Just Style shares its predictions for which fashion brands look tipped for success and which ones might have their work cut out for them in 2025.

In 2025, industry onlookers say a successful fashion brand will be determined by its ability to respond quickly to evolving consumer demand, staying ahead of the game when it comes to sustainability despite waning interest, and having an agile supply chain able to withstand unexpected challenges.

Investments to drive growth will remain key, as will the need to embrace AI and other digital breakthroughs in order to boost speed-to-market.

Here is Just Style’s roundup of the brands set to succeed as well as the ones lagging in 2025.

Primark

A recent survey on Statista revealed UK fashion retailer Primark registered a 94% increase in brand awareness among residents in its home market, suggesting it remains popular. And it’s not hard to see why. Despite having a limited e-commerce presence offline, Primark is one of the brands doing the most when it comes to meeting consumers’ price expectations and their demands around sustainability.

In its most recent sustainability report, the Associated British Foods (ABF) owned brand revealed scope 1 and 2 emissions (market-based) decreased by 21% from 2023 levels and were 52% lower than the baseline established in 2019.

It says having driven down carbon emissions in its value chain by 11.6% it is on track to achieve its goal to halve emissions by 2030. 

Elsewhere, in the Sustainability & Ethics Progress Report 2023-2024, Primark revealed almost two-thirds or 66% of its clothing now contains recycled or more sustainably sourced materials, up from 11% over the past year. The retailer recently announced a programme with the UK’s Waste and Resources Action Programme (WRAP) to reduce textile waste and extend the lifespan of clothing. 

In its full year results announcement it said sales rose 6% for FY24 despite consumers remaining hesitant to spend on new fashion purchases due to ongoing economic uncertainty. Operating profit rose by 53% to £1.1bn ($1.38bn).

Meanwhile, a recent report by GlobalData attributed Primark’s success to its “value proposition and trend-led assortment,” which have continued to resonate strongly with shoppers. In 2023, it was named the biggest apparel brand in the UK, growing 0.3 percentage points to 6.2%.

Shein

This time last year when Just Style made its predictions, Singapore headquartered ultra-fast fashion brand Shein was described as the “marmite” of the fashion world as it is either loved or hated.

This point still stands.

At the one end, Shein has its share of critics – pointing out kinks in its armour when it comes to the transparency of its supply chain or the alleged “failure” of its clothing to meet global health and safety standards.

But at the other end, boy does it have its share of fans. Shein remains unbeatable when it comes to pricepoint and that appeals at a time when consumers are increasingly strapped for cash.

We think its popularity is only going to grow in the years to come and it certainly appears keen to get its ducks in a row on the ethical and sustainability front and to appease its critics attempting to curb its popularity in the US.

At the end of last month (December 2024), Shein volunteered to participate in a US data pilot programme put forward by the CBP for de minimis imports. 

It comes at a time when the US is cracking down on what it says is abuse of the de minimis trade benefit that allows packages under $800 to reach US consumers without facing any taxes, fees or inspections.

In December Shein also created two new advisory bodies comprising experienced international professionals who will furnish the retailer’s executive team with guidance and strategic input to further its corporate responsibility goals. 

Regardless of how it is getting there, Shein is without a doubt stealing market share from leading players. The latest figures shared in the UK’s official register of companies (Companies House) shows Shein’s UK subsidiary Shein Distribution UK saw revenue of £1.55bn and pre-tax profit of £24.4m in the year to December 2023 ahead of an expected IPO on the London Stock Exchange.

Shein’s UK sales increased by almost 40%, as its profits in the region doubled between 2022 and 2023. It cited pop-up shops in the UK as “significant milestones” in 2023, as well as the launch of a new office in Manchester with 33 employees, up from 14 in 2022.

The latest results show that Shein has also overtaken local rival Boohoo in the UK market and is close to matching the revenue of online UK fashion retailer Asos.

H&M

When it comes to sustainability among fashion brands, we think it’s safe to say Swedish fashion brand H&M has been among the ones at the forefront and this trait will serve it well into 2025 and beyond.

Earlier this year, H&M unveiled a new venture, Syre, developed in collaboration with investor Vargas Holding, that aimed to spearhead the decarbonisation and wastage reduction of the textile industry through large-scale textile-to-textile recycling, starting with polyester. 

In November it said it had entered into a Memorandum of Understanding with the Power Engineering Consulting Joint Stock Company 2 (PECC2) for green energy supply under Vietnam’s Direct Power Purchase Agreement (DPPA) mechanism. The partnership enables H&M to procure clean energy at competitive rates.

It has also committed to exclusively using down and feathers from post-consumer recycled sources by the end of 2025, in alignment with its longstanding commitment to improving animal welfare across its global supply chain. 

Beyond this H&M takes steps to act quickly on whatever is no longer serving it.

In November, the company sold its off-price marketplace Afound to Secret Sales. H&M said at the time that the digital fashion outlet which had offered deals on past and present collections from fashion and lifestyle brands was closing down because a review of its operation revealed a lack of demand for it.

Frasers Group

Over the course of 2024 UK fashion and sports brand conglomerate Frasers Group has continued to rely on acquisitions to drive growth and presence. We believe 2025 will be much of the same.

It is currently embroiled in a highly publicised leadership battle with Boohoo Group which continues to rebuff its attempts to appoint its own Mike Ashley and Mike Lennon as directors of the company. 

It comes shortly after Mulberry rejected a takeover bid, concerned by Frasers Group’s ‘lack of luxury experience’.

But it has seen its fair share of M&A success over the past year. In August the company announced a strategic investment in Accent Group Limited, acquiring a 14.65% stake in the Australian and New Zealand performance and lifestyle retail and distribution company as it continued its acquisition spree.

It also entered a new partnership with THG which saw it acquire the latter’s luxury brand portfolio, including UK designer clothing retailer Coggles. 

In April it announced plans to acquire all shares in Twin Sport Holding, an omnichannel sports retailer based in the Netherlands, to become the “number one” sporting goods retailer in Europe, the Middle East and Africa (EMEA) and confirmed plans for the Dutch sports retailer Sprinter store takeover.

This came shortly after an acquisition of independent menswear retailer Aphrodite. 

Beyond this, it has increased its stakes in Asos and Hugo Boss in recent months too.

Nike

It’s been a turbulent year for US sportswear giant Nike which reported a decline in its second quarter (Q2) earnings for fiscal year 2025 (FY25) with net income falling by 26% to $1.2bn from $1.57bn in the previous year.

Nike’s Q2 basic earnings per common share were $0.78, a decrease from $1.04 year-on-year, while diluted earnings per common share also dropped to $0.78 from $1.03.

Despite this, the Air Jordan-owner is confident its plans to reshape its business are paying off.

In June Nike had sounded a warning on its FY25 results, blaming consumer weakness for softer sales. 

A month later (July) it had also found itself in hot water with investors over its handling of allegations of human rights abuses in its supply chain. 

In September Nike appointed veteran Elliott Hill to take charge of the business and succeed John Donahoe as CEO.

Throughout his career at Nike, Hill held senior leadership positions across Europe and North America and was responsible for helping grow the business to more than $39bn.

Nike said it was banking on “accelerating pace, scaling newness and innovation, driving bigger, bolder storytelling, and elevating the entire marketplace to fuel brand distinction and be in the path of the consumer,” to drive its success. 

The Nike brand continues to resonate strongly with consumers with a survey published in May 2024 calling it the most sought-after brand on resale sites such as Depop and eBay. 

And it ranked among the top in Gartner’s Global Supply Chain Top 25 for its ability to prioritise sustainability and growth in a “challenging operating environment.” 

Asos

Another fashion brand that struggled with the challenges of a softer consumer environment in 2024 was UK fast fashion e-tailer, Asos.

Its FY24 revenue sank by 18.1% with an industry onlooker suggesting it is crumbling from the pressure of rival online ultra-fast fashion giant Shein.

During the 52 weeks to 1 September 2024 (FY24) Asos’ group revenue declined 18.1% to £2.9bn from £3.5bn in FY23. However, the company said it saw significant cash flow improvement over the period with an adjusted EBITDA of £80.1m, which was at the top end of its consensus expectations, and £37.7m free cashflow, a £250.7m improvement year-on-year.

Earlier in the year, it announced a joint venture agreement with investor group Heartland for its ailing Topshop and Topman brands. The stake would see Heartland take 75% for £135m while Asos would retain 25% and the right to sell a further 5% interest to the Heartland Shareholder for £9m. Analysts said the move might allow it more breathing space to focus on its core portfolio.

Asos has, however, made strides in 2024 on the supply chain front, in particular safeguarding worker rights which should serve it well in 2025 as Europe doubles down on plans to hold brands accountable for happenings in their supply chains.

It has become one of the first online retailers to sign a legally binding agreement supporting collective bargaining rights for garment workers in Cambodia. 

And in October it sponsored a new centre in Tunisia dedicated to supporting female workers by addressing issues related to gender-based violence, health and safety, and training. 

 By Just Style