3. Outlook for consumer behavior in 2026

Reshaping desirability for algorithmic consumers

The global fashion sector is entering a new strategic cycle. This is characterized by profound changes in consumer behavior and requires a reassessment of how clothing companies create desire and remain visible. Amid ongoing economic uncertainty and geopolitical tensions, the industry is struggling with structural change. This is being driven by artificial intelligence (AI), a general shift towards authenticity and value, and the unstoppable rise of ultra-fast fashion platforms.

It would be short-sighted for leaders to view these dynamics as just a technical challenge or a passing trend. Xavier Romatet, Director General of the Institut Français de la Mode (IFM), explained: “We are living through a complex, dangerous and exciting time because the actors in fashion are being completely redefined” (in English). Success in 2026 will depend on a brand’s ability to invest in strategic data infrastructure, emotional resonance and trusted engagement.

Digital dominance and the rise of artificial intelligence

AI becomes a personal stylist and gatekeeper

Artificial intelligence is quickly developing from a technical tool into a constant companion of consumers. This fundamentally changes the relationship between people and brands. Today, AI is a personal stylist, confidant and emotional anchor in the purchasing process. This is proven by the study ‘Consumer Pulse 2025’ by Accenture. It found that around 30 percent of active users already trust AI tools for shopping and style advice. In addition, the Kantar Marketing Trends 2026 report finds that 24 percent of AI users rely on an assistant when choosing products. Every second active user has already made a purchase based on an AI recommendation.

This shift in the purchasing decision transforms e-commerce from a static experience – a “search bar and a long list of item answers,” as Doug McMillon, president and chief executive officer (CEO) of Walmart, Inc., describes it – into a dynamic, personalized and contextual experience.

Generative Engine Optimization (GEO) is the new SEO

The changing role of search means that visibility is no longer achieved through search engine optimization (SEO) alone. Consumers formulate complex questions and expect immediate, personalized answers. This makes generative AI the first point of contact.

For brands, the crucial question now is: “Is a brand clear enough to be recommended by an AI agent?” Success depends on the transition to Generative Engine Optimization (GEO). This requires content to be designed in a way that AI systems can recognize, understand and recommend. This requires a consistent tone of voice, an emotional approach, precise product data and a clear brand identity. Poorly detailed product descriptions, inaccurate size tables or a lack of transparency are now significant disadvantages for the algorithmic ranking. Brands that passively feed their content and brand assets into AI ecosystems risk becoming invisible in the recommendation process.

The next step is Agentic AI, which carries out tasks autonomously. With 75 percent of consumers open to trustworthy AI doing their shopping (Accenture’s ‘Consumer Pulse 2025’), traditional touchpoints like banner ads and websites may increasingly be bypassed.

Changing consumer mindsets and new purchasing incentives

The ‘less but better’ philosophy and ‘Treatonomics’

Consumers are increasingly striving for a calm, value-oriented and balanced lifestyle. Euromonitor calls this the ‘comfort zone’ trend. They actively look for ways to simplify their lives. They are focusing on a new standard of living: “less but better – with a clear focus on simplicity, emotional balance and practical everyday routines,” according to Euromonitor. This prioritizes emotional balance and comfort and requires brands to provide stability and guidance.

At the same time, the rise of ‘Treatonomics’ confirms that emotional purchases remain a key driver. The Kantar report finds that 36 percent of consumers are willing to go into slight debt to treat themselves. In fashion, this economic context is leading to the rise of limited-edition capsule collections, high-end accessories, and small, affordable pieces with a “luxury feel.” Impulse purchases are refocusing on items with high emotional value that offer instant gratification.

The imperative of authenticity and the ‘relentlessly unfiltered’ consumer

The luxury segment’s long-standing dependence on spectacle and hype-driven marketing is waning. Instead, substance is required. The audience is now well versed in the mechanics of fashion marketing. It understands that viral moments are often staged and not random.

In response, consumers are embracing the ‘Fiercely Unfiltered’ trend. You choose radical honesty and courageous self-expression. Authenticity is a non-negotiable requirement because more than 50 percent of consumers only buy from brands or companies they completely trust. This is also reflected in the broader market: the Deloitte study ‘Brand Connection, The Age of Meaningful Brands’ found that 45.7 percent of respondents do not feel a connection to any brand. This underlines that loyalty can no longer be taken for granted. Andrea Laurenza, Consumer Industry Leader at Deloitte Central Mediterranean, commented: “Brand relevance is not a static attribute, but an asset that needs to be continually maintained.” Relevance arises when a brand is perceived as authentic and consistent. It reflects the values ​​of consumers and helps them to express their personality.

For high-end fashion, cultural leadership becomes crucial. Brand strategist and author Ana Andjelic points out that brands like Hermès and Prada maintain their pricing power and resilience because they invest in coherent cultural identities and shape trends rather than simply reflect them. In this post-hype phase, “authenticity is no longer a slogan, but a strategic imperative” (‘The Sociology of Business’, Substack).

Recalibrating luxury: experience instead of possession

Global luxury markets are resilient but no longer immune to macroeconomic complexities. According to Bain-Altagamma’s ‘Luxury Goods Worldwide Market Study’, overall spending on luxury goods remained largely stable. However, this belies a profound change: luxury consumers continue to prioritize experiences over possessions. Claudia D’Arpizio, senior partner at Bain & Company, noted: “After the era of shopping frenzy, experiences and emotions have become the true growth engine of luxury.”

The customer base is shrinking and fragmenting. The number of luxury consumers fell from 400 million in 2022 to around 340 million in 2025. While the ultra-rich continue to sustain demand, aspiring consumers have retreated. Even the biggest spenders, who make up about 46 to 47 percent of the personal luxury goods market, have not increased their spending further this year. Spending is shifting towards experiences, affordable alternatives and resale. This suggests a shift in the way consumers engage with luxury.

Operational and strategic implications for apparel companies

Data and the new visibility tax

The structural shift towards AI is creating new channels that require strategic investments. The spectacular growth of retail media networks (RMNs) is a crucial development. These are sales platforms such as Zalando and Amazon, which become full-fledged advertising environments. Kantar reports that RMNs perform 1.8x better than traditional digital advertising. But this success comes with a growing reliance on what is essentially a new “visibility tax” on brands.

This is exacerbated by increased geopolitical and competitive pressures. For example, the French fashion ecosystem is under pressure from Chinese industry platforms such as Shein and Temu. Ultra-fast fashion and second-hand fashion account for 13 percent (IFM) of the French clothing market by value. The trio of Shein, Temu and AliExpress accounts for six percent of apparel purchases by volume. Euromonitor finds that four-fifths of the top-selling retailers in global e-commerce in 2024 were from or headquartered in China.

The sustainability requirement

Sustainability has evolved from a market preference to a non-negotiable requirement. Today, consumers, especially younger target groups, expect clear, verifiable information about materials, procurement and impacts. John Higginson, Chief Executive Officer (CEO) of Eco Age, emphasizes: “The biggest change is the shift from narrative to evidence.” Brands are required to back up their claims with independent verification, not vague language. Attempts to gloss over gaps will result in accusations of greenwashing.

Clothing companies are now faced with stricter regulations in the EU. These include the Digital Product Passports (DPPs) and the Green Claims Directive. These will limit blanket claims without substantiated, product-related evidence. Higginson highlights that most brands only have visibility into their first tier of suppliers. Nevertheless, “traceability is often the quickest gain” through technologies that provide forensic proof of origin, such as DNA tagging.

The future of stationary retail

Brick-and-mortar retail is transforming into a curated, AI-powered showroom. AI-supported tools take over repetitive tasks. This frees up employees to act as brand ambassadors and curators. Employees gain access to customer profiles with style preferences and previous purchases. You can use technologies like smart mirrors to view and adjust AI suggestions live. This enables an interactive, emotionally charged experience where digitally generated recommendations become tangible and ultimately build trust.

The path for fashion is clear: to ensure a lasting presence in customers’ decision-making processes, brands must shift their focus. Instead of just focusing on product and image, they must master the invisible infrastructure of data, AI and ethical integrity.