Unlocking growth for fashion in a challenging environment

In Europe, global uncertainties, escalating international tensions, and declining GDPs present a worrying macroeconomic environment. However, Marguerite Le Rolland, Global Insight Manager – Fashion at Euromonitor, instilled a positive note for the industry at our recent CJ Fashion Afternoon in Paris.

At first glance, the outlook appears gloomy. Euromonitor estimates just 0.9% GDP growth in the Eurozone this year and a 2.5% decline in real global GDP growth between 2025 and 2027 if the Trump agenda is fully implemented. For fashion, it predicts flat growth of just a 0.4% compound annual growth rate from 2024 to 2027 across four major European markets.  

But it’s not all negative.

The high inflation of recent years is declining, and Europe’s 2.3% inflation rate sits favourably in comparison to a global rate around 4.3%.

There are also pockets of growth across fashion. Footwear continues to bounce back from COVID-19, while sportswear remains buoyant. Even luxury fashion houses are embracing this trend as streetwear becomes a consumer wardrobe staple.

So, according to Marguerite, what must an adaptable and resilient fashion industry be aware of if it wants to take advantage of growth opportunities?

In-store is not insignificant

Since 2020, there has been a significant shift to e-commerce, and this trend continues, although at a slower pace. And while offline sales have developed in the opposite way, physical stores aren’t dead. Instead, they’re reinventing their role to appeal to consumers, especially around experiences. Because what's important to buyers today is spending on experiences rather than accumulating physical goods. While economic pressures mean they are more cautious and discerning with their discretionary buying, they still want to purchase what matters to them. But finding bargains is no longer as important as the concept of value changes.

Value has been redefined

While an element of value is price-based, as priorities shift, Euromonitor’s research shows personalisation, wellness, and lifestyle are increasingly important in the perception of value.

So too are quality, durability and aesthetics, while personal values related to sustainability and ethical considerations play a more prominent role in purchasing decisions. Add to this convenience, and we see that value is now defined by a combination of elements that are no longer purely price-led.

Euromonitor’s survey found that while most high-income consumers want to save more, 50% of high-income European consumers plan to increase their spending on wellness over the next 12 months. Meanwhile, the idea of personalisation is becoming important, with 51% looking for products and services tailored to them.

As value is redefined and what matters to buyers evolves, brands and retailers must address these areas to align with the motivations that encourage consumers to spend. So, how are businesses adapting to meet the differing value requirements of their buyers?

1. Personalisation and experiences

Among fashion and luxury professionals, aligning with consumer values, increasing the use of technology and creating experiences are the top three priorities over the next one to two years, according to Euromonitor’s research. And this makes sense based on shifts in consumer behaviour.

In response to these, Selfridges has revamped its loyalty scheme. Instead of rewarding customers based on spend, they’re doing it around time spent in one of their environments, whether that’s in-store, in their restaurants, cinema or using their beauty services. This means even if someone isn’t a high spender, they can still easily become a VSP (Very Selfridges Person) by experiencing what Selfridges offers.

Meanwhile, online German retailer Zalando is turning to technology to get closer to its buyers. Through its AI Assistant, it offers a conversational interface for personalised shopping recommendations, while its TrendSpotter provides weekly updates on trends across 10 European capitals. By delivering a personal touch and offering inspiration, it’s setting itself apart from other marketplaces.

CJ tip: Use AI to drive recommendations. Twains, for example, allows engagement via WhatsApp chats to push the right message at the right time. Meanwhile, AI apps like Style DNA make it easier to find the right product.

2. Convenience and simplicity

40% of respondents to Euromonitor’s consumer attitudes survey view brand engagement as important. And particularly among high-income consumers, they value how shopping with GenAI can enhance interactions, recommendations, and product visualisation. As these become more accepting, luxury brands, especially, are developing their e-commerce strategies in response.

Concierge service Harper is using technology to simplify shopping and bridge the gap between online and offline by offering a ‘try before you buy’ service through its website. Without paying in advance, consumers can select the items they want, have a personal stylist hand-deliver them to their home and offer their opinion. They are then only charged for the items they keep.

CJ tip: Making it easy to buy is central to driving sales. Toolbar extensions help customers find the promotion that encourages them to convert. CSS partners direct them to a product they are looking for, and price comparison sites help group relevant sites in one space.

3. Durability and sustainability

Paradoxically, economic uncertainty is driving mindful consumption and buying decisions. 43% of European consumers cited quality as a top purchase criterion, while 41% highlighted durability.

And this interest in sustainability has given rise to pre-loved clothing marketplaces. Even luxury retailers like Printemps and Liberty are offering vintage clothing or repair services to tap into the trend of shopping for second-hand fashion.

As traceability becomes important, we’ve seen LVMH, Prada, and Cartier create the Aura Blockchain Consortium. Using AI to improve supply chain traceability not only combats counterfeit goods, meets the growing demand for sustainability and supports responsible production practices, but it also feeds into brand storytelling.

CJ tip: Affiliates can provide specialist sites that help consumers buy while offering information on what to purchase and where. Sites like Sustainable Jungle help them find a desired brand, while BNPL sites, such as Klarna or Scalapay, allow people to purchase better-quality products rather than the cheaper option.

4. Lifestyle and wellness

With mental and emotional well-being increasingly important to consumers, we’re seeing a blurring of lines between wellness, lifestyle, fashion and beauty. In response, brands are extending their offerings to support this.

Dior, which opened a Paris spa in 2016, recently launched sleep-enhancing light therapy. This move addresses a top health concern for Europeans, with 30% viewing sleeping problems as a significant issue in 2025, according to Euromonitor. This serves a dual purpose: generating a new revenue stream for Dior and opening it up to new buyers who traditionally may not have purchased from it.

Similarly, Birkenstock’s launch of a foot care range that complements its shoes has expanded the business into the beauty category. It's another example of how brands are extending their offerings to build loyalty, go beyond what they are traditionally known for and attract new spend in challenging trading times.

CJ tip: Lifestyle choices are personal, so people take time to research their proper fit and perfect product. Influencers can play a big part in helping individuals find their style fit, and CJ Influence can help you develop, manage and measure your influencer campaigns.

Back to the future – revisiting the mature market

As fashion brands look to broaden their appeal, many are recognising the value of the silver economy and the opportunities this demographic offers them.

With 30% of Europe’s most affluent consumers being 65+, engaging with mortgage-free and high-spending-power baby boomers offers a growth opportunity for fashion brands. Abandoning traditional stereotypes around mature audiences, brands are recruiting ambassadors such as Massimo Dutti with Charlotte Rampling and J. Crew with Diane Keaton to attract and appeal to these social groups.

This shift in focus highlights once again that, despite the economic challenges, engaging consumers in different ways can drive growth.  

So, what are Marguerite’s recommendations for achieving this in the fashion industry today? Well, she suggests six focus areas.

Tips for building growth despite uncertainty

• Implement technology to enhance purchase paths, replicate the in-store experience online, offer more intelligent recommendations and deliver better targeting.
• Deliver greater personalisation to show that you understand your customers and they matter.
• Use storytelling to build customer connections by emphasising shared values and experiences, not price.
• Demonstrate and communicate your commitment to the people and the planet.
• Explore opportunities to extend your offer, be that introducing complementary products and services to your core offering or targeting new audiences.
• Ensure a human-centric approach remains central to everything, no matter how much technology is adopted.

Watch Marguerite’s presentation here to learn more about how fashion marketing can prosper today.