The price-quality disconnect in fashion eroding consumers’ trust
As the fashion industry grapples with economic uncertainty and slowing growth, the concept of ‘value for money‘ has become more significant. For many consumers, a critical question looms: is what we’re buying truly worth the price?
Value for money: price, quality, perceived value
But what exactly does ‘value for money’ mean? Simply put, it measures whether the quality or benefit of a purchase justifies its cost. In essence, it’s about whether an item is truly worth the price. It’s a balance of quality and price over the sheer abundance of choice.
Fashion brands convey a message of identity and status. Prices play a pivotal role in this storytelling – brands set their price points, shaping how customers perceive their products. A price tag is more than a number; it communicates the brand’s qualities and positions it within the market spectrum: budget at the lower end, luxury at the top, and value somewhere in between.
Specifically, luxury brands captivate shoppers who prioritize quality and prestige over cost. However, their success isn’t solely tied to high prices. True luxury embodies unique characteristics: items handcrafted by skilled artisans, the use of uncommon or exceptional materials, often in limited production.
The shift in the fashion industry
Over time, pricing strategies in the fashion industry have reflected a fundamental shift in its structure. What began as family-run businesses rooted in creativity and savoir-faire has evolved into corporations focused on finance, growth, and profit. This transition transformed luxury fashion from a niche industry producing for the few into one catering to the masses.
When price betrays quality
But in recent years, prices have increased disproportionately, often without justification. As a result, customer trust has eroded, and many consumers are beginning to see through the facade. High-profile investigations into luxury brands like Armani and Dior have exposed common industry practices: exploitation, drastic reductions in quality, and inflated prices – all aimed at maximizing profits.
However, brands cannot simply lower their prices and flood the market with cheaper products, as Andrea Guerra, CEO of Prada Group, has pointed out. Indeed, he candidly admitted that “raising prices so much was a huge mistake.” As a solution, Guerra emphasizes the need for ‘better stories.’ But storytelling alone cannot restore trust if the core issue -disproportionate pricing – remains unaddressed. If even luxury clients no longer perceive luxury in what they purchase, it signals a total loss of credibility.
Value for money: keeping the promise
Better stories might sound appealing, but without substance, they amount to little more than marketing gloss. A compelling narrative won’t convince shoppers if brands continue selling polyester at the price of silk. The true brand value lies in delivering genuine quality, and right now, luxury brands are falling short.
Ultimately, the path to rebuilding consumers’ trust lies in keeping the promise. Consumers will fall in love with brands again when the price reflects quality, and when brands deliver the value they claim to represent.