The evolution of fashion's mid-market: a blueprint for premium

Fashion’s mid-market, once considered the industry’s stable centre, has undergone a decade of disruption that is reshaping the wider apparel landscape. According to a new white paper by independent think tank FashionSights, the drivers that have “hollowed out” the middle are no longer contained there and are increasingly moving upmarket. “Premium brands that still rely on aura and traditional wholesale partners will increasingly face the same hard questions mid-market had to answer first,” Achim Berg, founder of FashionSights, said.

The report, ‘After the Mid-Market Squeeze: The Vertical Blueprint Set to Hit Premium’, describes how the “aspirational mainstream” has been squeezed from both ends. Fast fashion and value players have scaled up with vertically integrated models, speed and stronger price-value propositions, while premium brands moved down with lower entry prices, widespread discounting and expanded outlet networks. These shifts have collectively impacted the mid-market’s traditional role and pricing advantage.

The UK exhibits a clear example of this structural change. Mid-market apparel’s share of the total market fell by 2.1 percentage points between 2019 and 2025, while the value segment gained share. Over the same period, only a small group of brands meaningfully expanded their positions, notably Zara, Marks & Spencer and Next, all of which strengthened control over product, sourcing and distribution.

In contrast, players associated with weakened department store networks or complex wholesale structures struggled or disappeared entirely, including Debenhams, Arcadia and House of Fraser.

‘Mid-market is not just a segment in rejuvenation…’

Germany has followed a similar trajectory. Department store chain Galeria entered insolvency multiple times between 2020 and 2024, shrinking its footprint and reducing its key distribution for mid-priced brands. At the same time, domestically strong operators such as Breuninger have held their ground by combining loyalty programmes, omnichannel services and a clearer premium-focused proposition.

FashionSights outlined four groups of mid-market winners emerging from the shift: vertically integrated like Zara and Mango; strong domestic leaders like Breuninger and Marks & Spender; brands that successfully reinvented their identity and product offer; and large-scale consolidators or wholesale platforms that prioritise shared infrastructure to achieve efficiencies.

The report argues that the mid-market is entering a “smaller but smarter” phase, defined by less players, tighter cost discipline and improved margins. Most notably, it also serves as a warning for the premium segment. “Mid-market is not just a segment in rejuvenation; it is the dress rehearsal for what comes next in premium,” said Berg.