, 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

Swarovski menguasai TikTok untuk perluas skala luxury di kalangan Gen Z

Produsen Kristal asal Austria ini bekerja sama dengan influencer untuk menjangkau pasar Singapura.

Dear Me Beauty berencana membuka flagship store

Store ini dapat menjadi fondasi bagi pertumbuhan pasar yang lebih luas.

Kawan Lama Indonesia mengaburkan batas antara belanja online dan offline

Pengunjung  platform e-commerce grup, Ruparupa.

Mal-mal di Filipina menarik pengunjung dengan pengalaman liburan yang lengkap

Pengunjung diperkirakan akan datang setelah jam kantor hingga larut malam.

Urban Revivo membuka cabang terbesar di Bangkok

Peritel fast fashion asal Cina ini membuka toko seluas 3.

Samsonite memanfaatkan data untuk tingkatkan penjualan

Produsen koper asal AS ini meningkatkan saluran daring untuk mendorong pendapatan di Asia Tenggara.

Belanja hyper-personalisasi jadi tren utama di Asia Tenggara

Data dan analitik memungkinkan brand mengoptimalkan pengalaman shopper baik secara daring maupun di toko fisik.

SSI Group meningkatkan investasi dalam ritel terpadu

Perusahaan yang menaungi brand-brand seperti Hermes dan Cartier ini sedang menyempurnakan omnichannelnya.

Peritel Asia-Pasifik manfaatkan subscriber untuk dorong pertumbuhan

Subscription menjadi sumber pendapatan yang stabil selama masa penurunan ekonomi.