From mergers and acquisitions to investing in digital technologies, Just Style reveals the ten trends the fashion industry should embrace in 2025 to stay on top in a volatile global market.

Financial concerns are still driving many consumers to cut back on fashion spend in 2025, according to GlobalData’s ‘Top Trends in the Apparel Market for 2025’ report. Its global consumer survey, which was conducted in Q3 2024 reveals over half of shoppers (54.5%) are concerned about their personal financial situation.

The report suggests apparel growth will stay muted in 2025 as consumers prioritise leisure and other essentials as financial pressures start to ease.

The report explains there are a number of ways fashion brands and retailers can beat the competition in 2025 from taking advantage of market polarisation and investing in digital technologies to integrating experiences in-store with online.

Ten ways for fashion brands to succeed in 2025 

1. Maintaining consumers despite market polarisation 

The mass market will remain squeezed in 2025, increasing by 2.3% as shoppers trade up or down to obtain value for money. 

The mass market will need to work hard to keep hold of its core consumer base by either marketing its value offering to more price-led shoppers and emphasising the quality of its items to those that could be tempted to tap into the premium or luxury market.

GlobalData notes that Spanish fashion brand Zara, which is owned by Inditex and Japanese fashion brand Uniqlo, which is owned by Fast Retailing are two examples of mass market brands that are successfully keeping hold of their consumer base by combining value with quality; and will continue to do well.

2. Creating growth through mergers and acquisitions 

The challenging economic environment means many apparel brands could need rescuing in 2025, but this could create opportunities for fashion conglomerates that wish to grow their own market share and expand their consumer base. 

GlobalData predicts potential deals that may happen in 2025 include takeovers of luxury brands Mulberry and Burberry, after both saw their shares tumble in 2024. It also believes fashion brand Superdry is at risk after a potential takeover from founder Julian Dunkerton fell flat in 2024, leaving it up for grabs from other businesses.

3. Investing in new digital technologies to grow online in 2025 

Online is expected to outperform in 2025, growing 5.9% versus 2.5% for offline, with penetration rising to 28.1%.

Most of this will be driven from multichannel retailers enhancing their operations to

compete with online pureplays, as well as emerging markets as they continue to digitalise.

Investments in new technologies will aid growth with GlobalData noting that AI is expected to be the most important technology in 2025. It explains German online retailer Zalando and preloved online retailer Depop have already adopted AI technology to enhance their customer service chatbots and provide personalised product recommendations. 

Retailers are also integrating augmented reality, mainly through virtual try-on tools to help shoppers with their online garment selections and to reduce return rates.

Live streaming has been popular in Asia for a few years, however Western markets might want to test the the trend with consumers after Zara launched its first livestream in the UK in September 2024.

4. Integrating digital experiences into physical stores 

Bringing experiences and digital technology into stores will allow physical retailers to compete with online in 2025. 

Self-checkouts, smart mirrors and store modes on mobile apps are all ways of doing this with Swedish fashion brand H&M, UK fashion retailer Primark and Zara already exploring these tools. 

Experiences will also help to drive footfall, but as standard cafes and salons have become more common, brands need to be creative to stand out.

Previous good examples include Primark’s Shrek and Lion King themed cafes, and Uniqlo’s London store in Coal Drops Yard, which has vending machines selling clothing and market stalls offering Japanese baked goods.

Online pureplays should also continue to use pop-ups to test demand in new locations and connect with shoppers.

5. Continuing to tap into the sportswear trend 

The sportswear market is expected to outpace the total apparel market out to 2028. Consumers value its versatility, so it’s important for fashion brands and retailers to continue offering athleisure as part of their product lines.

GlobalData points out consumers are also taking up newer activities such as padel and pickleball which will require specialist items. While, specialist running shoe brands such as Hoka and On are continuing to succeed thanks to their innovative technology and comfort credentials.

Creating a lifestyle around sports and athleisure products is also proving to be fruitful with newer athleisure brands Alo Yoga and Vuori hosting events and providing consumers a sense of community. 

6. Embracing the resale market 

The global apparel resale market will see double-digit growth of 13.3% in 2025. There is a risk that it will take spend away from traditional retail as platforms like Vinted and Depop continue to excel. 

However, fashion brands can give their consumers resale options with Primark trialling swap shops in some of its stores and ultra-fast fashion giant Shein announcing an Exchange platform in some of its European markets in 2024.

7. Incorporating sustainability but not making it the only reason to buy

Sustainability will remain important to consumers in 2025, but brands should not compromise on other factors such as value for money. 

The most obvious way that fashion brands can be more sustainable, according to GlobalData, is to incorporate more eco-friendly materials into their products and

packaging.

The report points out brands need to be careful not to come across as greenwashing. It also advises fashion players to introduce repair options to stores, or add adjustable features to products that will allow consumers to get much more wear out of their purchases.

8. Tapping into the capsule wardrobe and underconsumption core trend 

Fashion consumers are prioritising value for money when it comes to their clothing purchases, which has led to the rise in purchasing fewer but better-quality items that can be mixed and matched within a capsule wardrobe. 

Plus, the ‘underconsumption core’ trend on social media is driving many

young consumers to reject the push from influencers and marketers to

overconsume products. 

This is reducing apparel volumes, however fashion brands can protect overall spend by creating timeless products from more durable materials at a higher price point.

9. Examining what fast fashion disruptors are doing differently 

Ultra-fast fashion online brands such as Singapore-headquartered Shein and China-headquartered Temu are continuing to take market share from more established players.

These brands have faced criticism for their environmental and social responsibility credentials, however their low prices and fast speed to market are continuing to attract consumers.

Established fashion brands and retailers should take note of what these new players are doing differently and consider whether there are any learnings that can be incorporated into their own business models.

10. Using social media to attract younger shoppers 

Brands that see young shoppers as their target market should explore using social media to enhance engagement in 2025. 

Shein successfully uses microinfluencers to target consumers in a more personal way and to give more authentic opinions about its products, which other fashion brands could trial to generate higher conversion rates.

Social media shopping is growing in popularity especially on TikTok and Instagram, which GlobalData says is helping to increase apparel spend by initiating impulse purchases. 

It adds that one fifth (21.2%) of the global consumers in its Q3 2024 survey said that in the following three months they will start buying non-grocery products via social media or do so more often, which highlights the growing opportunities that lie within this channel.

In December, fashion digital wholesale management ecosystem, Joor, outlined the upcoming trends for fashion wholesale through 2025 which includes the rise of independent retailers and an acceleration of direct to consumer (DTC) into wholesale.