Well-understanding absorption of further increasing costs is not an option in particular at the end of the retail chain. Nevertheless, we have our doubts that passing on additional costs to the end consumer with price increases of 10 or even 15 percent for private labels will work, as the first clothing chains (at least in the EU countries and the UK for example) are planning. As a silver bullet, this strategy (if it is one at all) is certainly not good enough, especially in times when consumers are cutting back significantly on non-essential spending. As – guess what – the inflationary cost trend has long since hit, not only households in precarious circumstances but increasingly the middle classes in most economies.
The reorientation of more consumers towards discounted goods, re-sold clothing, and purely demand-oriented apparel purchases is the even lesser risk here. Waiting for the reliable red pencil actions at the end of the season, when the pressure on stocks grows - smart shoppers are already practicing this trained strategy to excess. Without a doubt, it's important to avoid cutting back on consumption and falling back to even lower ranks of desirability in the face of overfull closets and stiff competition with other consumer goods (home/furnishings, consumer electronics, travel/holidays, etc.) should be avoided without question, shouldn’t it?