The mood among fashion consumers is sombre, according to new research from GlobalData, which reveals over half in a recent survey said they were concerned about the cost of living on long term finances and the pressure on disposable income.

The survey of over 22,000 consumers in 44 countries found 30% cut back on apparel spend in the first quarter with a notable shift to brands and channels offering more value.

“The data shows apparel can easily be deprioritised when budgets are tight,” asserted head of apparel at GlobalData, Chloe Collins.

Unsurprisingly much of the root cause of the ‘chill’ apparel brands and retailers are facing is the recently imposed tariffs by US President Trump.

The survey found 56% of global consumers said that they were concerned about the impact of trade wars and import tariffs on the prices of products that they buy. This was actually before Trump confirmed the tariffs.

For apparel brands and retailers, the impact is huge, given some of the countries hit hardest are the biggest suppliers of apparel and footwear.

“The key issues are going to be price rises with brands and retailers forced to pass some of the increases to consumers. Adidas and Hermes have already stated that they will be left with no choice but to do so,” said Collins.

“However, there is also a chance that some brands may choose to spread the costs and increase prices in other markets too. As a result, we’re going to see a reduction in volumes and likely a shift to value or off-price players.”

Value apparel players and options to come up trumps (excuse the pun)

Ultra-fast fashion online players Shein and Temu have become worldwide phenomena, offering cash-strapped consumers access to the latest fashion trends.

That’s all about to change though as the US ends the de minimis benefit that allowed them to ship goods under $800 into the country for free. The UK is about to follow suit. 

Shein is to hike its prices as a result which could trigger a growth deceleration. But it’s important to remember that with price rises across the board, it may still remain the cheaper option for consumers.

That said, Collins pointed out more consumers are turning to pre-loved channels. For instance, Vinted posted a 36% increase in revenue for FY24 while profits surged. 

“Consumers are actively looking for ways that they can reduce their spend on apparel, such as shopping secondhand, trading down to cheaper brands and also focusing on capsule wardrobes that promote less frequent purchases,” she said.

And some are actually trading up to more expensive fashion brands that offer better value for money.

“As these items have superior quality and therefore should last longer, they should also need replacing less often, so they still impact volumes.”

GlobalData says on a price position basis, the best performing segment during 2025 is forecast to be the value apparel channel with growth of 6.7% as consumers are going to continue to seek more affordable options during tough economic times.

While Shein is likely to continue to drive most of the growth, particularly internationally thanks to its rapid response to trends and ultra low prices, the premium segment will be the second strongest with growth of 3.5% this year.

This will be boosted mostly by demand for premium sportswear through brands such as On, Hoka and Asics, as well as Lululemon and Alo Yoga. 

“This segment will also continue to benefit from consumers that are trading up for better quality, with brands such as Ralph Lauren and Abercrombie all gaining share in 2024,” said Collins.

Resale is not set to slow

When it comes to resale, GlobalData reveals it will take spend away from the mainstream apparel sector.

“When you add the retail and resale apparel markets together, resale accounted for just under 10% of spend in 2024 with a market size of $205bn and we expect that this will grow by almost 50% by 2028 to $302bn when it will then account for almost 13% of total apparel spend.

“The resale market has grown rapidly over the last few years, as awareness has grown, but also because it provides consumers with a cheaper and more sustainable way to shop. Vinted in particular has been a huge success in Europe and continues to expand, with its revenue increasing 36% last year, and brands and retailers such as Zara and Primark have also been growing their own secondhand propositions,” Collins said.

“We do think we could see an even bigger shift to secondhand now as a result of the US tariffs, which we’ll consider during our next update of this data in Q4.”