State of Fashion 2026
- Mar 6
- 2 min read
I spend a good amount of time reading industry reports. One I look forward to is The State of Fashion by BoF and McKinsey. Here’s my take on the 2026 edition.
> Tariffs Tariffs will continue to shape the global fashion industry. Last year’s spike forced brands to reshuffle assortments, protect margins, and find new manufacturing partners. Industry leaders describe 2026 as “challenging,” with 46% expecting conditions to worsen. With recent geopolitical developments, that number may already be higher. Agility in sourcing and assortment planning definitely remains critical.
> AI is now a business necessity, as we know. Companies compete for talent from a small pool of AI and tech experts, but pay alone won’t win; companies need a compelling employee value proposition. Upskilling, meaningful work, flexibility, creative space, and culture all matter.
Another dynamic: companies investing in AI capabilities are getting stuck at scaling.‘Up to 90% of AI initiatives fail to scale beyond the pilot phase’. From my experience, scaling requires training, low barriers to adoption, and a genuine mindset shift.
> Consumers are spending more intentionally, seeking quality, longevity, and self-expression. The mid market is now the fastest growing segment, and resale is growing two to three times faster than the primary market.
When consumers get selective, loyalty matters more. People stick with brands they trust, acquisition is expensive, and growth comes from repeat purchase.
> Jewellery: As a side effect of this behaviour, jewellery has seen strong growth and is forecast to grow ~4x faster than clothing through 2028. Consumers see it as both investment and self-expression. Lab grown diamonds made jewellery more accessible and could’ve bolstered the growth, but the more durable shift is behavioural.
And speaking of accessibility, as the category grows and reaches new audiences, I think its a great moment to think about product design and making it accessible with adaptive clasps, lighter materials, or sensory-friendly finishes.
Accessibility broadens reach and builds the kind of loyalty that is hard to manufacture any other way.
> Wellness and experience: Another shift tied to intentional spending is the growth of the wellness market (fitness, nutrition, sleep, mindfulness, mental health). It is forecast to reach almost $2.5 trillion by 2028.
More than half of consumers say they’dspend the same or more on health and wellness even if their income fell. That is a bold claim.
So naturally, every brands wants a part of it. Similar to when every fashion brand suddenly launched sportswear, even if historically they had nothing to do with sports or sportswear.
Some brands are already experimenting:Lululemon hosted an Athletics Summer Club in the Hamptons. Alo Yoga had wellness retreats during Fashion Week. Kith has reported plans for a members club concept in New York.
And practically, experiences cannot be tariffed like footwear and apparel. While not a full escape, it can be a meaningful buffer and potentially even translate into additional revenue streams
Before I end up writing a report about a report, I have linked the full research below. It covers a lot of ground and is packed with useful insights.
My work sits at the intersection of sports strategy, insights, and accessibility. Love to hear what others are seeing. Or feel free to reach out for a chat, we can make an experience out of it.
Comments