Fashion does not have a price problem. It has a value problem

Why can a €3,000 handbag feel like a worthwhile purchase, while a €300 one can seem overpriced?

The answer does not lie in the number on the price tag. It lies in the value that bag is able to convey.

Today, fashion is facing an interesting contradiction. Inside companies, conversations revolve around margins, tariffs, artificial intelligence, sustainability, rising costs, and production efficiency. Outside, people fall in love with a pair of sneakers they saw on social media, search for a vintage 1990s jacket, buy an accessory that has gone viral, or choose a garment because they feel it speaks about who they are.

It almost seems like a conversation between two distant worlds. In reality, the question is the same: what makes a product desirable today?

McKinsey and Business of Fashion, in their report The State of Fashion, describe an industry struggling with rising costs, trade tensions, and a strong need to improve operational efficiency. Artificial intelligence is among the tools with the greatest potential to enhance demand forecasting, creative work, and collection management.

All of this matters. But no one walks into a store saying, “I would like something with an optimized supply chain.” People buy a garment because they desire it, recognize it as an expression of themselves, and believe the price makes sense.

This raises a question the industry should ask itself more honestly: are we investing enough in the product, or are we investing too much in the way we tell its story?

I belong to Generation X, born between 1965 and 1980. I have been fortunate enough to experience fashion both before and after the digital revolution. I knew a time when the value of a product was defined mainly by the fabric, craftsmanship, fit, and quality. Then came personal computers, globalization, the internet, e-commerce, and social media, changing the way brands communicate with people and the way people shop.

I do not believe the past was better and the present worse. It is simply different. But understanding how each generation relates to fashion helps us understand what value means in today’s market.

Generation X still seeks quality, durability, and consistency between price and product. It is a generation accustomed to asking whether a purchase is truly worth its cost.

Millennials, born between 1981 and 1996, grew up with Web 1.0, experienced the transition into the new millennium, 9/11, and the rise of e-commerce. They are the generation that bridges the analog and digital worlds. For them, a brand must have a credible story, a recognizable identity, and clear values.

Generation Z, born between 1997 and 2012, grew up with smartphones and social media. The COVID-19 pandemic and increased awareness of climate issues have shaped its relationship with consumption. It has turned second-hand fashion, vintage, and resale into choices driven not only by convenience but also by personal style.

The ThredUp Resale Report confirms that the second-hand fashion market will continue to grow faster than the traditional apparel market and that Millennials and Generation Z will be the main drivers of this growth.

Generation Alpha, born from 2013 onward and the children of Millennials, is growing up with tablets, artificial intelligence, and Web 3.0. They do not yet have significant purchasing power, but they already influence many family decisions. Brands that believe this is a challenge to address ten years from now are probably already behind.

Comparing these generations does not mean putting people into rigid categories. No one buys a jacket simply because they belong to a demographic group. However, lived experiences, technological change, and cultural context do influence the way each person perceives value.

Generation X grew up in a time when the product came before its digital narrative. Millennials demanded greater authenticity from brands and a more direct relationship with them. Generation Z transformed fashion into a continuous language of images, sharing, and identity. Generation Alpha will grow up in a world where artificial intelligence, personalization, and digital realities will simply be normal.

And this is where the industry must pause and reflect.

Today, we have extraordinary tools. Artificial intelligence can help reduce waste, improve forecasting, and make production more precise. Sustainability can become a way to create products that last longer, can be repaired, and transparently communicate how they were made.

But artificial intelligence will never replace the pleasure of wearing a garment that makes us feel good. A perfect supply chain cannot compensate for a product that fails to create emotion.

In the end, when we open our wardrobe, we choose what represents us. Not what has the best efficiency report.

The question for the future of fashion is not whether we will use more technology. We will.

The real question is another:

Are we still creating products that people truly desire, or are we simply becoming better at telling stories about products they desire less and less?

Romina Tosi

Disclaimer

The views expressed above represent my personal interpretation of publicly available information and, like any interpretation, may be shared, debated, or challenged.

The information referenced comes from public sources available at the time of publication, including official documents, union communications, press articles, and materials accessible to anyone. I do not disclose confidential information or facts learned through privileged access. I do not reveal protected information, nor do I attribute unlawful conduct to individuals or companies.

Any reference to specific cases is intended solely to provide context and analyze dynamics affecting the broader industry. It is not intended to target individuals or particular businesses.

Observations regarding industrial strategies, financial decisions, and production models fall within the right to express opinions and commentary on matters of public interest. They remain personal assessments, not definitive judgments.

Not all companies operate in the same way. Alongside businesses that may deserve criticism, there are many others that work with seriousness, consistency, and long-term vision.

If you notice any errors or inaccuracies, please let me know. I will be happy to review and correct them where necessary.

The purpose of this reflection is to encourage discussion and debate, not to cause harm to individuals, companies, or organizations.