"Last year, traditional luxury brands struggled to keep the attention of aspirational shoppers, and it was their lower-priced counterparts that swooped in to fill the gap. The formerly squeezed middle of the market - sitting below pure luxury labels but above mass-market brands - was able to capitalise on luxury's ever-growing prices and perceived lack of innovation. Tightening consumer budgets also played a part."
"While this segment of the market may be both crowded, competitive, and impacted by the wholesale market's ongoing woes, its savviest brands are generating renewed desire from customers by offering well-designed products at a fraction of the prices of luxury. Using BoF Insights Brand Pulse, a new tool to measure fashion brand performance developed in partnership with Quilt.AI, we identify the brands that stepped up their online engagement strategies in 2025 and won over shoppers."
Traditional luxury brands lost traction with aspirational shoppers as rising prices and perceived lack of innovation created space for lower-priced contemporary brands. The squeezed middle of the market, positioned between pure luxury and mass-market, capitalised on tightening consumer budgets by delivering attractive design at a fraction of luxury costs. Although the segment remains crowded, competitive, and affected by wholesale-market challenges, its most strategic brands reignited customer desire through enhanced online engagement. BoF Insights Brand Pulse, developed with Quilt.AI, measures brand performance across social media, search and AI chatbots using dimensions including Discoverability, Identity, Value and Connection.
Read at The Business of Fashion
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