57th Street.”
Jasmin Larian, from Cult Gaia, recalls that she ignored the recommendation to have higher prices if she wanted to sell to luxury retailers.
She started to sell her Ark bag just under $100. Now it’s just above $100, and it is sold anyway alongside luxury bag brands like Chloé, Celine, and Prada on Farfetch and Net-a-Porter.
You see the point, right?
Jasmin wanted to stay honest about the price of her product, and not align with designer bags’ prices for no good reason.
If you are a trustworthy fashion eBusiness with ethics, what prevents you from being fully transparent?
This is what customers expect from your brand.
The average consumer cares about making smart choices, [about] not being ripped off. She is thinking about how often she’s going to use something for. I don’t think that fast-fashion is a larger piece of the fashion market. It’s just that they’ve understood earlier that no one is going to spend a few hundred dollars or a few thousand dollars on an item that they’re only going to wear once or twice.”
Price Strategy: Disrupting
Mansur Gavriel launched in 2013 the Bucket bag, that quickly became the first “It Bag” after the economic recession. How did they make it?
They offered a luxury-looking and contemporary bag at an entry price point of $400 for the first time.
And it worked wonders. All fashionistas, fashion bloggers and influencers wanted their own, even though they could afford more expensive bags.
Customers realize that all the things that go into a bag that’s $2 500 aren’t really the true value of the bag, but it’s other things like packaging and expensive store locations that add to the expense.”
With the new and emerging fashion businesses, the value is really into the bags.
Warby Parker made the same bet, offering optical glasses online and for around $100 for the first time. Bottom line…
With a radically different price strategy, newcomers in fashion disrupt the contemporary and luxury bag market, just like Warby Parker is shaking up the eyewear industry.
Customers always reward businesses that care about them.
How do you set the right price to get your products in the spotlight?
As the third rule of selling in a fashion marketplace, price strategy is crucial to your fashion eBusiness.
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And for more specific guidance on pricing and the perception of value from fashion customers, check out our article on how to price fashion products.
What is the cost structure of your fashion products? Share with us and all the fashion shoppers out and about online.
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(Photos from Unsplash: Keila Hötzel, Nathan Dumlao, Mathieu Stern).
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Fanny is the CEO + Co-founder of Fashion Talents, and a passionate and tireless promoter of new fashion eBusiness. She’s on a mission to open fashion business to all talents around the world and drive shoppers, sales, and success to them.