{"id":3471,"date":"2018-12-03T13:16:09","date_gmt":"2018-12-03T07:46:09","guid":{"rendered":"http:\/\/www.intelligencenode.com\/blog\/?p=3471"},"modified":"2026-03-24T14:34:03","modified_gmt":"2026-03-24T09:04:03","slug":"how-to-set-fashion-prices-that-fit","status":"publish","type":"post","link":"https:\/\/www.intelligencenode.com\/blog\/how-to-set-fashion-prices-that-fit\/","title":{"rendered":"How to set fashion prices that fit"},"content":{"rendered":"

As fashion gets faster and more global, it\u2019s also getting more complex and competitive. Many apparel retailers and brands struggle with decisions about which numbers to put on their price tags to ensure they attract enough consumers willing to pay while protecting their brand reputation and profit margins.<\/p>\n

Let\u2019s look at how today\u2019s most successful fashion businesses determine how to set their prices.<\/p>\n

Lean supply chains can mean lower prices<\/h2>\n

Supply chain efficiency, speed and agility impact pricing. Fast fashion icons Zara and H&M are the world\u2019s two largest fashion retailers. Strategic decisions \u2013 like whether H&M should move manufacturing facilities to Turkey to decrease speed to market for European markets \u2013 can influence operational costs, which in turn influence the price of an item.<\/p>\n

Meanwhile, British ultra-fast fashion retailers ASOS and Boohoo sell apparel online, so they keep their operational expenses down due to a deliberate lack of physical stores and associated overhead costs. As pure play eCommerce brands, they have access to abundant consumer data analytics, which they can use to deliver the best new trends faster than rivals.[1]<\/a> \u00a0ASOS and Boohoo make small quantities of a wide array of trendy, in-demand clothing and their time to market on new designs is only 2-3 weeks \u2013 half the time of Zara and H&M. Also, ASOS has an edge for the average order value<\/strong>,<\/strong> as the average price of clothing on ASOS is \u00a325 ($32 US), compared to \u00a313 ($17 US) on Boohoo.[2]<\/a><\/p>\n

Supply chain efficiency can streamline retail processes and minimize costs<\/a>, which can have a positive trickle-down effect that allows fashion companies to pass savings along to shoppers in the form of lower, competitive prices.<\/p>\n

Zara conditions shoppers to get it while it\u2019s hot<\/h2>\n

The consumer psychology of speed affects this pricing approach. For instance, Zara rarely uses a discount strategy and, when it does, it\u2019s for only new products and for a limited time. This decision protects Zara\u2019s brand reputation\u00a0for integrity, and inspires frequent repeat visits by sparking consumers\u2019 fear of missing out. By delivering regular but low volumes, Zara creates perceived scarcity, and demand for what\u2019s new and now.[3]<\/a> As a result, Zara can charge a premium<\/p>\n

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