Why did the Supreme sell out so cheaply?

In recent years , the phen omen on of street wear brand Supreme being sold out at une x pect ed ly low prices has been frequ ent . The background of this phen omen on is thought to be deep ly related to the management strategy and changes in the market environment of the parent company V F Corporation .

V F Corporation ' s poor performance and brand strategy

In fact , one of the reasons V F Corporation ' s performance has been sl ugg ish in recent years is due to its over - re liance on V ans ' stap le products . While Supreme ' s performance is on a down ward trend , V ans ' over wh el ming sales volume and network of st ores justi fy the V F Corporation ' s continued investment of significant resources in promotion .

Under these circumstances , Supreme could become a second ary position in the V F Corporation ' s portfolio . The company prior iti zes V ans ' ste ady revenue , and has only allo cated a limited marketing budget for Supreme .

Chang es in Supreme ' s pric ing strategy

Trad ition ally , Supreme has adopted a premium pric ing strategy that focus ed on selling " limited " and " lux ury . " However , in recent years , there have been more cases of some products being sold at surpr ising ly low prices . This can be att ribut ed to the following :

• The need for stock dispos al : to liquid ate the sur plus goods early
• Ac qu iring New Custom ers : Strateg ic P ric ing to Reach a W ider Seg ment
• Di ffer enti ating from compet it ors : Resp ond ing to price competition with other street wear brand s

Chang es in consumer purchas ing behavior

Since the coronavirus pand emic , consumer buying behavior has changed dram atic ally . Parti cular ly among young people , there is a growing trend to place more emph asis on practical values than brand loy alty . Even for premium brand s like Supreme , exces sive pric ing risks driving consumers away .

The sh rink ing resa le market may also have an impact on the market . Previous ly , there were many " res eller s " who purchas ed Supreme products for resa le purposes , but perhaps this movement is dec reas ing due to market satur ation and changes in demand .

Pros pe cts for the future

Although Supreme ' s brand value is still high , it needs to adapt to the changing market environment . As a V F Corporation , we will need a balan ced management strategy between Supreme and V ans . Spe cific ally , it is :

• Di versi fy the price range while mainta ining Supreme ' s core values
• Str eng th ening onWhatsapp sales chann els
• Es tab lish ing a sustainable production system
• Ex pansion into emer ging markets such as Asian markets

Is Supreme ' s " s elling cheap " phen omen on tempor ary or does it indicate a fundamental shift in brand strategy ? I can ' t take my eyes off future tr ends .