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On Vans’ website, the brand has a banner stating, “Inflation has not been rad. New Classics pricing will help. We’ve adjusted our pricing on select Classics styles to pre-inflation levels.” Many YouTubers, skaters, and fashion fans have been praising this move during the past couple of months, especially noting their positive feelings whenever they see these signs inside a Vans store.
It wouldn’t be far-fetched to assume the company has been increasing its sales and profits as a result of this move. But that doesn’t seem to be the case.
This move appears to be a thoughtful gesture by the brand to help alleviate the pressures of inflation while offering consumers a generous discount. However, this might also be a tactic to help the brand regain lost momentum.
Business of Fashion reported that “under parent company VF Corp., Vans posted double-digit growth every year between 2004 and 2019,” but then “its momentum ran out. Where Vans sales grew 24 percent in the year ending March 2019, they fell 13 percent in the final three months of 2022.”
Vans is charting a path back to expansion, armed with a comprehensive strategy. The brand aims to revamp its wholesale accounts, pare down its variety of styles, refine its marketing approach, and, crucially, unveil contemporary styles that resonate with today’s consumers.
MarketWatch added that “as sneaker companies weather a bout of subdued demand,” Vans has suffered more than others, according to Wedbush analysts.
At least half of all Vans shoes are discounted in one form or another, which is more than most footwear brands at the moment, but one other brand has more discounted shoes than Vans, and that’s Steve Madden. However, Steve Madden has the advantage of being positioned in department stores where discounted prices are common.
And while VF Corp. also owns Timberland and North Face, it’s their Vans property that is facing the most pressure to overcome declining sales.
Additionally, Foot Locker, one of the largest shoe chains in America, noted “weaker spring-season demand for ‘canvas and skate-inspired’ offerings and said they have launched ‘aggressive’ discounts to attract shoppers.” Vans is the primary brand in this falling category.
According to Modern Retail, Vans has experienced a drastic decline this year in YoY revenue, measuring at a 22% loss. The main causes of this predicament have arisen from “muted demand, supply chain issues and lower wholesale sales.”
All of these problems have been somewhat of an unexpected surprise, especially since “Vans has been VF Corp’s top-performing brand, outpacing The North Face in terms of revenue. For two of the past four quarters, however, those rankings have flipped with The North Face taking over as number one.”
In 2022, Vans reintegrated Kevin Bailey, its former president from 2009 to 2016, as the global brands president to refine the company’s marketing strategies and emphasize direct channels. With Bailey’s leadership, Vans expanded its MTE (Made for the Elements) outdoor collection and introduced the Pinnacle division, dedicated to high-end products. In June, the brand rolled out the “OTW by Vans” line under the Pinnacle banner.
According to Matt Puckett, CFO of VF Corp., Vans’ loyalty program has amassed a commendable 29 million enthusiasts. Nonetheless, as Jessica Ramírez, senior research analyst at Jane Hali & Associates, told Modern Retail, there’s room for improvement, particularly in product advertising and the in-store experience. Ramírez also noted the brand’s potential to appeal to both Gen Z and millennials but highlighted a lack in its digital presence. Addressing this, Puckett mentioned an upcoming revamp of the Vans website slated for the holiday season.
BrainTrust
Jeff Sward
Founding Partner, Merchandising Metrics
Kai Clarke
CEO, President- American Retail Consultants
Neil Saunders
Managing Director, GlobalData
Discussion Questions
Do you think selling shoes at pre-inflation prices will help Vans regain momentum, or does the company need to come up with new strategies? Ultimately, do you think Vans will be able to turn things around?
Poll
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Vans also advertises this outside of its physical stores. It’s an eye-catching tactic, but it is not doing much for their sales line. In the latest quarter Vans’ sales were down 22% overall (including wholesale) and also fell in terms of direct to consumer revenue. While saving money is always nice, the problem with Vans is not about pricing. The problem is that the brand has lost its edge, is not innovating in terms of style, and is losing out to newer, younger footwear brands. What Vans needs is an overhaul and reinvigoration, not a fancy pricing message.
Fashion products that lose relevance because they go off-trend don’t solve their trend problems with pricing tactics. It may be a clever form of discounting, but it’s still discounting. There are design and merchandising and marketing problems to be solved. “Pre-inflation pricing” is a clever short term tactic, not a long term solution.
When Low prices = no growth, sounds like a different strategy is in order. Product placement in “Fast Times at Ridgemont High” can only take you so far I suppose.
No, just selling Vans shoes at preinflation prices will not allow them to regain lost market share, let alone profits. Vans has not adapted to current fashion and their loss of market share shows this. Vans needs to move away from their historic canvas/flat soled shoe and invigorate their brands with superior shoe materials than canvas, better internal shoe support, and superior soles.
Pre-inflation ?? That would be….1933…wouldn’t it?? OK, so it’s marketing over strict accuracy, but will the messaging work?? I don’t think it hurts, and yes, it probably attracts a little attention. But sneakers is a hyper-competitive market niche; it’s not enough.
In my opinion, selling shoes at pre-inflation prices is although a positive step by Vans to connect with customers during tough economic times, it may not be enough on its own to regain lost momentum. Vans faces challenges beyond pricing, such as changing customer preferences and increased competition. To turn things around, Vans should continue to refine its marketing strategies and introduce contemporary styles that resonate with today’s shoppers.
In addition, addressing digital presence and enhancing the in-store experience will be crucial for them, especially to attract Gen Z and millennials. While offering pre-inflation prices is a good start, eventually a comprehensive strategy focusing on product innovation, marketing, and customer experience will be necessary for long-term success.
I think this tactic from Van’s will be a great way to boost customer satisfaction and perhaps sales during the holiday season, but in order to increase long-term retention, Vans has to have multiple touchpoints for customer engagement beyond a singular sale event, such as personalized shopping experiences, customer loyalty programs and special product offerings that increase loyalty to drive return purchases.