Are discounts devaluing your brand?
I realised recently that I do not own one item of clothing that was not bought in the sale.
I am apparently not alone either. If, like me, you grew up during the recession, chances are you fit into the 73% of people that only buy discounted fashion items. This is theorised to be because after the depression, brands cut the prices of the goods and kept them low whilst the economy was on the up to encourage spending.
This is made easier to do through online forums, such as EBay, which allow the consumer to search for the same or similar items to get the best price for what they want. Alternatively you know, as a consumer of fast fashion, that any item you want will almost inevitably end up in the sale rack within the next few months anyway. So why spend more than you need to? It is just common sense.
But what does all this mean for brands?
Searching for a bargain has become ingrained in the customer mindset. However despite discounts continuing to be central to retail, at least in the short term, there are still ways for brands to stand out and add real value beyond the sale tag.
Good quality items and creating a great customer brand experience are central to creating brand loyalty in the modern world. Consumers want more than a product – they buy into the whole package – an inviting retail store, quality materials, friendly customer service and positive reviews.
Crafting a brand experience that customers value, creates a brand identity that consumers want to be associated with, lessening the opportunity for the price tag to dent the overall brand perception.