Price Elasticity in Apparel

Price Elasticity in Apparel: How Sensitive Are Pakistani Consumers, and What Impact Does E-Trust Have on Their Buying and Post-Purchase Behaviour?

Abstract

Pakistan’s online fashion market is worth $5.66 billion. When you shop for clothes online, two things affect your experience: how much prices matter to you and whether you

trust the website you’re buying from.  This article explains these ideas in simple terms to help you shop smarter. We’ll talk about when to wait for sales and when to buy now,

as well as the most important thing: how to tell if a website is safe enough to give you your money back. If you look at real shopping habits of Pakistani consumers, you’ll see

that most of us aren’t as price sensitive as we think (meaning discounts don’t always change our buying decisions), and that trust in online stores is what makes us come back

or not. This guide will help you find real deals, avoid disappointments, and make connections with retailers who care about your happiness, whether you’re shopping on Daraz,

local brand websites, or Instagram.

 

Understanding Price Sensitivity: Why Some Discounts Don’t Work

Have you ever wondered why a 50% off sale makes you want to buy something right away, but a similar sale on something else makes you say, “I’ll wait”? That’s what price sensitivity, or “price elasticity,” means in economics.

In simple terms, price elasticity tells us how much your demand for a good change when its price changes. It’s the difference between:

“I need this no matter what the cost” (like when you need to buy a kurta for Eid two days before it happens—you’ll pay whatever it takes)

“Only if it’s cheap enough” means that you’ll only buy something if it’s on sale, like a trendy jacket you don’t really need.

Some purchases are urgent or necessary, so you don’t mind when prices go up or down. You are very price-conscious because some things are just nice to have.

What Makes Fashion Different

Buying clothes is not the same as buying food. Fashion prices are harder to figure out for a number of reasons:

• Brands matter emotionally: a Khaadi lawn suit isn’t just fabric; it’s a sign of status, a promise of quality, and a way to show off your social status.
• Seasons make things more important: You need winter clothes in November, no matter what, but you can wait six months for summer dresses.
• Cultural events set deadlines: Eid, wedding season, and festivals all make you buy certain clothes at certain times, which makes it harder to change your mind about prices.
• Trends change quickly: Fast-fashion items lose their appeal quickly, so you should be more careful about how much you spend on trendy pieces than on classic basics.

Recent research from international markets shows an interesting pattern: younger shoppers (millennials and Gen Z) are becoming more price-sensitive for trendy items but less price-sensitive for swimwear and premium categories. They’ll look for cheap crop tops but spend a lot on good swimsuits. Pakistani consumers act in the same way; we are picky about where we give in.

Knowing how sensitive you are to price changes can help you make better choices. For example, you should know when to wait for sales and when to just buy what you need.

The Pakistani clothing market

How Much Money Pakistani Shoppers Really Spend on Clothes

Let’s talk about real numbers. Every year, the average Pakistani spends about US$22.63 (about PKR 6,300) on clothes. Look at this:

• Indians: $68 a year
• People from Bangladesh: $52 a year
• People from Sri Lanka: US$95 a year

We spend a lot less on clothes than our neighbours do. This is why you see so many sales, why people often haggle, and why “affordable fashion” is so popular.

This is where the money goes:

• Women’s clothes make up the biggest part of the budget (42% of all spending), which is US$2.37 billion in total. This is because women need more variety in their wardrobes and because of cultural norms that require modest fashion.
• Men’s clothes come next (25% of spending). Men don’t buy clothes as often, but when they do, they spend a fair amount.
• Clothes for kids (18% of spending). Kids grow out of clothes quickly, so there is always a need for them.
• Everything else (15%)—underwear, accessories, and activewear

The most important thing to know is that 96.2% of all clothes sold in Pakistan are not “luxury.” What does that mean? Very few people buy designer clothes regularly. We are a group of practical shoppers who want good quality at a fair price, not status symbols.

What This Means for You

Knowing these patterns will help you shop better:

1. Don’t believe the “luxury” marketing: Retailers often try to make regular clothes seem high-end to justify higher prices, even though 96% of sales are for non-luxury items.
2. Your budget is normal. Do you feel like you can’t afford many clothes? You’re not the only one; most people in Pakistan are in the same boat.
3. Women pay the “wardrobe tax”: Women have to buy more clothes than men do, not because they want to but because they need to (work clothes, formal wear, casual wear, modest options, seasonal variety).
4. Sales target tight budgets: Retailers know that money is tight, which is why there are so many flash sales, discount codes, and “limited time offers.” They’re all based on our current economic situation.

 

Demographics and Buying Habits of Customers

Empirical research conducted in Karachi, Pakistan’s commercial capital, which accounts for 45% of national e-commerce transactions, identifies key demand determinants for women’s apparel:

1. Economic Drivers: Discretionary income and flexible pricing policies are the most important economic factors. Price sensitivity goes up when the economy is uncertain.
2. Cultural Preferences: People tend to prefer simple, classic styles that fit with modest fashion rules and traditional aesthetics, especially for everyday wear rather than special occasion purchases.
3. Digital Influence: Social media sites and digital marketing have a big impact on buying decisions. For 67% of urban consumers aged 18 to 35, Instagram and Facebook are the main ways they find new products.
4. Brand Orientation: Brand loyalty is fairly strong, but consumers are willing to switch brands if they can save 15–25% on the price, which shows that their loyalty is limited by economic factors.

The increase in domain-specific innovativeness, when people are willing to use new online shopping technologies, is linked to greater e-commerce adoption, especially among millennials and Gen Z.

Let’s look at real sales data from a clothing store in Islamabad to see when sales are important and when they aren’t:

Example 1: Denim Jeans (When Sales Don’t Help Much)

The normal price is PKR 2,500.

Price: PKR 1,800 (28% off)

What took place:

• Before the sale, 150 people bought jeans.
• During the sale, 200 people bought jeans, which is 50 more than usual.
• Does that sound good? The store made less money, going from PKR 375,000 to PKR 360,000.

What this means for you is that jeans are “price inelastic,” meaning most people who want them will buy them regardless of price. Don’t wait months for a big sale if you need jeans. A small discount is nice, but it shouldn’t be the only thing you think about when making a decision. The store knows this, so they don’t give big discounts on basic items.

Example 2: Cotton Kurtas (When Discounts Are More Effective)

Price: PKR 1,600

Price for sale: PKR 1,200 (25% off)

What happened:

• 80 people bought kurtas before the sale
• During the sale, 250 people bought kurtas (70 more than before)
• The store made a little more money (from PKR 288,000 to PKR 300,000)

What this means for you is that kurtas are closer to “unit elastic,” which means that discounts really do get people who were on the fence to buy. If you want a kurta but don’t need it right away, it’s smart to wait for a sale of 20% to 25%. Retailers benefit from lowering prices on these items, so sales are real chances.

What You Need to Know About the Pattern

Pakistani shoppers are in the middle; we’re not very price-sensitive, but we’re not completely insensitive either. Here’s what you can do:

Don’t wait for sales on:

• Things you need every day, like jeans, work shirts, and underwear
• Purchases that need to be made quickly (like Eid clothes two weeks before Eid)
• Things you’ve wanted for months (if you’ll use it more than 50 times, the price per wear is worth it)
• You should definitely wait for sales on:
• Fashionable things you aren’t sure about
• Things that are “nice to have” vs. things that are “need to have”
• Things that are at the end of the season (like winter coats in February and summer dresses in September)
• More than one item (if you’re buying three or more of the same thing, wait for bulk deals)

Comparative Context: Patterns of Global Apparel Elasticity

International apparel elasticity research offers comparative standards. A study of 104 direct price elasticities for US apparel imports identified country of origin as the primary determinant of elasticity variation, with regional and product characteristics as secondary factors. After the end of the Multi-Fibre Arrangement, the overall price elasticity of clothing went up by 3.4% from the mean, which supports the “race to the bottom” idea that people switch to cheaper options.

For fast-fashion stores like Zara, elasticity segmentation shows:

• Seasonal trendy items: Prices can change a lot because demand can change a lot, so businesses can use dynamic pricing strategies during busy and slow times.
• Core basic goods: These are goods with low income elasticity and stable demand, which means they are less affected by economic cycles and can help keep a business afloat.

 

Your Shopping Strategy Guide: A Guide to Each Category

Different kinds of clothes react differently to sales. This is your helpful guide:

T-shirts, underwear, and socks are the basics.

Price sensitivity: Low—buy when you need to

Why discounts don’t matter much: You need underwear no matter what. There aren’t many other things that can take their place.

Your plan: Buy a lot of things during rare big sales, like end-of-year clearances, but don’t worry too much about waiting. A fair discount is between 15 and 20 percent. If you see a 50 percent discount, it usually means they’re getting rid of old stock.

Casual clothes for every day (jeans, casual shirts, kurtas)

Price sensitivity: Moderate—Wait for sales of 20–25%

Why discounts sometimes work: you have choices. You can wear last year’s jeans a little longer or buy from a different brand.

Your plan is to wait 2 to 4 weeks if you see something you like but don’t need right away. Stores change their sales, so you might be able to get a 20% to 30% discount. Seasonal sales (end of summer, after Eid) are a great time to buy kurtas.

Formal clothes include suits, formal dresses, and wedding outfits.

Price sensitivity: Moderate to high; timing is everything.

Why discounts work better: These are rare, high-cost purchases. You can make plans in advance.

Your plan is to never pay full price for formal clothes unless you have to. October to February is the wedding season. Buy your formal clothes between March and May, when stores are clearing out their stock. You can save 30 to 40% on the same quality.

High-End Brands (Luxury/Designer Items)

Price sensitivity: High—being patient saves a lot of money.

These things are wants, not needs, so discounts work well. You can negotiate.

Your plan is to have designer sales happen at predictable times, like at the end of the season or on the brand’s anniversary. Follow brands on social media to find out about sales. Items in the mid-range that are full price are often not as good a deal as luxury items that are 40–50% off.

Trendy and fast fashion pieces (trends that come and go)

Price sensitivity: Very High—Don’t be afraid to give out discounts

Why discounts work best: Trends don’t last long. It could be half off if you wait three weeks.

Your plan: If you’re not sure about trendy items, wait. Stores that sell fast fashion, like Zara and H&M, hold sales every 2 to 3 weeks. That “must-have” crop top will probably go on sale soon. Pay full price only if you really love it and will wear it more than 20 times.

The Bottom Line

Most Pakistani shoppers are looking for everyday clothes and basics. In these categories, moderate discounts (20–30% off) make sense, but extreme patience doesn’t pay off. You might be overthinking it if you’re always waiting for 70% off. A 25% off sale on something you’ll wear a lot is a better deal than a 60% off sale on something that stays in your closet.

Things that change how sensitive prices are in Pakistan

Limits on income and how to spend it

Pakistanis spend about US$22.63 per person on clothes each year, which is only 4.2% of their household income. This is lower than the global average for developing economies of 6.8%[1]. The income elasticity of demand (YED) for clothing in Pakistan is estimated at +0.65. This means that demand goes up with income, but not as quickly as income does.

Economic fluctuations have a big effect on how people shop. For example, during a recession, people spend 18–25% less on non-essential fashion items, but they still buy basic clothes. This two-part answer explains why most market activity occurs in the non-luxury segment.

Social and Cultural Factors

Pakistani fashion consumption is linked to efforts to preserve culture, especially when it comes to traditional clothing:

• Buying based on the occasion: Religious holidays (Eid, weddings) account for 35–40% of annual clothing sales. This means demand spikes are predictable, and people are less price-sensitive because they feel obligated to buy.
• Modest fashion requirements: Cultural norms favor certain shapes (kurtas, shalwar kameez, dupattas), which makes it hard to find products that can be used in place of others and makes cross-brand elasticity lower.
• Social signalling: People who make more money are more aware of brands. For example, people with a monthly household income of more than PKR 100,000 are 40% less likely to switch brands when prices rise.

The impact of social media and digital marketing

Social media activities have a big effect on how people think about prices by:

1. Perception of trendiness: Products marketed through influencer marketing command a 12-18% price premium while sustaining demand, thereby diminishing perceived elasticity.
2. Word-of-mouth effects: Positive user-generated content makes people less price-sensitive by making them feel like the brand is more valuable and trustworthy
3. Informative: Detailed product information (fabric details, styling suggestions, size guides) justifies higher prices and lowers return rates.

A 2025 study of clothing stores in Pakistan found that social media use accounts for 28% of the difference in the strength of the customer-brand relationship, which affects how much people are willing to pay.

The Real Story of Online Shopping: Why Trust Is More Important Than Price

Here’s a truth bomb: When you shop online, trust is more important than price. You can find the cheapest kurta online, but you won’t click “order” if you don’t trust the site. And you’re right to be cautious.

What “E-Trust” Really Means

Researchers use the term “e-trust” to describe how willing you are to take a chance on an online store. Think about it:

• You can’t feel the fabric before you buy it.
• You can’t check the fit by trying it on.
• You’re giving your money to a website that might go away
• You’re giving your address to people you don’t know
• You trust that they will really send what they say they will send

You can figure out if you have e-trust by asking yourself these three simple questions:

1.Can they really deliver? (Are they good at what they do?)

• Do they have a website that works?
• Are they able to deliver to my area?
• Do they really have the stock they say they do?

2.Do they care about me? Are they nice or just greedy?

• Will they help if something goes wrong?
• Are they fair to their customers?

Will they cheat me to make a little extra money?

3.Are they truthful? (Do they have honesty?)

• Are the pictures of the product real or did they steal them from Google?
• Do they keep charges secret until checkout?
• Will they keep my credit card information safe?

If you think a website fails any of these three tests, you won’t buy from them, no matter how good the price is.

What Research Shows About the Trust-to-Purchase Journey

Researchers looked at 400 Pakistani online shoppers and found something interesting: trust is a big part of why people buy online. Trust is the most important thing, not price, variety, or ease of use.

This is what happens to your brain when you shop online:

Step 1: You rate how good the website is

• Does it look professional or shady?
• Does it load correctly, or are there links that don’t work?
• Are the reviews from real customers?

Step 2: Quality makes people trust you (or not)

• A good website makes you think, “Maybe this is real.”
• Bad website → You close the tab right away

Step 3: Trust will decide if you really buy

• You click “place order” even if you’re not sure about the product because you trust it a lot.
• If you don’t trust the store, you’ll leave your cart even if you love the item and the price is good.
• Step 4: Your experience either makes people trust you more or ends it for good.
• If you have a good experience, you’ll come back and tell your friends.
• You had a bad experience, so you don’t go back and tell others on social media.

 

The Numbers That Are Important to You

Researchers found that Pakistani shoppers are 72% more likely to finish their purchase if they trust a website. On the other hand, better customer service and delivery only lead to 54–61% more purchases if customers don’t trust you.

Translation: You can have the best prices and products in Pakistan, but if people don’t trust you, they won’t buy. On the other hand, sites that people trust can charge a little more and still get customers.

Have you ever left a cart because the website didn’t feel right to you? That’s trust in action. You were willing to not buy something you wanted because you didn’t trust the person selling it.

Parts of E-Trust in Clothing Stores

Research specific to Pakistan identifies five key e-trust factors that impact fashion e-commerce:

1. Why 73% of Pakistanis Choose Cash-on-Delivery for Payment Security

To be honest, most of us don’t trust paying online. That’s why 73% of online orders in Pakistan are paid for with cash on delivery (COD). We really would rather deal with the hassle of having cash ready when the delivery person arrives than pay online.

There are some common fears that are not unreasonable:

“What if someone takes my credit card information?”

• “Will they take all my money?”
• “Is it safe to use JazzCash or EasyPaisa?”
• “What if I pay and they don’t send the item?”
• “Who do I tell if there’s fraud?”

 

Here are some signs that a website cares about keeping your payment information safe:

✅ They offer a lot of ways to pay: credit card, debit card, mobile wallets, bank transfer, and cash on delivery. This shows that they care about your comfort level.

1. Look for “Secure Checkout,” an SSL certificate (a padlock icon in the browser), and partnerships with well-known banks like HBL, MCB, and UBL.

✅ No strange payment requests: Legitimate sites will never ask you for your PIN, CVV, or payment through WhatsApp to a personal account.

✅ Clear refund policy: They let you know right away how long it will take to get your money back and don’t hide this information.

According to research, websites with good security features turn 34% more first-time visitors into customers. Why? Because seeing security measures makes you feel safer. When you see “Secured by Mastercard” or “SSL Encrypted,” your brain calms down enough to click “pay now.”

If you’re trying out a new website, you should start with COD. If they deliver correctly 2–3 times, think about using prepaid methods. Many sites give 5–10% off for paying online, which adds up if you buy from them often.

2. Clear and effective return policy

Return policies have a significant effect on whether people buy something and how happy they are after purchase in fashion e-commerce, where sizing issues and concerns about fabric quality are the most common. Pakistan’s fashion returns are between 9% and 11% of sales, which is a lot given the high number of orders.

Good return policies show:

• Clear time frame requirements (7 to 14 days are the most common)
• Clear condition requirements (original packaging, tags still attached, not worn)
• Clear timelines for processing refunds (5 to 10 business days)
• Easy reverse logistics (free pickup services and multiple drop-off points)

Research shows that the quality of a company’s return policy is positively related to the quality of its delivery (r = 0.401, p < 0.05). This indirectly improves overall e-trust.

3. Quality assurance for products and accurate representation

The gap between what you expect and what you get is a big reason why people don’t trust online clothes shopping. Pakistani consumers say they have three main quality concerns:

1. 1.Visual misrepresentation: Product photos that don’t show the right color, fabric texture, or fit of the clothes, which is why 42% of returns happen.
2. 2.Discrepancies in the quality of the materials: the fabric’s composition doesn’t match the descriptions, especially when it comes to blends of synthetic and natural fibers.

• 3.Construction problems: The quality of the stitching, the way the buttons are attached, and the way the zipper works were all found to be bad when the item was delivered.

Platforms that use quality assurance signals, such as detailed fabric specifications, photos from different angles, customer review sections with pictures, and guarantees of authenticity, see a 23–28% drop in returns due to quality issues.

4. Delivery Dependability and Punctuality

Logistics performance has a direct effect on how much people trust you and how likely they are to buy from you again. A study on the quality of e-commerce delivery in Pakistan found that logistics capability has a moderate positive correlation (r = 0.488, p < 0.001) with the overall perception of delivery quality.

Important delivery factors are:

• Communicating the delivery time frame accurately (not making promises that can’t be kept)
• The ability to track shipments in real time
• How the product looks when it arrives (the quality of the packaging and how well it protects against damage)
• Professionalism and communication of delivery people

For fashion purchases that need to be delivered quickly (like for a wedding, festival, or event), delays cause trust to drop more than it should. 67% of customers say they are completely unhappy when clothes don’t arrive before the event, even if they have had other good experiences.

5. How quickly customer service responds

The quality of customer service interactions has a significant effect on how happy customers are after a purchase and how likely they are to buy again. Research shows that customer support is positively associated with delivery quality, though not as strongly as other factors (r = 0.386, p < 0.001). This suggests that customer support is more of a “hygiene factor”—not having it makes people unhappy but having it doesn’t necessarily make them happy.

Here are some things that good customer support should have:

• Access through more than one channel (phone, email, WhatsApp, live chat)
• Response time promises (within 24 hours for email and right away for chat)
• Representatives with the power to solve problems without having to go up the chain
• Talking to each other ahead of time about changes in order status or problems

How Trust Affects How You Shop (Before, During, and After)

Before You Buy: Trust Makes You Stronger

Have you ever noticed that you shop differently on Daraz than on an Instagram store? That’s trust working behind the scenes.

When you have faith in a website:

• You feel less worried: Studies show that trusted sites lower your perceived risk by about 54%. Clicking through products literally makes you feel better.
• You look at more things: On trusted sites, shoppers look at 2.3 times as many products. Why? You aren’t afraid to click because you know you can return things if you need to.
• You don’t care as much about price: Here’s a surprise: when you trust a store, you become 18–22% less price-sensitive. At a trusted site, you’ll pay PKR 1,800 instead of waiting for PKR 1,500 at a sketchy one.

If you don’t trust a website:

• You only buy one or two things and then leave right away
• You take screenshots of everything “just in case they scam me.”
• You only buy if the discount is huge (60–70% off) because you’re taking a risk.
• You probably leave your cart at checkout

Think about your own habits: You might order from Khaadi.com or a well-known brand without giving it much thought. You want proof (reviews, delivery videos, payment security) on a new Facebook page before you risk even PKR 1,000.

Stage of Purchase: Payment and Conversion

E-trust decides whether someone who is just browsing will convert at the crucial moment. A study of Daraz.pk, Pakistan’s biggest online store, found that trust is the most important factor affecting conversion (β = 0.72, p < 0.001).

The dynamics of the purchase stage show:

• Reducing cart abandonment: High-trust platforms have 35% lower cart abandonment rates because customers feel more secure about payment and know they can return items easily.
• Moderation of cash-on-delivery preference: For consumers who rate platform trust as “high” or “very high,” the number of people who choose to pay in advance goes from 27% to 51%, which lowers logistics costs and fraud risk for retailers.
• Increase in purchase value: Trusted retailers have an average order value that is 28% higher than other retailers, because customers feel safe buying multiple items and high-end products.

After Delivery: Why Trust Is What Makes You Come Back

The package came. You opened it. What now? How much you trust the store before you buy something there will have a big impact on whether or not you go back.

When you already trusted the site and they did a good job:

✨ You’re not just happy; you’re overjoyed. Getting a good delivery from a trusted seller makes you feel like you made the right choice. Studies show that this makes you 23 to 31 points happier than getting the same quality from a site you didn’t trust.

You tell everyone that happy customers from sites you trust leave 3.7 times as many positive reviews and recommendations. You’re not just happy; you want to tell everyone. “Order from XYZ; they’re great!”

You become a loyal repeat customer: Trust makes you 47% more likely to buy again, even before you consider whether you’re happy with your purchase. You say to yourself, “They were trustworthy before; they’ll be trustworthy again.”

When you bought something from a website that wasn’t very trustworthy and got a good product:

You’re not impressed; you’re relieved. “Thank God they actually sent it!” is not the same as “Wow, great experience!”

You don’t recommend them: You got lucky, but you’re not sure other people will. Why put your reputation on the line?

😐 You could buy again… Maybe: You’ll think about them if the deal is too good to pass up, but you won’t put them first.

The big difference is how problems are solved.

Think about getting the wrong size kurta.

Scenario A: A website with a lot of trust:

• You tell them about the problem and expect them to fix it: 42% more likely to complain than customers who don’t trust them
• They offer an exchange or refund: 78% of customers are happy with the solution
• You order again later: 71% will buy again even though there was a problem at first
• You thought, “Mistakes happen, but they dealt with it well.”
• Scenario B: A website with low trust:
• You report with some hesitation, expecting a fight: Much less likely to even bother complaining
• They offer a solution, but only 34% of customers are happy with it (you don’t trust their motives).
• You order again: Only 18% will take the chance of buying again
• You thought, “Never again. I told myself this would happen.”

 

The referral multiplier:

68% of new online shoppers in Pakistan start shopping because a friend or family member told them about a site. This means:

• One good experience leads to 4-5 people becoming customers.
• One bad experience makes you tell everyone to stay away from the site.

Retailers know this, which is why smart ones invest heavily up front to build trust. Your word-of-mouth is worth more than what they spend on ads.

The Trust-Loyalty Continuum

E-trust progression follows a developmental continuum from initial tentative transactions to committed loyalty:

• Calculative trust (transactions 1-2): Based only on a logical evaluation of security policies and mechanisms; very weak and dependent
• Knowledge-based trust (transactions 3–6): Grows through repeated good experiences and starts to allow people to buy things on a regular basis.
• Identification-based trust (transactions 7+): A strong psychological bond between the consumer and the brand’s values; very strong against negative experiences that happen alone.

Pakistani e-commerce data shows that only 23% of first-time buyers reach transaction 3. However, those who do have a 68% retention rate over 12 months, which shows how important it is to build trust early on.

Your Plan for Smart Shopping

Here’s your practical guide to becoming a smarter Pakistani fashion shopper based on everything we’ve talked about:

For Different Kinds of Products

Basics (Underwear, Socks, and Basic Tees):

• ✅ Buy when you need them; don’t worry about waiting for sales
• ✅ Buy a lot when there is a real clearance (November to December, end of season)
• ❌ Don’t wait months for a 50% discount; your time is valuable.
• Sweet spot discount: 15–20% off is fair; anything more is a bonus.

Fashion that is popular (jeans, kurtas, and casual shirts):

• Wait 2 to 4 weeks for regular sales of 20 to 25%
• ✅ Buy at the end of the season to save 30–40%
• ❌ Don’t buy right away unless you need it for something next week
• Sweet spot discount: 25–30% off is the point where value and availability meet.

Formal Clothes (Suits, Wedding Outfits):

• Plan ahead—buy off-season (for winter wedding clothes, March to May)
• ✅ Wait for sales after the season ends (30–50% off is common)
• ❌ Don’t ever pay full price unless it’s an emergency
• Sweet spot discount: 35–45% off makes pricey things worth it

Fashion that changes quickly:

• Wait at least three to four weeks; trends go on sale quickly.
• Follow brands on social media to find out about flash sales
• ❌ Don’t pay full price for trends you aren’t sure about
• The sweet spot for discounts is between 40% and 60% off.

Your Trust Checklist for Checking Out Online Stores

Check this list before you buy anything from a website, especially a new one. The more boxes they check, the safer your money is:

🔒 Payment Security (IMPORTANT—Check This First)

✅ Signs of a good thing:

• Gives customers the option to pay with cash on delivery (shows they trust their product)
• Accepts a variety of payment methods, such as cards, mobile wallets, and bank transfers.
• Displays security badges, like “Secure Checkout” and an SSL padlock in the browser
• Works with well-known payment gateways like HBL, MCB, EasyPaisa, and JazzCash

❌ Warning signs:

• Only takes bank transfers to personal accounts
• Sends a WhatsApp message asking for payment
• No COD option (why? Do they not want returns?)
• The URL of the website doesn’t start with “https://

Return Policy (IMPORTANT—Check This Second)

✅ Good signs:

• The website says that returns are accepted within 7 to 14 days.
• Certain conditions must be met (tags attached, unworn, original packaging)
• The time frame for refunds (5 to 10 business days is normal)
• Gives you the choice to exchange or get your money back
• Gives clear instructions for reverse pickup or return

❌ Warning signs:

• There is no mention of a return policy anywhere
• “All sales final” (only okay for clearance items that are heavily discounted)
• Language that isn’t clear (“returns accepted in some cases”)
• You have to pay to send back broken items.

✨ Quality of the Product (HIGH PRIORITY)

Green flags:

• Detailed descriptions of the products, including the type of fabric, the size, and how to care for them
• Several pictures of the same product from different angles
• Reviews from customers with pictures uploaded
• Height and size of the model are given for reference
• Certifications for fabrics (OEKO-TEX, GOTS for claims about “organic” or “safe”)

❌ Warning signs:

• Stock photos (search for the image on Google; if it shows up somewhere else, it’s stolen)
• No information about the fabric (just “premium material” with no details)
• No reviews from customers (on a site that has supposedly been around for years?)
• Every review is five stars and has the same text (“great product!”).

🚚 Delivery Reliability (VERY IMPORTANT)

✅ Good signs:

• The estimated delivery time is given (3–7 business days is a reasonable time for Pakistan)
• Gives you tracking numbers
• Has reviews that talk about the delivery experience
• Clearly states where deliveries can be made
• Shows the packaging in pictures of customer reviews

❌ Warning signs:

• “Delivery in 2–4 weeks” for local items (why does it take so long?)
• No tracking given
• Reviews say that packages are damaged
• Not sure which areas they deliver to

💬 Customer Support (MODERATE PRIORITY—Good to Have)

✅ Good signs:

• Several ways to get in touch (phone, WhatsApp, email, social media)
• Answers comments on social media (look at their Facebook and Instagram)
• Lists the hours for customer service
• An active “Help” or “FAQ” section

❌ Warning signs:

• No phone number (only WhatsApp to a personal number)
• Doesn’t answer comments on social media
• Your email bounces back or goes unanswered for days

Framework for Quick Decisions

TIER 1: Trusted (You can buy with confidence)

• Checks off all of the most important boxes and most of the high-priority boxes
• For example, sellers on Daraz Mall and the websites of well-known brands like Khaadi, Gul Ahmed, and Sapphire

TIER 2: Be careful and start with COD

• Checks off important boxes, but doesn’t have all the quality signals
• Examples: Newer online brands that have a good web presence, Instagram shops that show proof of customer reviews

TIER 3: High Risk (Only if the deal is too good to pass up)

• Not getting important trust signals
• Strategy: COD only, take screenshots of everything, and place a small test order first
• Examples: random Facebook pages and personal WhatsApp businesses

TIER 4: Stay Away From It

• Many warning signs, especially problems with payment or return policies
• No way to fix things if they go wrong
• Examples: websites that don’t have contact information, ask for payment up front to personal accounts, and don’t have a return policy

Targeting and Segmentation

Different groups of consumers have different levels of price sensitivity and trust needs:

• Young millennials (18–28): They are more likely to change their minds about prices, trust digital information more, and respond to social media marketing. They also value partnerships with influencers and mobile-friendly experiences.
• Established professionals (29–45): They are moderately price-sensitive, value quality over price, and need strong signals of authenticity. They should focus on premium product lines with detailed information about where they come from.
• Traditional consumers (45 and up): Known brands are less likely to change their prices, and they are harder to trust. Focus on personal customer service, clear policies in Urdu, and cash-on-delivery options.

Decisions about platforms and channels

The 73% preference for cash on delivery shows that people still don’t trust digital payment systems. Retailers have to make strategic choices:

• Accept COD: Keep access to the market, but pay 8–12% more to fulfill orders and 15–18% more to return items because customers are less committed to buying them.
• Encourage prepayment: Give 5–10% off for orders that are paid for in advance. This will help build trust in the payment system over time and improve unit economics.
• Work with payment providers you can trust: Work with well-known banks (HBL, MCB, UBL) and fintech platforms (JazzCash, EasyPaisa) to take advantage of the trust they already have from customers.

Problems and Future Research Directions

Managing the Return Rate

Fashion returns of 9-11% come with high costs, including reverse logistics, inventory devaluation, and increased operational complexity. It takes a lot of work to find the right balance between liberal return policies (which build trust) and financial sustainability (which keeps costs down):

• Using AI-powered size recommendation engines to cut down on returns due to fit by 25–30%
• Giving partial refunds or store credit for returns because of “change of mind” while giving full refunds for returns because of defects
• Making “final sale” categories for items that are deeply discounted and can’t be returned for a good reason

Problems with fake goods and quality control

Counterfeit products are entering Pakistan’s online clothing stores, posing an especially harmful threat to the luxury and branded markets. Quality inconsistency erodes trust at the systemic level, necessitating industry-wide interventions:

• Third-party services that verify the identity of premium brands
• Tracking the history of high-value items using blockchain
• Government rules that set minimum standards for e-commerce quality and protect consumers

Building the infrastructure for digital payments

The prevalence of cash-on-delivery indicates essential deficiencies in the payment ecosystem. To solve these problems, retailers need to work together in ways that are outside of their control:

• The banking industry puts money into ways to find fraud and settle disputes
• Campaigns to teach consumers about payment security features
• Rules that keep people safe from digital payment fraud
• More places that accept mobile wallets and more things they can do

Future Research Plan

Several research gaps necessitate exploration:

• Longitudinal elasticity tracking: How do price elasticity coefficients change as Pakistan’s economy grows and people have more money to spend?
• Cross-category elasticity analysis: What are the patterns of substitution between traditional and Western clothing, and how does cultural preservation change these patterns?
• Trust recovery mechanisms: What specific interventions are most effective in restoring trust after negative experiences within the Pakistani cultural context?
• Factors that build trust in mobile commerce: With 81% of people owning a smartphone, how do mobile-specific things like app design, biometric payment, and mobile customer service affect trust?

5.Sustainable fashion price premiums: What trust mechanisms allow people to pay 15–30% more for eco-friendly clothes when money is tight?

Final Thoughts

Pakistani clothing buyers exhibit demand patterns that are either price-inelastic or close to unit-elastic, with elasticity coefficients ranging from -0.85 to -1.2 for mainstream categories. This relative price insensitivity is due to a lack of alternatives, cultural clothing needs, and consumption driven by necessity, especially in the non-luxury segment, which makes up 96.2% of the US$5.66 billion market. Strategic pricing must account for the different levels of elasticity within each category. For example, inelastic basics can be priced consistently and trusted to bring in more money than discounting, while near-unit elastic fashion items can be used in targeted promotional strategies during seasonal inventory clearance.

E-trust is the most important factor affecting how people buy things online, accounting for 33.9% to 49.5% of the difference in behavioural intention. Its influence extends beyond pre-purchase conversion, fundamentally affecting post-purchase satisfaction, complaint behaviour, service recovery efficacy, and customer loyalty. The five most important trust factors—payment security, clear return policy, product quality assurance, reliable delivery, and quick customer support—make up a complete framework that needs systematic investment prioritisation.

Retailers in Pakistan’s evolving digital marketplace can develop smart strategies by combining their knowledge of price elasticity and e-trust. Recognising that popular fashion items have demand that is not very elastic (-0.89 to -1.18) indicates that pricing power exists when trust mechanisms are strong enough to reduce perceived transaction risks. On the other hand, when trust is low, price becomes the main weapon of competition, leading to a race to the bottom that harms the industry’s profits.

To move forward, we need to make progress on two fronts simultaneously: making the economy more efficient through elasticity-informed pricing and building relationships by developing trust infrastructure. The growth of Pakistani apparel e-commerce depends not only on more platforms and better logistics, but also on building the basic trust structures that turn tentative transactions into long-term customer relationships. In a market where 73% of transactions still happen with cash on delivery, the most extreme form of digital distrust, building trust remains the most important thing to do.

As Pakistan’s clothing market faces an expected contraction (-2.29% CAGR through 2029) due to economic headwinds, retailers with both elasticity-based pricing discipline and trust-architecture excellence will deliver greater value than others. The people who win will be the ones who understand that in new digital markets, trust isn’t just a competitive edge; it’s the basis for all e-commerce value creation.