Designer brands to be hit by discounting

Introduction

Designer brands that have been around for decades have been hit by the trend of discounting, with brands like Louis Vuitton, Zara, Gucci and Calvin Klein all facing a major slowdown in sales.

The trend, known as discounting for short, is a big challenge for brands that need to appeal to younger consumers and young families.

The rise of online shopping has made it easier for shoppers to take advantage of the latest products and brands that are often on sale online.

The UK is one of the first places where discounting is taking place and many fashion brands are struggling to stay relevant in the fast-changing market. 

“It’s really challenging to stay on top of trends in terms of brand and pricing, and that’s not necessarily good news for us,” said Michael Haggerty, chief executive of British fashion house Calvin Klein.

“The new trend has affected some of the iconic brands like Gucci, but there’s no question that it has affected a lot of the smaller brands that we all rely on.

It has impacted our overall brand as well.”

The fashion world is now facing an economic crisis.

The UK economy has shrunk by a fifth in the past year and is expected to contract by another third by 2019. 

The trend of lower sales and higher prices has hit brands like the likes of Louis Vuitchas, Calvin Klein, Zarin and Ralph Lauren.

The US retail industry has also seen a sharp decline in sales as consumers have opted for cheaper products.

According to a report from market research firm Strategy Analytics, retailers lost $4.4bn in the third quarter, the worst period in more than two decades.

A big part of the problem is a slump in the popularity of niche brands.

Many retailers have stopped stocking products that are popular among shoppers who want something different, and are finding it hard to compete against online brands, particularly with brands such as Gucci.

Some brands are being forced to cut back on the quality of their products.

Gucci cut back by half on the number of coats, but they still sell out fast. 

A big question mark remains over the future of some of Louis L’Oreal’s signature fragrances. 

Louis Vuitton has also struggled to find a replacement for its iconic La Belle Époque collection, which was introduced in the early 1990s.

It is now known as the ‘La Belle Éque’ fragrance, and it is currently being discontinued. 

L’Oréal’s brand was also hit by a slump as the brand lost a quarter of its value. 

Despite the slowdown, many of the brands that were affected by discount cuts will still be selling a lot, and they may still be able to keep selling some of their best-selling products. 

Gucci has lost up to 50% of its sales, Zola lost up $300m, and Calvin was hit by $800m in cuts. 

It is a sad day for brands like Calvin Klein that have struggled to keep up with the changing trends in the fashion world. 

 Follow @BBCNewsbeat on Twitter

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