Smart Strategy or Slippery Slope? Analyzing the Long-Term Effects of Sales Promotions on Brand Perception and Consumer Loyalty in the Fashion Industry

Abstract

In the highly competitive and trend-driven fashion industry, sales promotions have become a common tactic used by brands to attract consumers, clear seasonal inventory, and boost short-term revenue. However, the long-term implications of frequent discounting strategies remain a subject of debate. This study explores whether promotional sales represent a smart strategy for growth or a slippery slope that erodes brand perception and consumer loyalty over time. Through a mixed-methods approach—combining consumer surveys, brand case studies (e.g., Zara, H\&M, Gucci), and analysis of historical sales data—the research investigates how repeated discounting affects consumer expectations, trust, and perceived brand value. Findings indicate that while sales can drive immediate engagement and trial purchases, excessive reliance on discounts may lead to brand dilution, reduced pricing power, and diminished customer loyalty, particularly among premium and luxury labels. The study concludes with strategic recommendations for fashion brands to balance short-term sales goals with long-term brand equity, offering insights valuable to marketers, brand managers, and retail strategists navigating the evolving dynamics of fashion retail.