Different fashion companies compete in different segments.
High End Mid market Mass market
One of the things that determine the segment is the price point.
One company may have different brands and therefore multiple segments and hence different price points.
Below are the 5 price point segments within three market levels.
HIGH END MARKET
- extremely expensive, very few people can afford, used for special events, cut to fit an individual’s specific measurements, in many cases the pieces are one-of-a-kind, max craftsmanship, pieces of art that the company uses to sell the dream
- READY TO WEAR (pret-a-porter)
- expensive, wider occasion of use, designer can still express their creativity without too much concern to cost, invented by Italian companies
- more affordable, targeting younger audience, wider volumes produced
- balances right level of creativity with price (right market mix), suitable for daily use, invented by U.S. department stores
- MASS MARKET (moderate, budget, etc.)
- lowest price and efficiency (different price ranges), different occasion use