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How fashion brands set retail prices

Retail-fashion is one of the most challenging, engaging industries that I have ever worked in. It is an insane environment surrounding the complex brand development process. In order to serve the marketplace, the retail-fashion industry is split into brands, and retailers. Brands design, produce and deliver the products whereas the retail market focus on optimising assortment, inventory and sales.

HOW IS THE RETAIL PRICE DETERMINED

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Keystone Markup is the pricing mechanism most commercial brands use.

  1. Multiply cost x2-x5 to dictate the price for the next rung in the value chain. (Keystone markup arose as the simplest way to universally markup goods across the retailer to a profitable level). GVS TIP – this is why some retailers and luxury brands make up to 400% profit even whilst having sales.
  2. Brand to retailer – this is when the brand sells to the retailer at a wholesale price, and the B2R markup is added again of x2-x5
  3. Retailer to consumer – the B2C transaction is when the retailer sells to the consumer at the RRP (recommended retail price) this is another added markup of x2-x5 more. The price by the time it ends up with the consumer on the retail floor is extortionate. At GVS we remove all these excess prices!

WHY IS GVS SO CHEAP?

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Gvs is using the strategy that cuts out all the “middle men” this is what is known as a direct brand to market which is why instead of pricing items up and using the money on marketing and advertising, we put this investment into bloggers and cheaper items for our consumers.At GVS we value our consumer loyalty.




If the sales are low this means retail increases so the best way to help us help you is to support the brand.

Shop GVS here.