Fashion Industry Price Points 101 and why you need to know them

In today's evolving fashion industry, the traditional hierarchy of price points has become less relevant namely due to the rise of e-commerce and direct-to-consumer (DTC) brands making their own rules.

However, if your distribution strategy includes B2B, it is still crucial to have a clear understanding of the common price point categories of the fashion industry - especially when approaching wholesale accounts or even pitching investors.

Knowing where you fall in not only keeps you aligned with your market:product fit model, it also helps to target potential partners far more strategically.

Here are those Price Point Categories listed in order from High to Low:

Haute Couture

Made-to-meausre, one-offs, highest of the high, avant-garde, more exclusive than GKW.

Designer

Prestige and luxury markets. Players include Prada, Marc Jacobs, Oscar de la Renta.

Bridge

2nd tier of a designer line - for example Miu Miu is the Bridge line for Prada. Also includes those brands who align their premium offering below Designer prices but above Better price points.

Better

A step up from Contemporary with better trims and materials. Also includes “investment” wardrobe pieces.

Contemporary

Prime territory for fast fashion brands. Think trendy for aesthetic purposes and not quality purposes.

Moderate

Eh 🤷🏻‍♀️ also a fast fashion strong arm. Common mall brands come to mind. Nothing special here.

Off-Price

Ross, TJ Max, Factory Outlet Stores. MANY Bridge, Better, and Contemporary brands will either license their Brand IP to licensees or have a whole arm of their business dedicated design, development, and sourcing for Off-Price markets (commonly known as “Special Sales”).

Mass Market

Culprits include Walmart, Old Navy, and any business that will sell $2 Flip Flops. Additionally, the majority of unbranded soft good products you see on large marketplaces can be classified as Mass Market.

Again, while the lines in the traditional price point hierarchy continue to blur, understanding where your brand stands within it remains important for engaging with wholesale accounts and attracting investors. If you are a premium DTC Brand offering quality product, it’s more than likely you fall into the “Better” category ✌🏽