3. 2026 Consumer behaviour outlook

Re-engineering desirability for the algorithmic consumer

The global fashion sector is entering a new strategic cycle defined by profound shifts in consumer behaviour, demanding a re-evaluation of how apparel companies build desirability and remain visible. Amid persistent economic uncertainties and geopolitical pressures, the industry is grappling with the structural transformation brought on by artificial intelligence (AI), a pervasive shift toward authenticity and value, and the unabashed rise of ultra-fast fashion platforms.

For executives, viewing these dynamics merely as a technical challenge or a passing trend would be short-sighted. As Xavier Romatet, general director of the Institut Français de la Mode (IFM), stated, “We are going through a complex, dangerous, and exciting period because the players in fashion are being completely redefined”. Success in 2026 will be determined by a brand’s ability to invest in strategic data infrastructure, emotional resonance, and trustworthy interaction.

Digital dominance and the rise of artificial intelligence

AI becomes personal stylist and gatekeeper

Artificial intelligence is rapidly moving beyond a technical tool to become a constant consumer companion, fundamentally changing the relationship between people and brands. AI is now a personal stylist, confidant, and emotional anchor in the purchasing process. This is evidenced by Accenture's ‘Consumer Pulse 2025’ study, which found that around 30 percent of active users already trust AI tools for shopping and style advice. Moreover, the Kantar Marketing Trends 2026 report notes that 24 percent of AI users rely on an assistant for product choices, and one in two active users has already made a purchase based on an AI recommendation. This delegation of purchasing power is transforming e-commerce from a static experience—a “search bar and a long list of item responses,” as described by Walmart, Inc. president and chief executive officer Doug McMillon—to a dynamic, personalised, and contextual one.

Generative Engine Optimization (GEO) is the new SEO

The changing role of search means that visibility is no longer achieved solely through search engine optimisation (SEO). Consumers formulate complex questions, expecting immediate and personalised answers, making Generative AI the first point of contact. For brands, the critical question is now: “is a brand clear enough to be recommended by an AI agent?”. Success hinges on transitioning to Generative Engine Optimization (GEO). This requires content to be designed so AI systems can recognise, understand, and recommend it, demanding a consistent tone of voice, an emotional appeal, accurate product data, and a clear brand identity. Poorly detailed product sheets, inaccurate size guides, or a lack of transparency are now significant handicaps for algorithmic ranking. Brands that remain passive in feeding their content and brand values into AI ecosystems risk becoming invisible in the recommendation process. The next step is Agentic AI, which performs tasks autonomously. With 75 percent of consumers open to a trusted AI handling their purchases (‘Consumer Pulse 2025’ by Accenture), traditional touchpoints like banner ads and websites could be increasingly bypassed.

The changing consumer mindset and purchasing drivers

The 'less, but better' philosophy and 'treatonomics'

Consumers are increasingly striving for a calm, value-oriented, and balanced lifestyle. Euromonitor terms this the ‘Comfort Zone’ trend. They are actively looking for ways to simplify their lives, focusing on a new standard of living: “less, but better—with a clear focus on simplicity, emotional balance and practical daily routines,” according to Euromonitor. This prioritises emotional balance and comfort, demanding that brands provide stability and guidance.

Simultaneously, the rise of ‘Treatonomics’ confirms that emotional purchases remain a key driver. The Kantar report notes that 36 percent of consumers are willing to go into slight debt to treat themselves. In fashion, this economic context translates into the rise of limited-edition capsules, premium accessories, and small, accessible pieces with a “luxury feel”. Impulse buying is reconfiguring around items with high emotional value that are instantly gratifying.

The authenticity imperative and the 'fiercely unfiltered' consumer

Luxury's long reliance on spectacle and hype-driven marketing is waning, replaced by a demand for substance. Audiences are now literate in the mechanics of fashion marketing, understanding that viral moments are often engineered, not serendipitous.

In response, consumers are embracing the ‘Fiercely Unfiltered’ trend, opting for radical honesty and bold self-expression. Authenticity is a non-negotiable prerequisite, with more than 50 percent of consumers buying only from brands or companies they completely trust. This is also reflected in the broader market: the Deloitte study - ‘Brand Connection, The Age of Meaningful Brands’ - found that 45.7 percent of respondents feel no connection to any brand, highlighting that loyalty can no longer be taken for granted. Andrea Laurenza, consumer industry leader at Deloitte Central Mediterranean, commented that "Brand relevance is not a static attribute, but an asset that must be continuously nurtured". Relevance is built when a brand is perceived as authentic and consistent, mirroring the consumer’s values and helping them express their personality.

For high-end fashion, cultural leadership becomes crucial. Brand strategist and author Ana Andjelic points out that brands like Hermès and Prada maintain pricing power and resilience because they invest in coherent cultural identities and shape, rather than merely reflect, trends. In this post-hype moment, “authenticity is no longer a slogan but a strategic necessity” (‘The Sociology of Business’, Substack).

Luxury's recalibration: experience over possession

Global luxury markets are resilient but are no longer immune to macro-economic complexities. According to the Bain-Altagamma Luxury Goods Worldwide Market Study, overall luxury spending remained broadly stable, but this masks a profound shift: luxury consumers are continuing to prioritise experiences over possessions. Claudia D’Arpizio, senior partner at Bain & Company, noted that, “After the shopping spree era, experiences and emotions have become the true engine of luxury growth”.

The customer base is shrinking and splintering, with the number of luxury consumers dropping from 400 million in 2022 to around 340 million in 2025. While the ultra-wealthy continue to sustain demand, aspirational consumers have pulled back. Even big spenders, who account for roughly 46 percent to 47 percent of the personal luxury goods market, have plateaued their spending this year. Spending is shifting toward experiences, affordable alternatives, and resale, indicating a reset in how consumers engage with luxury.

Operational and strategic impacts for apparel companies

Data and the new visibility tax

The structural shift towards AI is creating new channels that demand strategic investment. The spectacular growth of Retail Media Networks (RMNs)—distribution platforms like Zalando and Amazon that are becoming fully-fledged advertising environments, is a key development. Kantar reports that RMNs deliver one point eight times the performance of classic digital advertising, but this success comes with a growing dependence on what is essentially a new “visibility tax” for brands.

This is compounded by increased geopolitical and competitive pressure. The French fashion ecosystem, for instance, is facing pressure from Chinese industrial platforms like Shein and Temu. Ultra-fast fashion and second-hand fashion represent 13 percent (IFM) of the French apparel market in value, with the trio of Shein, Temu, and AliExpress accounting for 6 percent of apparel purchases in volume. Euromonitor notes that four-fifths of the highest-grossing retail companies in global e-commerce in 2024 were from China or had their headquarters there.

The sustainability prerequisite

Sustainability has transitioned from a market preference to a non-negotiable prerequisite. Consumers, especially younger audiences, now expect clear, verifiable information about materials, sourcing, and impact. John Higginson, chief executive officer of Eco Age, stresses that, “The biggest change is the move from narrative to evidence”. Brands are being asked to back up statements with independent verification, not soft language, as attempts to gloss over gaps will trigger accusations of greenwashing.

Apparel companies now face tightening regulations in the EU, including the Digital Product Passports (DPPs) and the Green Claims Directive, which will restrict generic claims without robust, product-level evidence. Higginson highlights that while most brands only have oversight of their first tier of suppliers, “traceability is often the quickest win” through technologies that offer forensic proof of origin, such as DNA tagging.

The future of physical retail

Brick and mortar retail is transforming into a curated, AI-supported showroom. AI-powered tools take over repetitive tasks, freeing employees to act as brand ambassadors and curators. Employees gain access to customer profiles with style preferences and past purchases and can use technology like smart mirrors to display and adjust AI suggestions live. This facilitates an interactive, emotionally charged experience where digitally generated recommendations become tangible, ultimately building trust.

The path forward for fashion is clear: to secure a lasting presence in the customer’s decision-making process, brands must shift from focusing solely on product and image to mastering the invisible infrastructure of data, AI, and ethical integrity.

This 2026 Outlook is based on more that 20 articles, interviews and reports published on FashionUnited. It was written with the help of AI

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