“With denim becoming the hottest selling product, brands like Levi’s and Madewell reported strong sales in the past quarter. Proving its sustainability over time, the global denim jeans market is predicted to reach USD 57.6 billion by 2023. Edited, the most strategic tool for retail teams worldwide, uses AI and data to future retail trends. This price and discount over time tool helps brands to smarten up their denim assortment by understanding pricing trajectory across time, spotting the ramping up of cooling off of denim trends and analysing discount periods over time to detect the health of your category vs. competitors.”
Evaluating price shifts on a monthly basis
Using Edited’s price over time analysis, brands can evaluate the price average price shifts in the US market on a monthly basis. They can also compare the actual price of the product at that time for H&M and Zara and notice how their pricing strategy shifts throughout the year. On average, H&M jeans are priced lower and remain consistent. Zara’s are more expensive, yet drop to meet H&M prices at distinct sale periods.
Different prices for different fashions styles
There are many other factors that determine the pricing strategies of brands. One big factor is difference between core and fashion styles. For instance, hi-end retailers have different pricing strategies for skinny jeans and chic high-rise culottes. Tracking the price consistency of these jean styles will brands drive margins for core items as well as justify the rising or declining of trends. When a trend is starting to boom or die out. Despite low demand, some brands still focus on skinny jeans. They are creating evergreen skinny jeans in core colours that are always replenished and available at a consistent price since the past two years.
AI to reduce human intervention, lead times
Analysing the pricing strategy of these jeans over time is important to understand how mature a trend is. Brands can eliminate manual work through the adoption of AI into their processes. They will realise that the prices for these fashion-forward items start to rise as a trend becomes popular and retailers start to capitalise. AI would enable brands to spot these spikes and invest accordingly reduce their lead times. For instance, prices for denim boilersuits, which currently dominate the mass, are fluctuating and have been on a rise since April 2019.
Seasonal price fluctuations
As noted by Edited, seasonality plays a huge part in determining the price of a trend-led product. White or neutral denims are priced on the higher side. Prices also fluctuate according to the season. While they are at higher prices during the summer, their prices decline as soon as the temperature drops. Prices are flattening for corduroy as retailers prefer lighter fabrics for their summer ranges. Analysing these pricing peaks and troughs can help brands delivering the right products at the right time.
Measuring discount health
Edited’s discount over time tool measures the discounts given by brands on their product categories and compares it YoY. Denim shorts, for example, experience their deepest discounts in January for both the UK and US. On comparing the discounts given on prices for denim shorts in January 2019 vs 2018, brands can notice that the UK market deepened its discount level by 12 % YoY while the US increased by 5.2 %.