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 customised, complementary strategies.
Therefore, brands must engage a multi-pronged strategy to maximise revenues for both channels and to secure their brand equity—without cannibalising 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.
