Does the fashion industry be questioned at the interface of controlled inflation and the comet-like rise of Ultra-Fast-Fashion?

On the surface, the prices for fashion have only increased moderately – only 10 percent in the past 30 years, significantly less than general inflation (+49 percent in the same period). However, this apparent stability hides profound structural changes. The gap between the market segments has increased, especially between Ultra-Fast fashion and brands of the middle price segment. Today, an article in the middle price range can cost up to three times as much as a shein similar product. This growing disparity disturbs the industry dynamics and weakens premium and entry-level luxury brands, which are trapped between the affordability of ultra-fast fashion and the exclusivity of luxury. The wave of shop closures in the middle price segment in recent years is a clear indication of this susceptibility.

At the conference “2024 Review and 2025 Outlook” of the Institut Français de la Mode (IFM) on Thursday, February 13th, in Paris, emphasized Gildas Minvielle, director of the IFM Economic Observatory: “Brands must now use price -sensitive consumers: Inside Trying out or risking, losing market shares. “

However, this price -orientation is more than just adapting the price points. It reflects a more profound change in consumers’ expectations: inside, with a growing demand for more transparency in the price-performance ratio. The term “fair pricing” is developing, driven by the rise of second-hand fashion and the increasing perception that new articles have become too expensive. As a result, brands have to work more to justify their added value compared to increasingly demanding customers.

Secondhand fashion: a new growth engine?

In response to this changed dynamic, second-hand mode develops into a strong transformation. In 2024, 58 percent of the brands surveyed by the IFM offered second-hand products, with the market in France estimated at almost 6 billion euros-this corresponds to 12 percent of total sales. The success of C2C platforms such as Vinted reflects the strength of this trend, which is driven by consumers: on the inside, looking for sustainability, quality at affordable prices and good offers.

However, taking on this model brings challenges for brands. Questions such as inventory management, range design and new logistics chains raise questions about profitability. In addition, the rise of second-hand mode has changed the perception of the pricing of new articles: 32 percent of consumers: Inside, new products now consider “excessive expensive”, which means that they shift their purchases to used goods or wait for discount periods.

In addition to the economic factors, a cultural change also takes place. Second-hand fashion is no longer just a budget-friendly alternative-it has become a conscious decision associated with ethical and ecological concerns. This movement stands in contrast to the consumer-oriented logic of ultra-fast fashion and illustrates a duality of the market: on the one hand, the rapid acceleration of low-cost consumption and on the other hand the willingness to invest in higher quality, durable products.

Xavier Romatet, director of the IFM, underlines this change: “Second hand mode cannot be equated with ultra-fast fashion. It is rooted in a striving for quality and sustainable approach, far from the impulse of low prices. ”

The unstoppable rise of Ultra-Fast fashion

While conscious consumption is gaining in importance, Ultra-Fast-Fashion continues its rapid ascent. In 2024, 69 percent of French consumers were already making purchases via Ultra-Fast-Fashion platforms, mainly due to the low prices. Shein, a company that made only 2 percent of the French market in 2021, now reached 3 percent, which reflects exponential growth.

“If we assume that the average shopping cart at Shein is 10 euros, the platform is already a leader in France,” said Minvielle – a perspective that illustrates the upheaval in the value chain of the fashion industry.

This success is not only due to low prices. It is also based on highly efficient logistics, a hyper -personized product range and the most modern digital marketing. In other words: Ultra-Fast-Fashion is not just about price reductions-it is redefined how fashion is designed, produced and consumed. This development forces traditional brands to rethink their positioning and digital strategies so as not to lose connection.

Nevertheless, 27 percent of consumers refuse to buy products produced in China – a falling number that indicates growing acceptance of these business models. At the IFM conference, the participants arose: Inside, the question of whether the fight against Ultra-Fast-Fashion would gain tensile force. Should brands play a more active role by contacting the consumer directly: in contact with the inside? Perhaps based on the model of Vestiaire Collective, which now prohibits the resale of Shein products.

Challenges for e-commerce and inpatient trade

E-commerce now accounts for 23 PROCEST STOM PROCATION in France, with consumers: associated with lower prices in the inside. While retail companies such as Zara and H&M generate almost 25 percent of their sales online, brands of the middle price range – often more local and less internationally – reach only 10 percent. In this context, stationary trade invents the announcement: re -experience in order to differentiate.

“One of the strategic mistakes that brands have made is to concentrate too much on their direct competition instead of analyzing the wider market landscape,” emphasizes Minvielle. His remark underlines the need for a comprehensive approach that takes into account the changing consumption behavior.

The renewed emphasis on the shopping experience in the shop reflects the desire to recover the customer: to restore internal ties by becoming more intense and unmistakable. Concept stores, exclusive services and the rise of “retailainment” (a mixture of retail and entertainment) are among the strategies with which brands try to give in value again in stationary business.

What does the fashion industry come up?

Although fashion consumption rose slightly in 2024, the industry landscape changed dramatically. The Trio Shein Temu-Amazon is now making a turnover of 2.2 billion euros, 18 percent more than 2023-a number that concerns the ability of European actors: Interior to adapt to these new models.

Could European brands develop sustainable alternatives in order to live up to the changing needs of consumers: inside? After all, Europe was with corporations like Zara and H&M Pionier from Fast Fashion. Could it take the lead in the Ultra-Fast fashion area? “We criticize these platforms, but we should concentrate on what makes it so successful,” is minvielle answer to this question.

The fashion industry faces a double challenge: it has to reconcile price and quality and at the same time adapt to the changing expectations of consumers: adapt inside. Transparency, sustainability and affordability are now the three pillars of a more demanding and multifaceted fashion landscape.

In order to be able to better pursue these changes, the IFM introduced a monthly barometer to observe sales trends, market structure and price perception – an indispensable instrument to control an industry in constant change.

Summary
  • An increasing inflation and ultra-fast fashion disturb the fashion industry, enlarge the gap between the market segments and present brands of the middle price segment of challenges.
  • The growth of second-hand mode offers a sustainable alternative, driven by consumers’ demand: However, brands in the inside of quality and ethical practices presents brands with logistical challenges.
  • The rapid expansion of Ultra-Fast-Fashion, in particular the success of Shein, forces traditional brands to re-evaluate their strategies and concentrate on digital presence and customers: to concentrate internal bond in order to remain competitive.
This article previously appeared on fashionunited.uk and was used with digital tools translated.


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