Imagine walking into a giant game of chess, where fashion brands are the pieces and the global market is the board. Shein, the Asian fast-fashion giant, has made a bold move, increasing its market share by 0.24 percentage points to 1.53% in 2024, according to GlobalData. This growth is largely due to its ultra-competitive pricing strategy and ability to quickly react to fashion trends.
The global fashion market has been a mixed bag over the past year. While the sports segment continues to lead clothing consumption, the luxury sector has taken a hit, with more affordable luxury brands losing market share. On the other hand, high-end brands like Hermès and Chanel have improved their market share, reaching 0.55% and 0.59%, respectively. Gucci, however, has registered the largest decline in the luxury sector, losing 0.1 percentage points to 0.38%.
Nike’s Lead Narrows
Nike remains the brand with the largest global market share, at 2.85%. However, the company has reduced its share by 0.15 percentage points over the past year, making it the largest loser in the 2024 fashion market. In contrast, Adidas has regained ground, increasing its share by 0.17 percentage points to 1.79%, driven by the success of its Originals shoe line. Other sports brands like New Balance and Skechers have also experienced growth.
Pippa Stephens, a senior apparel analyst at GlobalData, notes, “Shein’s market share is expected to have increased by 0.24 percentage points to 1.53%, driven by its ultra-low prices and quick response to fashion trends, helping it stay ahead of the competition despite ongoing criticism of its labor practices and environmental impact.” Stephens adds, “In the sports apparel sector, Adidas had a triumphant year, with a forecasted growth of 0.17 percentage points in its total clothing market share, driven by the popularity of its Originals shoe range.”
Shifting Landscape
The Inditex group has consolidated Zara’s position in the market, increasing its share by 0.05 percentage points to 1.24%. On the other hand, H&M has lost share, dropping to 1.06% after a decline of 0.01 percentage points. Uniqlo has registered moderate growth, reaching 0.92% of the global market with an increase of 0.04 percentage points.
The Future of Global Fashion
Shein’s growth has significantly impacted other platforms like ASOS and boohoo.com, which have seen their sales plummet in recent years. Despite constant criticism of its labor practices and environmental impact, Shein’s ability to adapt to trends and its aggressive pricing strategy have allowed it to stay ahead of the competition.
In the luxury sector, brands catering to high-income consumers have shown greater resilience in the face of economic uncertainty, while more affordable luxury brands have struggled. Gucci’s decline has been marked by the impact of its new creative director, Sabato De Sarno, whose designs failed to revitalize the brand as expected.
Stephens concludes, “The luxury clothing market also saw mixed results. Segments targeting ultra-rich clients remained more resilient, with Hermès and Chanel forecasting a market share increase of 0.55% and 0.59%, respectively, as high-income consumers are less vulnerable to economic difficulties. In contrast, aspirational buyers, who often rely on savings to purchase status symbols, were more affected, negatively impacting more affordable luxury brands. Gucci experienced the largest decline, with a forecasted market share decrease of 0.10 percentage points to 0.38%, due to its outgoing creative director’s more discreet styles failing to generate the necessary momentum to revitalize the brand.”
As the fashion industry continues to evolve, trends point to a more polarized market, where extreme luxury and accessible fashion will dominate, while mid-range brands struggle to maintain relevance in a highly competitive environment.