Why Luxury Brands Don't Discount · How Fashion Really Works

Why Luxury Brands Don't Discount

One of the consistent questions I'm asked on my Tiktok Live sessions is what makes a brand luxury. And whilst there is not an agreed definition, part of the operating system of a luxury brand relates to having discipline in all areas; distribution, design, product development, marketing and indeed even pricing.

Now, most brands might discount to sell more units. But true, bonafide, luxury players do the opposite.

You see, people think luxury is expensive because it costs more to make. That's genuinely not the case, I assure you. Luxury is expensive because demand is controlled. And a mechanism like discounting breaks that system.

When a brand decides to discount it tells the customer that this price was always negotiable. And once that happens, that's a watershed moment because customer behaviour changes. They will wait. Your full-price sales slow down. And over time, your brand's pricing power disappears. No longer just margin loss, that is true brand erosion.

So when I talk about discipline I want to reference the usual suspects like Hermès, Chanel, and Brunello Cucinelli. All three are undeniably minimal discounters. They maintain tight supply and controlled distribution.

It's important to remind yourself that scarcity does absolutely drive desire. And that desire protects price. And then, that disciplined approach to price builds the brand, for the long-term.

Discounting is a long-term strategic decision that can genuinely weaken everything you have built.

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