Hi everyone, this is Zsuzsa Kecsmar,
CMO and Co-founder of Antavo And I’m Rohini Contractor,
I’m head of the UK office at Antavo Today I wanted to talk about
how companies can fight the discount culture, because there is this trend in fashion
that in multiple times a year, in those multiple seasons that we have
these days in fashion, there is a period of discounting, when customers can buy things for cheaper. And actually, Rohini you’ve sent over to me some great information from James Eden, who is the owner of Private White,
which is a British outerwear brand, and he is putting it this way on LinkedIn: “No, it’s not a typo. There will be 0% off everything in our collection on Black Friday Surprised? Here’s why – it’s because
we believe that discount culture is conditioning consumers by forcing them
to doubt the intrinsic value of a product.” What do you think of it? Well, I gotta tell you, James Eden
over at Private White, what can I say,
it’s one of my favorite brands. If you go on to their website,
you’ll totally understand what they stand for. And this is about – to quote Deloitte
“finding the values in your values” and actually sharing them back with your customer. And one of the great ways we do this at Antavo
is through a loyalty program itself. Being able to actually show what you support and then overlap that with what your customer support too. Yes. For example, what one of our athleisure
companies support is active lifestyle, so they are engaging customers in their active lifestyle. They are organising these meetups, they organise
that the like-minded people can meet up. It’s a great opportunity to create a community,
to create a brand around the brand, which is aligned with your values. And this is something which can be much more
effective to drive sales than discounts. That’s right. We also drive the circular economy
by using the reward program to reward customers who bring back old clothing, for example. It’s really a beautiful seamless program, actually. I encourage you as brands and retailers out there
to really find the value in your values. Okay, so what other ways we can imagine that help
fashion brands and retailers to fight the discount culture and connect with branding, apart from the example
that we just said around this sport brand? Well, what we found is that as with traditional email,
you can always find niche groups and niche segments. What we do at Antavo is we set up specific groups, – like for example Sneaker groups – or particular sales groups. And what we enable retailers to do is that
those who are selling their stock off at 50% off or even below, we’ve enabled
them to actually raise the floor. And that’s because what we’re trading on
now is exclusivity and scarcity. That means we are able to invite customers to a particular group they are part of,
and offer them discounts at the height of the discount cycle. And more often than not, because
we’re getting the segmentation right, because we are getting the targeting right, what we are seeing is that retailers just don’t have to
go as far as lowering their floor to around 50%. Because customers are identified as discount customers, but they are offered the stock at a discount rate
– essentially a 30% off, instead a 50% off – earlier in the sales cycle. And even if there is no discount at all,
this particular example, I love this so much, not only because it’s from
one of our most successful customers, LuisaViaRoma, but it also works, and customers love it. These new shoes hit the floor of the closed club,
which is exclusive, it’s very private, you need to have a certain level of brand
engagement in order to get there. And they are sold before they would
make it to the regular shop floor. It’s amazing! We’ve seen some great stuff. In this particular example, we’ve had
like customers, consumers out there actually using their reward points on a particular
loyalty program to get into the club. And it’s been super effective! And you can see how that could
actually extend to even a sale periods: having customers actually
use their rewards as a currency to get access to a little bit of
better pricing, or maybe a bundle. But the whole point is that the program
we run enables you to raise the floor and essentially, ultimately,
look towards eliminating discounts altogether. Because you are constantly communicating
the value your brand stands for with the customer, and making an
emotional connection through engagement points. As Zsuzsi always says: we look at
engaging the customer outside of the buying cycle. I really like that James Eden and
Private White just puts it out there, and it’s part of their branding
that they refuse to discount. This is basically their manifesto,
their pricing manifesto, as they put it. They are very open about all their production, and they very conscious about
how they created their prices. And I think it’s a wonderful
branding element that they use. It’s right on trend. Many consumers now really want to
understand that the brand represents them, they are concerned about sustainability, they are concerned
about where that piece of clothing comes from. In a global world, where you can get
a pair of trousers for around £5, it’s really important for us to understand who’s
making those clothes, where they come from. And I think, again, James Eden does this really well. And it opens an entirely new topic of sustainability. But anyway, I think this is about discount culture,
and we have some more information around this topic on the blog, so head over there if you want to learn more.
And thank you so much for watching today.