IFM Paris: The trends that will shape fashion in 2025

IFM Paris: The trends that will shape fashion in 2025

At the crossroads of controlled inflation and the meteoric rise of ultra-fast fashion, is the fashion industry reexamining its very foundations?

On the surface, fashion prices have risen modestly—just 10% over the past 30 years, significantly lower than overall inflation (+49% over the same period). However, this apparent stability conceals profound structural shifts. The gap between market segments has widened, particularly between ultra-fast fashion and mid-range brands. Today, a mid-range item can cost up to three times as much as a similar product sold by Shein. This growing disparity is disrupting industry dynamics and weakening premium and entry-level luxury brands, caught between the affordability of ultra-fast fashion and the exclusivity of luxury. The wave of store closures in the mid-range segment in recent years is a clear indication of this vulnerability.

At the IFM’s “2024 Review and 2025 Outlook” conference on Thursday, February 13, in Paris, Gildas Minvielle, Director of the IFM Economic Observatory, highlighted that “brands must now contend with highly price-sensitive consumers or risk losing market share.”

However, this price realignment is more than just a matter of adjusting price points. It reflects a deeper shift in consumer expectations, with a growing demand for greater transparency in price-to-quality ratios. The notion of “fair pricing” is evolving, fueled by the rise of second-hand fashion and the increasing perception that new items have become too expensive. As a result, brands must work harder to justify their added value to an increasingly discerning customer base.

Second-hand fashion: a new growth driver?

In response to these changing dynamics, second-hand fashion is emerging as a powerful force for transformation. In 2024, 58% of brands surveyed by IFM now offer second-hand products, with the market in France valued at nearly 6 billion euros—accounting for 12% of total fashion sales. The success of C2C platforms like Vinted reflects the strength of this trend, driven by consumers seeking sustainability, quality at accessible prices, and good deals.

However, embracing this model comes with challenges for brands. Issues such as inventory management, assortment curation, and new logistics chains raise questions about profitability. Moreover, the rise of second-hand fashion has redefined perceptions of new-item pricing: 32% of consumers now believe new products are “excessively expensive,” leading them to shift their purchases toward pre-owned goods or wait for discount periods.

Beyond economic factors, a cultural shift is also taking place. Second-hand fashion is no longer just a budget-friendly alternative—it has become a deliberate choice, tied to ethical and environmental concerns. This movement stands in contrast to the consumerist logic of ultra-fast fashion, highlighting a market duality: on one side, the rapid acceleration of low-cost consumption, and on the other, a willingness to invest in higher-quality, longer-lasting products.

Xavier Romatet, Director of IFM, underscores this transformation: “Second-hand fashion cannot be equated with ultra-fast fashion. It is rooted in a pursuit of quality and a sustainable approach, far removed from the impulse of low prices alone.”

The unstoppable rise of ultra-fast fashion

While conscious consumerism is gaining traction, ultra-fast fashion continues its rapid ascent. In 2024, 69% of French consumers have already made purchases from ultra-fast fashion platforms, primarily due to their low prices. Shein, which accounted for just 2% of the French market in 2021, now holds 3%, reflecting exponential growth.

“If we assume that the average basket size on Shein is 10 euros, then the platform is already the volume leader in France,” suggests Gildas Minvielle—a perspective that highlights the upheaval in the fashion value chain.

This success is not solely due to low prices. It also relies on highly efficient logistics, a hyper-personalized product offering, and cutting-edge digital marketing. In other words, ultra-fast fashion is not just about slashing prices—it is redefining how fashion is designed, produced, and consumed. This evolution forces traditional brands to rethink their positioning and digital strategies to avoid being left behind.

Nevertheless, 27% of consumers still refuse to buy products made in China—a declining figure that signals growing acceptance of these business models. At the IFM conference, attendees pondered: Will the fight against ultra-fast fashion gain traction? Should brands take a more active role in engaging directly with consumers? Perhaps following the lead of Vestiaire Collective, which now bans the resale of Shein products.

The challenge of e-commerce and brick-and-mortar retail

E-commerce now represents 23% of fashion sales in France, with consumers strongly associating it with lower prices. While retailers like Zara and H&M generate nearly 25% of their revenue online, mid-range brands—often more localized and less international—only achieve a 10% share. In this context, brick-and-mortar retail is reinventing the customer experience to differentiate itself.

Gildas Minvielle points out: “One of the strategic mistakes brands have made is focusing too much on their direct competitors rather than analyzing the broader market landscape.” His remark underscores the need for a comprehensive approach that accounts for shifting consumer behaviors.

The renewed emphasis on in-store experiences reflects a desire to rebuild customer connections by offering a more immersive and distinctive shopping journey. Concept stores, exclusive services, and the rise of “retailtainment” (a blend of retail and entertainment) are among the strategies brands are exploring to restore value to physical stores.

What lies ahead for the fashion market?

Although fashion consumption has seen a slight increase in 2024, the industry landscape has undergone a dramatic shift. The Shein-Temu-Amazon trio now accounts for €2.2 billion in sales, up 18% from 2023—a figure that raises concerns about the ability of European players to adapt to these new models.

Could European brands develop viable alternatives to meet changing consumer demands? After all, Europe pioneered fast fashion with global giants like Zara and H&M. Could it now lead the charge into ultra-fast fashion? FashionUnited asked Gildas Minvielle, who responded: “We criticize these platforms, but we should be focusing on understanding what makes them so successful.”

The fashion industry faces a dual challenge: balancing price and quality while adapting to evolving consumer expectations. Transparency, sustainability, and affordability are now the three pillars of a more demanding and multifaceted fashion landscape.

To better track these shifts, IFM is launching a monthly barometer to monitor sales trends, market structure, and price perception—an essential tool for steering an industry in constant flux.

February 17, 2025 at 05:29PM
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news@fashionunited.com (Diane Vanderschelden)