Paris, France – 16 July, 2025 – The uncertainty that is characterizing 2025 at a global level also impacts the fashion industry, as only 1 in 5 sector leaders expects a general improvement in the industry this year[1]. There are multiple elements of instability at play: consumer confidence, which has reached the lowest levels since the pandemic, the reduction in discretionary spending, as well as the global geopolitical context and the US tariffs, which add complexity to an already fragile market.
Lectra, a leading player in Industry 4.0 solutions for the fashion, automotive and furniture industries, has analyzed the real time data provided by Retviews, its AI-driven solution specializing in competitive intelligence and automatic benchmarking, in order to identify the repercussions of this scenario on global brands.
In particular, growth this year is expected to be volume-driven, prompting a shift in brand strategy. For the first time since 2010, the market is also expected to be led by non-luxury brands.
“Assortment optimization, increased sell-through (i.e., the percentage of products sold compared to those available), and more accurate market monitoring will be crucial to success, even in such an uncertain environment”, explains Antonella Capelli, Lectra’s EMEA President. “Knowing how to leverage technology to obtain and analyze real-time market insights is therefore essential for adjusting your pricing approach, ensuring alignment with consumer expectations while also meeting business performance and inventory management needs. At Lectra, our mission is to accompany brands along their digital transformation journey, offering them the best tools to make well-informed decisions”.
A new premium approach for mainstream retail brands
Today, the fashion industry is facing two major challenges: on one hand, luxury fashion brands are grappling with a slowdown in performance on a global scale.[2], and on the other, consumers are progressively moving away from fast fashion.
This combination of factors has created the conditions for retail fashion brands to reinvent themselves: while some are changing direction to focus on a more premium approach (for example by hiring new talent to penetrate the luxury market), others are trying to reposition themselves to improve their brand image.
Confirmation this trend, the Retviews study shows that, in Europe, mass-market fashion brands are expanding their product range beyond the €25 threshold, while also reducing the quantity of products sold in the lower price ranges. For example, ZARA increased the share of its assortment in all price ranges above €34, while Uniqlo saw an increase in the share of items priced between €17-34 and €76-85.
Compared to the European market, US brands are also showing a shift in pricing strategies, with an ever-increasing presence in the higher price ranges.
However, it should not be forgotten that consumers remain highly cost-conscious; brands must therefore carefully analyze market trends in order to implement the best pricing strategies and adjust them in real time where necessary.
Inflation, tariffs and price increases
According to Retviews data, annual price increases in 2025 are currently higher in the European market than in the US. Both continue to show price increases, with growth of 7% and 3%, respectively, in the last year:
- In Europe, average prices rose from €38 in 2023 to €40 in 2024, reaching €42 in 2025.
- On the other hand, in the United States, the average prices increased from $57 in 2023 to $63 in 2024, reaching $64 in 2025.
However, in the long term, it will be necessary to closely monitor the impact of the possible imposition of tariffs by the US Presidency, which could lead to significant changes in pricing.
Furthermore, in Europe, the success of non-luxury brands, which, as anticipated, are expected to drive growth in the fashion industry in 2025, is already creating a shift in pricing strategies in some trending categories compared to 2024, including:
- Non-luxury leather goods, such as bags (+20%) and wallets/cases (+23%)
- Entry-level T-shirts (+8%)
- Ivy League-style polo shirts (+4%)
- Leggings (-3%), which, conversely, are being impacted by the activewear boom that has created true global communities, to the detriment of mainstream fashion brands (which have consequently lowered their prices and reduced their assortment).
Discount Watch: Not just summer sales, the discount season can last all year round
Analyzing market trends and consumer preferences is essential to identify which products can be priced lower without compromising margins. For example, consumer interest in mass produced leggings is declining amid the growing popularity of athletic apparel brands. In this case, discounts can help clear out stock. Conversely, as often happens, trending categories that typically sell well can be sold at full price or even at an increased due to growing demand.
In Europe, discounts began slightly earlier in 2025 than in previous years, with over 15% of the inventory discounted as early as the beginning of January – a percentage that rose to over 40% within a week, thanks to seasonal sales.
Although the average discount rate in 2025 was lower than in 2024, the average value of around 20% remained stable for a longer period than in previous years, only starting to decline rapidly in February, albeit with a more gradual slowdown than in the past.
On the other hand, although discount strategies are evolving, brands like Uniqlo do not focus on the main seasonal sales, preferring to maintain low and consistent prices throughout the year. Their goal is to safeguard their brand image and perception, becoming a go-to for essential basics rather than trend-driven fashion.
Other major brands such as ZARA and Mango, instead rely on traditional seasonal sales, leading consumers to expect steep reductions and systematically postpone their purchases to wait for the sales.
Methodology note: the percentage provided refers to the periods between January 1 and May 1, 2024 and between January 1 and May 1, 2025
[1] Source: BoF, The State of Fashion 2025
[2] Source: McKinsey&Company, The State of Luxury: How to navigate a slowdown
