Fuelling off-price fashion is an increasingly strong online presence. In fact, the online channel makes up about 40 percent of the off-price market, a far higher share than fashion overall, which is only expected to grow as it provides greater convenience, simplicity in filtering and browsing, and breadth of assortment.

Currently, there are off-price players that base their sales models on flash sales, including dress-for-less, limango, Veepee, and Zalando

Likewise, the offline world has also evolved over the past few years with off-price malls now offering a better and more refined shopping experience. 

Looking ahead, for brands who want to capitalize on off-price, the report suggests “they should treat it as a complementary rather than stand-alone channel.” 

“Fashion brands should develop a strategy that treats off-price as a largely separate yet complementary segment for their full-price offerings. The goal should be to expand the overall business while fiercely protecting brand reputation,” the report said.