BERLIN–(BUSINESS WIRE)–The fashion industry is navigating inflationary pressures by adopting strategic discounting strategies, according to a recent report by 7Learnings in collaboration with Dealavo. The report analyzes price data from 966 brands and 1,006 retailers across 2023 and 2024, revealing key trends in pricing and discounting.
Key Findings: Strategic Discounting and Price Convergence
The report shows that while overall prices increased in 2024 due to rising costs, the rate of increase slowed compared to 2023. Retailers are using discounts more strategically to maintain affordability and competitiveness, rather than implementing broad price hikes. This approach allows them to offer value to customers while preserving brand image.
Another significant trend is the convergence of pricing strategies between brand websites and marketplaces. Historically, brands had higher prices on their platforms, but they are now aligning with marketplaces to remain competitive. This shift reflects increased pressure and changing consumer expectations.
AI in Pricing Optimization
The report also highlights the role of artificial intelligence (AI) in optimizing pricing strategies. AI tools enable retailers to make data-driven decisions, tailoring discounts to consumer behavior and market conditions. A case study featuring Tamaris demonstrates how AI can reduce overall discount rates by 5%, enhancing profitability without impacting sales volume.
Promoting Data-Driven Strategies
Felix Hoffmann, co-founder and CEO of 7Learnings, emphasizes the importance of data-driven strategies: “Our analysis shows that fashion companies leveraging AI and modern technologies can optimize pricing and remain competitive long-term. This report provides valuable insights and practical recommendations for improving pricing and discounting strategies in the coming year.”
Outlook and Recommendations
Looking ahead, the report advises fashion companies to focus on targeted, data-driven discount strategies and AI-supported price optimization. This approach will help increase profitability while maintaining consumer engagement. Retailers should move away from broad seasonal promotions and make targeted adjustments based on demand forecasts and market analyses.
About 7Learnings
7Learnings provides an AI-powered pricing platform that helps retailers predict pricing impacts, determine optimal prices, and reduce manual labor by up to 80%. Founded in Berlin in 2019, its clients include international companies like Westwing, Bonprix, and Tom Tailor.
Contacts
7Learnings
Address: Engeldamm 64b, 10179 Berlin
Phone: +49 30 403677370
[email protected]
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