How The Bow Tax Can Increase Profitability

• Luxury brands are adding ribbon trims to command higher price points. However, customers are undeterred, with bow-adorned T-shirts at Miu Miu and Jacquemus, which are 6%-10% more expensive than logo versions, selling out of majority SKUs at full price.
• Mass retailers should rethink pricing to maximize profit before the trend peaks. Zara and Stradivarius’ ballet flats and hair accessories featuring bows are more affordable than without. Retailers can feel confident pushing into higher RRPs as consumer demand has outpaced newness, with investment +48% vs. sell outs +65% YoY.
• Understanding the bestsellers can shed light on where to raise prices. On the lower end, basket-building items, such as bow barrettes and scrunchies, can boost average order values. For more high ticket items, incorporate the detail into occasionwear, which has been successful – Mango recorded majority SKU sell outs for a $450 sequinned dress with a bow in five days.

The Bow Tax

Luxury

Coined by The Cut, the Bow Tax describes the price hike fashion products undergo when embellished with a coquettish ribbon. This movement has become prominent, with The RealReal stating that the average selling price for vintage items with bows in 2023 is 16% higher than styles without. ¹They Put a Bow on It Add a neatly tied ribbon and poof! It’s $100 more – The Cut EDITED found a similar trend across luxury goods – at the lower end of price increases, Miu Miu’s cotton T-shirt is 6% more expensive with a bow than with
a logo.

Meanwhile, Balenciaga’s Le Cagole shoulder bag featuring a ribbon and other adornments retails for 89% higher on Farfetch than the black leather belted version. Despite the inflation, Jacquemus’ Le T-shirt Noeud, which is 10% more expensive than a branded alternative, has sold out in under a month at full price across luxury ecommerce platforms. Additionally, only one size remains of the Miu Miu tee, indicating customers are willing to pay more to buy into the hyperfeminine aesthetic.

Jacquemus tees

Simone Rocha earrings

Miu Miu tees

Balenciaga bags

Mass

While luxury brands are adopting the Bow Tax, mass retailers have yet to discover the detail’s value and to create opportunities to adjust their positioning and increase average selling prices. Comparing two square-toe ballet flats at Zara (US), both made of leather and synthetic rubber and achieving majority SKU sell outs in five days, the option with the buckle instead of a bow is $10 more expensive on the US site.

At Stradivarius, a set of bow clips is £1 cheaper than a claw clip two-pack. The bow styles have experienced replenishment highlighting demand for the item and suggesting retailers can explore pushing into higher price brackets as interest in the trim is showing no signs of slowing down.

Zara ballet flats

Stradivarius hair clip sets

What’s Selling and Where to Invest

Representing over half of the arrivals within its parent category, hair products have been the top invested in and best-selling accessory. Strong SKU activity for oversized bow clips and ribbon scrunchies has been noted, with feminine street style narratives solidifying the trend for SS24. Analyzing majority SKU sell outs since August reveals tops as being the most successful category, developing opportunities for retailers’ future assortments. Consider micro bow placements to elevate basics such as T-shirts and tank tops, which have proved successful at Motel. In knitwear, delicate ribbons around the waist or as cardigan fastenings, as seen at Urban Outfitters, are a recipe for viral products.

Dresses were the second best performing category, yet ranked fourth in investments. Retailers should capitalize on the party season to incorporate the detail and achieve higher selling prices. This has been executed successfully at Mango, launching an asymmetrical sequin dress with a subtle bow tieing at the shoulder. The dress sold out of the bulk of SKUs in four days for $450. For a more on-the-nose reference to the trend, explore designs with structural bow-tied bodices.

How to Promote

Coquettecore

Blokette

Goth

Trend Accelerators

Spring 2024 Runway Approved

Next spring will be another femme-fueled season and retailers can confidently invest in bows and ribbons as a top priority for trims and details.

Large vs. small scale • all-over vs. singular • pussybows • shoulder, chest & waist placement • party & occasionwear

Appendix

Date analysis
Products new in and selling out of first majority SKUs between Aug 1 – Oct 12, 2023

Keywords
“Ribbon” and “bow”

US & UK retailers considered
& Other Stories, Abercrombie & Fitch, Aritzia, ARKET, Bershka, Free People, H&M, Mango, Motel, Motel, NA-KD, Nasty Gal, New Look, Pull&Bear, PrettyLittleThing, Reformation, Reserved, River Island, Stradivarius, UNIQLO, Zara