Editor’s Note
As the fashion industry navigates a period of low growth and technological transformation, new forces—from AI agents to resale and jewelry—are quietly reshaping consumer desires. Based on insights from McKinsey and The Business of Fashion’s “The State of Fashion 2026” report, this article explores how these trends are redefining what we want and how we engage with fashion.
The fashion industry in 2026 is entering a somewhat peculiar phase where ‘low growth’ and ‘technological shift’ are progressing simultaneously. Within this context, the rise of AI agents, resale, and jewelry is quietly beginning to reshape the very form of what each of us ‘wants’.
McKinsey and The Business of Fashion released “The State of Fashion 2026” report on November 17, 2025. The global fashion industry is expected to remain in low single-digit growth in 2026. 46% of surveyed executives anticipate a worsening situation in 2026, and 36% view the North American market as unpromising.
Conversely, 25% expect an improvement in industry conditions, and pessimistic views on the Chinese market decreased from 41% to 28%. US tariffs were cited as the biggest barrier, while consumers continue to prioritize value in their spending.
Regarding AI adoption, over 35% of executives are already using generative AI for online customer service and image creation, among other applications.
The jewelry category is outperforming all fashion categories in unit sales growth, showing a growth rate more than four times that of apparel. The resale market is projected to grow at 2-3 times the rate of the primary market until 2027.
The 2026 forecast for the fashion industry presented in this report clearly indicates that it is not merely a matter of economic cycles but is reaching an inflection point in its very industrial structure. Particularly noteworthy is the shift in mindset among industry leaders.
While US tariff policy is cited as the biggest barrier, this is not just a problem of increased costs. As it forces a reorganization of the entire supply chain, large-scale suppliers can respond with location optimization and digitalization, while smaller businesses face tough survival choices. This polarization could significantly alter the composition of players across the industry.
The state of AI adoption is also reaching an interesting phase.
Even more noteworthy is the rise of ‘Agentic AI.’ As consumers begin to delegate price comparisons and product selection to AI agents, traditional SEO strategies will be forced to undergo fundamental review. Brands will need to become entities chosen by AI, which will require semantically rich data structures and API compatibility.
Changes in consumer behavior are also not to be missed. As luxury brands continued price-led growth, the mid-market has become the fastest-growing market segment, shifting the center of value creation. This is not merely a shift in price tiers but indicates that the very definition of ‘value’ sought by consumers is changing.
Behind the jewelry market’s growth rate of over four times that of apparel lies consumers’ ‘long-term investment’ orientation. It can be seen as a return to value that endures over time, the antithesis of fast fashion. Similarly, the rapid growth of the resale market is an expression of values seeking wise consumption, not just interest in sustainability.
The consumption shift towards the wellness domain is both a threat and an opportunity for the fashion industry. This trend, tracked by McKinsey since 2017, is not a mere temporary fad but a structural change involving a redefinition of entire lifestyles. How fashion brands enter this domain will be a difficult decision requiring alignment with brand identity.