Luxury Fashion Brands are Focusing on Outlets Now? Discontinuation on Certain Bags Happening
But it seems that they are returning to this root as consumer spending as we know it, has been declining in the luxury sector. Some are even offering their products at 75-80% off depending on the season.
The designer outlets have had their days of controversy by fashion lovers and standard consumers alike. It seems that brands with the likes of Coach, Michael Kors and to brands like Gucci and Prada were known to make outlet-only items.
But it seems that they are returning to this root as consumer spending as we know it, has been declining in the luxury sector. Some are even offering their products at 75-80% off depending on the season.
Discount outlets are the new future?
According to reports, retailers and landlords are banking on the appeal of outlet shopping centers, where shoppers can find high-end goods at lower prices, according to The Wall Street Journal. With more than 200 outlets in the U.S., brands like Coach and Marc Jacobs offer "affordable-luxury" options. Tanger, which owns 38 properties, reported 97% occupancy in Q3.
Some outlets even offer discounts on brands like Gucci and Prada. While luxury sales have dropped recently, they remain above pre-COVID levels. Outlets attract a younger, diverse consumer base, with payment options like buy now, pay later gaining popularity.
Prior to this, designer brands were trying to “drift apart” from the outlet image, particularly brands like Gucci, Prada, Yves Saint Laurent in order to allegedly achieve a higher end status. Price increases were reflected on their discounted goods as well. But, it seems that this has backfired on them.
Why are outlets controversial?
There are claims on outlet items being made of inferior quality, and to some brands that may be true. However, there are brands like Bottega Veneta and Yves Saint Laurent where they’d sell their last season stock and nothing more.
Regardless, if these brands were to maintain their prices steadily, they might not have been in this precarious situation. Could these discount outlets be the key ingredient to save these designer brands?