Fighting Inflation in the fashion Industry

THE KEY
TO TACKLING
PRICE INFLATION
The Data Behind Leading Brands’
Pricing Strategies

RETVIEWS
TABLE OF CONTENTS
How are fashion’s leading brands tackling
price inflation? How can your brand pinpoint
the right price positioning to stay ahead of
competitors? Leveraging the power of AI,
Retviews is the competitive intelligence
platform for fashion brands and retailers,
allowing you to monitor the data on your
competitors’ pricing, assortment and
discount strategies, in real-time.
Before Reading
01
MASS
MARKET
02
PREMIUM
FASHION
03
HIGH-END
LUXURY

OVERVIEW
Discover how your brand can use AI-powered,
real-time data to monitor competitors’ strategies,
enhance your collection’s performance and
optimize margins, thanks to Retviews, the
automated market intelligence platform.
Inflation has reached a 40-year-high and shoppers are cutting
back on discretionary spending, of which apparel is a leading
category. Brands have noticed an impact on their sales, inventory
and inevitably their margins. However, each industry segment
is feeling the pressure of inflation differently. So how are the
industry’s leading brands in each segment taking on inflation
and looming recession? How can your brand get a competitive
edge and stay resilient?
As lower-income consumers are cutting back on spending, mass
market brands need to pinpoint their ideal pricing strategy to
optimize performance. Where are industry leaders increasing
prices? By how much? High-income shoppers are driving premium
and luxury demand, but is this feasible in the long-term, considering
the burden of inventory and the impending recession?

PRICE INFLATION
IN MASS MARKET RETAIL
THE RETVIEWS DATA RECAP

BACK TO THE OFFICE
Formal “back-to-work” apparel is showing
higher price hikes than casual apparel in both
womenswear and menswear.

INCREASED INVENTORY
Brands are discounting a higher share of their
collections, at higher rates than in 2021.

SNEAKER PRICES ON THE RISE
Sportswear leaders are significantly increasing
prices in outerwear and accessories, with
sneakers representing the biggest increase.

MASS LEADERS’
DOUBLE-DIGIT PRICE HIKE
01
MASS MARKET
Within mass-market leading brands in European
and US markets, ZARA has shown the highest price
increase year-on-year, with its average price being
12% higher than last year. The Spanish brand’s price
increases go hand in hand with its strategy of elevating
brand positioning through limited edition collections
and higher quality fabrics.
Similarly, Abercrombie Fitch is increasing prices in the
US at 12%, with mass retailers Walmart and American
Eagle increasing prices by 6% and 3%, respectively.
12%
PRICE HIKE
FOR ZARA AND
ABERCROMBIE FITCH
WALMART
$0
$120
$100
$80
$60
$40
$20
ABERCROMBIE FITCH AMERICAN EAGLE ARITZIA
+6%
+12%
+3%
+1%
2021 2022
US Market Price Increases 2021 vs. 2022
€0
€45
€40
€35
€30
€25
€20
€15
€10
€5
ZARA
+12%
+7%
+8%
MANGO UNIQLO
2021 2022
EU Market Price Increases 2021 vs. 2022 Retviews 2022
Retviews 2022
Source: Retviews, the Competitive Intelligence Platform for Fashion Brands and Retailers

01
MASS MARKET
Although consumers are cutting back on discretionary
spending, one of the apparel categories that they are
least likely to reduce spending on is professional work
attire, shifting spending priorities from casual wear to
office apparel.
Comparing 2022 to 2021, Retviews’ data show that
leading brands within the US and EU markets are
increasing menswear prices more significantly in
office apparel than in loungewear. Formal trousers
and shirts are exhibiting the strongest price increases at
11% and 23%, respectively. This could be helping brands
limit margin loss, considering consumer tendency to
continue spending on office apparel.
HIGHER PRICE INCREASES FOR
OFFICE APPAREL
THAN FOR LOUNGEWEAR
IN MENSWEAR
Brands: ZARA, Uniqlo, Mango, Massimo Dutti, Abercrombie Fitch, GAP,
American Eagle, Target, Walmart, Old Navy
Category Price Increases 2021 vs. 2022 Retviews 2022, Menswear
Formal Trousers
Casual Trousers
Sweatpants
Formal Shirts
Casual Shirts
T-Shirts
Sweatshirts
Average Price 2022
$59
$53
$46
$49
$46
$25
$19
+11%
+7%
+6%
+23%
+13%
+8%
-2%
Price Variation
THE MENSWEAR
RETURN TO THE OFFICE

01
MASS MARKET
From Old Navy, Abercrombie Fitch and GAP to
ZARA, Uniqlo and Mango, today’s leading mass-
market brands are all launching “Back to the Office”
edits. Matching consumer intention to limit cutbacks
on work attire, Retviews’ data show that prices are
increasing accordingly within the womenswear sector
in EU and US markets.
Prices have increased more within formal pieces
such as tops and trousers (17% and 13%, respectively)
than athleisure and casualwear, with sweatshirt and
sweatpant prices actually decreasing between 2021
and 2022.
HIGHER PRICE INCREASES FOR
FORMAL TOPS AND TROUSERS
THAN CASUALWEAR
IN WOMENSWEAR
Category Price Increases 2021 vs. 2022 Retviews 2022, Womenswear
Blouses Shirts
Dressy Tops
T-Shirts
Sweatshirts
Trousers
Sweatpants
Jeans
Average Price 2022
$45
$30
$21
$42
$65
$40
$49
+6%
+17%
+4%
-2%
+13%
-4%
+3%
Price Variation
Brands: ZARA, Uniqlo, Mango, Massimo Dutti, Abercrombie Fitch, GAP, American Eagle,
Target, Walmart, Aritzia, Old Navy
THE WOMENSWEAR
RETURN TO THE OFFICE

01
MASS MARKET
Between preparing for supply chain issues, and cutbacks in consumer
spending, numerous brands are left with large amounts of inventory.
This has resulted in leading brands discounting a larger portion of their
collection, at a higher rate. With increased discounts, numerous mass-
market brands are currently losing margins.
So, how can brands relieve margin pressure? As consumer needs change,
Retviews’ real-time data helps brands monitor where they should be
increasing prices and how to shape the right assortment, enhancing
collection performance and optimizing margins.
GET YOUR OWN COMPETITIVE ANALYSIS
MASS MARKET BRANDS ARE
DISCOUNTING MORE
OF THEIR COLLECTION,
AT A HIGHER RATE
Average Discount Rate
0%
60%
50%
40%
30%
20%
10%
+4%
+7%
Average Items Discounted
2021 2022
Discount Structure 2021 vs. 2022 Retviews 2022
Brands: Zara, Uniqlo, Mango, Massimo Dutti, Abercrombie Fitch, GAP,
Walmart, American Eagle
STRUGGLING WITH
INCREASED INVENTORY

01
MASS MARKET
Sporting retail proved to be resilient throughout the COVID-19
pandemic, as consumer spending remained strong. However,
changing consumer needs mean that sportswear is likely to
be affected by inflation-driven spending cutbacks. So how can
sportswear brands implement an effective pricing strategy?
Retviews’ data indicate a similar year-on-year price increase
across the sportswear market, averaging at 4%. Nike, Adidas
and Under Armour all staying within the average could be giving
these brands the advantage. However, as consumers are limiting
spending, knowing exactly which items’ prices to increase is key.
SPORTSWEAR GIANTS INCREASE
PRICES ON AVERAGE BY
4%
$0
$90
$80
$70
$60
$40
$30
$50
$20
$10
MARKET
+4%
UNDER ARMOUR
+2%
REEBOK
+6%
NIKE
+4%
ADIDAS
+4%
2021 2022
US Sportswear Market Price Variation 2021 vs. 2022 Retviews 2022
Retviews, the Competitive Intelligence Platform for Fashion Brands and Retailers
THE STATE OF
SPORTSWEAR PRICES

01
MASS MARKET
Retviews’ data indicate that within the US market,
leading sportswear brands such as Nike, Adidas, Puma
and Under Armour have increased prices on their two
highest-priced categories; outerwear and accessories.
A well-thought-out move, seeing as a higher share of
consumers are cutting back on casual and athletic wear
than accessories and outerwear.
Retviews’ data also show that accessories, including
footwear, make up over 40% of leading sportswear
brands’ assortments.
SPORTSWEAR BRANDS
INCREASE ACCESSORY
PRICES BY 7% AND
OUTERWEAR BY 13%
Brands: NIKE, Adidas, Under Armour, Puma, Reebok, Lululemon, Champion
US Sportswear Market Price Variation 2021 vs. 2022 Retviews 2022
Accessories
Bottoms
Sets
Outerwear
Tops
Average Price 2022
$84
$57
$44
$146
$54
+7%
+4%
+4%
+13%
+2%
Price Variation
PRICING
SPORTWEAR

01
MASS MARKET
Accessories make up the largest portion of sportswear collections,
making them essential in understanding how to best price an assortment
in times of inflation. Taking a closer look at the data, the highest price
hikes are found in sneakers, hats and sports bags.
Sneaker prices have grown 10% year-on-year, but this is a category
consumers are increasingly cutting back on. Athletic accessories such as
hats, with a 4% year-on-year price increase, are a category that fewer
consumers are limiting spending on. Could this indicate an opportunity
for brands to optimize accessory pricing and avoid margin loss?
10%
PRICE HIKE
ON SNEAKERS
0%
12%
10%
8%
6%
4%
2%
US Sportswear Accessories Price Increase 2021 vs. 2022 Retviews 2022
Brands: NIKE, Adidas, Under Armour, Puma, Reebok, Lululemon, Champion
SPORTS BAGS
+3%
€56
HATS
+4%
€30
SNEAKERS
+10%
€127
PRICING SPORTWEAR
ACCESSORIES

PRICE INFLATION
IN PREMIUM FASHION

INVENTORY GLUT
On average, the premium market
is discounting a larger share of its
assortment in 2022 vs. 2021.

COMFORTABLE PRICE HIKES
FOR ACCESSIBLE LUXURY
Brands like Michael Kors are increasing
prices more significantly than lower-end
premium brands such as Tommy Hilfiger.

HIGH PRICE HIKES FOR CORE
COLLECTIONS
Tommy Hilfiger’s core collection prices
are increasing at a higher rate than its
average price increase year-on-year.

02
PREMIUM
High-income consumers have not cut back on apparel
spending, and the return of social events is pushing
higher-income consumers to splurge on fashion.
Retviews’ data show that Michael Kors has increased
prices significantly across regions, with average prices
in the US and European markets increasing by 20% year-
on-year. Not being affected by a loss in demand thus far
could explain the brand’s price hikes this year. As the
novelty of revenge shopping subsides, brands will need
to keep a close eye on how they are pricing their offer in
order to stay competitive.
MICHAEL KORS INCREASES
PRICES IN THE US BY
20%
UK
$0
$450
$400
$350
$300
$250
$200
$150
$100
$50
+10%
+20%
+20%
US EU
2021 2022
Prices Increases 2021 vs. 2022 Per Region - Accessible Luxury Retviews 2022
MICHAEL KORS
PRICING ACCESSIBLE
LUXURY INTERNATIONALLY

PRICING PREMIUM FASHION
INTERNATIONALLY
02
PREMIUM
On the lower end of the premium spectrum, leading brands like
Tommy Hilfiger have showed differing strategies, in terms of pricing.
Retviews data on international pricing shows that unlike higher-end
Michael Kors, Tommy Hilfiger has increased its US prices less than
in the UK and the EU, with its average price in the US increasing
by only 5% year-on-year in 2022.
With a lower average price, a brand like Tommy Hilfiger is subject to
spending cutbacks from mid-range income consumers, indicating
higher sensitivity to price hikes.
TOMMY HILFIGER INCREASES
PRICES IN THE US BY
5%
Its lower average price making it subject to spending
cutbacks from mid-range income consumers
UK
$0
$140
$120
$100
$80
$60
$40
$20
+11%
+5%
+12%
US EU
2021 2022
Prices Increases 2021 vs. 2022 Per Region - Premium Fashion Retviews 2022
TOMMY HILFIGER

PRICE EVOLUTION
ON ICONIC PRODUCTS
An accessible luxury brand like Michael Kors has
a strong assortment of iconic products that are
consistently present in collections. Iconic pieces and
their individual price hikes are a key indicator of how
higher-end premium brands are tackling inflation.
But is Michael Kors aiming to go more up-market?
Retviews’ data on product price evolution show that in
the EU market, there was a 10% increase for Michael
Kors’ Medium Marilyn Tote in April. Although lower
than its average price increase overall, the product-
specific price increase supports the brand’s strategy to
innovate signature products, and bears resemblance to
luxury players’ annual price hikes on iconic bags.
TRACKING REAL-TIME
PRICE SHIFTS ON ICONIC PRODUCTS,
MICHAEL KORS RAISED THE PRICE
ON ITS MARILYN TOTE BY 10%
02
PREMIUM
January August
July
June
May
April
March
February
€235
€280
€275
€270
€265
€260
€255
€250
€245
€240
+10%
Price Evolution - Michael Kors Marilyn Medium Tote Retviews 2022

Leading premium brands Tommy Hilfiger and Hugo Boss have a
strong collection of permanent products, of which short-sleeved
t-shirts and polo shirts are particularly prominent in menswear.
In 2022, Tommy Hilfiger and Hugo Boss both increased prices on
core collection t-shirts by 12% and 5%, respectively. Tommy Hilfiger’s
increase on core collection t-shirts is higher than its average price
increase across markets, signaling premium brands’ emphasis on their
core products.
TOMMY HILFIGER’S
PRICE INCREASE ON
CORE COLLECTION T-SHIRTS
IS HIGHER THAN ITS AVERAGE
INCREASE ACROSS MARKETS.
02
PREMIUM
HOW ARE BRANDS INCREASING
PRICES ON CORE PRODUCTS?
HUGO BOSS
$0
$100
$90
$80
$70
$60
$50
$40
$30
$20
$10
+5%
+12%
TOMMY HILFIGER
2021 2022
Prices Increases 2021 vs. 2022 on Core Collection T-Shirts Retviews 2022
Retviews, the Competitive Intelligence Platform for Fashion Brands and Retailers

SHIFTING
PRICING STRATEGIES
In the past year, premium apparel brand Tommy Hilfiger
has shifted its pricing strategy for core collection tops.
Retviews’ data indicate that Tommy Hilfiger shifted its
pricing strategy from pricing 32% of its collection in
the $20 to $40 bracket in 2021, to pricing 37% of its
collection in the $60 to $80 bracket, simultaneously
decreasing its assortment share in lower price brackets.
A noteworthy shift, but should inflation alone be
credited, or is Tommy Hilfiger taking advantage of
price hikes to bring its offer more up-market? Hugo
Boss on the other hand has maintained its price
structure, whilst lowering its assortment share in
lower price brackets, increasing its offer in the $80 to
$120 price range.
TOMMY HILFIGER
SHIFTS ITS PRICING STRATEGY
ON CORE COLLECTION TOPS
02
PREMIUM
2022 2021 2022 2021
$20 - 39.99 1% 21% 32%
$40 - 59.99 3% 6% 28% 32%
$60 - 79.99 6% 7% 37% 17%
$80 - 99.99 29% 27% 5% 12%
$100 - 119.99 13% 11% 2% 2%
$120 - 139.99 8% 9% 4%
$140 - 159.99 16% 14% 1%
$160 - 179.99 11% 13% 3%
$180 - 199.99 3% 2% 3% 1%
$200 - 219.99 1% 1%
Pricing Structure 2021 vs. 2022 Retviews 2022
HUGO BOSS TOMMY HILFIGER

DISCOUNTING PREMIUM FASHION
IN AN INVENTORY GLUT
Higher consumer prices and last year’s supply chain snarls mean
that inventory is piling up for premium brands. Retviews’ data show
how premium brands are ramping up discounting strategies to
clear inventory. The premium market, as well as key brands such
as Hugo Boss and Tory Burch, are discounting a larger portion of
their collections in 2022, compared to the previous year.
How can your brand tap into this type of real-time market data
to know what to discount and when to discount it, optimizing
margins and limiting inventory? Retviews allows you to monitor
competitors’ strategies, giving you the insight that you need, to stay
on top of the competition.
THE PREMIUM MARKET
ON AVERAGE DISCOUNTS
9% MORE IN 2022 YoY
02
PREMIUM
MARKET AVERAGE
KATE SPADE
TOMMY HILFIGER
TORY BURCH
HUGO BOSS
0% 70%
60%
50%
40%
30%
20%
10%
2022 2021
Share of Discounted items 2021 vs. 2022 Retviews 2022

HIGH-END LUXURY AND
THE RISK OF RECESSION

PRICING LUXURY INTERNATIONALLY
Luxury prices are at their highest within
the Chinese market, when compared
to the European market.

TRACK PRICE SHIFTS IN REAL-TIME
Iconic bag prices have increased on multiple
occasions throughout 2022. Retviews allows
brands to track these changes in real-time.

TARGETING THE ASPIRATIONAL
CONSUMER
Within the leather goods and small leather
goods market, luxury brands have low
entry-level prices, appealing to the aspirational
consumers who may cut back on spending due
to inflation.

LUXURY FASHION’S TAKE ON
INTERNATIONAL PRICING
High-end luxury brands have thus far been spared from the
consequences of price inflation, as high-income consumers
are not limiting discretionary spending. However, will these
brands be able to hold off the pressure of an impending
recession? How will they stand out from the rest?
One crucial aspect is knowing how to price a brand on
an international scale. Retviews’ data on pricing across
markets indicate that the Chinese market is consistently
the most expensive market in luxury, compared to the
baseline European market. With continued restrictions in
China however, there is added tension to margins from the
Asian market.
LUXURY PRICES ARE
AT THEIR HIGHEST IN THE
CHINESE MARKET
03
HIGH-END LUXURY
High-End Luxury International Pricing Strategy Retviews 2022
EU
CN
JP
KR
UK
US
PRADA
0%
+73%
+18%
+20%
+18%
+42%
0% 0%
+43% +82%
+12% +41%
+36% +52%
+2%
+26%
+9%
+30%
GUCCI LOUIS VUITTON

PRICE INCREASES
ON ICONIC BAGS
Luxury brands historically and periodically increase
prices on iconic products. In order to stay ahead of
the luxury industry, brands need to know exactly how
and when competitors are increasing prices on their
iconic products. Retviews’ data indicate that Gucci’s
1955 Horsebit bag has seen two price increases so
far this year – in late February, a 4% increase from
€2,200 to €2,290, followed by a 9% increase in June
from €2,290 to € 2,500.
Access to real-time insights gives luxury brands a
competitive edge. Retviews, the AI-powered market
intelligence platform allows you to track and be
alerted on competitors’ price changes in real-time.
GUCCI INCREASED
PRICES TWICE ON
ITS ICONIC 1955
HORSEBIT
03
HIGH-END LUXURY
January August
July
June
May
April
March
February
€2,000
€2,600
€2,500
€2,400
€2,300
€2,200
€2,100
+9%
+4%
Price Evolution - Gucci 1955 Horsebit Retviews 2022

A large portion of luxury sales stem from aspirational shoppers,
and high-end brands are expanding their offers to appeal to more
middle-class consumers, with an increased share of entry-level
priced products.
Standing on the lower end of the high-income spectrum, aspirational
consumers are likely to cut back on spending, as recession looms.
So how are luxury leaders positioned in terms of pricing?
Retviews’ data indicate that within the leather goods sector, leading
luxury brands have a similar minimum price. Bottega Veneta however,
stands on the high end of the market, with higher minimum, average
and maximum prices on leather goods than its competitors.
ENTRY-LEVEL PRICES FOR
SMALL LEATHER GOODS
CATER TO ASPIRATIONAL
CONSUMERS.
03
HIGH-END LUXURY
Pricing Structure Luxury Leather Goods Retviews 2022
Bottega Veneta Prada
Louis Vuitton
Gucci
€8,000
€7,500
€7,000
€5,800
€3,200
€1,750
€1,590
€1,900
€1,700
€250 €195 €190 €290
€4,000
€1,000
TARGETING THE
ASPIRATIONAL CONSUMER

Ready to improve your assortment performance?
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TAKE BETTER RETAIL DECISIONS BASED ON REAL-TIME
COMPETITORS’ DATA ON ASSORTMENT, PRICES AND MORE.
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Maximize margins
Prevent unnecessary
discounts with the right
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Optimize sell-through
Be reactive to market
changes and always sell
bestsellers.
Accessories Bottoms Jackets T-shirts
Dresses
Shoes
Lingerie
Jeans Shirts Sweaters
Other
Zara
Mango
17.6 7.7 6.7 4.1 9.5 6.6 15.2 5.4 20.2 6.9
19.3 5.6 6.7 3.6 7.3 10.5 12.9 7.8 20 5.8
T-shirt
EXPLORE
COMPETITORS DATA

Fighting Inflation in the fashion Industry

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