The Fall/Winter 2025/2026 season signals more than just another round of price increases in the fashion industry. It marks a broader shift among mass and mid-market brands as they seek to add value amid a volatile global economy.
A new report from Retviews, an AI-powered intelligence platform from Lectra, has found that mid-range providers increased prices in Europe by over 50 percent last year compared to 2024 figures. Some US brands even almost doubled their prices.
This reflects not only inflation passed on to customers, but also a broader repositioning within the segment. As a volatile environment continues to shape retail, the mid-market segment is taking on a new strategic role, according to Retviews. It presents itself as a dynamic and growing sector.
Premiumization in the middle market segment
Models once defined by high-volume drops, broad assortments and aggressive discounting are losing momentum. Mass market providers are increasingly competing with low-cost e-commerce giants. However, rising costs, inventory risks and a greater consumer focus on value are causing the fast fashion format to falter.
This paves the way for mid-range brands to “outperform luxury as a value driver,” according to Retviews. Efforts to refine product design, improve materials and strengthen the brand narrative contribute to the industry-wide goal. It’s about standing out from the mass market and moving towards premium positioning.
Antonella Capelli, President EMEA at Lectra, described the move to streamlined product ranges and curated collections as a response to market challenges. “At the same time, discount strategies are shifting: discount rates are falling, but promotional periods are getting longer. Brands want to maintain their pricing power without losing momentum in a market characterized by cautious consumer spending,” explained Capelli.
Crumbling target groups require clearer positioning
At the macroeconomic level, the situation remains complex. In the UK, for example, consumer price inflation reached 3.4 percent in December 2025, according to the Office for National Statistics (ONS). At the same time, US import tariffs of between 15 and 50 percent have increased procurement costs in all categories. Both have further increased the reluctance to buy.
This pressure is unfolding in what analysts call a “K-economy.” The term describes how higher-income consumers continue to spend money steadily or even buy higher-quality products, while low- and middle-income shoppers limit themselves. This structure forces fashion brands to rethink their pricing and advertising strategies while ensuring relevance to different consumer segments. The answer to this, according to Retviews data, is a clear focus on premiumization among mid-range brands.
Rebalancing advertising strategies, Retviews notes that in Europe both the average discount rate and the proportion of discounted products between September and December 2025 were lower than in previous years. Nevertheless, the promotional periods lasted longer. This shows that brands are moving away from deep, short-term price reductions that can damage their image, towards more moderate promotions.
Category Breakdown: From Denim to Handbags
However, not all categories develop at the same speed. Retviews data shows clear product-based strategies. Handbags are leading the push toward premium, with social media cited as a key driver. Prices for these products have increased by 38 percent in the US and 33 percent in Europe, while the product range has grown by 27 percent in Europe and 10 percent in the US.
Accessories and pendants are also gaining strategic importance. Thanks to their relatively low entry prices, they become high-margin frequency generators. Luxury brands have expanded their range of bag charms in Europe by more than 50 percent year-on-year, and mid-range suppliers are following suit. Prices for such items have risen by around 15 percent in both Europe and the USA.
Prices for both winter footwear and denim rose nine percent in Europe during the period as mid-range brands strengthened their pricing power. Similar resilience was evident in the United States. There, prices for the two categories rose by around 19 percent, indicating a more assertive approach in this market.
Coats and jackets, meanwhile, were at similar levels in both regions, with price increases of 11 percent in Europe and 13 percent in the US. The development in this category highlights its ability to absorb price increases while supporting upscale positioning. According to Retviews, there was also significant range expansion during this period, supported by demand for recurring trends such as high-neck trench coats and leather looks.
This article was created using digital tools translated.
FashionUnited uses artificial intelligence to speed up the translation of articles and improve the end result. They help us to make FashionUnited’s international reporting quickly and comprehensively accessible to a German-speaking readership. Articles translated using AI-based tools are proofread and carefully edited by our editors before they are published. If you have any questions or comments, please email [email protected]
