The global fashion landscape has reached a structural inflection point this February 2026, with mid-market brands emerging as the industry’s primary growth engine. According to a new benchmark study from Lectra, powered by Retviews AI, the mid-market segment is currently outperforming both luxury and mass-market peers. This shift is driven by a strategic move toward ‘premiumization,’ as brands successfully implement price increases of up to 50 per cebt in Europe and even higher in the US while simultaneously streamlining their assortments.

Navigating the K-economy and tariff pressures

As global markets react to the new 10 per cent US import surcharge effective February 24, mid-market players are demonstrating superior resilience. While luxury houses struggle with cooling demand in China and mass-market labels face thin margins, mid-tier brands are leveraging sophisticated pricing data to absorb costs. The study highlights a decisive ‘K-economy’ split: higher-income consumers are trading down from luxury to ‘affordable luxury,’ seeking refined designs without the five-figure price tags. Handbags and winter accessories have seen the sharpest gains, with price points rising 33 per cent in Europe as brands capitalize on social media-driven ‘lucky charm’ and micro-accessory trends.

Redefining promotional mechanics for profitability

A critical factor in this segment's success is a fundamental change in discounting. Rather than aggressive price slashing, brands are moving toward lower average discount rates sustained over longer promotional windows. This approach preserves brand equity and pricing power amid 3.4 per cent inflation and volatile trade policies. Collections are becoming more intentional and curated, noted Antonella Capelli, President, Lectra-EMEA. By integrating real-time market insights and Digital Product Passports (DPPs), mid-market leaders are securing a 20 per cent price premium from consumers who prioritize verifiable material origin and supply chain transparency over fast-fashion novelty.

Retail technology and intelligence

Lectra provides Industry 4.0 hardware and software solutions, including the Retviews AI platform, for the fashion, automotive, and furniture sectors. Focused on digital transformation, the firm helps brands optimize competitive benchmarking and inventory. With fashion design software markets projected to hit $3.33 billion in 2026, Lectra remains a central driver of data-first retail strategies.