1OCTOBER26,2016DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&TECHNOLOGYDEBORAHWEINSWIG@FUNG1937.COMUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.InWomenswear,PriceResistanceIsIncreasing1)FungGlobalRetail&TechnologyandFirstInsightconductedananalysisthatfoundthereisapersistentandsignificantgapbetweentheplannedmanufacturers’suggestedretailprices(MSRPs)ofwomenswearproductstestedbyFirstInsightandthepricesconsumersarewillingtopayforthem.Onaverage,acrossallwomenswearcategoriestestedbetweenJanuary2013andJune2016,consumerswerewillingtopayonly76%offullprice.Consumersnotseeingthevalueatfullpriceisakeydriverofthemarkdownchallengethathasbeenplaguingretailersandbrands.2)OverthethreeandahalfyearsendedJune2016,testedMSRPsofwomen’stopsandbottomsfellby14%and13%,respectively.Thepricesthatconsumerswerewillingtopayinthesecorewomen’scategoriesalsodeclinedovertheperiod,toonly74%–79%ofplannedMSRPs.3)Duetothegrowthofathleisurewearandthecasualizationofwomenswear,consumersareshowinglesspriceresistanceinsomesubcategories.Forexample,consumerswerewillingtopay82%ofplannedMSRPsforknitbottomstestedbyFirstInsight,eventhoughplannedMSRPsincreasedsignificantlyovertheperiod.4)Footwearconsumershavebeenincreasinglyunwillingtopaythehigherpricessetbyretailersandbrands.AsofJune2016,consumerswerewillingtopayonly74%ofretailers’askingpricesforfootwear.5)Weexpecttoseecontinuedcategorygrowthinathleisureandfootwear,andanoverallemphasisonincorporatingperformancetechnologiesintoworkwearandstreetwear.2OCTOBER26,2016DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&TECHNOLOGYDEBORAHWEINSWIG@FUNG1937.COMUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.FungGlobalRetail&TechnologyandFirstInsightpartneredtoanalyzeadatasetfromtestsperformedonwomen’sapparelandaccessoriesproducts.FirstInsightperformedtheconsumertestsbetweenJanuary2013andJune2016in11countries:theUS,France,Italy,Germany,GreatBritain,Spain,Poland,Mexico...
