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How Off-Price Fashion Is Transforming The Fashion Industry

25 May 2022

Off-price fashion is fueling the future of fashion. In fact, in 2020, it grew faster than the market as a whole. Off-price fashion provides unprecedented opportunities for brands (McKinsey). Improving their image by tackling their waste problem and stopping unsold items from ending up in landfills, as well as enabling them to tap into new markets and access previously missed revenue opportunities. As brands begin to recognise the off-price sector as both an important revenue source and a way to improve brand equity, they realise that they need to provide a quality customer experience to match.

The off-price fashion industry consists of two distinct channels—offline and online. The offline off-price fashion industry is all about providing a shopping experience, although it wasn’t always this way. When offline off-price fashion first entered the market, brands were worried about it undercutting the full-price market; therefore, the offline experience began as large outlets placed outside the urban centres. However, as brands begin to recognise the importance of off-price shopping, it has evolved into a luxury experience – with most luxury brands embracing it to scale and increase profitability.  In some cases, brands have been able to use off-price channels for customer acquisition. As the off-price fashion gives the customer an introduction to the brand, it can transition them into purchasing full-price goods.

As a result, the online off-price industry has also begun to boom, increasing the supply and demand of the market as a whole. In 2020, it accounted for approximately 40 per cent of the off-price segment, and it is expected to grow about 13 per cent per year from 2021 to 2025 (McKinsey). The online market gives customers the chance to track down desirable brands at discounted products – with their next bargain only a click away.

As the off-price market is expected to grow five times faster than the fashion market as a whole between 2025 and 2030, it has created a sense of urgency for brands to develop a solid strategy that allows them to tap into and capture value from this segment (McKinsey).  

However, as retaining brand equity is vital, there are three key factors for brands to consider when choosing to enter the off-price segment.


Protect your brand across all channels
To ensure that the off-price and full-price aspects of the business can operate harmoniously, you need to create unique shopping experiences for each while avoiding giving customers too much price and volume transparency. Along with a physical separation of the stores, it’s important to avoid giving customers the impression that they can access markdowns a week later. One key way that Take Off seeks to protect brand equity across all channels is we choose to only sell in the countries where the brand is not selling regular collections.

Choose the right B2B distributor
The aim of off-price is to extend a brand’s reach, accessing new customers and markets without compromising the brand’s equity. For this reason, you want to choose a B2B distributor who has knowledge and understanding of how to access these new markets without hurting the brand. The two key features to look for in a partner are the quality of their customer experience and the current brand selection matches your brand’s. For example, you don’t want your products placed next to those that are cheaper or of poorer quality.  Take Off is currently undertaking a study that analyses products and places strategically in physical and online stores to ensure they get their equity protected.

Optimise the channel mix
As both the offline and online off-price sectors can provide value to a brand, it is important to create a strategy in which they support each other. As they target different aspects of the market, they provide a great opportunity to give quality brand experiences and raise brand awareness. Due to our expertise in both online and offline channels, Take Off can recommend brands about which is the best mix to sell their off-price fashion goods.


At Take Off, we pride ourselves on being an expert B2B wholesale distributor that gives brands the opportunity to access new markets with minimal risk and maximum reward. Our expert knowledge of the European and Eastern European markets provides brands with a sustainable solution to extract value from their unsold stock while protecting brand identity, equity and reputation. 

Our extensive list of clients, from outlets in remote zones and outskirts of the city to off-price store chains, means that Take Off is able to help brands access new markets and revenue channels while ensuring that the brand is protected across all channels. Through channel mix optimisation, Take Off allows brands to sell everything, including returns, samples, and faulty items, tapping into previously missed revenue opportunities while also ensuring that they can operate more ethically by ensuring that no item goes to landfill. 


Work Cited

“McKinsey.” Mastering off-price fashion in an omnichannel world, 2022, https://www.mckinsey.com/industries/retail/our-insights/mastering-off-price-fashion-in-an-omnichannel-world. Accessed 22 May 2022.