I agree completely with this.
I wore certain branded trainers in the early 2000s. I managed to get a pair for £30 on sale (I made a point of never spending more than £30 on trainers). I think they were probably originally about £65. It was a good discount back then.
I bought another pair last month. I paid £30 for them. The original price was £90. Obviously this discount looks even better. NOT online.
I was slightly stunned by this and it has really made me think about clothes and how far you can make your money go, if you are careful. You can buy a lot more of comparable products if you understand how they sell has changed.
My example highlights a lot of what has happened in the intervening years - customers are looking for the 'good deal' more. So the % discount matters in terms of that idea. So they price high initially with this in mind. If they can shift units at that price, great. But actually the price they are actually calculating their margins on, is the discount price which they already have worked out in their sales calculations. Working out unit price and the number they expect to sell at each price point has become much more sophisticated and detailed as they have much more data to work this out from and do go to these lengths which was not the case in the 00s.
You also need to think about how the production lines have improved in efficiency and reduced wastage over that time too (more sophisticated programming available). Its not all about the cost of labour in various countries being depressed. Its also the whole process of computerising manufacturing, buying and distribution thats changed.
Whilst the headline price has increased as you would expect with inflation, the price they actually will sell most units at is probably actually lower now than it was 20 years ago. As I say its all about that discount being a massive selling point to customers and being able to increase the percentage of units sold. Plus being able to accurately work out that you need to send 30 pairs to shops in the NE and not 40 means you streamline and target your sales better.
The 00s really saw the start of the outlet store as a concept - this has only increased and this has been boosted by online selling. This is what we expect as a model now.
Shops like Monsoon were not pitched the middle class for daily wear - they have always been the top end of the market and the mass middle class went there for something special. They were also the wedding dress (bride and guests) and bridesmaid shop. The key marker of this is you couldn't really buy something for the office there.
I’ve just come back from a week in France. One thing that really struck me was the cars I saw. Mostly older smaller cars. Hardly any Korean branded cars, a very few German cars and some Minis around. But I didn’t see lots of brand new “flashy” cars. It was really noticeable. I think in the UK we prioritise our spending in strange ways.
God this 100 times. So many Dacias and 'boring' cars everywhere.
The UK is, and always has been, particularly brand obsessed in a way that our neighbours just aren't. This has got worse with cars, especially as the cost of cars has increased. This matters in terms of how much disposable income you might have.
Where I think costs have gone up most, in recent years is without a doubt in hospitality. But thats where minimum wage increase, taxation increases, energy increases and brexit have hit hardest. Plus many businesses took out loans for covid which they had to pay off by jacking up prices.
But clothes. No I don't think they have really increased like for like much at all.
One company I would pick out is I have to say in M&S stand out to me recently in terms of quality and how prices have stayed particularly reasonable considering and if anything are cheaper comparatively. This has surprised me.