The fashion industry enters 2026 in a cautious mood. According to The State of Fashion 2026 by McKinsey and The Business of Fashion, 46% of industry leaders expect conditions to worsen, up from 39% a year earlier. Industry revenue is forecast to grow only in the low single digits.
But a slower market is not a static one. The report calls this the year "the rules change": shoppers are spending differently, not stopping. Here are the six shifts that matter most for consumers in Vietnam and across Asia.
1. Second-hand: from budget choice to smart choice
McKinsey forecasts the second-hand market will grow two to three times faster than the market for new goods through 2027, driven mainly by rising prices for new items.
Interestingly, resale does not eat into sales of new products. Luxury houses even use resale to retain existing clients and reach younger, aspirational shoppers. For buyers, second-hand is now a way to own something better on the same budget.
2. Jewellery: the fastest-growing category
The report forecasts jewellery unit sales will grow more than four times faster than clothing. Two reasons stand out: shoppers see jewellery as a lasting investment, and self-gifting is on the rise.
A trend-led top usually lasts a season. A good pair of earrings can stay with you for a decade. In an uncertain economy, the "cost per wear" maths makes jewellery more sensible than ever.
3. The rise of affordable luxury
McKinsey calls it the elevation game. Mass-market brands are moving up into affordable luxury, competing on materials, craftsmanship and the shopping experience rather than low prices.
At the other end, luxury is recalibrating. After years of growth driven by price increases, the major houses are being advised to return to creativity, craftsmanship and client trust.
4. Fashion for well-being
Consumers are shifting discretionary spending towards physical and mental well-being. They want an emotional connection with what they buy, and fashion brands are expanding into well-being-adjacent spaces.
Sportswear is the most visible expression of the trend: outfits that work from a morning workout to an afternoon coffee, comfortable and still stylish.
5. AI becomes the shopping adviser
Shoppers increasingly use AI chatbots to find and compare products. McKinsey argues that chatbot answers are becoming "the new SEO": brands without clear, AI-readable data will disappear from the answers. Further out, AI agents may even place orders on shoppers' behalf.
6. Smart glasses hit the street
Eyewear with multimodal AI is expected to break out in 2026, with the market potentially exceeding US$30 billion by 2030. It is a rare case of a tech device being judged as a fashion accessory.
What it means for shoppers
Together, these six shifts suggest a different way to shop. Instead of something new but poorly made, consider a better piece that is pre-loved. Instead of many trend pieces, invest in a few pieces of jewellery you wear every day. Compare materials, not just prices, and favour pieces that work in many settings. AI can speed up comparisons, but always check the source. As for smart glasses, wait for the first generation to mature before buying.
Case study: Lilthu — sportswear and second-hand in real life
Trends 1 and 4 show up clearly in the work of Vietnamese lifestyle personality Lilthu. In her collaboration with adidas, she brings sportswear into everyday settings: cycling, city walks, the harbour at sunset, pairing Gazelles with a short skirt and coloured socks. In October 2024, her Garage Sale with Laws For Paws Vietnam turned pre-loved clothes into funds for abandoned animals, with 100% of profits donated (according to L'Officiel Vietnam). Both examples say the same thing: young shoppers don't just buy an item, they buy the story that comes with it.
Sources: McKinsey — The State of Fashion 2026 · FashionUnited — report summary · L'Officiel Vietnam — Lilthu × Laws For Paws · Lilthu × adidas
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