In light of the current global economic climate considering supply chain disruptions and price inflation brands are trying to navigate the pricing shift, and at the same time maximize margins.

Price increases are not going to subside anytime soon and are having a prominent impact on not only the fashion industry, but across countless sectors. The increase being mainly attributed to the leather goods category. Retviews data indicates that there is an evident increase in average prices across popular labels such as Balenciaga, Gucci, Prada, and Saint Laurent – with Prada and Gucci showcasing the highest price surges between January 2021 and January 2022, standing at 16% and 14%, respectively. Luxury prices have historically grown by “more than double the rate of inflation”, and the pandemic has pushed leading brands to further increase prices as raw material prices have hit the luxury sector as well. The luxury sector is no stranger to periodical price increases, as leading luxury players regularly increase prices, most recently even multiple times throughout the year. Within premium brands, wool and cotton are on top of the fabric mix, with the strongest price increases throughout the past year, standing at 6%. Industry leader ZARA is moving towards more premium positioning, with the use of more premium fabrics such as leather and wool, and could be taking advantage of the current economic climate to move their brand towards a higher quality offer. Looking at the average price of products, made up entirely (100%) of cotton or leather, there has been a prominent price increase throughout the past year - cotton apparel prices growing by 8% and leather prices shooting up by 10% between January 2021 and January 2022. Looking at leading mass market brands such as ZARA, Uniqlo and Primark - cotton, wool and leather are the fabrics where average prices have increased the most. Where do premium brands such as ACNE Studios, Isabel Marant, All Saints, Theory, Ba&Sh and Maje display the highest increase in prices, and how strongly have prices actually increased within the premium market throughout the past year? Mass market brands are of course not the only victim of price increases in fashion, as premium brands have been subject to similar difficulties, albeit at a different rate and within different categories of apparel. How are premium brands handling the industry shift ? Underwear is another interesting category where prices have shown a strong increase, and where cotton is highly present, however showcasing an increase in stock, throughout the past year. Within footwear, the shoe displaying the largest price increase is one of 2021’s most popular shoes - loafers.

On average, t-shirts are one of the categories that have exhibited a strong price increase, coupled with a decrease in stock, a phenomenon that could most likely be attributed to the recent surge in raw material prices and supply chain disturbances.Īmong the categories with the strongest price increases are accessories (primarily scarves, gloves and jewellery), blazers, sweatshirts and footwear. Taking a closer look into leading brands’ collections throughout the past year, several categories stand out with the highest increase in average price. Leading fashion brands are using the automated benchmarking solution Retviews, to monitor their competitors’ strategies, keep a close eye on how brands are dealing with the industry shift and optimize their own pricing strategy to stay on top of the changing industry. Rising apparel demand, coupled with supply chain disruptions including a hike in shipping costs, transportation bottlenecks, and a rise in raw material prices led to the inevitable increase in prices.Įxpected to only grow stronger, and potentially become the new normal within the fashion industry, price increases leave brands with a critical question - how do we handle price increases and adapt our pricing strategy so as not to fall behind competitors? Dive into the following report to see how automated benchmarking can help you get ahead of the price shift and the type of data you can access with Retviews. Numerous countries eased COVID measures and restrictions, which got shoppers excited for public outings and in turn drove demand across the industry. The global pandemic has left its mark on the fashion industry in more ways than one, and price inflation is one of the most prominent pandemic-driven outcomes within the industry.

Zara penetration pricing