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. 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. 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.
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%.
A Classic Move for Luxury Brands
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. 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.
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. The increase being mainly attributed to the leather goods category.
Nailing Your Pricing Strategy
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. 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. In the long run, how high will prices go and what will apparel pricing look like in the future? You can take the guesswork out of your own brand’s strategy with automated benchmarking. Leading fashion retailers are using Retviews, the automated benchmarking solution, to monitor competitor strategies, see where prices are experiencing a shift and pinpoint the ideal pricing strategy at the right time, to stay ahead of the competition.
Find out how Retviews can help you navigate the pricing shift and prevail in the changing industry.