, APAC
Shutterstock photo

How can brands maintain profitability in perma-discount era?

Value-centric strategies can boost customer satisfaction without constant markdowns.

Brands must maintain profitability and brand image whilst meeting consumer expectations in today's retail landscape filled with promotions and sales, as per WGSN’s Retail Forecast 2025.

According to the report, leading with value-centric initiatives allows brands to enhance customer satisfaction without resorting to constant markdowns.

Introducing perks such as free expedited shipping, bundled deals, referral discounts, and post-purchase rewards will enhance customer satisfaction and loyalty.

"Optimise the shopper journey and provide excellent service to increase sales in a way that's less reliant on discounting," the report noted.

Implementing loyalty programs that consistently deliver rewards can also help break the cycle of waiting for sales periods.

Take, for example, Best Buy's price-matching policy reassures customers of getting the best deal, even after purchase. Retailers like Freitag and IKEA also experiment with non-discount strategies during traditionally heavy discount periods, fostering customer engagement without relying solely on price cuts. 

The report noted that constant discounting not only sets consumer expectations but also erodes brand equity and profitability. 

It said brands must be deliberate in their approach to sales, avoiding over-reliance on markdowns and instead focusing on occasional, impactful promotions. 

Additionally, infrequent release of coupons and discount codes prevents customers from becoming desensitised to discounts. Holding once-yearly, direct-to-consumer sales and integrating personalised promotions into marketing strategies maintains brand integrity. 

Moreover, flash sales create urgency and exclusivity, sparingly used to prevent sales fatigue.

For instance, MatchesFashion's year-round outlet feature preserves brand reputation whilst also offloading inventory. Grey Bandit adjusts retail prices to accommodate future discounts, safeguarding margins. Maison Miru focuses on seasonless offerings and full-price core bestsellers, minimising the need for discounting. 

Follow the link for more news on

Join Retail Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Hydration products gain traction in APAC
It was driven by increased awareness of health concerns like global warming and modern lifestyles.
Suntory Holdings launches low carbon sugarcane farming project in Thailand
This supports the company’s goal to reduce greenhouse gas emissions by 30% across its value chain by 2030.
Suppliers
Ingka Group unveils strengthened climate targets
It focuses on reducing GHG emissions, carbon removal and storage, and contributions beyond the value chain.
Stores
How can retailers improve customer value and operations
Businesses must adopt a unified commerce strategy to meet consumer demand for seamless transactions driven by technology.
E-commerce

Exclusives

AI prompts fearless dive into corporate reinvention
Siam Piwat Group’s digital chief touts AI’s transformative power in boosting customer value, personalisation, and brand trust.
Technology
Indonesia’s future of retail lies in a blended approach
Industry leaders discuss the innovative strategies to meet evolving consumer needs at Retail Asia Forum 2024
GenAI’s impact on retail unfolding faster than expected
Retailers now leverage GenAI for a competitive edge in communications, marketing, and operations.
Technology