eBay says the purchase is designed to help the company refresh its audience mix and strengthen its position in a rapidly expanding recommerce market. The company believes the deal will help it “reach a younger demographic across the expanding re-commerce landscape”—an increasingly important goal as younger consumers shift more of their spending toward pre-owned clothing and footwear for affordability and sustainability.

That same consumer shift has also intensified platform competition. While Depop was among the earlier breakout names in app-based fashion resale, its market position has been challenged by rivals such as Vinted, which have attracted large seller communities through international expansion and platform upgrades.

Retail analyst Catherine Shuttleworth said the competitive rise of Vinted has weighed on Depop’s valuation. “The mass appeal of Vinted has had an impact on Depop’s value,” she said. “As Vinted made investments into global markets and improved its tech platform, more sellers gravitated towards it.”

Shuttleworth added that users tend to consolidate around the platforms that feel simplest and most accessible—suggesting Depop did not offer the same “frictionless” and “universal” appeal associated with larger players such as eBay and Vinted.

The all-cash acquisition is expected to complete by mid-year, with Depop continuing to operate under its existing brand identity. eBay CEO Jamie Iannone said the acquisition should accelerate growth in second-hand fashion, which he described as one of eBay’s “fastest-growing” categories.

The deal was announced alongside eBay’s 2025 financial results, which showed revenue rising 8% year on year to $11.1bn. In after-hours trading, Etsy shares gained more than 15%, while eBay’s stock rose by nearly 6.5%.

Etsy said Depop has around seven million active buyers, with close to 90% under the age of 34, and more than three million active sellers. Etsy CEO Kruti Patel Goyal said Depop has become “one of the fastest-growing fashion resale marketplaces in the US.” “I am confident that Depop is well-positioned for its next phase of growth as part of eBay,” she added.

If completed as planned, the move will formalise the headline outcome for the recommerce market: eBay to buy Depop and use the platform to deepen its reach with younger shoppers, while Etsy steps away from a once high-profile resale bet.

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The European Commission has launched a DSA probe into Shein, opening formal proceedings that will examine how the online retailer tackles illegal listings, manages platform design risks, and explains the recommender systems that shape what shoppers see.

According to the Commission, the investigation will scrutinise Shein’s safeguards intended to stop illegal goods from being sold within the EU. Regulators said the case includes items that could fall under child sexual abuse material rules, including child-like sex dolls.

A separate part of the inquiry will assess concerns linked to what the Commission called “addictive design,” including reward-based mechanics that may push repeated engagement. Authorities will consider whether Shein has properly identified and mitigated risks to user wellbeing and whether its practices meet expectations around online consumer protection.

The Commission will also evaluate Shein’s compliance with DSA transparency obligations for recommender systems. Under the law, platforms must disclose the principal parameters that drive recommendations and must offer at least one readily accessible option for each recommender system that does not rely on profiling.

The EU executive said it will now carry out a detailed assessment and can gather more evidence through additional information requests, monitoring actions, or interviews.

EC tech sovereignty, security and democracy executive vice-president Henna Virkkunen said: “In the EU, illegal products are prohibited – whether they are on a store shelf or on an online marketplace.

“The Digital Services Act keeps shoppers safe, protects their wellbeing and empowers them with information about the algorithms they are interacting with. We will assess whether Shein is respecting these rules and their responsibility.”

Opening formal proceedings gives the Commission the ability to impose interim measures, issue a non-compliance decision, or accept commitments from Shein to remedy any issues identified. The DSA does not set a statutory deadline for the case, and the Commission stressed that starting the process does not predetermine the outcome of the DSA probe into Shein.

Ireland’s Digital Services Coordinator, Coimisiún na Meán, will participate as Shein’s country-of-establishment authority in the EU. The Commission said its decision follows a preliminary review of Shein’s risk-assessment reports, responses to information requests dated 28 June 2024, 6 February 2025 and 26 November 2025, and submissions from third parties.

The Commission also noted that the DSA proceedings run alongside other enforcement efforts, including coordinated consumer-law action led by the Consumer Protection Cooperation Network and national enforcement under the General Product Safety Regulation, including follow-up to a 2025 product-safety sweep on childcare items. It added that the DSA case is without prejudice to its outcome or to other potential actions under the regulation.

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London, 17 February 2026 — ASOS has rolled out a new hybrid virtual try-on experience designed to help customers judge how selected items may look before committing to a purchase. The feature gives shoppers two ways to preview products: either by uploading their own image or by selecting an AI-generated virtual model created to resemble them.

ASOS says the dual-option approach reflects how differently people feel about virtual try-on tools. Some prefer the familiarity of using a personal photo, while others are more comfortable exploring outfits through a digital likeness that matches their size, proportions or style—without sharing an image of themselves. By offering both routes, the retailer aims to make online fashion browsing feel more personal and reduce uncertainty at checkout.

The launch is being delivered in partnership with AI fashion platform AIUTA and begins with around 10,000 products available through the ASOS iOS app. The feature will initially be offered to selected customers in the UK and US, with wider rollout planned over time. ASOS also highlighted performance, saying the try-on experience typically loads in four to seven seconds, faster than many industry alternatives, so customers can test looks quickly and stay engaged.

Melissa Lim, Head of Digital Product at ASOS, said: “We know customers want the confidence of seeing how something will really look but don’t want to be pushed into doing it one way. Our hybrid approach meets them where they are, giving everyone a try‑on option that feels right for them.”

ASOS, founded in 2000, serves 17 million active customers across more than 200 markets and sells its own brands—including ASOS DESIGN, ARRANGE, COLLUSION, Topshop and Topman—alongside a large selection of partner labels. The company says this hybrid virtual try-on release fits its broader strategy of removing friction from online fashion shopping while giving customers more control over how they discover and buy clothes.

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The report, titled ‘The Cost of Inaction – The Financial Risks of Delaying Decarbonization in the Apparel Industry,’ delves into how increasing costs related to carbon pricing, raw materials, and energy could significantly impact operating margins for companies that hesitate to reduce their emissions.

Utilizing data from ten prominent apparel brands, the report highlights three main elements that contribute to the anticipated decline: rising carbon prices, surging raw material costs, and increased energy expenses.

Additionally, the report emphasizes the importance of early investments in decarbonization strategies, especially at the supplier level, to help mitigate future financial risks.

Lewis Perkins, Aii president and CEO, stated: “Collaborative investment remains a crucial pillar to maintaining business stability in the face of climate change. Mitigating these impacts will take effort from players in the industry ecosystem working together to scale deployment-ready decarbonisation strategies while investing in long-term operation stability.”

Key Findings from the Report

• In a net-zero scenario, inaction could slash the value of the $1.77 trillion fashion industry by 70% by 2040 for a standard conventional player.

• Delaying the transition towards clean energy could inflate costs and heighten risks, particularly related to fluctuations in fossil fuel prices (notably coal) and raw material pressures.

• Taking incremental steps can produce immediate savings, enhance resilience, and facilitate future, larger decarbonization efforts.

• Strengthening supply chains and reducing reliance on climate-sensitive inputs can lower risk exposure by approximately four to five times by 2040.

The report also identifies actionable measures at the supplier level—including electrification and the adoption of renewable energy—as ready investment options that can help safeguard short-term profit margins. It points out the potential benefits of collective funding and cooperative investment approaches.

Furthermore, the analysis underscores the critical role of chief financial officers (CFOs) and finance teams in grappling with climate-related risks, suggesting that early investments may yield enhanced financial stability and competitiveness in the long run.

Recommendations

The report calls upon business leaders across various sectors to recognize the financial implications of postponing climate action and to take proactive measures that strengthen resilience while protecting long-term business sustainability.

Aii’s senior director of sustainable finance, Kristina Elinder Liljas, remarked: “The Cost of Inaction puts a clear price tag on the risks and losses of a delayed net zero transition, demonstrating the importance of decarbonisation for long-term value.”

“From boardrooms to CFOs, this report is a call to action to accelerate impact across the entire supply chain through collaboration and co-financing, and leverage resources like Aii’s Fashion Climate Fund.”

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A recent study has uncovered that 41% of counterfeit fashion products including apparel, footwear, and accessories failed to meet U.S. and international safety standards. This research was conducted by the American Apparel & Footwear Association (AAFA) in conjunction with the global quality assurance agency Intertek. Titled Unboxing Fake Fashion: Unleashing Real Dangers, the report highlights the serious safety hazards associated with counterfeit fashion goods.

The findings indicate that counterfeit fashion products pose significant chemical and safety threats to consumers.

“Counterfeiting is not just an issue of consumer trust or brand protection; it is an issue of public health,” expressed Steve Lamar, president and CEO of AAFA. “These results, building on our 2022 study, show that counterfeit products, often purchased through unregulated third-party marketplaces, continue to pose real risks to American consumers. It’s time to act decisively to safeguard consumers from dangerous counterfeits. We call on policymakers to immediately address the very real dangers being trafficked online.”

The report includes four case studies based on the failed products, a comprehensive list of items tested, policy recommendations, and the methodology employed.

Among those products that did not meet safety criteria, eight items representing over 20% of all counterfeit samples were flagged for having excessive phthalate levels. One particular item contained nearly 327,000 parts per million of diethyl phthalate (DEP), a staggering amount more than 650 times the permissible limit outlined in AAFA’s Restricted Substances List (RSL). Additional infractions involved the presence of PFAS, alkylphenols and APEOs, BPA, formaldehyde, and heavy metals, with some products showing dangerously high levels of lead and formaldehyde. All of these substances are restricted or banned under AAFA’s RSL.

At least 25% of the counterfeit products that failed safety inspections were either marketed on or purchased through the Meta platform. This finding suggests a substantial number of consumers are acquiring counterfeit items via social media platforms like Facebook. Consequently, AAFA has proposed that Meta and its associated platforms be included on the U.S. government’s Notorious Markets List (NML).

In its 2025 comments submitted to the USTR regarding the Review of Notorious Markets for Counterfeiting and Piracy, AAFA nominated several online marketplaces, including Meta, Shopee, and Alibaba, for potential inclusion on the NML. These platforms not only host listings of counterfeit goods but also feature a network of fake advertisements, hidden links, and fraudulent websites, presenting threats not only to intellectual property but also to consumer safety.

The results of this study reinforce the findings from AAFA’s previous 2022 report, underscoring that counterfeit fashion products, frequently bought through unregulated third-party marketplaces, represent an ongoing risk to American consumers.

AAFA remains committed to advocating for greater accountability from third-party marketplaces and social media platforms to combat the prevalence of counterfeit fashion products that endanger consumer health.

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The report, titled “E-Commerce in 2026,” indicates that the industry is not witnessing a “slowdown,” but rather a significant “redistribution” of activities. This alteration is reshaping the competitive landscape for brands, retailers, and marketplaces.

According to Tradebyte CEO Matthias Schulte, “The story of e-commerce in 2026 is not one of slowdown, but of redistribution.”

Regional Growth Dynamics

Although Western Europe remains the leader in gross merchandise value (GMV), accounting for more than 73% of the expected GMV in 2025 from Germany, France, Belgium, the Netherlands, and Switzerland, the highest growth rates are emerging in different areas.

The Tradebyte e-commerce report reveals that Central and Eastern Europe experienced a remarkable 59% increase in GMV, while Nordic countries reported a 37% rise, establishing themselves as the fastest-growing regions within Tradebyte’s network.

Smaller European markets, such as Luxembourg, Norway, Cyprus, Greece, and Portugal, also enjoyed increased GMV growth of over 100% in 2025. This impressive growth is largely attributed to marketplace expansions and the growing importance of cross-border fulfillment.

The insights are based on transactional data sourced from over 1,000 brands and more than 90 retailers utilizing the Tradebyte platform, supplemented by third-party industry research and expert analysis.

Matthias Schulte explained: “Our position at the intersection of brands, marketplaces, and retailers allows us to see shifts in demand and performance as they happen. We’re tracking how growth is moving across regions, categories, and channels, and it’s clear that brands that understand where demand is heading, and can operate with speed and precision, are the ones pulling ahead.”

Disparate Category Performance

The report points out stark contrasts in category performance, with underwear emerging as the fastest-growing segment, showing a 45% increase. Beauty products followed at 16%, while sportswear saw a 10% growth.

Despite fashion being the largest overall category, its growth is increasingly driven by practical and value-oriented products rather than traditional fashion trends.

Returns Impacting Profit Margins

The study also highlights how return rates are becoming a pivotal element affecting profitability across markets. In the UK, the average return rate is around 14%, while in Germany, Switzerland, and Austria, rates exceed 50%.

Given these disparities and their implications for margins, many retailers are expected to discontinue free returns by 2026. This change will place greater emphasis on accurate sizing data, fit information, and high-quality product content to minimize returns.

Evolving Discovery Channels

Consumer product discovery now occurs across multiple marketplaces, social platforms, and AI interfaces, with algorithms playing a critical role in driving visibility on these channels.

Tradebyte’s findings suggest that demand is increasingly generated within digital environments before customers even reach individual product pages.

The Importance of Quality Data

For brands, having structured product data, real-time inventory, and consistent pricing is essential for securing algorithmic rankings and expanding across various markets and channels. These capabilities are also vital for compliance with upcoming regulations such as the Ecodesign for Sustainable Products Regulation (ESPR) and Digital Product Passports.

AI’s Expanding Role in E-Commerce

Artificial intelligence is taking on a broader role in areas like forecasting, pricing strategies, stock management, and content generation. While consumer acceptance of AI shopping tools is progressing slowly, AI mechanisms are already significantly shaping which products appear to shoppers.

The report notes that pricing optimization is one area where the impact is particularly strong relative to the effort involved. Additionally, brands utilizing AI for content generation have reported sales increases between 5% and 15%, alongside reductions in return rates of 5% to 20%.

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Ralph Lauren stood out as one of the strongest performers this quarter, moving up five positions with a 24% QoQ increase in demand. The brand’s renewed focus on its core lifestyle themes has resonated strongly, amplified by seasonal social media trends, particularly the ‘Ralph Lauren Christmas’ aesthetic. Burberry and Gucci each climbed five spots, while Stone Island moved up four positions, benefiting from a remarkable 62% surge in searches. This trend highlights how brands reaffirming their heritage and design discipline are outpacing peers in transition.

Brands that are gaining momentum are those that reinforce their established identities instead of pursuing bold reinvention. H&M group’s COS retained its third-place ranking while recording an impressive 60% QoQ rise in demand on Lyst. Its clean aesthetic and focus on quality materials have continued to resonate globally. The debut of Massimo Dutti at number 16 underscores the increasing demand for accessible, design-driven brands that sit between everyday clothing and fashion credibility.

On the other hand, brands that have dropped in the Index seem to lack a clearly articulated or reestablished creative direction. Lyst indicated that this reflects consumer caution rather than outright rejection, as shoppers adopt a wait-and-see approach during periods of strategic recalibration.

Product trends this quarter leaned towards modern classics and functional staples, indicating a shift from overt Quiet Luxury to more robust, utilitarian aesthetics. Categories such as outerwear, knitwear, and practical accessories showed strong traction, reflecting consumer preferences for longevity and versatility.

The Polo Ralph Lauren cable-knit quarter-zip sweater emerged as the hottest product of Q4 2025, with global searches for quarter-zips rising 132% over the last three months. Its renewed popularity was invigorated by recent luxury runway appearances, reestablishing this classic style in the spotlight. Lyst pointed out that the quarter-zip trend suggests a broader maturation in menswear, as younger consumers gravitate towards smarter, work-ready silhouettes.

Outerwear specialist Barbour also witnessed a demand surge of 147% in Q4, attributed to a series of high-profile collaborations. Meanwhile, Arc’teryx’s Bird Head toque became the world’s hottest headwear item, experiencing an extraordinary 1,058% spike in searches, largely driven by Gen Z and Gen Alpha shoppers.

Among the rapidly rising brands, Tokyo-based A.Presse recorded a massive 191% increase in searches, while heritage shirtmaker Charvet saw a demand rise of 128%, largely due to its visibility in Matthieu Blazy’s debut Chanel collection. According to Lyst, the current Index reflects a more significant industry recalibration, where consumers increasingly favor brands with clear cultural codes, strong product identities, and a confident stance on who they are, rather than those chasing the next trend.

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Prada has reportedly dismissed 200 suppliers due to compliance violations over the past five years while conducting a rigorous “zero tolerance” audit in response to allegations of labor abuse within the fashion supply chain.

As reported by the Financial Times, the Milan-based luxury brand has performed over 850 on-site inspections of its Italian suppliers and subcontractors since 2020. This includes extensive surveillance, with all-night stake-outs conducted outside subcontractor factories. Alarmingly, more than a quarter of these inspections led to the termination of supply contracts.

The audit uncovered significant labor law violations, including the troubling discovery of dormitories situated within factories where workers were expected to sleep. However, these instances were less frequent compared to other types of non-compliance, such as insufficient health and safety protocols and poor waste handling practices.

Currently, Prada works with approximately 1,000 suppliers and registered subcontractors. The luxury fashion industry in Italy has faced heightened scrutiny due to a wide-ranging and contentious investigation by Milan prosecutors into alleged labor abuses within domestic supply chains.

Last October, the Milan Public Prosecutor’s Office reportedly moved to place the shoemaker Tod’s under judicial administration due to claims of worker exploitation in its factories located in China. This action followed reports that Italy’s industry minister was considering the introduction of a certification system after LVMH’s Loro Piana brand was placed under court administration for similar allegations.

Although Prada is not currently under investigation, Milanese prosecutors requested information regarding the company’s supply chain in December.

The luxury brand informed the Financial Times that it conducted 188 supplier inspections in the previous year, resulting in 43 dismissals.

Since initiating these audits in 2020, the rate of supplier terminations has decreased. Initially, in 2020, there were 143 inspections, with over half resulting in contract cancellations. Prada attributes the slowdown in terminations to its adoption of a zero tolerance approach.

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The groups assert that the suggested changes are inadequate for providing companies with significant relief since the principal due diligence and documentation requirements will remain, despite some reporting obligations being eliminated and penalties reduced.

Uwe Mazura, CEO of the German Textile and Fashion Industry Association, stated, “Germany must end its national go-it-alone approach and use the current amendment to the Local Tax Code (LkSG) to deliver tangible relief. Postponing this until 2029 is not an option. We call on the Bundestag and the Federal Government to implement the necessary measures immediately.”

Under existing regulations, companies based in Germany with at least 3,000 employees—and starting January 2024, those with 1,000 or more—must disclose measures taken to prevent human rights violations and environmental harm within their operations and supply chains.

The law mandates that affected companies perform regular risk assessments at least annually, evaluating their activities as well as those of direct suppliers regarding human rights and environmental risks.

Additionally, firms must conduct ad hoc risk assessments of indirect suppliers when they have credible knowledge of potential violations.

The business associations argue that while the current amendment might relax some formal obligations, it fails to address the core due diligence burdens imposed by the Supply Chain Due Diligence Act.

In correspondence sent to both the Bundestag and the Federal Government, the associations emphasized, “Therefore, no noticeable relief is to be expected.”

They are advocating for a suspension of the national provisions under the LkSG and urging the government to quickly implement supply chain regulatory changes agreed upon at the EU level in December 2025 (Omnibus I), as indicated in the coalition agreement.

If a complete suspension cannot be achieved, the associations suggest that German requirements be aligned immediately with the European Supply Chain Directive (CSDD), applicable only to large enterprises.

They contend that it is unjust for companies not covered by European obligations to be subjected to stricter national regulations, warning that a failure to align could lead to competitive disadvantages and legal uncertainty.

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Bain’s report indicates that 2025 was a year of recalibration for China’s luxury market, as consumers became more discerning, prioritizing value-driven luxury items that blend quality, exclusivity, and practicality. The preference for experience-based consumption—such as travel and wellness—persisted, further underscoring a desire for emotional and sensory engagements over purely material possessions.

“After the turbulence of 2024, the market in 2025 began to stabilize, although consumer confidence remained fragile,” stated Bruno Lannes, senior partner at Bain & Company. “What we are seeing is not a broad-based rebound, but the start of a recalibration phase, with early signs of recovery emerging in the second half of the year. This recalibration is also segment-specific, with the Very Important Clients continuing to represent a large share of the market, while younger aspiring consumers have delayed entry into the luxury category.”

Performance across various luxury categories showed significant variation. The beauty segment emerged as the standout performer, exhibiting a rebound of 4–7 percent growth, primarily fueled by consistent demand for ultra-premium skincare and fragrances. Consumers continue seeking emotional and sensory experiences, even amidst economic uncertainty, while other categories experienced continued pressure.

Fashion saw a decline of 5–8 percent, while leather goods fared worse with a drop of 8–11 percent. These downturns can be attributed to previous and ongoing price increases along with a lack of innovation, which made it challenging for consumers to justify new purchases.

“In a more selective market, category dynamics and brand fundamentals are becoming increasingly decisive,” remarked Priscilla Dell’Orto, partner at Bain & Company. “Brands that maintain strong desirability and offer clear value through innovation and targeted pricing strategies are proving to be more resilient.”

Contrary to trends witnessed in 2023 and 2024, luxury spending abroad significantly declined in 2025. Bain estimates that 65 percent of luxury consumption by Chinese consumers now occurs within mainland China, while 35 percent takes place overseas, pointing to a resurgence of domestic consumption.

This shift is partly attributed to favorable currency exchange rates and reduced price discrepancies between mainland China and key luxury markets, which diminished the motivation for overseas shopping. Additionally, the growth of domestic tourism and ongoing shopping mall promotions reinforced spending within the country, even as outbound travel continues to recover.

While daigou activity remains significant in 2025, there are signs of a structural slowdown as brands intensify efforts to curb gray-market sales and protect their pricing strategies in China. Sales among the top 45 brands monitored by Re-Hub saw a modest growth of 3 percent in 2025, a decline from the 5 percent growth observed in 2024, reflecting increased control over supply chains and unofficial distribution channels.

Meanwhile, the second-hand luxury market in China has continued its impressive growth, expanding by 15–20 percent in 2025, although it still accounts for less than 10 percent of the primary luxury market. This surge is fueled by an increase in pre-owned product availability, heightened consumer acceptance especially among younger, more price-sensitive buyers and the widespread adoption of live-streaming as an effective method for product verification and engagement.

“The second-hand market is becoming a more established and complementary pillar of China’s luxury ecosystem,” noted Elle Yang, partner at Bain & Company. “Its continued growth reflects changing consumer mindsets as well as the increasing maturity of the overall market.”

The report also highlights the ongoing rise of local Chinese luxury brands, particularly in beauty and select personal luxury segments. These brands are gaining market traction through culturally resonant designs, digital-first consumer engagement strategies, and competitive pricing backed by robust local supply chains.

As competition intensifies in a low-growth environment, the disparity between successful and struggling brands is widening. Consumers are increasingly consolidating their spending on a smaller selection of preferred brands that offer perceived ‘true value.’

Looking ahead, Bain anticipates that China’s luxury market will witness modest growth in 2026, albeit amidst ongoing volatility and uncertainty. A burgeoning middle class, improved consumer confidence, and favorable policies are expected to facilitate a shift in luxury consumption back to the mainland, while growth will remain highly dependent on specific categories and brands.

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