New data shows mid-market fashion outpacing luxury in sector growth

By Just Style

A recent analysis by Lectra’s Retviews platform indicates that mid-market fashion brands are currently outperforming both mass-market and luxury competitors in profitability for the Fall/Winter 2025/26 season, due to targeted premiumisation strategies and shifts in pricing.

The figures show that these brands have implemented significant price increases across several product categories, while also restructuring their promotional activities in response to macroeconomic factors such as inflation and international tariffs.

According to the study, the mid-market fashion sector has become the primary driver of sector value, surpassing the luxury category.

Brands in this segment have adopted refined designs, curated collections, and higher pricing as a way to differentiate themselves from traditional mass-market competitors.

The study notes that, relative to 2024, mid-market fashion brands increased prices by 50% in Europe during 2025 and even “doubling them” in the US.

The research also finds a general rise in product prices for both European and US markets:

• Denim prices rose by 9% in Europe and 20% in the US - its timeless appeal is proving resilient, with increases in both prices and assortments year-on-year.

• Winter footwear increased by 9% in Europe and 19% in the US. The main driving factor was growth in the mass market segment, particularly among design-led mid-market brands.

• Coats and jackets increased by 11% in Europe and 13% in the US. The product has seen a significant expansion in the range.

• Handbags recorded the largest increases, rising by 33% in Europe and 38% in the US, influenced by trends set by luxury fashion houses and amplified through social media.

• Accessories and lucky charms rose by 15% in Europe and 16% in the US.

Promotional strategies have shifted alongside these changes. Brands are now offering lower average discounts while extending the duration of promotions.

In Europe, between September and December 2025, both the average discount rate and the proportion of discounted products declined compared to previous years.

The report links these adjustments to several economic pressures, including UK consumer price inflation reaching 3.4% in December 2025, which contributed to cautious spending patterns.

In addition, US tariffs between 15% and 50% have raised import costs for brands exporting into that market, prompting selective price hikes that could constrain demand.

Lectra describes this environment as a “K-economy”, where high-income consumers maintain or increase spending while others reduce it. This scenario requires brands to tailor their pricing and promotions more precisely to different consumer segments.

Lectra EMEA president Antonella Capelli said: “Brand strategies reflect market challenges. Today, product ranges are becoming more streamlined and collections are curated in a more intentional way. At the same time, discounting strategies are shifting: discount rates are decreasing, but promotional periods are becoming longer, as brands aim to preserve pricing power without losing momentum in a market marked by cautious consumer spending.

“Leveraging advanced technologies to obtain and interpret current market insights is now essential for optimising strategies, ensuring consistency with consumer expectations, and, at the same time, guaranteeing solid commercial performance and efficient inventory management.”

This article was published in Just Style February 23, 2026. Lectra is a member of SPESA.

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