Sellers in the fashion industry, including those who specialize in stilettos, lipstick, and clothing, are bracing themselves for a difficult holiday season. The ongoing supply chain issues have led to inventory shortages and increased costs, posing challenges for retailers. In response, these retailers are coming up with innovative marketing strategies to entice customers to visit their stores and boost holiday sales.
Well-known brands like Etsy, Ralph Lauren, and Tanger Factory Outlets are ramping up their marketing efforts in order to attract customers who are eager to return to in-person shopping after last year’s Covid-related lockdowns. Unfortunately, the surge in shipping costs and labor expenses means that consumers can expect to encounter limited inventories and higher prices for products like lipstick, stilettos, and clothing.
Tanger Factory Outlets, for example, has decided to launch early marketing campaigns and host Christmas tree lighting events in collaboration with local businesses to draw people to their shopping centers. The company is also using on-site marketing tactics, such as digital directories, retailer partnerships, and back-lit signboards, to create a compelling shopping experience.
On the other hand, Etsy is taking a different approach by releasing gift guides and organizing localized online events specifically for holiday shoppers. Joshua Silverman, the CEO of Etsy, revealed that the company plans to target new buyers in the fourth quarter through television and digital video ads, as well as coupons.
However, due to supply chain delays, some retailers have had to scale back on their holiday marketing initiatives and tighten their inventories. E.L.F. Beauty, for instance, made the decision to prioritize its core assortment over holiday programming due to container imbalances in the industry. Similarly, Ralph Lauren expects high demand for outerwear, especially quilted jackets, this holiday season and is accordingly increasing its marketing efforts.
On the other hand, retailers like Estee Lauder and Steve Madden are taking a proactive approach by stocking shelves with early holiday merchandise, including popular fragrances and party-ready shoes. Tracey Thomas Travis, CFO of Estee Lauder, confirmed that the company is well-prepared for the holiday season thanks to early manufacturing and gift set orders.
As inventories become increasingly tight, shoppers may encounter fewer discounts on shoes and clothing. Edward Rosenfeld, CEO of Steve Madden, mentioned that the brand will be offering fewer promotions compared to pre-pandemic levels during the holiday season.
Meanwhile, Capri Holdings, the parent company of Michael Kors, plans to increase the prices of its bags. Despite acknowledging that they may not have the desired inventory levels for the holiday season, CEO John Idol expressed confidence in their ability to meet the demand.
British clothing retailer Next Plc has raised concerns about stock availability due to challenges in its international supply chain exacerbated by labor shortages in the UK’s transport and warehouse networks.
As the holiday season approaches, retailers in the fashion industry are faced with the dual challenges of limited inventory and rising costs. They are relying on strategic marketing campaigns and careful inventory management to attract customers and meet the surge in demand during this crucial time of year.
Useful links:
1. NRF Forecasts Holiday Sales Growth
2. Holiday Spending Trends
