Fashion is moving upmarket.
On the mass end of the spectrum, brands are elevating their designs and images to give themselves more defensible positions against ultra-low-cost competitors like Shein and Temu.
Towards the higher end, premium labels are emphasising quality and inching into territory previously held by luxury to lure defectors squeezed out by the segment’s excessive price hikes.
Retailers of all kinds, meanwhile, are introducing more premium items to expand their margins as they navigate rising costs driven by years of inflation and trade disruptions.
The brands executing on elevation most successfully are reaping the rewards. Companies from Ralph Lauren and Coach to Cos and Zara are among those who have been able to move perception and pricing power upward in recent years, allowing them to keep sales growing in a competitive environment where consumers are only getting pickier but will still shell out for items that feel special.
But effective brand elevation is about more than raising prices and expecting the cash to come rolling in. It requires attention at every touchpoint and thinking about the entire world a brand creates. The goal is to signal “this is worth it” in photography, communications, campaigns and the store experience — and to have a product that backs it up. Pricing power is the outcome, not the starting point.
Executing a successful elevation strategy also takes careful consideration of how consumers view your brand and how much change they’ll accept. Labels such as Burberry, Mulberry and Michael Kors have had to walk back price hikes in recent years after finding they alienated customers and lost sales with their rushes upmarket.
“Some brands suddenly move up the whole pricing architecture very quickly and try to escape the mass. You can’t do that because you don’t have the credibility,” said Bernstein analyst William Woods.
In this case study, The Business of Fashion breaks down how brands can successfully pursue elevation strategies. Drawing on the experiences of companies including Spanish mass-market retailer Mango, US lingerie giant Victoria’s Secret and French premium label Sandro, it explores how product, pricing, marketing and store experience contribute to an elevated positioning. It goes deep on specific approaches to image-making that give a brand an elevated sheen, as well as how to layer in higher- priced products while maintaining an accessible base.
For brands seeking the right to push upmarket, it all comes down to the desirability they’re able to create — and delivering on that promise when a customer makes a purchase.
