What does the fashion retail market landscape look like in Europe?

The European market remains relatively fragmented, with fashion retailers facing pressure from retail generalists, fashion brands with growing direct sales, low-cost Asian disruptors (e.g. Shein) and second-hand platforms. Herein, fashion demand is polarising toward value-for-money options on one end and high-quality premium clothing on the other, leaving mid-market players fighting for a shrinking market (OC&C expert interview). Furthermore, the growing consumer adoption of online shopping has prompted retailers to pursue a multichannel model (e.g. webstore, brick-and-mortar), although this often entails higher customer acquisition costs, weaker repeat purchasing and intensified price competition. To differentiate themselves, incumbents focus on niche positioning, personalised offerings and targeted marketing to strengthen customer loyalty.