A Strategic Guide to Lingerie Pricing: Mass-Market to Luxury

If the price is too high, customers will not buy. If it is too low, the business will not make money. In fashion, setting the right price is crucial for a brand to survive. It is more than just a number; it shows what the brand is all about, what it stands for, and how valuable it is to customers. 

The worldwide lingerie market is huge and growing, expected to go from $99.12 billion in 2025 to $147.55 billion by 2030, growing by 8.28% each year. This big growth means great chances for new and old brands. But it also means a lot of competition. So, a smart pricing plan is not just helpful; a brand needs to stand out and succeed long-term.

The 4 Foundational Pillars of Lingerie Pricing Analysis

Before you set any price, you need a strong plan. Trying to price something without knowing your costs, where you stand in the market, what competitors are doing, and what customers think will lead to losing money and hurting your brand. The following four key areas are the basics for any smart pricing plan.

Pillar 1: Cost of Goods Sold (COGS) 

The Cost of Goods Sold (COGS) is the lowest price you can sell something. It is the total direct cost to make one item. If you sell for less than this, you lose money on every sale. Calculating COGS carefully and completely is the first and most important step in pricing, as it shows you how much you need to sell for just to cover your costs, before you even think about profit.

To fully calculate the Cost of Goods Sold (COGS) for lingerie, you need to include several main parts:

• Materials: This means the cost of all physical parts of the clothing. For lingerie, this covers the main fabric (like cotton, modal, silk, lace) and all the small pieces and hardware, such as elastic bands, underwires, adjusters, rings, and clasps.

• Labor (Cut, Make, Trim): This is the direct money paid to the factory to physically put the garment together. It includes cutting the fabric, sewing the parts, and adding the final touches (often called the CMT cost).

• Factory Overhead: A part of the factory's indirect costs for running their business—like rent, utilities, and how much their equipment loses value—is assigned to each product they make. This is often already included in the CMT price but should be seen as a separate cost.

• Logistics & Duties: These are the costs to move the product from the factory to the brand's warehouse. This includes shipping fees (air shipping is faster but costs more than sea shipping), import taxes and tariffs, customs clearing fees, and transport within the country.

If you do not include all these parts, your COGS will be wrong, which will lead to incorrect profit calculations and the risk of losing money. Once you know the true COGS, the brand knows the lowest price it can sell for—the point below which it cannot afford to sell.

Pillar 2: Brand Positioning

After figuring out the lowest price you can sell for (your costs), the next step is to decide on the highest price. Pricing is how a brand shows who it is and where it stands in the market. So, before setting a price, a brand needs to clearly understand what it's all about.

This starts with defining the brand's basic ideas:

• Mission, Vision, and Values: A brand's mission is why it exists (e.g., to help all body types feel confident). Its vision is the future it wants to create (e.g., a world where lingerie is about self-expression, not just looking sexy). Its values are the rules that guide its actions (e.g., being eco-friendly, including everyone, and good craftsmanship).

• Unique Value Proposition (UVP): This is the single, strong promise that makes the brand different from all others. It answers the customer's question: "Why should I buy from you?"

This brand identity directly leads to its place in the market, from everyday products to luxury items. This positioning creates a "price range that customers will accept." The price must match the brand's story and what it promises.

Pillar 3: The Competitive Landscape 

No brand exists alone. Looking at your competitors' works is not just about matching prices; it is about gathering important information to help you plan. 

A strong competitor analysis has several steps:

1. Find Competitors: This means finding both direct rivals (other brands selling similar lingerie to the same people) and indirect rivals (brands that sell different products but still want the same money from customers, like activewear brands selling bralettes).

2. Study Their Pricing: Carefully look at how competitors price their main products. This shows their pricing plan and important price points in the market.

3. Check Quality vs. Price: See how the actual quality of competitors' products compares to their price. This includes looking at their fabrics, how well they're made, how they fit, and design details. Is a competitor's higher price fair because their materials or craftsmanship are better?

4. Figure Out Perceived Value: Check their brand messages, marketing, social media activity, and, most importantly, customer reviews. This helps you see how much value and brand loyalty they've built, which then helps you decide if your new brand should price lower, the same, or higher than theirs.

This complete overview helps a brand decide where its prices should be in the market, making sure they are competitive and show its unique value.

Pillar 4: The Target Customer

The last and most important step is to understand your target customer. To price effectively, you need to know not only who your customers are, but also what they care about and how much they are willing to pay for it. This means going beyond simple age and location data to create detailed customer profiles. These profiles should include psychographics (their lifestyle, values, and interests) and behavioral data (how they buy things and how loyal they are to brands).

Central to this understanding is the concept of Willingness to Pay (WTP), which is the most a customer will spend on a product or service. WTP is not a set number; it changes based on how valuable the product seems, the brand's reputation, how urgently the customer needs it, and what other options are available. Importantly, setting a price too low can be as bad as setting it too high, because it might make customers doubt the product's quality and trustworthiness.

Case Study: The Plus-Size Consumer as a Litmus Test for Strategic Competence

The market for plus-size lingerie is a great example of how to understand what a customer is willing to pay and what it means for a business to meet their needs. This is not a small market; it is huge and important. In the U.S. alone, about 67% of women wear a size 14 or larger, and the global plus-size clothing market is worth hundreds of billions of dollars and is expected to grow quickly.

What makes this customer willing to pay is a unique set of things they value, many of which mainstream brands have often overlooked. These include wanting true size inclusivity, having access to trendy and modern designs, and the strong emotional desire to feel seen, respected, and confident. The worldwide body positivity movement, popular on social media, has made this desire even stronger. But often, shopping in stores and online is very disappointing, with few size options, a bad fit due to incorrect pattern adjustments, and a constant feeling of being left out.

The difference between what customers expect and what they get is a big chance for businesses. If a brand can truly and successfully serve the plus-size market, it proves how good it is at everything it does. This shows skill in four key areas:

1. Authentic Marketing: Connecting with and showing the plus-size community, not just using "body positive" as a trendy phrase.

2. Deep Customer Empathy: Truly understanding the specific problems plus-size customers have with fit, comfort, and support.

3. Technical Product Excellence: Having the design and development skills to perfectly create patterns for larger sizes and choose the right supportive materials.

4. A Capable and Sophisticated Supply Chain: Working with a manufacturer that has the special skills and machines to make these technically difficult designs perfectly.

The 3 Core Pricing Models in Fashion

Once a brand has a strong plan, it can choose a specific way to set prices. Many mixed strategies exist, but they all come from three main methods. Knowing how each works, along with their good and bad points, is key to building a smart pricing structure.

Model 1: Cost-Plus Pricing

This is the simplest way to set a price. You figure out how much it costs you to make a product (materials, labor, etc.), then you add a certain percentage on top for your profit.

• How it works: Take your total cost to make an item (COGS) and add your desired profit percentage. 

• Pros: It is easy to calculate, and it guarantees you will not lose money on each sale.

• Cons: It does not consider what competitors are charging or how much customers think your product is worth. You might price too low and miss out on profit, or too high and not sell anything.

• Best For: Businesses that sell large quantities, mass-market brands focused on low prices, or as a starting point to figure out your absolute lowest selling price.

Model 2: Competition-Based Pricing

This way of setting prices focuses on what your rivals are charging. You look at their prices for similar items and then decide if you want to be a bit cheaper, the same, or a bit more expensive.

• How it works: Check what your competitors are selling similar products for, then set your price relative to theirs.

• Pros: It helps you stay competitive and makes sure you're not way out of line with the market. It is also fairly easy to do.

• Cons: Everyone might just keep lowering their prices, which can hurt everyone's profits. It also makes it hard to stand out if your price is always tied to what others are doing.

• Best For: New businesses trying to get noticed in a busy market, or products that are pretty much the same as what everyone else sells.

Model 3: Value-Based Pricing

This is the most advanced way to price things. Instead of looking at your costs or competitors, you focus on what your customer truly believes your product is worth to them.

• How it works: Set your price based on all the benefits your product offers to the customer, both obvious ones (good materials, great fit) and less obvious ones (like the feeling of luxury, or if your brand helps a good cause).

• Pros: You can make the most profit because you're charging what people are willing to pay for the value you offer. It also helps build a strong brand image and loyal customers.

• Cons: It is hard to figure out exactly what "value" means to different customers, and it requires you to spend a lot on making a great product and telling your brand's story.

• Best For: Online-first brands, high-end or luxury brands, and brands that offer something truly unique or solve a specific customer problem.

The table below describes 3 pricing models:

Applying Pricing Strategies Across Lingerie Market Segments

Pricing theories become real when you apply them to different parts of the lingerie market. Each part has different customers, different things they value, and thus, a different best way to price products.

The Mass-Market Segment

Brands in the mass market compete on being affordable, selling a lot of products, and appealing to many people. Their pricing plan mixes things to sell the most and get the biggest market share. They start with a strict Cost-Plus model, which is key for managing the small profits on large production runs. On top of this, they use a careful Competition-Based strategy, making sure prices stay similar to other big stores to attract customers who care about price.

The Mid-Range Segment

The mid-range market, often called the "bridge" segment, is probably the most active and competitive area, filled with online-first (D2C) brands and new types of stores. The pricing plan here is a careful mix of all three main models. Brands start with Cost-Plus to earn some profit and use a lot of Competition-Based analysis to ensure the price is fair. But the main aim is to use Value-Based ideas to charge more than mass-market options.

The Premium & Luxury Segment

For brands at the very top of the market, pricing is more than just about money; it is a key part of what makes the brand special and attractive. These brands almost only use Value-Based Pricing. In the luxury world, a high price is not something that stops people from buying; it is what makes it exclusive. It shows that something is unique, made with amazing skill, has a rich history, and offers a personalized experience. The price itself is a core part of why the product is valuable, making it more wanted and prestigious.

Conclusion

Making a good pricing plan for a lingerie brand is hard but very important. It is not a one-time choice that stays fixed. Instead, it is a changing process of looking closely, deciding where you stand, and making improvements. There is no single way that works for everyone. The best pricing plan cleverly combines knowing your costs, understanding your brand, looking at competitors, and truly caring about your customers.

But the price you set at launch is just the start. Brands need to be flexible, always checking sales, getting customer feedback, and paying attention to changes in the market and material costs. Pricing must be checked and changed as the brand and market change, ensuring its position as a strong tool for reaching business goals. Let's talk about how the experts at K&G Garment can help you reach your brand's goals for vision and profit. Check out our detailed lingerie branding guide for more insights.

Contact K&G Garment:

• Email: manufacture@kgvietnam.com

• Telephone/WhatsApp: (+84) 888969887