Department stores and retail chains alike rely on big data to better understand consumer-buying behavior and move more merchandise. But when those retailers discount particular items too early—or introduce them for less than the agreed-upon price—it can create problems for brands, especially in the luxury market.
“On the one hand, luxury brands want to retain their prestige and don’t want people to see their products discounted before the time is right. It sends the wrong message. But more substantially, when retailers discount early or underprice products, brands see a decrease in sales at their own stores and in their channel.”
Read more at Sourcing Journal.