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Monday 3rd April 2023

Part 1 – A Whole New World; Mastering Off-Price Sales in an Omnichannel World

The diversity of off-price channels and the emergence of online players is a huge growth opportunity for fragrance manufacturers, but it requires brands to develop clear strategies that protect their brands while reaching new consumers. As a trusted strategic sales organisation in the fragrance and beauty market, Beautynet’s experience and knowledge can help your brand to maximise this sales channel. Here we’ll share some insights into the vastly untapped off-price channel.
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Why is off-price such a thriving opportunity?

 

Off-price has increasingly been a growth engine in industries such as fashion: it expanded faster than the overall industry before the pandemic, it experienced a less pronounced dip in the initial phases, and it is set to grow faster than the full-price segment from 2025 to 2030.*

Off-price lends itself better to online purchases relative to the overall market—so it has been well positioned to capture an increasing percentage of shoppers moving online.

Sustainability is an increasing area of focus for both consumers and brands. There will always be overstock, so brands need to monetise excess inventory in a sustainable way.

Capturing a greater share of the off-price market will require fragrance brands to develop comprehensive strategies that protect their overarching brand equity while catering to off-price customers. The segment consists of two distinct channels—offline and online—and each has different strengths, characteristics, and challenges, so brands will have to devise customized, complementary strategies.

Therefore, brands must engage a multipronged strategy to maximize revenues for both channels and to secure their brand equity—without cannibalizing full-price offerings. Brands that successfully navigate the off-price market will be able to ride its wave, while also strengthening their overall position with consumers.

Three priorities will be critical as brands look to activate the off-price segment. In the second part of our report, we examine the case for change, and explore these priorities in greater detail.

“Brands that successfully navigate the off-price market will be able to ride its wave while also strengthening their overall position with consumers.”

In the second part of our report, we discuss the three priorities that will be critical for brands wanting to successfully activate the off-price sector.

Useful Information

If you’d like to hear more about how Beautynet’s strategic sales programme can help you navigate this new world, contact us:

[email protected]
+44 (0)117 370 2470
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