Business of Fashion recently released their BoF State of Fashion 2026 Report, revealing key business insights on new industry developments and innovations.
For professionals and fashion companies, this report breaks down the strategies, technologies, and consumershifts that are leading the industry forward.
Fashion Tech: AI in the Workplace
AI is being treated by fashion executives as an essential professional skill as AI has been rewired into every business unit: merchandising, operations, assortment planning, logistics, marketing and more.
Strategy roles may need fluency in how AI impacts forecasting, margin optimization, or customer demand planning.
Merchandisers and buyers may use AI to predict consumer demand for assortment planning, using seamless data analyzing softwares over manual data analysis.
Operations teams use AI for supply chain mapping, risk prediction, and cost optimization.
Marketers utilize generative AI to produce content or to analyze audience metrics.
AI marketing can be used well if done with strong storytelling.
Jil Sander AI campaign by Sybille de Saint Louvent
Be wary of over-use with AI imagery. Take public response to U.S. Vogue’s latest December Issue with an AI cover art strategy as an example.
On the consumer side, AI is changing the way we shop, seamlessly integrating consumer’s personal taste through search-driven, discoverable pieces.
AI shopping agents monitor retail prices across the web, allowing the user to get the best deal on a fashion item.
Phia is a great example of an AI-Centric Secondhand Fashion Resale App dominating in the fashion tech space. Founded by Phoebe Gates & Sophia Kianni. Download the chrome extension for free to price compare fashion items across the web.
Daydream is a new AI fashion shopping agent that was launched this November, allowing users to search fashion items across 10,000+ brands.
Fashion Business Turns to Resale
Image Source: Stylight
Luxury brands and magazine platforms alike have turned to fashion resale business strategies. Second-hand fashion marketplaces have quickly become the new mainstream.
Consumer demand for second-hand fashion has driven the industry to pursue sustainable business models like resale. It further pushes fashion brands to consider the product longevity and lifecycleof clothing.
BoF suggests brands should expand beyond third-party resale methods and instead incorporate their own resale model to drive sales.
WELLBEING & VALUE AS PRIORITY
Consumers want value in brand storytelling, clothing quality, and they’d like to relate to the brand’s values.
Brands are held to new standards to comply with this shift. Wellbeing is now considered within brand identity strategies as consumers react positively to brands that merge fashion with wellness, self-care and emotion.
TARIFFS ARE STILL PROBLEMATIC FOR GLOBAL TRADE
Image Source: Highsnobiety
U.S. Tariffs have increased costs of fashion’s supply chain operations with brands being met with higher duties with global suppliers.
In response, brands are shifting sourcing partners to optimize cost efficiency.
76% name tariffs as the biggest issue defining 2026. (BoF)
