The data from the Retviews study by Lectra suggests growth in the fashion sector will be driven by volume rather than value, signaling a potential shift in brand strategies.
Global uncertainty is permeating the fashion industry, with only 20% of sector leaders anticipating improvements this year, says the study.
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It also notes that factors such as waning consumer confidence, which is at its lowest since the pandemic, decreased discretionary spending, and complex geopolitical issues including US tariffs are contributing to market instability.
Lectra analysed real time data provided by its AI-driven solution Retviews to understand the impact of the situation on global brands.
Lectra EMEA president Antonella Capelli said: “Assortment optimisation, increased sell-through (i.e., the percentage of products sold compared to those available), and more accurate market monitoring will be crucial to success, even in such an uncertain environment.
“Knowing how to leverage technology to obtain and analyse real-time market insights is therefore essential for adjusting your pricing approach, ensuring alignment with consumer expectations while also meeting business performance and inventory management needs. At Lectra, our mission is to accompany brands along their digital transformation journey, offering them the best tools to make well-informed decisions.”
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By GlobalDataFashion sector shifts as luxury brands slow and fast fashion fades
Facing a slowdown in luxury brand performance and a consumer move away from fast fashion, retail fashion brands are reinventing their strategies.
Some are aiming for the premium market, hiring talent to break into luxury, while others focus on enhancing their image.
The Retviews study highlights this shift, showing mass-market brands like Inditex’s Zara and Fast Retailing’s Uniqlo are expanding their ranges above the €25 ($29.11) mark and reducing lower-priced offerings, indicating a strategic move towards higher-value products.
US brands are also adjusting their pricing strategies with more products in higher price brackets.
Despite these shifts, consumer cost-consciousness remains high, necessitating real-time market trend analysis for optimal pricing strategies.
Inflation, tariffs and price increases
Non-luxury brands in Europe are poised to drive the fashion industry’s growth in 2025 leading to notable changes in pricing strategies across various categories.
Retviews data revealed that Europe experienced a 7% price growth over the last year with average prices rising from €38 in 2023 to €42 in 2025.
The US saw a 3% increase in average price from $57 in 2023 to $64 in 2025. The long-term effects of possible US tariffs could further influence pricing dynamics.
Compared to 2024, there has been a significant increase in the prices of non-luxury leather goods, with bags and wallets/cases seeing a rise of 20% and 23%, respectively.
Entry-level T-shirts and Ivy League-style polo shirts have also experienced price hikes of 8% and 4%.
In contrast, leggings are facing a price decrease of 3%, affected by the surge in activewear’s popularity, which has fostered global communities and influenced mainstream fashion brands to lower prices and streamline their offerings.
Year-round discount trends reshape retail strategies in fashion industry
In Europe, discounts started earlier in January 2025 than previous years, with over 40% of inventory discounted within a week due to seasonal sales.
Although discount rates were lower than in 2024, they remained stable at around 20% for a longer duration, as per the study.
Brands like Uniqlo maintain low consistent prices year-round to protect their brand image as providers of essential basics.
Meanwhile, Zara and Mango capitalise on traditional seasonal sales, with consumers often delaying purchases in anticipation of discounting events.
