Fashion industry: How to compete?

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#1: Raffling
#2: Sales dropping

Nowadays, there are more and more businesses penetrating on fashion industry, which makes competition in this field become fiercer than ever before. So how do fashion companies survive?

Unique marketing strategies are needed for a brand to survive.

The fashion market has been saturated with thousands of fashion labels, making it hard for brands to survive and expand. Quality, of course, is an important factor, but in order to develop and dominate the market, quality is not enough. What all fashion brands need are unique marketing strategies. Business nowadays is not only about selling good products and offering excellent services, but it is also about creating unique experiences to consumers. This is the reason why fashion companies are desperate to bring the best experience to millennials and Gen Z – the two segments with the biggest buying power.

#1: Raffling

A one-of-a-kind strategy is raffling. In this strategy, lotteries are held to a limited number of consumers buying newly available fashion items. This strategy was adopted by a fashion company from Musinsa in September. The brand sold high-end handbags from brands such as Louis Vuitton and Chanel at a discount price. There were only 5 events and 55,000 consumers got a chance to own an exclusive item from these famous brands. What makes this strategy a successful one is that consumers had no idea of whether to purchase or not, thus it increased expectation as well as a sense of scarcity.

#2: Sales dropping

Sales dropping is another method that many companies in the fashion world are applying to target younger customers and shopping platforms. Normally, fashion labels introduce their clothes twice a year, one in spring or summer and one in fall or winter. Fashion companies no longer release a large volume of items. Instead, they introduce a small number of clothes in just few weeks. This trick is often used by sellers of street fashion to measure the demand more efficiently to promote stock management. Shinsegae International had adopted this unique marketing strategy last week, introducing its online fashion platform Drops. Just a small number of items were released in a designated period. These items were the collaborations between rookie designers and famous celebrities. In the tough times of the fashion industry, unique marketing strategies are a must if a fashion brand wants to survive, develop and expand.