Since 2008, the fashion market has therefore lost almost 15% of its value. If the luxury and entry-level segments are doing the best, with respective annual growth rates of 7% and 1%, the mid-range segment is declining the most with an average drop of 5% per year. The downward trend of the 2010s, confirmed by...
Since 2008, the fashion market has therefore lost almost 15% of its value. If the luxury and entry-level segments are doing the best, with respective annual growth rates of 7% and 1%, the mid-range segment is declining the most with an average drop of 5% per year.
The downward trend of the 2010s, confirmed by the poor results of recent years, is closely linked to the decrease in-store traffic faced by most of the players in the textile distribution. However, when we observe the practices that have been put in place to offset this drop in traffic, we can already identify a primary cause of the sector’s poor performance. Indeed, with the rise of pure players, retailers have mostly played the card of increasing sales areas and lower prices in an attempt to suffocate already struggling competition. According to Kantar Worldpanel, more than 47% of sales are made at strike through prices.
This bad strategy, which had the effect of reducing the commercial margin of the brands and making them enter a vicious circle, was coupled with a second counterproductive phenomenon: Over-marketing pressure. Indeed, a large part of the brands reasoned as follows: the more I will solicit my customers, the more chance I have of bringing them back to the point of sale. Unfortunately, this bad reasoning did not have the expected results. Consumers found themselves drowning in commercial offers, ever more aggressive, to the point of no longer reacting to the various direct marketing actions.
A considerable number of brands have still not understood the urgency of abandoning this commercial strategy, in favor of a strategy focused on the expectations and needs of the consumer. Moving from polluting and intrusive mass marketing to individualized marketing, aligned with the consumer’s moments is the key element, on the one hand, to bring buyers back to the store, and on the other hand to preserve the margins of fashion brands.
By detecting consumer appetency, and allowing them to speak to them only at the moments that interest them, a platform like Advalo proves to be the essential tool to initiate this change in marketing strategy in a concrete way. If you are able to identify a profile of customers more appetite for new products, you do not need to solicit them with promotional offers.
As Martin Crépy, partner at the Simon-Kucher & Partners office, a strategy and marketing consultancy, points out: “The ways out of the crisis are quite clear.” We must end the race for promotions and return to a discourse more coherent: talking about products, innovations, brand identity “. When we talk to him about going back to the basics of marketing, namely offering the right product, in the right store, at the right time, he concludes that ” The data are the sinews of war to achieve this finesse of execution. “
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