Brand leaders warn discounting is 'a hard drug to come off'

· Beauty & Fashion · United States

Brand leaders say frequent heavy discounting is "a hard drug to come off," but that retraining customers to pay full price is essential, Glossy reports. Discounts are a welcome fixture of the fourth quarter for shoppers but a mixed bag for brands: repeated deep cuts, combined with competition from major retailers and marketplaces such as Amazon that can afford steep markdowns, leave brands that want to sell at full price facing an uphill battle. The report gives no specific discount rates or sales figures. The immediate effect is continued pressure on margin and brand equity as companies head into the holiday quarter, with the industry debating how to step back from promotional dependence without losing volume.

Why it matters：Promotional dependence erodes margins and brand value across fashion and beauty, and how brands unwind it will shape holiday pricing strategies industry-wide.

Key points

  • Brand leaders describe frequent deep discounting as "a hard drug to come off."
  • Amazon and large retailers can afford markdowns that smaller brands cannot match.
  • Retraining shoppers to buy at full price is described as essential.

Sources (original reporting)

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