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.