5 prominent international brands that never go on sale or offer deep discounts
New Delhi: Sales and discounting are effective marketing strategies that brands use to pique consumer interest in the brand, liquidate old or slow-moving stock and get more consumers onto their database or loyalty programmes. A festive or occasion-centric sale is an attempt to get a larger share of the consumer’s wallet and retain share of the consumer’s basket. Despite the benefits sales and heavy discounting offer, some brands simply do not take the sales/discounting route. Here are five international brands mentioned that don’t ever go on sale. They’re listed here in descending order of their market value.
- Apple Inc.
Tech giant Apple Inc. is known for its premium products and its exclusive user interface. Today, Apple is the world’s most valued company by market capitalization (cap). It is the first company in the world to hit a $1 trillion, $2 trillion and $3 trillion market cap. It also tops the list of brands that do not go on extensive occasion-centred sales.
According to experts, the prime reason that Apple doesn’t ever go on sale is that it doesn’t need volume sales. The other reason is that Apple Inc. wants to retain its premium positioning.
Apple is confident that people are prepared to dig deep to get their hands on an Apple product. The iPhone maker’s CEO said on the recent earnings call that he believes people are willing to pay more for iPhones because they have become “so integral into people’s lives.” He, therefore, believes that people are willing to stretch their budgets to get the “best” they can afford.
That said, Apple does provide an opportunity for its existing customers to upgrade their devices by offering substantial exchange value for their old Apple devices. In recent years, the company has started offering platform-based discounts on models it wants to phase out. Furthermore, it does offer special prices to students wishing to buy the company’s devices.
- Louis Vuitton (LV)
French luxury brand Louis Vuitton Malletier (popularly referred to as Louis Vuitton or LV) was founded in 1854. Initially, the company used to sell premium trunks to store valuable items but as its market reputation grew, it started introducing more items like wallets and purses- circa the 1950s. The company introduced its first clothing collection in 1997 and since then they went on to become the second highest valued apparel brand and the highest valued luxury brand in the world valued at $23.4 billion in the year 2022.
Louis Vuitton is known for not conducting sales as it introduces limited items in the market. Any surplus stock is disposed of. This strategy might not appear promising but it helped Louis Vuitton products earn the status of being collectables. Some even buy them to sell them off in the second hand market at a premium. Pierre-Yves Roussel, CEO of the LVMH Fashion Group once said in an interview that they have to come up with exceptional products that make their customers say, “Wow, this is new, it’s interesting, it’s beautiful. I really want it”.
- Tiffany & Co.
Founded in 1837 by jeweller Charles Lewis Tiffany, Tiffany & Co. became famous in the early 20th century under the artistic direction of his son Louis Comfort Tiffany. The US-based jewellery brand is valued at $16.04 billion in 2023. It is one of the top 10 brands in the field of jewellery all over the world. Alexandre Arnault executive vice president of Tiffany said in a media interview, “Tiffany is a brand that can be present everywhere” expressing his thoughts on the expansion of the company.
What’s interesting is that the brand has never gone on sale in its 186 years of existence as it believes that the value of its product is related to its brand value rather than the actual market value. The quality of its products is also considered one of the best. The brand has huge margins, which provides it scope to get the finest, best quality raw material justifying its price.
- Cartier International SNC
Founded by Louis-François Cartier in Paris in 1847, the company remained under family control until 1964. The company is headquartered in Paris and is a wholly-owned subsidiary of the Swiss Richemont Group. Cartier is valued at $12.4 billion as of 2022. As it is a premium brand it also never goes on sale. However, you can still expect to get discounted cartier products on the second-hand market. Cyrille Vigneron, CEO, Cartier once said, “It’s more like art when you do something, not for a specific customer base, but just because you express what you want”.
- Canada Goose Holdings Inc.
Toronto-based Canada Goose is known for its winter clothing. It is one of the most valued winter wear brands in the world. Valued at almost $2 billion, the brand doesn’t go on sale as it focuses on a single season’s clothing because of which there is usually no surplus stock left to sell at a discount. Whatever is left is restocked to be sold next season. “We’ve become known for never going on sale,” said CEO Dani Reiss in a media interview. “It’s not a strict policy,” he insisted, “we’ve just never needed to do it.”