Category Expansion at the Perfect Price Point

Category Expansion at the Perfect Price Point

Category Expansion at the Perfect Price Point

Brand L is a household core fashion brand that is well-known for its high-quality jeans, which is selling at prices one notch higher than most fast fashion brands.

The Challenge: Right Pricing for a New Subcategory

Brand L wanted to make its brand accessible to the younger consumers and decided to add a new subcategory to its denim range: ripped jeans. However, this move would mean that it would go head-on in competition with fast fashion brands.

 

The Solution: Understanding the Best-selling Styles at Different Price Points

With Omnilytics, Brand L is able to identify the best-selling styles of ripped jeans at the price point that best meets market expectations. 

 

Pricing Analysis

The pricing architecture of the bestselling styles of ripped jeans

 

In just a few hours of navigating the Omnilytics dashboard, the brand gained an in-depth understanding of the jeans segment on key competitors’ best-selling styles with sell-out rates, along with pricing information. Within a week, Brand L developed an effective strategy to launch its first collection of ripped jeans.

While competitors launched their entry-level ripped jeans into the US market at US$39.90; Brand L launched a credible collection at US$49.90 with greater success. Despite a marginal 6% higher selling price than the overall market entry price, the household brand successfully retained its premium brand positioning while capturing a new group of younger consumers with trendy designs at an accessible price point.

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