People love a bargain. We really feel good about shopping in Sales and how much money we save. We love the “End of Season Sales”, “Black Friday”, “Singles Day”, and “Cyber Monday”. We love them all. Why is that?
A simple Google search states the following:
“Discounts make customers feel smart and confident in their shopping. There is no guilt or shame in buying a product when 50% off. This also validates their urge to buy the product at a discounted price so that when people ask how much they got the product for, they will proudly say how much they spent.”
We are now living in a “Discount Culture” — where sales and price reductions are constant. Another indication is the incredible rise of outlet shopping, which has made formerly aspirational Brands more accessible and affordable. Woodbury Common, Dubai Outlet Mall, and Cheshire Oaks, to name a few, are incredibly popular. Luxury Brands, including Bottega Verneta, Gucci, Prada, Fendi, and Moncler, are all a part of this discount Business strategy where they sell their products at lower or discounted prices. We have all had the opportunity to buy Brands here that we would not normally consider we could “afford”. These places have made luxury fashion more accessible and available to more people.
However, there is another angle to this. When is a “Sale” really a sale? The economics do not change; Brands still need to make a margin. With heavy and frequent discounting, how is this possible? Outlet stores are not only selling “aged” stock (from previous Seasons), they have products that are designed specifically for those stores. They are made to meet the discounted selling price, with the margin built in. While the selling price is lower, this is not really a bargain; it is not actually discounted. The products are leaving the manufacturer with the discounted price on the price tag. Why would Brands do this?
There is an obvious Business case. Brands have grown tremendous sales from Outlet shopping. They have increased their global Brand awareness and garnered a source of new customers. Discount culture is good for Business. Is it really good for us as consumers? We think we are benefiting from sales and discounts, but we are really just buying more.
Sales are fun and exciting; they have us consider new brands and products. They can make us more adventurous, try new things and increase business for our favourite brands and designers. However, as I always encourage in these musings — be aware of what is really happening when we shop.
While reminding us all to be conscious consumers and enjoy sales and discounts, they are now a key part of consumer life. However, please consider they are trying to make us believe we are saving money when, in fact, these events encourage us to buy things we probably don’t really need.\
In my usual fashion, I will provide a checklist of what to do.
When shopping in sales or attracted to discounts, consider the following:
If this item was full price, would I buy it?
Do I really need this?
Is the quality good?
Is it part of my long-term wardrobe strategy?
How long will I wear this?
How will I dispose of this when I don’t want it anymore?
What is the impact of buying this item; will it soon be in a landfill?
Is it worth it?
With love
Kate
Kate Padget-Koh
FASHIONABLE FUTURES