This article was the basis for this #BoFLIVE event “Why Price Inflation Is Coming to Fashion.”Click here to see our complete analysis.
Apparel prices across all categories are rising quickly. It’s a trend opposite to what the industry has dealt with over the past 30 years, particularly since the Great Recession, as fast fashion’s domination and year-round sales and promotions made for more “deflation”Instead of “inflation.”Pandemic-driven supply chain disruptions, consumer demand increases, and increased consumer demand may have accelerated the shift. But retailers’ desire to end discounting cycles in order to regain their pricing power could mean inflation is here. fashionAt least, for the time being.
“In a span of months last year, the balance of power pivoted back to the brand and the retailer in a way that we haven’t seen since 2008,”Simeon Siegel is the managing director of equity research at BMO Capital Markets. “If there’s fewer units and you can appreciate that proactively, you have an opportunity to completely refashion the pricing element.”
Intermix chief executive Jyothi Ro and BoF deputy editors Brian Baskin and Alexandra Mondalek join Siegel for the #BoFLive to discuss which brands or retailers are best placed to take advantage of price shifts, how they can, and how long.
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