Pricing has always been one of the toughest levers in fashion retail, but today it has become a defining challenge. Volatile tariffs, unpredictable supply chain costs, and intensifying competition from ultra-fast fashion have created a pricing environment that is both unstable and unforgiving.
At the same time, consumers have grown weary of constant price increases, forcing brands to rethink how they approach discounts, promotions, and end-of-season strategies. This shifting landscape has created a growing market for price optimization tools, with retailers increasingly turning to predictive AI to guide decisions.
At NRF Paris 2025, markmi.ai will be part of this conversation, showing how its markdown optimization assistant can help transform pricing from a source of stress into a source of strength.
Fashion has always been a business of balancing trends, supply chains, and consumer demand. But today, the pricing environment is more complex than ever.
Tariff volatility has been particularly disruptive. According to FashionUnited, tariffs have reached as high as 104% on Chinese imports, 46% on Vietnam, and 37% on Bangladesh, forcing brands to absorb incremental costs of up to $300 million annually. The unpredictability makes long-term planning nearly impossible.
Meanwhile, consumer price fatigue is reshaping shopping behavior. McKinsey research shows that more than 75% of U.S. consumers are actively cutting back on fashion spending, with the figure expected to reach 80% by 2025. The resale market is expanding by 12% annually and is projected to account for 10% of the global apparel market by 2025. Off-price retailers are also outperforming, with TJX posting 4.6% revenue growth in 2024.
Supply chain costs add further complexity. According to Supply Chain Dive, cotton prices remain unstable due to climate impacts, while logistics and energy costs continue to fluctuate. These pressures make it harder than ever for retailers to set consistent pricing strategies.
Markdowns amplify the problem. Analysts note that consumers are increasingly concentrated in higher discount brackets of 50–70%, while smaller markdowns (20–30%) no longer generate the same sales as before.
And then there’s ultra-fast fashion. Platforms like Shein and Temu have set new benchmarks, offering t-shirts at €2.77, compared to €8.99 at established brands like Mango. This “race to the bottom” has created extreme price pressure that forces traditional brands to compete while trying to maintain quality and brand equity.
In this environment, predictive AI is emerging as one of the most powerful innovations in fashion retail. Unlike traditional spreadsheets or rule-based systems, predictive AI can process millions of data points in real time, from sell-through rates and inventory positions to external factors like tariffs, seasonality, and competitor activity.
The appeal is clear:
Smarter markdowns that balance sell-through with margin protection.
End-of-season pricing strategies that reduce waste without eroding profits.
Dynamic promotions that reflect shifting consumer sentiment.
Scenario testing that prepares retailers for volatility instead of forcing them to react.
According to McKinsey’s State of Fashion 2025, the number of executives expecting growth through price increases has dropped by 17 percentage points compared to the previous year. Nearly two-thirds now expect volume growth to drive expansion. Predictive AI fits squarely into this pivot, helping retailers fine-tune pricing without blunt price hikes.
Markmi.ai is proud to stand alongside other innovators at NRF Paris 2025. Where AI pricing tools were once experimental, they are now part of a growing, mature market.
NRF Paris will showcase a strong lineup of AI-powered pricing innovators:
Pricen
– A dynamic pricing platform with regional strengths in Northern and Central Europe, evolved from Sniffie and serving multiple industries.
PricingHub
– A French player emphasizing transparency and methodological rigor in AI pricing across traditional retail sectors.
7Learnings
– A SaaS solution focused on predictive price optimization for FMCG, electronics, and cross-category retail.
Revionics
– An enterprise leader delivering pricing and promotional analytics for global retail chains.
Peak
– A generalist AI company covering pricing, inventory, and supply chain across industries.
Invent.ai
– A multi-agent decisioning platform spanning pricing, assortment, and allocation decisions.
While all these companies share a commitment to smarter pricing, Markmi takes a different path. Three factors set it apart:
Unlike Pricen, 7Learnings, Peak, or Invent.ai — which operate across multiple industries — Markmi is built exclusively for fashion retail. It understands the unique dynamics of typical fashion retail markdown cycles, discount seasons, and trend-driven collections where agility is critical.
Players like Revionics and Invent.ai spread across supply chain, assortment, or promotional analytics. Peak even extends beyond retail entirely. Markmi, by contrast, goes deep into pricing intelligence only, with a focus on markdown optimization and end-of-season pricing. This specialization allows it to provide a unique multiple-scenario analysis feature that provides more clear options and builds trusts when merchandisers need to make decisions.
Some competitors, like PricingHub, have strong local footprints (primarily in France). Others, like Pricen, are regionally concentrated. Markmi is designed for pan-European fashion retail, currently serving brands across Western and Central Europe with workflows that adapt to diverse markets and pricing structures.
The challenges facing fashion retail — tariff shocks, consumer fatigue, supply chain volatility, markdown pressures, and ultra-fast fashion disruption — are real. But they also create space for reinvention. Predictive AI is no longer just about efficiency; it is becoming a strategic tool for survival and growth in a saturated market.
We're excited to contribute to this conversation at NRF Paris 2025. Join us at NRF Paris 2025 Startup Hub to explore how predictive AI is shaping the future of fashion retail pricing. Find tickets here, or ask us how you can get a reduced price!
FashionUnited — FW25 collections under pressure: tariffs reshape pricing and production timelines
McKinsey — State of Fashion 2025
Supply Chain Dive — The state of the fashion supply chain in 2025
FashionUnited — Navigating the new fashion landscape in 2025