A guest article by Theresa Schleicher:

What the German fashion market could look like in 2030 if it wanted to.

In 2025, the German fashion market will still be in a difficult situation. Even large fashion chains and international groups such as Zara and H&M are feeling the pressure and the forecasts for 2025 are more cautious than usual. While the large fashion chains are stabilizing through price and process optimization, small boutiques and German fashion retailers in particular are struggling with falling sales. SMEs are suffering from a reluctance to buy, which is being exacerbated by general uncertainty among the population. Around 48% want to shop more consciously this year and also save on fashion – not only by buying cheaper, but also by consuming less overall (source: Zukunftsstudie Handel 2025). Discount retailers and large chains, as well as second-hand suppliers, are also noticing that spontaneous impulse purchases are becoming rarer. When prices are low, discounts are high and margins are small, things become difficult.

But when the pure focus on ever new collections based on established patterns and discount campaigns no longer work in the medium term, it is time to think about what surprises and inspires as a new service – the second in the price-performance concept. People are getting tired of the cheap craze and mass markets and are longing for conscious consumption – but also for security, everyday life and a good price. This is the breeding ground for a new middle ground in the fashion market.

Four movements for the fashion market of the future

A new resurgence of modern, quality-oriented and local clothing:

Many customers are buying more consciously. It is not sustainability – as much as the reality hurts – that plays the biggest role, but the desire for better quality instead of pure quantity. Quick, disposable products have simply lost their appeal – at least for 42% of 29+ year olds (source: Future Study Retail 2025). Another sign of a new culture of meaning: a third of the young consumers surveyed find a return to local production exciting. The “Made in Germany” label can thus create an emotional bond. Nevertheless, fashion companies in the social center are only reacting cautiously to this trend – C&A, for example, has already discontinued its jeans collection produced in Germany after “little effort” to focus on it.

“Made in Germany and Made in Europe are currently experiencing a highly emotional significance in the current global crises – something that could be the new strength for German fashion companies. “ – Theresa Schleicher

A social longing for more elegance:

Back to joy? Exuberant designer collections with mainstream brands, glamorouse campaigns. Fashion can be a dream industry again. Only more consciously. In addition to sustainability and individualization, there is another aesthetic change: the desire for elegance is growing. At a time when many things seem arbitrary and worthless, a well-groomed, stylish look is coming more into focus. Even in avant-garde cities such as Berlin, a subtle trend towards higher-quality clothing and conscious styling can be observed. Elegance not only conveys aesthetics, but also a form of security – a feeling that is more important than ever in socially uncertain times.

The desire for trend markets instead of second-hand boutiques:

Second-hand fashion continues to be seen as a beacon of hope for more conscious consumption, but growth in this segment is falling short of expectations. The reason: many young consumers complain that modern designs, lightness and a certain fashionable joy are often missing from second-hand offerings. Many customers want sustainable but modern interpretations of collections (48%). Less in the niche, but simple, trendy fashion offerings, as they are known from established fashion providers. This is because fashion companies such as the second-hand corner in a large store have so far shown what many people perceive: the existing offerings are perceived as niche, too out of fashion. The rational option in a mass of fast fashion offerings. For people, the predicate sustainable does not play a role, but rather the quality of long-lasting garments that are also associated with recycling and second-hand.

Innovation boosts through European tech-social measures:

More and more fashion brands are using AI in the design of their products. According to a study by McKinsey, 28% of the industry players surveyed are already integrating AI into creative design processes (see McKinsey, 2023). One example is the Paris-based tech company Heuritech, which is already working with Prada, Dior, Adidas, New Balance and Louis Vuitton. Heuritech uses AI to analyze images from social media, among other things media and derives early signals for possible fashion trends. But also the Berlin-based company yoona.ai. It promises to speed up the design process by up to 80 percent and create over 20,000 digital design options within a few seconds. There are also signs of a major development in tailored yet affordable fashion. In Asia, digital platforms have established themselves that produce customized clothing within 24 hours – a concept that could also gain a foothold in Europe with the help of robotics.

Who is Theresa Schleicher?

Theresa Schleicher is regarded as Germany’s leading retail futurologist. She is a future sparring partner for retail and business companies such as the Federal Ministry of Economics and the Zukunftsinstitut. The renowned futurologist and data scientist is the author of several well-known trend studies in the retail sector and gives presentations on her outlook. Her research for the food retail sector is based on global consumer surveys and collaboration with researchers in Europe and China.

To the “Future Study Retail 2025!

The “Future Study Retail 2025” by Theresa Schleicher provides 100 pages of insights into the trends and technologies that will shape the retail of tomorrow. The study is based on research from Europe and China and shows how Germany, Austria and Switzerland can adapt to global trade developments. Available at: www.zukunftsstudiehandel.de

Would you like to book Theresa Schleicher as a speaker or panel participant? Please contact us at: +49 (0)30 640 777 42 or theresa.schleicher@leading-minds.com