Sixth June proved that a less aggressive discount can lead to a gross profit uplift:

In the dynamic world of streetwear fashion, Sixth June has carved out a unique niche. Founded in Paris in 2008, Sixth June is renowned for its innovative and edgy designs inspired by urban street style. The brand offers a wide range of apparel for both men and women, including long-line tees, leather jackets, and snapbacks, catering to the vibrant and creative urban culture.

Sixth June's journey began in the heart of Paris, quickly becoming a pioneer in the streetwear scene. The brand's collections are known for their bold designs and high-quality materials, which have garnered a loyal and engaged following. Sixth June's products are available globally, with a strong presence both online and in physical stores across major cities​.

The Pain 💥: Despite its popularity, managing discounts for seasonal collections is a significant challenge. It is time-consuming and is based on internal parameters, whilst lacking external parameters.

Optimizing the discount strategy to boost online sales while increasing profit margins are significant challenges for a leading streetwear fashion brand such as Sixth June. Traditionally, the brand managed discount decisions by using an extensive Excel sheet that consisted of internal parameters such as the quantity of products sold for each product line. The process itself is time-consuming. Additionally, the process did not consider external factors such as seasonality, which is crucial for a brand whose products are often seasonal. The decision also did not consider another critical external factors, "price elasticity" and "discount sensitivity".

Not only is the traditional process time consuming, but it is also a gamble without fully considering all related factors. It is not an effective use of time and money.

The Cure 🧪: Differs' AI-powered platform optimizes pricing decisions to balance gross profit and inventory clearance, making the process less time-consuming while covering all significant parameters.

Differs provides an intuitive and user-friendly interface that simplified the discount management process. It removes human emotion but still puts the user in charge of the promotion strategy. The algorithm helps remove human emotion, allowing user to view product lines objectively based on internal parameters such as stock level, margin, and sell-through, and external parameters such as price elasticity, competitor pricing and seasonal trends.

The AI analyze Sixth June's historical sales and product seasonality along with proprietary external parameters to recommend precise discounts that align with the brand objective for each product line.

Differs gives flexibility and explainability on the discount decision back to the brand.

The results ✨: The revenue uplift was +19% and Gross profit is uplifted by +36% even when the average discount is decreased by -11%.

To prove the business case, when Sixth June adopted Differs' platform, Sixth June conducted an A/B test to measure the impact of Differs on their discount strategy. The test compared two groups of products: one managed with the brand's traditional discount methods and the other with Differs' optimized discounts. The results show impressive improvement on margin and stock clearance.

Differs not only reduces the overall discount percentage but also increases the gross profit by 36%, showcasing that the previous discount strategies were overly aggressive​.

Final thought: Discounting does not need to be aggressive and time-consuming.

Before Differs, the discount decisions were made using Excel, which involved human emotion for each product. There are products you like or dislike, your decision is biased. Human are not well suited to make multiple decisions one after another for a long time.

In the live A/B test, Differs helps remove decision fatigue and bias. Discount become less aggressive. We reduce the discount by 11% on average. The product still sold well, and Sixth June achieves +19% revenue uplift and enjoys +36% Gross profit uplift.

The platform's efficiency and ease of use have significantly impact Sixth June's approach to online sales and discount management.

Differs in three words? Save time. Save money. Trust.