An article on Glossy really struck me last week. They heralded Gucci as the star of the luxury industry (already a well-known fact) but gave this reason for their current status "the brand hasn’t had to mark down a single item so far this year".
It seems so simple and yet it's something many brands have forgotten about through years of fluctuations in consumer behavior, shopping platforms and technology. Brands should strive to avoid markdowns. Those who haven't reached the magic of Alessandro Michele's Gucci image overhaul, other methods should be taken to avoid putting items on sale.
It's a fine line to balance because investments in stock must be recovered (and profits made), however, putting items on sale also creates the short and long-term side effect of diluting the exclusivity and sophistication of a brand.
The truth is, if you love a product, you'll be more than willing to pay full price. If luxury houses focus on making us more delighted with their images and offerings and work on cultivating "cult status" devotion, it can only be a winning situation for us all.