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Decoding Pricing Strategies in Off-Price Fashion: A Comprehensive Guide [Video]

Categories
Ecommerce

Everyone wants a bargain – especially during uncertain economic climates. Off-price retail has undergone a revolution in recent years, expanding from brick-and-mortar stores to e-commerce. The niche has revitalized itself and attracted a new demographic of value-conscious shoppers.

We spoke to fashion consultant Kenchen Arjandas about the factors that determine the pricing strategies utilized by off-price fashion retailers. Kenchen has spent almost two decades working in the off-price fashion segment, specializing in fabric importing and sourcing, enabling retailers to offer high-quality garments at competitive price points.

1. Understanding Cost StructureBefore a retailer can set its pricing strategy, it needs to understand its cost structure. Kenchen highlights that this isn’t just about the cost of merchandise – it includes every expense the business incurs, including shipping and overhead expenses.

Understanding the cost structure enables off-price fashion retailers to set a baseline for its minimum acceptable price, including the lowest the item can go to …

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