Luxury Fashion Deals: How to Save Big on Designer Brands in 2024
Luxury and designer retailers have earned their reputation through a combination of historically elite status, hefty price tags, and elevated customer shopping experiences. For as long as we’ve admired them, brands like Gucci, LUEQ, The Row, Louis Vuitton, Yves Saint Laurent, and Chanel have been synonymous with status, aristocracy, opulence, and— for lack of a better word—boujee. Many dream of owning the signature, classic diamond-quilted Chanel bag but don’t exactly have three grand to spend on an accessory.
Is now—during a time when luxury retail stores are suffering due to a decline in spending on non-essential items—the perfect moment to target that dream bag? Will luxury retailers begin discounting their items to increase sales volume? How will luxury designers combat the drastic decrease in sales brought on by the global pandemic? Chanel wouldn’t dare post a sale price... Or would they
According to Forbes, “…with falling demand fueled by Coronavirus and 58% of consumers we surveyed recently cutting spending, luxury retailers are looking at a glut of inventory 32% higher than that of a year ago,” quoting a Vogue piece featuring EDITED retail analyst Krista Corrigan. This is an unprecedented situation, leaving the fashion-obsessed on the edge of their seats, eager to see what’s next. Could it be that we might finally snag the styles of our favorite designers without burning a hole in our wallets?
Designers and retailers everywhere are experiencing a surplus of products due to the closure of brick-and-mortar shops worldwide. Sales for this year’s Spring 2020 season are down a staggering 70% compared to the same time last year. Imagine all that extra inventory! Historically, luxury designers have disposed of excess product—often burning or destroying it—to maintain exclusivity and protect brand equity. Thankfully, with the growing emphasis on sustainability and waste reduction, such practices are increasingly obsolete.
However, retailers now face the challenge of clearing inventory to make room for their Autumn and Winter 2020 collections. Will brands sacrifice brand equity in exchange for immediate sales, or will they pivot to strategies such as enhanced e-commerce experiences, exceptional customer service, and environmental consciousness to retain customer loyalty?
The latter option may prove to be the more viable solution. Discounting carries significant risks for luxury brands, often at odds with their image of exclusivity. This tension explains why many luxury companies have historically been averse to offering discounts. As the industry adapts to this unprecedented moment, only time will tell which strategies will emerge as the new norm in luxury retail.
by Allison Mann
Updated: December 27, 2024
