We know consumers are cutting back on spending, but that only adds a bigger push for retailers to try harder to engage them, especially around the holidays.
Last week, we told you about some of the strategies luxury retailers are employing to bring in shoppers this season, but what about more accessible/affordable retailers? Well, they have a few tricks up their sleeves too.
For example, Italian clothing brand Falconeri that specializes in knitwear and cashmere, is focused on pushing cashmere in different types as its key strategy.
“The brand is focused on highlighting the wide offering of cashmere this holiday season: ultrasoft, ultrafine and four yarns,” Falconeri Sales Director Caterina Modesti told Retail Brew via email. “During the holiday season, we will also be rewarding our top customers with a special holiday box in order to thank them for being part of our Falconeri family.”
Over at Simon G. Jewelry, the brand is also relying on promotions to draw shoppers to its signature accessories. “As a company, we have prepared a few promotions to allow people access to classic items that will be entering the vault and are no longer available,” Brook Brinkman, Simon G. Jewelry’s VP of marketing and communications, told Retail Brew via email.
Simon G. shoppers can also head over to any of the brand’s “regional trunk shows” in the US which will “allow consumers to experience the full collection during an event setting complete with food and entertainment creating a full experience,” Brinkman said.
But getting back to promotions and discounts, that seems to be an essential strategy not just for high-end brands, but also more accessible ones like Saks Off 5th, the luxury discount retailer.
Although the department store’s consumers are accustomed to discount designer clothing and accessories, it said that value has never been a bigger focus for the company.
“Customers are shopping earlier each year, which allows them to spread out their budget and gives them more time to get the best deals. And, similar to last year, we knew coming into the season that this year’s holiday environment would be highly promotional,” Mara Sirhal, chief merchant and brand officer at Saks Off 5th, previously told Retail Brew. “Historically, our designer flash sales, which offer brand favorites such as Stuart Weitzman, Versace, Brunello Cucinelli, and more, have taken place around Cyber Week. This year, we extended our designer flash sales and will offer them throughout the season in response to customers’ desire for deals.”
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We already know some luxury brands are feeling the pinch of inflation, but for the accessible brands, it depends.
“We have found a sector of consumers who are not affected at all and continue to make larger purchases,” Brinkman said. “We have also located a small sector who are more cautious about their purchases. The more cautious consumer continues to purchase fine jewelry, but has shifted to a lab center stone or a lower price point to offset the cost.”
Similarly, Saks Off 5th has always relied on discounts as its value proposition, but things are relatively easier for the brand as it continues to deliver just that throughout the holiday season. “We are capitalizing on our unique position in the growing luxury off-price sector by leaning into data, analytics, and personalization and leveraging our opportunistic operating model, which allows us to be agile and pivot based on changing consumer preferences,” Sirhal explained.
The next chapter: Moving beyond the holidays, brands whether accessible or luxury, have to remember that consumers are more cautious about spending than ever and are therefore seeking value.
So while discounts and promotions are helpful, it’ll be important for retailers to stay on shoppers’ minds and not compromise on quality despite rising costs. The folks at Falconeri seem acutely aware of this as the brand has opened two new stores in Manhattan alongside its existing flagship store in Soho.
“Awareness is our main goal,” Modesti said, adding that the brand intends to slowly expand into other states as well in the next few years. “We are well known by brand fans as a primarily cashmere sweater brand, but our core focus is ready-to-wear made with natural fibers. Our customers can wear Falconeri head to toe. We aim for our customers to keep Falconeri top of mind throughout other seasons besides winter with our other collection offerings throughout the year.”