����AV

• Aritzia is considerably increasing its net revenue despite growing competition and global price inflation
• Premium positioning is becoming a prominent factor in brand strategies as market leader ZARA is aiming to shift its brand image towards increased exclusivity, with limited edition collections and high-profile collaborations
• Sustainability remains a strong focal point for Aritzia, as the brand increased its use of sustainable fabrics YoY.

Aritzia, the Canadian-based mass market fashion brand, has experienced major success throughout the past few years. Although 2021 was their most difficult year, the brand was able to come back strong across all channels and locations.

Aritzia saw a in net revenue YoY, thanks to a notable online and offline presence, as well as their product expansion strategy to tap into menswear and their upcoming swimwear collection.

Not only that, Aritzia holds 13 private label brands, which are grouped into four different categories: Wilfred Studio, Babaton Atelier, TNA and “More from Aritzia”, all of which address different demographics and apparel styles.

���ٱ�����ɲ�’ data show that Aritzia’s sub-labels each focus on different assortments, to cater to multiple styles. Both Wilfred Studio and Babaton Atelier offer more sophisticated casualwear, however Wilfred is focused more towards effortless and feminine casualwear, with a strong assortment of flared trousers and mid-length dresses, where Babaton’s focus is more towards simple, core pieces with a selection of occasionwear and going out clothing.

TNA differs from the other two, having a strong activewear presence, with a large offering of leggings, sweatshirts, and post-workout clothing such as sweatpants, hoodies and long parkas. ���ٱ�����ɲ�’ data indicate that its assortment is much less prominent in dresses and skirts than its counterparts.

From lingerie and accessories to denim and 90s focused collections, More from Aritzia's sub-brands cover a wider assortment mix. One of its sub-brands, Super World, is well-known for its puffer jackets, specifically the viral Aritzia Super Puff jacket, which has seen a spike in popularity within this past year.

As shown by ���ٱ�����ɲ�’ data on Aritzia’s pricing strategies, Wilfred Studio holds the highest price point. Its most frequent price is 155% higher than that of Babaton Atelier, which is in turn 34% lower than “More from Aritzia’s” most frequent price.

Zooming in on the data indicates that the “More from Aritzia” category and TNA have a similar maximum price for long puffer jackets made from recycled materials and performance fabrics.

Aritzia has been able to grow substantially, raising brand awareness and solidifying their “Everyday Luxury” vision and positioning. Spanish mass-market powerhouse, Inditex’s brand ZARA has cemented its spot in the US market, having become highly popular among US shoppers.

The US is currently the brand’s second most prominent market, after Spain. Considering ZARA’s aim to set foot into a more premium positioning, and achieve a more premium brand perception, how does it compare to Aritzia? Where do the two trending brands stand on the market?

Comparing Zara and Aritzia’s pricing strategies within the US market with ���ٱ�����ɲ�’ real-time data, showcases that the Spanish giant’s prices remain lower than its Canadian counterpart, as both its minimum and most frequent prices are significantly lower than that of Aritzia.

Nonetheless, Zara continues to stand out as it has successfully created a sense of luxury and exclusivity to their products, with limited-edition collections and collaborations, attracting higher-end shoppers and thus comfortably increasing prices in times of inflation.

���ٱ�����ɲ�’ data showcases its move towards premium with a maximum price reaching $1000, pertaining to its limited-edition collections, and standing far off from its most frequent price.

Zara has been increasing its overall assortment’s prices, which comes as a strategic move, considering the brand's shift to a more premium brand image, allowing it to comfortably increase brand prices in times of inflation.  

As shown by Retviews data, accessories, dresses, and skirts are the departments on which ZARA is significantly rising prices. This comes as the brand increased its dress and skirts assortment in limited editions and collaboration collections by 12% and 160%, respectively.  

Aritzia’s accessories cost 20% more than the previous year while prices are cut down on dresses, skirts, and outerwear despite the big success of its Super Puff jacket.

When comparing Aritzia to a mass-tige (also called premium mass) brand such as Massimo Dutti, the brands differ in terms of all leading price points - minimum, maximum, and most frequent price, setting Aritzia’s pricing strategy not so far behind the mass-tige level but placing it head-to-head with Zara, as both brands have become social media sensations.  

Inflation was the topic of discussion throughout 2022 and is expected to remain as such in 2023. Price hikes have had a strong impact across all sectors of the fashion industry and although a large number of brands are experiencing slowdowns and declines in consumer demand, ’s sales rose 19% from the previous year. As ���ٱ�����ɲ�’ data indicates, the rise in sales took place despite a 55% price hike between July and December, a price hike which could be equally attributed to the higher-perceived quality of its product offering, as ZARA aims to reflect a higher-end brand image.

Considering this, ZARA’s average price sits closer to that of Aritzia in 2022. Aritzia on the other hand increased prices by 18%, maintaining a very similar price positioning in 2022, to 2021. With ZARA catching up, what does this mean for the Canadian powerhouse?

When observing both brands’ assortment strategies, the fabrics they use are crucial, namely when the topic of sustainability arises, and is a strong differentiating factor between brands. So, where does Aritzia lie in terms of fabrics and sustainability?

On the other hand, the fabrics used by Aritzia are more eco-friendly this year, as opposed to last, including recycled cotton, nylon, polyester, and wool, as well as sustainable viscose, all accounting for 26% of the brand’s assortment over the past month, compared to 23% at the same time period in 2021. ���ٱ�����ɲ�’ data showcases a 17% increase in the use of sustainable fabrics for Aritzia, whilst Zara increased its share of products containing sustainable fabrics by 5%. Aritzia also decreased its share of items made of leather by 84%, focusing primarily on vegan leather alternatives, such as for its iconic Melina Pant.

Sustainability has taken a major turn in the fashion industry and brands have to comply with the minimum standards in place in order to be portrayed as ethical. is another sustainable women’s clothing and accessories brand, which is setting higher standards for players in the industry, as they portray higher levels of transparency regarding operations. 

Looking into sustainable outerwear pricing strategies within the US market, ���ٱ�����ɲ�’ data show that Reformation’s sustainable jacket pricing currently sits on the higher end of the pricing spectrum, with a minimum and average price point that are higher than that of Massimo Dutti, placing Reformation concretely on the premium market. Aritzia’s outerwear is priced on a higher level than mass market competitor ZARA, with significantly higher minimum, average and maximum prices.

Aritzia was able to upgrade its brand strategy, successfully shifting its assortment towards increased sustainability, with an 88% increase of its assortment of responsible apparel YoY. The brand’s everyday luxury positioning has also helped it become an online and offline sensation, with a price sweet spot that sits above mass market brands such as ZARA, and lower than premium brands such as Reformation. However, as brands like ZARA are elevating brand positioning, and providing more high-end options, how can Aritzia continue to stay ahead of trends? Tapping into more limited-edition offerings as well as partnerships and collaborations could allow Aritzia to further increase prices on certain collections and move towards a more premium positioning.

Leading fashion brands worldwide are able to monitor competitors’ strategies, allowing them to stay ahead of the curve and on top of the market. What’s their secret to doing so? The automated competitive intelligence platform, Retviews. Find out how your brand can also use Retviews to make confident, data-based decisions in a fraction of the time spent manual benchmarking.