Recent data has illuminated significant trends within the fashion industry, particularly how various brands are grappling with economic pressures. These figures suggest that many companies have notably raised their prices across diverse product categories while simultaneously restructuring their promotional efforts in light of macroeconomic factors, including inflation and rising international tariffs.
A significant finding from the study is the mid-market fashion sector, which now stands as the leading driver of value within the industry, outpacing even the luxury category. This shift highlights a transformation in consumer behavior and purchasing preferences, shifting focus toward brands that present high-quality offerings at a more accessible price point.
Brands operating in this mid-market segment are tactfully adopting refined designs and curating their collections to carve out a distinct space away from traditional mass-market competitors. By embracing unique aesthetics and a more selective approach to product offerings, these brands are not only distinguishing themselves but also appealing to discerning consumers seeking exclusive yet affordable fashion options.
In a striking move, mid-market fashion brands have implemented considerable price increases relative to previous years. Research indicates that between 2024 and 2025, brands in Europe raised prices by 50%, while the US saw these figures double, reflecting a robust repositioning effort to align with changing market dynamics.
A closer examination reveals notable price increases across various product categories. For instance, denim prices surged by 9% in Europe and a staggering 20% in the US, showcasing the ageless appeal of this staple. Similarly, winter footwear prices reflected a 9% increase in Europe and an impressive 19% rise in the US, driven primarily by growth in the mid-market segment, particularly among design-oriented brands. Additionally, coats and jackets saw increases of 11% in Europe and 13% in the US, capitalizing on an expanding product range.
Handbags experienced the most substantial price hikes, climbing by 33% in Europe and 38% in the US. This trend has been largely influenced by luxury fashion houses and amplified through social media channels, reflecting the pervasive impact of digital marketing on consumer choices. Accessory items and lucky charms were not left behind, with prices increasing by 15% in Europe and 16% in the US, showcasing a wider adoption of fashion statements among consumers.
As brands adapted to these economic changes, their promotional strategies have also evolved. A trend has emerged where brands are offering lower average discounts while extending the duration of promotions. Data shows that, in Europe, from September to December 2025, the average discount rates and the proportion of discounted products declined significantly compared to prior years. This is indicative of brands’ strategies to maintain pricing power in a market increasingly marked by cautious consumer spending.
The report attributes these shifts to various economic pressures, notably the rise in UK consumer price inflation, which reached 3.4% in December 2025. Such inflationary pressures have impacted consumer spending habits, leading to more cautious purchasing decisions. Concurrently, US tariffs ranging from 15% to 50% have escalated import costs for brands exporting to that market, prompting selective price hikes that risk constraining demand.
In this context, Lectra characterizes the current economic landscape as a “K-economy,” where high-income consumers continue to spend freely, while others withdraw from discretionary spending. This environment necessitates a more nuanced approach to pricing and promotions, compelling brands to tailor their strategies precisely to different consumer segments to optimize market positioning.
Antonella Capelli, Lectra’s EMEA president, elaborates on these market dynamics, stating, “Brand strategies reflect market challenges. Today, product ranges are becoming more streamlined, and collections are curated more intentionally. At the same time, discounting strategies are shifting: discount rates are decreasing, but promotional periods are becoming longer, as brands aim to preserve pricing power without losing momentum in a market marked by cautious consumer spending.”
In this rapidly changing landscape, leveraging advanced technologies to gain insights into market trends is becoming increasingly vital. This allows brands to align their strategies with consumer expectations while ensuring robust commercial performance and efficient inventory management.
“New data shows mid-market fashion outpacing luxury in sector growth” was originally published by Just Style, a GlobalData owned brand.
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