Notes

Digital commerce engenders price wars

🌱 Revisited July 28, 2026 at 8:22 AM Created January 19, 2025 at 3:42 PM Marketing 1 min read

The problem with selling to the consumer on the Internet is that it favors price comparison and, as a result, discounting. The moment one brand starts offering a product for a slightly lower price than the competition, it triggers a discounting spiral that makes everyone worse off—it’s a vicious self-reinforcing feedback loop.

It’s very hard to escape this, which is why luxury brands have refrained from selling online for so long and control their distribution so tightly: they don’t want to start a discounting war that will end up diluting the brand in the eyes of the consumer.

Unfortunately, aggressive discounting is still the main strategy of most multi-brand retailers/fashion marketplaces.

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