The fashion industry is entering a new era, one driven by persistent economic uncertainty and geopolitical instability, shifting consumer priorities and rapid technological innovation. Yet brands and retailers who recognize these shifts—and adopt accordingly—will come out on top.
According to Informa Fashion’s 2026 US Fashion Consumer Outlook report, retail success will depend less on reacting to short-term disruption and more on fundamentally evolving with the consumer in a permanent way.
Drawing on a survey of U.S. consumers, expert interviews and market intelligence, the report identified four major shifts influencing fashion retail. Together, they paint a picture of a consumer who is shopping more intentionally and selectively, and is more focused on long-term value.
To bring the report’s data points to life, Informa hosted executives from Business of Fashion Insights, Bloomingdale’s, Depop and Spanish footwear brand Flabelus for a webinar. The takeaways:
1. Value is Not All About Price
Traditionally, value in fashion has been associated solely with affordability, but that price equation has changed. Instead of just searching for the lowest price, today’s shoppers—whether luxury or more mainstream—want products that justify their investment by lasting longer, fitting better and performing to higher standards.
“No one needs anything new, so any purchase needs to be nicer, more durable and more special than what they already own,” said Josh Peskowitz, brand consultant and former fashion director of Bloomingdale’s, adding that as shoppers shift away from impulse buying, every purchase must earn its place in the wardrobe. “We’ve been harping on this for years and because of today’s macro circumstances, it’s finally taking hold. Craftsmanship, innovation, rarity—those are the things that bring value for a discerning consumer.”
Consumers are also paying closer attention to fabric composition, construction and craftsmanship, and they’re spreading the word. Social media and other online conversations around material quality continue to grow (think influencers highlighting fabric tags on TikTok), with shoppers actively comparing fabrics and educating themselves before purchasing.
To target this more educated consumer, brands must figure out and communicate their products’ value through storytelling instead of just focusing on price.
2. Tariffs Increase Price Sensitivity but Consumers Still Expect Value
The second major shift centers on the growing impact of tariffs and rising production costs.
Fashion brands continue to face increasing expenses across manufacturing and sourcing, forcing difficult decisions around pricing–what to absorb and what to pass on. Research shows that shoppers remain highly sensitive to price increases, especially if they don’t perceive any additional benefit.
Many respondents (33%) indicated they would “delay purchases or reduce overall spending” if prices increased because of tariffs. And if prices must increase, shoppers at least want to understand what they are paying for—be it improved quality, enhanced craftsmanship, better materials or innovative design. Simply explaining that costs have risen is unlikely to persuade consumers to spend more.
Brands can also be strategic about price hikes. While consumers often have price expectations around staples like T-shirts or jeans, they are less anchored to prices on newer products, limited editions or innovative collections. This gives brands and retailers flexibility to absorb some or all of the tariff increases in some instances while making up margins elsewhere.
Spanish footwear brand Flabelus, which was operating on 25% margins in the States, decided to reduce margins to 9% due to tariffs, according to CEO and founder Beatriz de los Mozos. To make up for it, the brand “reorganized and deleted some lower-margin products from its website, steering the consumer to only buy products that were higher in margin,” she said. “This helped us quite a bit.”
The States was a newer market for the brand, so the company made the decision to preserve its market share there. In “more mature markets,” raising prices would be more accepted, she said.
Whether driven by tariff price increases or a shift in mindset, consumers just aren’t buying as much, agreed panelists. To address this fact, Peskowitz suggests brands establish a strong point of view and value proposition, and eliminate extraneous skus that add clutter and can overwhelm choice.
“If you can identify with what feels true from your brand’s standpoint, [consumers] will look to you first when it comes to those occasions,” he said. “The era of being something to everyone is over. Instead, just focus on being everything to someone.”
3. Shopping Is Becoming Increasingly Occasion-Driven
One of the report’s key findings is the rise of more intentional, occasion-based shopping.
Compared with previous years when shoppers browsed for inspiration or shopped on impulse, today’s consumers are increasingly purchasing fashion for specific purposes—whether for themselves or for someone else. Weddings, vacations, festivals, celebrations and gifts now rank among the leading reasons for buying apparel.
Global brands must tap into regional holidays as well as cultural nuances. As a global brand, Flabelus always asks, ‘Who are the key players when there is a special occasion happening?’ “For 2027, this is the first time we’re going so deeply into other countries and we do want to relate culturally with the different countries and understand what is important to them,” said de los Mozos, noting they aren’t making the same collections for all markets. “What we’re doing is partnering with big department stores in every country to make sure that that special occasion is highlighted in a way it deserves.”
As seasonal sales, weather changes and promotional events have all declined in importance, this forces a shift in merchandising and marketing strategy. It’s more about customers’ calendars now than the traditional retail calendar.
Brands should position products around the moments consumers are preparing for, rather than generic seasons or discounts. For example, reframing a spring dress as the “perfect outfit for a destination wedding,” a jacket as “ideal for weekend travel” or a handbag as “the finishing touch for holiday celebrations.”
This approach also aligns with changing online search behavior. As more consumers ask search tools highly specific questions—such as what to wear to a music festival or how to dress for a beach vacation—brands that clearly associate products with such occasions are more likely to appear in those recommendations.
With around 600,000 new listings added daily, Depop uses a combination of technology, search and matching improvements and human curation to connect consumers with the right items at the right time.
“We always try to surface the things that we see people are interested in, based on what’s happening in culture, which our audience is very sensitive to,” said Steve Dool, senior director, brand & marketing, Depop. “We find the style story that’s being pulled at the moment between film and TV and culture, then we’ll have a tile on our discovery or explore page that is curated for them.”
The goal, he said, is to create a more personalized shopping experience that anticipates each individual’s needs and intent, making it easier for consumers to find unique pieces for the occasions that matter to them. Bonus for versatile products that can span multiple occasions.
4. AI Delivers the Greatest Value (Behind the Scenes)
Fashion industry insiders might be buzzing about artificial intelligence, but consumers aren’t. While there is some interest in mobile shopping apps or personalized recommendations, research found relatively low demand for overt, customer-facing AI features.
“Consumers don’t want to think about AI and they don’t want to download another app if they can avoid it,” said Peskowitz. “If AI can help the consumer journey, great, but they better not see it.”
Instead, the greatest opportunity for AI lies within business operations. Brands are increasingly using AI to improve efficiencies—accelerate product development, improve inventory management, optimize supply chains and analyze customer behavior. Consumers may never notice these technologies directly—but they will appreciate the results.
Better stock availability, more accurate product recommendations, improved search functionality and faster product launches all contribute to a smoother shopping experience without requiring customers to actively engage with AI.
Industry leaders also emphasized that AI should enhance human expertise rather than replace it. Designers, marketers and merchandisers still provide the creativity, judgment and emotional understanding that consumers value. AI simply enables these teams to work faster and make more informed decisions.
“Consumers are better at telling you what is working for them than they are about how to fix it,” said Dool. “Don’t ask what they want to see in their consumer journey in terms of the tech they want to see. It’s more about understanding the problem that you can solve, and then you determine if you need tech to do it or not. Maybe it’s a human-to-human situation, or a combination of [human and tech], but in general, the more seamless the consumer journey is, the better.”
