Attire Accessories - Seo/Oct 2019 (Issue 78)

122 THE DISCOUNTING Louise Prance looks at the pros and cons of discounting and whether there’s a way to bolster December sales in the face of Black Friday and Cyber Monday As we head into our penultimate issue of the year, most retailers and buyers will be thinking about Christmas and what they can to do to ensure a lucrative festive period. But alongside the season of joy being just around the corner, so too are the ever-popular discount events Black Friday and Cyber Monday. Yet while these big sales periods may have turned into a new tradition over here in the UK, brought over from the U.S., is such heavy discounting really a successful business strategy? According to the study Retail Pricing Wars, released by pricing specialist Omnia Retail last year, they are not. Sander Roose, CEO of Omnia Retail, said, “Price is a key factor in consumer purchasing decisions. However, many brands have taken this too far, price cutting to the extreme and becoming embroiled in a damaging ‘race to the bottom.’ This not only damages margins but can have a detrimental effect on reputation, as constant discounting could cheapen a brand or cause consumers to question the quality of product on offer.” Indeed, cost blunders are said to be made regularly in the fashion industry, with errors in pricing said to be hurting profit margins. But we know that when your competitors are cost cutting left, right and centre, it’s understandably hard to stand firm against the sea of cut-price goods being offered across the board. However, if the experts are anything to go by, sticking to your guns, keeping your store discount free in the run-up to Christmas and looking to technology is the way forward. Sander continued, “Essentially, it’s important to remember that staying ahead of the competition is not just about cutting prices; it’s about pricing intelligently. That’s why investing in agile IT infrastructure – that can gather market insights and automate decision-making on a large scale – can be so effective.” Ultimately it’s about doing what’s right for you and your business, whether that’s adjusting your sales strategy to include Black Friday and Cyber Monday or sitting tight and hoping to clean up in the Boxing Day sales. Let’s hope for a successful festive period for all! DILEMMA