In the race to win over cost-conscious consumers and drive top line growth, many apparel brands defaulted to deep discounting. But as price wars escalate and profit margins shrink, a growing number of companies are waking up to a hard truth: competing on price alone is not only unsustainable – it’s destructive.  It’s a point driven home recently as a growing number of international power brands can’t seem to grow sales or consistently earn a profit.

The industry has gotten to a point where running a business at a loss over a prolonged period of time has become part of the ‘new normal’.   In reality, it’s a dangerous ‘house of cards’ situation that threatens not only the brand itself, but its entire global supply chain.

One of the most high profile cases has been Nike.  Once the untouchable activewear market leader, Nike fell into a downward spiral that saw sales plunge as consumers abandoned the brand.