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Prada Joins the Likes of Chanel, Hermès, and Louis Vuitton in a Global Quest for Uniform Pricing | The Fashion Law

Prada plans to cut down on the number of wholesale partners stocking its products in Italy and Europe in an attempt to enjoy uniform pricing throughout the market, and to stomp out markdowns of its high fashion wares. The announcement comes amidst a larger attempt by the Milan-based brand to regain its footing after years of falling sales. To date, this also includes swearing off end-of-season sales within its stores and relegating unsold goods to its network of outlet stores

Reuters reported on Tuesday that while Prada plans to cut ties with “some Italian and European wholesale partners,” it will “gradually replace them with new digital and e-commerce players.” The publication further stated that “Prada joins a number of rivals that have been striving to control pricing policies better as they face an increasingly fragmented market, in which prices have been put under pressure by booming online sales.”

Chanel, for instance, has been active in recent years in its efforts to fight price arbitrage. In a fashion context, this sees consumers purchase products in one market in order benefit from lower prices due to fluctuating currencies, and then selling those goods for a higher price in a different market.

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Prada Joins the Likes of Chanel, Hermès, and Louis Vuitton in a Global Quest for Uniform Pricing — The Fashion Law.

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