The Themes That Will Define the 2026 Fashion Agenda

22 snips

Jan 7, 2026

Marc Bain, BoF correspondent and expert on the State of Fashion report, delves into what 2026 holds for the industry. He highlights the growing concerns over tariffs and rising prices, emphasizing the need for brands to prove their value to consumers. Bain discusses luxury's pivotal shift towards creativity and authenticity, as well as the burgeoning interest in smart glasses and fine jewellery. AI's role in enhancing efficiency and shaping consumer interactions is also explored, offering a glimpse into how technology will impact shopping experiences in the near future.

Ask episode

AI Snips

Chapters

Transcript

Episode notes

INSIGHT

Mood Shift From Uncertainty To Challenge

Executives shifted their view of 2026 from "uncertain" to "challenging," signaling clearer but tougher conditions.
Nearly half expect conditions to worsen even as optimism about AI and category opportunities rises.

INSIGHT

Tariff Cushion Runs Out In 2026

Brands pulled forward inventory in 2025, delaying the full tariff impact until 2026.
As that cushion runs out, tariffs are expected to bite and force tougher pricing decisions.

ADVICE

Justify Price Increases With Real Value

If you plan to raise prices, actually offer more value through quality, creativity, or functionality.
Avoid like-for-like price hikes that leave consumers feeling cheated and erode trust.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

BoF and McKinsey’s annual State of Fashion report finds the industry entering 2026 with caution: 46 percent of executives expect conditions to worsen, citing geopolitics, macro volatility and the risk of shoppers pulling back. Yet there is also a pulse of optimism around AI-driven efficiency, luxury’s creative recalibration and fresh consumer interest in categories from smart glasses to fine jewellery.

Tariffs remain the dominant near-term swing factor. Brands mitigated pain in 2025 by pulling forward inventory, but as that cushion runs out, the full impact shows up in 2026 in costs and pricing. More broadly, luxury’s era of price-led growth has run its course; as BoF correspondent Marc Bain puts it, if you ask customers to pay more, you have to “actually offer the value for the price.”

Key Insights:

The mood has shifted from “uncertain” in 2025 to “challenging” in 2026. Companies feel better equipped but are bracing for a tougher year. “Uncertainty was ‘we don’t know what’s going to happen’. The challenge is, we know what is going to happen and it’s going to be tough,” says Bain.

Tariffs will continue to bite in 2026, and price hikes will be part of the playbook. Brands used a mix of mitigation tactics in 2025, but many still expect to pass on costs. “The strategy that the highest number of executives said was their way of mitigating the tariff impact was raising prices,” Bain notes. “To some degree, there's just no way around that. You can do it strategically, but at some point you're probably going to have to raise prices.”

Jewellery is the consumer bright spot for the year ahead, as the category has steadily outperformed thanks to steadier, more gradual price rises, exciting design and a strong perception of value retention. “It’s hard luxury… you can wear it a lot and it can still be in good shape,” Bain says, adding that more women self-purchasing are reinforcing demand, with maximal accessories over minimal wardrobes adding another tailwind. He adds, “It sounds almost silly in 2026, but a big shift has been that more women are actually buying jewellery for themselves.

According to Bain, 2026 is the year AI gets embedded into the fashion ecosystem. Expect a ‘two steps forward, one step back’ year where efficiency wins drive adoption even as mishaps make headlines. “Companies don’t feel like they can sit out AI,” Bain says. “It’s not like everyone by the end of next year is going to be using ChatGPT instead of Google, but the expectation is it'll be a significantly higher number than [2025]. And at a certain point, even if it's 5 percent of shoppers … it's still enough that you as a business have to start accounting for it.

Additional Resources:

Hosted on Acast. See acast.com/privacy for more information.