State of Fashion 2026: Heritage, identity, and meaningful customer interactions
The 10th annual instalment of the BoF-McKinsey State of Fashion Report saw “challenging” replace “uncertainty” as the word describing the year ahead. Bleak.
From tariffs reshaping trade and AI transforming shopping behaviour, to consumers prioritising wellness and proven value, the industry faces a fundamentally new reality.
Are you prepared?
With the new year around the corner, we've picked our top four trends from the report that luxury brands must navigate:
Sustainability Goes Mainstream
Second-hand fashion is set to outpace first-hand sales two to three times by 2027. For luxury, resale and repairs don't have to be a threat. Smart brands can turn pre-loved items into revenue streams and cultural currency. Take GANNI, who've partnered with SOJO to offer repairs and alterations, and Vestiaire Collective to give those reselling GANNI products an exclusive discount on their next purchase.
Beauty and Wellbeing Blur
Consumers now demand products and experiences that nurture mind, body, and identity. Wellness and a feeling of ritual is central to shopping decisions, and luxury brands that embed emotional connection into their offerings will win loyalty and relevance.
Jewellery as Self-Expression
Jewellery unit sales will grow four times faster than clothing through 2028. This may be aspirational consumers' way of accessing premium brands amidst consistent price hikes, but more than that, it shows a continued devotion to craftsmanship. Good jewellery promises permanence as well as personal meaning and self-expression, with more and more people seeing it as an opportunity for self-investment.
Value Over Volume
Mid-market brands now lead sector growth, with more than 80% of consumers prioritising value for money. Luxury must go beyond price: craftsmanship, storytelling, and experience are the levers that create perceived and lasting value.
Our Key Takeaway?
In a flat or disrupted market, only brands that capture hearts, minds, and emotions will continue to grow. Heritage, identity, and meaningful customer interactions are the currency of 2026.
