What is RRP (recommended retail price) in fashion?
Recommended Retail Price: the consumer price a brand suggests retailers charge for a product.
In short
RRP stands for Recommended Retail Price, the consumer price a fashion brand suggests retailers charge for a product. It helps keep pricing consistent across channels and protects brand positioning, although retailers are generally free to set their own prices.
How does it work in practice?
When a brand prices a collection, it sets both a wholesale price and an RRP for each style and market. Both appear on the line sheet and in B2B ordering systems, so buyers can see the margin they would earn by selling at the recommended price. Brands often publish RRPs in several currencies and may adjust them by market to reflect local price levels, taxes and competition.
Why does it matter?
A consistent RRP supports brand image: customers see similar prices in department stores, independent boutiques and the brand's own online shop. It also gives retailers a clear reference for their margin calculations and promotions. However, competition law in many markets prohibits brands from forcing retailers to sell at a fixed price, so the RRP remains a recommendation. Brands influence pricing through positioning, distribution choices and their own channels instead.
How is AI changing it?
AI tools monitor prices across retailers and marketplaces, showing where products sell well below RRP and how often. Pricing models help brands set RRPs per market that balance demand, competitor prices and currency effects. Retailers use AI to decide when deviating from the RRP makes commercial sense, for example to clear stock or match local competition.
Common pitfalls
- Treating RRP as binding and pressuring retailers in ways that break competition law.
- Setting RRPs that do not allow retailers to reach their target margin.
- Inconsistent RRPs across markets that encourage grey market trading.
- Undercutting wholesale partners with lower prices in the brand's own channels.
Frequently asked questions
Do retailers have to sell at the RRP?
In many markets they do not. Competition law generally lets retailers set their own selling price, so the RRP is only a recommendation.
What is the difference between RRP and MSRP?
They mean the same thing. RRP is the common term in the UK and Europe, while MSRP, the manufacturer's suggested retail price, is more common in the United States.
