Mid-market fashion reinvents itself: Why AW25 pricing signals industry shift
The autumn/winter 2025/26 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 attempting to create value in an uneven global economy.
A new report from Retviews_ an AI-powered intelligence platform by Lectra_ has revealed that mid-market players have raised prices by over 50 percent in Europe last year_ compared with 2024 figures_ with some US brands nearly doubling prices.
This is not only a reflection of inflation being passed on to customers_ but a broader repositioning happening within the segment. As a volatile environment continues to shape retail_ the mid-market is taking on a new strategic role_ standing out as a dynamic and growing sector_ according to Retviews.
Mid-market premiumisation
Models once defined by high-volume drops_ wide assortments and aggressive discounting are losing momentum. Mass-market players are increasingly competing with low-cost e-commerce giants_ yet rising costs and inventory risks_ with an added focus on value from consumers_ means the fast fashion format is flailing.
This is paving way for mid-market brands_ which are “surpassing luxury as a driver of value”_ Retviews said. Efforts to refine product design_ improve materials and strengthen brand narrative contribute to a progressively sector-wide goal of distinguishing themselves from the mass market_ and in turn moving towards a more premium positioning.
Antonella Capelli_ president EMEA at Lectra_ described the transition towards streamlined product ranges and curated collections as a reflection of market challenges. “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_” Capelli elaborated.
Divided consumers force clearer positioning
On a macroeconomic level_ complexity remains. 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 ranging from 15 to 50 percent have increased sourcing costs across categories. Both have further reinforced cautious spending.
These pressures are unfolding within what analysts describe as a “K-economy”_ a term that refers to higher-income consumers continuing to spend steadily_ or even upgrading purchases_ while lower- and middle-income shoppers cut back. This structure is pushing fashion brands to review pricing and promotional strategies_ while still ensuring relevance among different consumer segments. The response_ according to Retviews data_ is a clear pivot towards premiumisation among mid-market brands.
When looking specifically at the recalibration of promotional strategies_ Retviews notes that_ in Europe_ both the average discount rate and the share of products marked down were lower during September and December 2025 than in previous years. Despite this_ promotional windows lasted longer. This shows brands are moving away from steep_ short-term markdowns that may damage perception_ towards more moderate promotions.
Category breakdown: From denim to handbags
Not all categories are advancing at the same speed_ however. Retviews data highlights clear product-based strategies. Handbags are leading the premium push_ with social media cited as the core driver in their amplification. Prices for these products have increased 38 percent in the US and 33 percent in Europe_ while product assortment is up 27 percent in Europe and 10 percent in the US.
Accessories and charms are also gaining strategic importance_ becoming high-margin traffic drivers thanks to their relatively lower entry prices. Luxury brands have expanded bag charm assortments by more than 50 percent YoY in Europe_ with mid-market players following suit. Prices for such pieces have grown around 15 percent in both Europe and the US.
Both winter footwear and denim also saw prices rise 9 percent in Europe over the reporting season_ as mid-market brands strengthened pricing power. Similar resilience could be seen in the US_ where prices for the two categories were up around 19 percent_ reflecting a more assertive approach in this market.
Coats and jackets_ meanwhile_ were at relatively the same level across the two regions_ with prices up 11 percent in Europe and 13 percent in the US. The shift in this category reinforces its ability to absorb price increases while backing an elevated positioning. Retviews said there was also significant assortment expansion in this range over the period_ bolstered by demand for returning trends like high-necked trench coats and leather styles.