THE PALM INTELLIGENCE / 02

Fashion is entering a period in which price and value are separating from one another.

A lower price can still win a transaction. But as customers become more selective, the more consequential question is whether a product can justify its existence: through quality, usefulness, design, durability, versatility, emotional relevance or the confidence that comes from understanding exactly what is being purchased.

THE SIGNAL

McKinsey and The Business of Fashion describe a consumer under pressure. In The State of Fashion 2026, more than one third of shoppers said they intended to spend less across apparel categories from the third to the fourth quarter of 2025. Almost 80 percent said that when prices rise, they will respond by waiting for a sale, buying a cheaper alternative, postponing the purchase or buying secondhand.

Yet the same report finds that across price segments, more than 80 percent of consumers consider good value for money a top buying factor.

That distinction matters. “Value” is not synonymous with “cheap.” It is the relationship between what a customer gives up and what the product gives back.

WHAT VALUE LOOKS LIKE NOW

For fashion, this makes vague premium language less persuasive. A higher price increasingly needs a visible reason behind it. Craftsmanship, quality, durability and creative differentiation become part of the explanation. So do fit, repeat wear, ease of styling, customer service and the degree to which a piece genuinely integrates into someone's life.

For smaller brands, this can be an advantage. A young label does not need to win by creating the largest assortment. It can win by making fewer products feel more considered and by explaining those decisions with unusual clarity.

KEY SIGNALS TO SAVE

01 — Selectivity is rising.
More than one third of shoppers in the report intended to reduce apparel spending across the measured period.

02 — Price increases trigger alternatives.
Almost 80 percent say they would wait, trade down, postpone or buy secondhand rather than simply accept a higher price.

03 — Value remains decisive.
More than 80 percent across price segments call good value for money a top buying factor.

THE PALM POINT OF VIEW

The response should not be to create more noise. It should be to create stronger reasons.

For us, that means thinking about silhouette and comfort, but also about how often a piece can realistically be worn, how naturally it moves between training and everyday life, how clearly its purpose is communicated and whether the experience around the product feels as thoughtful as the photograph that introduced it.

A brand earns premium perception through coherence, not adjectives. If something is described as elevated, the customer should be able to see what is elevated about it.

The next era of fashion value may belong to brands that are disciplined enough to explain not only what they sell, but why the product deserves space in someone's life.

SOURCE

McKinsey & Company / The Business of Fashion — The State of Fashion 2026

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