The increased competition with low-cost providers and clients' stronger negotiation power are given as the most important reasons for this price pressure. As a result, it has become very difficult to improve profit margins.
Many well-known fashion companies such as the Dutch McGregor Group, the stock-listed fashion company Steilmann, the online outlet Dress-for-Less and the menswear specialist Pohland filed for insolvency this year, while other well-established companies such as Gerry Weber, Tom Tailor and Hugo Boss admitted they are struggling.
International management consultancy Simon-Kucher & Partners is now also represented in Hamburg and Stockholm
Simon-Kucher & Partners is a global consulting firm specializing in TopLine Power®, which encompasses strategy, marketing, pricing, and sales. Their clients are leading companies from a broad range of industries including fashion.
This year, to maintain profitability and a competitive positioning, many vendors will be forced to make extensive adjustments to their pricing and product range strategies. Numerous opinion leaders have already shared a similar view in various media.