What began as an “open secret” in fashion, a quiet recommendation among editors, has developed into a market-leading company in 2025. This year the data has now officially followed suit.
Demand for the H&M-owned label has increased exponentially over the last five years. COS ranked 17th in Lyst’s index of most sought-after fashion brands in the fourth quarter of 2024. By the fourth quarter of 2025, COS secured third place for two consecutive quarters, remaining on the podium of the most sought-after brands.
Carmen Martínez Ferrer, Senior Data Analyst at Farfetch and founder of @thedatafashionbrief
As a senior data analyst at luxury online store Farfetch, she integrates AI into marketing analysis and campaign optimization to drive data-driven growth. Ferrer is also the founder of the Instagram and TikTok accounts The Data Fashion Briefwhich provides fashion news from a data perspective.
The Data Paradigm: Beyond the Hype
When COS took third place, placed between the hyper-luxury of Miu Miu (second place) and American heritage brand Ralph Lauren (fourth place), one thing became clear to industry insiders: it was the validation of a strategy that, at the perfect moment, prioritized wardrobe infrastructure over trend-chasing.
The numbers speak for themselves:
– Rapid rise of 14 places in the list of most sought-after brands in a single year
– Increase in demand by more than 60 percent compared to the previous quarter in the final months of 2025
– The hero product effect: Cashmere knitwear, oversized coats and the quilted bag in particular recorded an increase of over 3000 percent. This made the brand a high volume market leader.
1. The “Elevated High Street” sweet spot
COS occupies the ideal place in 2026 fashion. The brand is neither disposable fast fashion, although it comes from H&M, nor prohibitively expensive luxury. At a time of global financial stress, COS offered the aesthetics of The Row and Loro Piana at a price ten times lower. The brand thus successfully took up the “Quiet Luxury” aesthetic. This started in 2023 and has developed into an enduring wardrobe theme to this day.
2. The decisive growth: David Hägglund’s vision and the “Elevation Game”
The brand’s rise is inextricably linked to the leadership of Chief Brand Officer David Hägglund and Design Director Karin Gustafsson. Their strategy was not to compete with Zara on speed, but with luxury brands on cultural capital.
In early 2025, COS held its Spring/Summer 2025 fashion show in an ancient Greek marble quarry – a masterpiece of perception control. By inviting icons like Adrien Brody and Sharon Stone to a location reminiscent of the Acropolis, COS signaled that the brand belongs in the same league as the fashion elite.
This momentum continued in September 2025 when COS returned to New York Fashion Week for the fourth consecutive year. The fall/winter 2025 show took place in a warehouse in Brooklyn and was all about urban minimalism. With guests like Naomi Watts and Jodie Turner-Smith in the front row, the brand made the transition from a “high street alternative” to an equal competitor to luxury houses.
The Atelier collection: price signals as a strategy
This upgrade is physically manifested in the “COS Atelier” collection. Since its debut at NYFW in 2022, Atelier has stood for high-quality craftsmanship. The collection introduced exclusive pieces such as a crocodile leather coat with prices over 1,000 euros. In doing so, the brand signaled that it can also compete with luxury.
Although these items are only produced in limited quantities, their presence conveys to customers: “We have the same supply chain and design rigor as brands that charge five times more.” As CEO Daniel Herrmann noted in his interview for the “State of Fashion 2026” study, it is this “authentic precision” that appeals to “displaced” luxury buyers. They are looking for a smarter investment.
The result is a complete shift in perception: consumers no longer feel like they are buying from a mass market retailer. You feel like you are immersed in a curated world.
3. Virality as an entry point: How new buyers become loyal customers
The extremely viral quilted bag (45-90 euros) or the chunky knit cashmere sweater (250 euros) were door openers. They brought Generation Z and Millennials into stores. But virality alone doesn’t ensure growth over five years.
These articles served as a low-risk introduction to a new target group. Once in the store, customer loyalty took over. Customers who came for a trend returned for the core of the brand. Virality drove the volume, but the quality of the wardrobe infrastructure drove customer loyalty.
4. Why it works now: The “Low Regret” economics
In the 2025 economic climate of price sensitivity and sustainability concerns, COS wins because it minimizes “buyer’s remorse” and offers:
– Macro shift: Consumers are switching from luxury to cheaper alternatives as buyers have become more price sensitive, but refuse to give up the feeling of a conscious, quality purchase.
– Aesthetic stability and sustainability on the rise: microtrends are over, vintage shopping is in high demand and customers are making more conscious decisions. COS offers a consistent, reliable identity that doesn’t feel like fast fashion.
– Focus on materiality: By using GCS-certified cashmere and hydroponically grown cotton, the brand meets the ethical needs of younger audiences without the luxury premium.
The forecast for fashion brands for 2026
As CEO Daniel Herrmann noted to The Business of Fashion (BoF), COS has successfully mastered the “Elevation Game.” The brand transformed from a value player to a bridge-to-luxury powerhouse by combining the efficiency of a global supply chain with the integrity of an architect’s house.
The success of COS leads to a clear forecast for 2026: the era of quantity over quality is coming to an end. We’ve officially entered a slow fashion culture where value means being environmentally conscious but obsessed with quality. Because luxury for a few is too insignificant to change the world, and scalable sustainability is the only way forward.
Real change doesn’t come from a small boutique selling five organic shirts. It has to come from a global giant that proves that industrial infrastructure can be made to last. From 2026, EU regulations (ESPR) will prohibit the destruction of unsold textiles. Therefore, COS’s affordable, scalable and sophisticated ethos is no longer perceived by consumers as a greenwashing campaign. Rather, it is seen as a compliant, profitable and future-proof business model. Brands should remember this if they want to stay in the game.
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