Lectra’s Retviews analysis suggests profitability momentum for Fall/Winter 2025/26 is tilting decisively toward mid-market fashion brands, which are outpacing both mass-market and luxury peers by combining premiumisation with tighter price and promotion control.
According to the platform, this segment has pushed through notable price increases across multiple categories and simultaneously reconfigured promotions—cutting discount intensity while extending promotional windows—to respond to macro pressures such as inflation and higher tariff-related costs. Retviews argues that this approach is helping the mid-market become the main contributor to sector value, overtaking luxury in overall value leadership.
The research points to a strategic repositioning among mid-market fashion brands: more elevated design language, narrower and more curated ranges, and higher pricing intended to create separation from mass-market competitors. Compared with 2024, the study estimates mid-market prices rose by about 50% in Europe during 2025 and were even “doubling” in the US.
Retviews also highlights category-level price moves across both Europe and the US. Denim prices increased 9% in Europe and 20% in the US, with demand holding up alongside growth in assortment breadth. Winter footwear rose 9% in Europe and 19% in the US, with momentum attributed to mass-market growth and design-led mid-market labels. Outerwear expanded in both price and range: coats and jackets were up 11% in Europe and 13% in the US.
Handbags recorded the steepest increases, rising 33% in Europe and 38% in the US, influenced by luxury-driven trends and amplified through social media. Accessories and “lucky charms” also moved higher, up 15% in Europe and 16% in the US.
Promotional mechanics have shifted alongside these price increases. The report indicates brands are offering lower average discounts, but running promotions for longer—an attempt to preserve pricing power while still stimulating demand. In Europe, between September and December 2025, both the average discount rate and the share of discounted products declined versus earlier years.
Lectra links these adjustments to a tougher economic backdrop. It cites UK consumer price inflation at 3.4% in December 2025 as one factor behind cautious spending patterns. In the US, tariffs of 15% to 50% have raised import costs for exporters, prompting selective price increases that may limit demand.
The company describes the current environment as a “K-economy,” where higher-income consumers continue spending while others pull back, requiring brands to refine pricing, promotions and segmentation.
Lectra EMEA president Antonella Capelli said: “Brand strategies reflect market challenges. Today, product ranges are becoming more streamlined and collections are curated in a more intentional way. 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.
“Leveraging advanced technologies to obtain and interpret current market insights is now essential for optimising strategies, ensuring consistency with consumer expectations, and, at the same time, guaranteeing solid commercial performance and efficient inventory management.”