There is a dirty little secret going around the world of high fashion: designer fashion discounts. This term sounds like a harmless and actually a favorable idea to consumers. Style and savings, what is not to love about that? To you and me it sounds like a great time, but to retailers it is a nightmare. But why?
Since the beginning of stores and products retailers have practiced the marketing tactic of 'sales.' Buy two, get one free, end of season close out. The goods being offered tended to be too small or too large, too bland or too crazy. Essentially retailers were unloading their 'elephants.' When an item would go on sale, a retailer could sell it at 50-75% and usually break even on the good and then make profits on their better selling items.
If stores have routinely offered sales, then what is so bad about designer fashion discounts? Previously stores would only put items on sale that were out of season or not the cream of the crop, but recently there has been a massive change in the retail landscape. Unlike hideous sport coats that look like a couch, today's designer fashion discounts are gorgeous and are flawless. What's the big deal about that? Well, the best of the best that a designer has to offer is now being bought for far less than it use to sell for and for more help designer fashion
The next logical thought would be, if big brands and retailers don't want to sell their goods for less, why do they do it? Economist call it the invisible hand, and teenagers just say 'all the cool kids are doing it.' If one designer starts selling their clothing and accessories at a reduced price and no one else does, then the entire market will go to that designer. So in order to be cool, to compete, retailers now have to offer all of their inventory at some sort of sale price.
Designer fashion discounts is a dirty little secret for brands and retailers, but for consumers it means a lot more beautiful finds, for a lot less. Judging by the popularity of this trend with consumers and a dwindling fashion industry it is safe to say that this dirty little secret will be around for quite some time.
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