Camera Showroom Milano takes a stand to regulate discounts
We’ve often discussed the issue of indiscriminate discounts, a practice that has spiralled out of control. What was once a strategic tool for end-of-season sales has become a year-round phenomenon, undermining both economic and environmental sustainability.
Sales, in their current form, are a short-sighted strategy that fuels compulsive consumer behaviour and perpetuates a toxic production cycle. The fashion industry is a significant contributor to the triple planetary crisis: climate change, biodiversity loss, and pollution. Addressing unsustainable consumption and production patterns is a key focus of the UN’s recent guidelines. Against this backdrop, the initiative by Camera Showroom Milano (CSM) is a welcome step forward.
Well, finally, we would say…
At first glance, year-round discounts might appear to benefit consumers. However, the reality is far more complex. Not only do they tarnish the image of Made in Italy, as CSM highlights, but they also harm end customers by devaluing products and fostering a culture of price-driven consumption over quality and craftsmanship.
Camera Showroom Milano: tackling indiscriminate discounts
In a recent press release, CSM highlighted how year-round discounts, now a common practice among retailers, are damaging the Made in Italy supply chain. Under current legislation, once retailers purchase goods, they are free to resell them at any price, including steep discounts, throughout the year.
This practice undermines the value of products and the creative effort behind them, while also destabilising the retail sector. It erodes trust between brands and consumers, as products are increasingly seen as disposable rather than desirable.
The issue is particularly acute for Made in Italy products distributed across the European market, where retailers often resell items without adhering to price regulations designed to protect brand integrity. As a result, the window for selling products at full price has shrunk to just two or three months, causing significant harm to individual retailers, the broader sector, and the entire supply chain.
CSM notes that the constant availability of discounts has transformed the purchase of fashion and Made in Italy products from a prestigious, intentional act into a race for the lowest price. This shift not only devalues the products but also undermines the industry’s long-term viability.
Proposed solutions: a call for collective action to end indiscriminate discounts
To address this issue, CSM is advocating for institutional support and the revival of specific agreements between manufacturers and retailers. These agreements would enforce brand-suggested retail prices until the official sales periods in July and January each year.
CSM emphasises the need for clear, shared rules to ensure discount policies align with market dynamics and respect the efforts of all stakeholders, from individual operators to the entire supply chain. Collective action, they argue, is essential to regulate the retail market effectively. This includes fostering collaboration between small and medium-sized manufacturers and sellers, with a focus on commercial loyalty. The goal is to maintain brand-recommended retail prices until the official sales periods begin, creating a fairer and more balanced market environment.
A deeper issue: the role of brands and showrooms
While CSM’s proposal is a step in the right direction, it raises a critical question: Are brands and showrooms prepared to stop demanding increasingly high budgets from retailers?
The current system operates in a vicious cycle (we explored the topic here). Brands set minimum budget requirements for retailers, which often increase season after season. To meet these demands, retailers purchase more than they can sell, leading to overstock. This overstock, in turn, drives up retail prices during the season to offset losses incurred during end-of-season sales.
To clear excess inventory, retailers resort to frequent promotions, markdowns, and discounts, further encouraging overconsumption. This cycle is self-perpetuating, linking production and consumption in a way that harms both the industry and the environment.
Among other things, a special mention should go to online retailers who disregard the rules and do as they please—Italians first and foremost.
Final thoughts on CSM and indiscriminate discounts
In conclusion, year-round sales and promotions are not just a symptom of a broken system; they are a driving force behind it. They encourage compulsive buying and sustain a production model that is both environmentally and economically unsustainable. To promote healthier consumption patterns, we must break this cycle.
While we applaud CSM’s efforts to curb indiscriminate discounts, real change will require a broader shift in the industry. Brands and showrooms must reconsider their demands on retailers, and all stakeholders must work together to create a system that values quality over quantity and sustainability over short-term gains.
Ultimately, the question remains: Is the fashion industry ready to take this bold step towards a more sustainable future?