The Death of Discounts: Why Brands Are Moving Towards ‘Perceived Value’ Pricing
- Utkarsh Deshmukh
- Jul 21
- 2 min read
Discounts are a double-edged sword. While they undeniably drive short-term footfalls and clear inventory, they’re not a one-size-fits-all strategy — especially in today’s nuanced consumer landscape.
In the case of essential or daily-use products, especially in grocery, FMCG, or budget clothing, discounts remain highly relevant. For price-sensitive audiences, particularly in Tier-2 and Tier-3 cities, offers can directly influence buying decisions. These customers often shop based on need and affordability, making value-centric messaging critical.
However, when it comes to luxury, aspirational, or premium brands, discounts can actually damage brand perception. In these segments, value lies in the brand story, exclusivity, trust, and perceived prestige — not the price tag. Even within basic categories like clothing, there’s a growing shift toward brand-conscious purchasing, driven by social influence, lifestyle alignment, and quality assurance.
It’s also important to recognize the geographic impact. Consumers in Tier-1 cities have greater purchasing freedom, with increasing focus on experience, convenience, and emotional connection over price. In contrast, shoppers in smaller cities still approach premium spending cautiously, often seeing discounts as a deciding factor.
The key takeaway? Discounting should be contextual, not habitual. Know your customer. Know your category. And most importantly, know when you're lowering the price — and when you're lowering the brand.
As consultants, we often recommend a hybrid model: drive volume through strategic offers in essentials, and maintain aspiration through value-driven storytelling in premium segments.
At Grayscale Media, we specialize in both—backed by over a decade of measurable success across 100+ global brands like Samsung, KFC, Pantaloons, and Reliance.
With strong Meta ad performance insights and a library of strategic, creative frameworks—we help brands:
🔹 Create TV, digital & outdoor commercials
🔹 Build integrated campaigns
🔹 Generate leads & optimize performance
🔹 Consult on brand strategy & positioning
🔹 Shape narrative and drive market perception
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