Massimo Dutti's strategy

What is the difference between premium brands and masstige brands? Premium brands represent a step toward the luxury segment. On the other hand, masstige brands position themselves within the mass market, thanks to their pricing strategy. Distinct from mass-market brands, they display their distinctive personality and DNA.

One brand that fits perfectly in this category is Massimo Dutti. Even though the Italian name might make one thinks of an Italian designer, the Spanish brand name is a trademark. It represents the prestige and a perception of quality.

Massimo Dutti is a higher-end brand, part of the Inditex Group. The label maintains an artistic and creative concept based on providing fine, elegant, exclusive garment designs. However, the Spanish company is not one of the most profitable for the group — it represents only about 6% of turnover at Inditex, way less compared with the world leader Zara, but an average amount compared with other brands owned by the group.

Womenswear overtakes menswear to stay competitive

According to the Inditex 2020 annual report, the Spanish group lost around 28% of revenue and 40% of EBITDA in 2020 in comparison with 2019. Additionally, Massimo Dutti profited €1,2 million to the Inditex group’s net sales in 2020, 37% less than the previous year.

Massimo Dutti was founded in 1985 as a men’s fashion label. But the Spanish company had to diversify its offerings to stay competitive on the market — and better face its peers — by launching women’s collections.

Using Retviews data, it is possible to highlight how, although Massimo Dutti was born as a menswear label, today the highest share of its assortment is focused on womenswear. However, Massimo Dutti presents the most equal split between men’s and women’s collections among its competitors.

Brand positioning: Is there any opportunity within the assortment?

“Natural elegance” sums up the sophisticated style of Massimo Dutti, which is meant to appeal to modern, urban, and cosmopolitan men and women.

When looking at Massimo Dutti and its competitors, it’s notable that the Spanish label has positioned itself well. Massimo Dutti’s assortment stays competitive on the market in all departments, but the Inditex brand directs a bigger assortment share to upper-body ready-to-wear pieces in comparison with its peers.

The upper-body categories were already the main focus for all those brands. However, after the covid-19 pandemic, they all increased their assortment shares in this category.

It is noteworthy to mention that dresses don’t represent one of the main categories for Massimo Dutti, while its competitors invest heavily in dresses. Why doesn’t the Spanish label focus much on this category? Is there an opportunity to rethink the assortment share in the dress category?

Did Covid-19 affect Massimo Dutti’s pricing strategy?

Within the Inditex Group, Massimo Dutti, with its classic style, represents an aspirational profile. The Spanish brand’s pricing strategy reflects this image — it has the highest average price among Inditex brands.

However, when compared with 2020 — when the Covid-19 pandemic disrupted the fashion industry — is notable a change in Massimo Dutti’s pricing. Retviews data show that the minimum price dropped by 63% compared to the last year, as well as the maximum price, which decreased by 16,7% from 2020 to 2021.

Perception of prestige and elegance allows higher price range

As previously mentioned, when one thinks about Massimo Dutti, the perception is one of prestige and elegance. This explains why the Spanish brand can position itself in a higher price range within the mass market.

Massimo Dutti’s price positioning stays competitive. The Spanish label’s average price is placed at the highest range in comparison with its peers. However, the most frequent price maintains a middle target range and, as shown by data, it seems to be even lower than prices at & Other Stories.

Can Massimo Dutti aim to enter the premium market?

Though Massimo Dutti had to adapt its strategy due to the covid-19 crisis, there is a good chance for the Spanish label to grow.

Today’s customers are more aware of fabrics and quality, and they prefer classic and natural styles and colors. This represents a basis on which the brand can target both mass-market and upmarket customers.

Is there an opportunity for Massimo Dutti to grow and find a place for itself within the premium market?