Retviews data indicates that price increases are present and prominent within the US and the European apparel markets. Taking into account leading mass market brands’ collections within the US (such as Abercrombie & Fitch, GAP, Aritzia, Uniqlo, and American Eagle), there has been an average price hike of 11% in 2022, in comparison to 2021.
Albeit smaller, this year leading mass market brands’ assortments have also showcased an average price increase of 8% YoY (taking into account brands such as Zara, Uniqlo and Mango).
Taking a closer look at Europe, brands within the French market have increased prices by 7% YoY in 2022. Mass market brands in Italy and Germany on the other hand, hold a slightly stronger price increase between 2021 and 2022 of 8% and 9%, respectively. Using Retviews’ real-time data allows brands to cut out the guesswork, and pinpoint the right positioning for their brand on an international scale, setting the right pricing strategy in each country in order to stay competitive.
How are Fast Fashion Leaders Tackling Inflation?
Mass market brands are increasing prices - and in some cases such as for Abercrombie & Fitch and GAP, demand has suffered. In contrast, European leaders such as Inditex group have seen a 33% hike in sales in comparison to 2020 and a 21% increase when compared to 2019 levels. The Spanish giant’s leading brand Zara even showcased strong performance within the North American market - making it the brand’s second most performing market in terms of sales volume - after Spain. Taking a closer look at leading brands’ strategies; how exactly are they increasing prices and how do their strategies differ?