While in 2025 and the effects of 2024 subsides, the fashion industry seems to be in a state of deceptive stability. Because there are shifts under the surface: The precarious balance between physical and digital trade stuck to false, sales channels are reinvented and the expectations of consumers: inside shape a changing landscape. This period is more than just a cyclical fluctuation, it signals a redefinition of the rules and could lead the industry into an era of sustainable transformation. Like Gildas Minvielle, director of the Economic Observatory at the Institut Français de La Mode (IFM), found: “Behind this apparent stabilization there are profound transformations.”
What is at stake today goes beyond pure sales. Far from being just a temporary phase, this adaptation period could be the start of a structural upheaval, in which the paradigm of supply and demand now revolves around new rationalities: Consumers who are looking for meaning, a market that between Luxury and ultra accessibility is divided, and an industry that is caught between the imperatives of profitability and the commandments of sustainability. The key question is therefore no longer whether the fashion industry stabilizes, but rather the type of this stability: is it a transition plateau or a new balance based on unprecedented dynamics?
The third edition of the annual report on the fashion market, which was presented by Minvielle on Thursday, February 13, illuminated this period of the great upheaval – perhaps a harbinger of new ways for the industry.
Market report 2024: Modest growth in the middle of profound transformations
Behind the relative calm of the numbers, a redesign of the market takes place. After a slow start to the year with a decline in sales of 2 percent in the first half of the year, the fashion market completed the year 2024 with a modest growth of 0.5 percent in the clothing sales. However, this apparently positive result hides opposite dynamics: the rise of pure players (or ultra-fast fashion?) The landscape continues to redesign. If you take Shein, Amazon and Temu into account, the industry growth jumps from 0.1 percent to 1 percent, a clear signal that digital trade now set the pace.
Compared to the time before the pandemic, the decline in -5.5 percent remains significant compared to 2019. A fundamentally changed retail landscape is hidden behind these numbers. Inexpensive chains such as Kiabi and Gémo have emerged as the biggest winners and recorded an increase of 11 percent in the same period. Conversely, traditional retail channels recorded strong declines: hypermarkets and supermarkets by 28.9 percent, brand -independent retail companies by 18.3 percent and specialist chains by 4 percent. This decline takes concerns about the adaptability of traditional models to the rapidly changing consumption habits.
Men and women’s clothing continues to develop differently quickly, which illustrates a persistent structural imbalance. While the women’s confection grew by 2.3 percent, the men’s segment only grew by 0.3 percent. Women’s fashion benefits from a greater variety and a faster reaction to trends, while men’s fashion is still shaped by less frequent purchases and a strong preference for timeless pieces. However, this gap encounters growing interest on the part of retail. An example of this are the Galeries Lafayette, which recently invested in the expansion of their men’s fashion offerings. Could this historically undermined segment become a new growth engine?
At the conference, Emmanuel Tisseyre, Chief Operating Officer (EMEA, APAC, LATAM) for luxury brands, lecturer at Esmod and Insead-Alumnus, highlighted a particularly informative point: When men of Silver Economy reduce their fashion consumption after retirement, this is less in a lack of interest than in the lack of an offer that is really tailored to it. They have capital, time and an aesthetic feeling that could make it a highly relevant and valuable market segment – a segment that the fashion industry could use far more effectively.
Regional differences add another level of complexity. In the Paris region, the dominant retail companies differ significantly from those in the rest of the country: Décathlon, Zara and Nike lead the market, while in other regions of Kiabi Zara in second place. Lidl and Carrefour in the Paris fashion retail are also more present than the regional strongholds of Gémo, La Halle and Chausséa. These differences not only reflect different business strategies, but also differences in purchasing power and consumer behavior.
E-commerce and the dominance of Trio’s Shein-Temu-Amazon
The year 2024 was not characterized by a dramatic change, but reinforced a predominant trend: the unstoppable rise of online retail. E-commerce sales rose by 1.7 percent compared to 2023 and 9.2 percent compared to 2019, which resulted in online fashion purchase 23 percent of the overall market (+1 percentage point compared to the previous year).
The Trio Shein Temu-Amazon embodies this transformation. These platforms make up 25 percent of online sales and 6 percent of the overall market, which illustrates structural change towards digital consumption, especially among younger generations. In this new ecosystem, Amazon leads with a market share of 26.3 percent, followed by décathlon (21.4 percent) and Shein (19.9 percent). Vinted, driven by the rise of second-hand shopping, has also developed into an important player (19.2 percent), which confirms that the search for meaning and budget awareness now shape buying behavior.
In stationary retail, digital adaptation is progressing more slowly but noticeably: the share of e-commerce in sales rose from 6 percent in 2019 to 10 percent in 2024. This development underlines the urgent need for traditional retailers: inside, accelerating their omnichannel transformation so as not to be pushed out of the way.
Retail ranking: sports clothing and supermarkets take the lead
In 2024 there was a reorganization of the preferences of consumers: inside the retail chains. Décathlon, a company that embodies the ongoing enthusiasm for sportswear and athleisers, secured the top position, followed by Kiabi and Zara. This trend underlines a shift towards clothing that brings style, comfort and functionality into harmony. Nike and Adidas continue to benefit from this and consolidated their market dominance.
A further divergence in the buying behavior is emerging, this time in the food retail trade. In the Île-de-France, Carrefour and Lidl have established themselves as preferred retail companies, while in other regions only Leclerc managed to secure a place among the 15 most visited shops for clothing purchases.
Once again, territorial differences play a role: in the Île-de-France Uniqlo, C&A and Armand Thierry stand out, while in other regions of La Halle, Gémo and Chausséa a strong presence. This selection reflects differences in lifestyle and in the preferences of consumers: inside between urban and city -close areas.
2025: Stagnation or new equilibria?
The forecasts for 2025 indicate a year with limited growth. According to the IFM estimates, the expected growth is around 0.7 percent, with a medium scenario of +0.2 percent and a range between -2 percent and +2 percent. While the estate inflation could support consumption, economic uncertainties and efforts to reduce public deficit create an atmosphere of caution.
A survey carried out by the IFM under retailers: The survey carried out interprets this caution: 74 percent expect stable prices, 20 percent expect moderate increases (0 to 5 percent) and only 6 percent expect declines. This predicted stagnation could continue to benefit the most competitive segments, especially second-hand platforms and discounters.
As Gildas Minvielle emphasized, “there are profound transformations behind this apparent stabilization”. Between the rise of digitization, the increasing fragility of traditional retail and the changing consumption behavior, the fashion market is located at a quiet but decisive turning point. Will the year 2025 mark the emergence of a new cycle or consolidate the anchoring of the current trends?
The third edition of the annual IFM report on the fashion market has illuminated these questions and outlined possible future scenarios-knowledge that we will further deepen in an upcoming article.
- The fashion market recorded modest growth (0.5 percent) in 2024, but this hides significant changes in consumption behavior and in the sales channels.
- The e-commerce is booming, with the Trio Shein Temu-Amazon conquering an important market share and redesigning the competitive landscape, while traditional retailers are fighting.
- The rise of inexpensive chains, sportswear and second-hand platforms underlines the changed priorities of consumers: inside in terms of value, comfort and sustainability, which creates both challenges and opportunities for the industry.
This article was previously published on fashionunited.com and was used with digital tools translated.
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