Why SHEIN, Vuori & Resale Platforms Outperformed Legacy Retail in 2025, Report

As the retail industry navigates an increasingly competitive market, consumer behavior is undergoing significant shifts driven by technological advancements and economic factors. Consumer Edge’s 2025 State of Retail report reveals a seismic transformation in consumer behavior. Vuori, and resale platforms have emerged as frontrunners in this new era of retail, capitalizing on shifting consumer behaviors and preferences. The analysis, leveraging data from 40 million U.S. payment cards, highlights a year of frugality, generational divides, and the rise of agile challenger brands.

The New Retail Hierarchy

SHEIN has solidified its position as a dominant force in fast fashion, leveraging its digital-first approach and AI-driven trend forecasting to capture Gen Z and millennials. Vuori, an athleticwear brand, has successfully carved out a niche in the competitive activewear market by focusing on quality, lifestyle-driven designs, and a multi-channel distribution strategy.

Resale platforms have experienced explosive growth, with the global secondhand apparel market reaching $197 billion in sales in 2023 and projected to hit $350 billion by 2028. This surge is driven by value-seeking consumers, with 74% citing value as their top concern when making apparel purchases. latforms like ThredUp have capitalized on this trend, offering a sustainable and affordable alternative to traditional retail.

Fast Fashion and Resale Reign Supreme

Budget-focused consumers propelled SHEIN and Uniqlo to outpace legacy rivals like H&M and Zara, with SHEIN’s hyper-digital engagement and Uniqlo’s quality-to-price ratio driving 12% and 8% sales growth, respectively. Resale platforms Depop and Grailed surged 5% year-over-year by catering to sustainability-minded shoppers, while Poshmark struggled with outdated UX.

Luxury’s Identity Crisis

High-end spending fell 7% in Q1 2025, continuing 2024’s slump. Single-brand retailers like Chaneland Gucci saw double-digit declines, while Louis Vuitton (-2%) and Cartier (-3%) mitigated losses through tiered pricing and digital clienteling tools. Multi-brand e-tailers Net-a-Porter and SSENSE lost share to Farfetch and Mytheresa, reflecting luxury houses’ pivot to direct-to-consumer models.

Industry Context: Bain & Company projects luxury growth to stagnate until 2027, with China’s demand weakening and aspirational shoppers rejecting price hikes. LVMH CEO Bernard Arnault admitted the sector faces “turbulent times,” despite cosmetics and leather goods outperforming.

Athleticwear’s Generational Shift

Gen Z and millennials fueled Vuori(+18%), On Running(+15%), and Alo Yoga (+22%) by prioritizing lifestyle-driven designs and inclusivity. Legacy brands Nike (-6%) and Adidas (-5%) faltered despite Nike’s $7M Super Bowl ad, while SKIMS’ collaboration with the sportswear giant highlighted influencer marketing’s clout.

Demographic Fault Lines

Gen Z: Digital-first shoppers drove SHEIN’s 30% app engagement boost, cutting apparel spending just 1.8%.

Millennials: Resale adoption rose 40% among 25–40-year-olds, with thrift becoming a status symbol (ThredUp 2025 Resale Report).

High-Income Shoppers: Louis Vuitton’s $3K–$5K “accessible luxury” tier retained spenders amid belt-tightening.

Boomers+: Over-65s reduced apparel budgets by 4.5%, shifting to essentials.

Strategic Imperatives

• Luxury Reset: Cartier’s AI-powered personalization and LV’s price segmentation offer blueprints for relevance.
• Athleticwear 2.0: Alo Yoga’s mindfulness-focused apparel and SKIMS’ curve-inclusive sizing set new standards.
• Q-Commerce Arms Race: SHEIN’s 10-day supply chain and Depop’s AR try-ons pressure laggards to digitize.

Data Point: 63% of consumers now prioritize “value durability” over brand prestige, per Bain.

Looking Ahead

With India’s market poised for 20% growth and luxury stagnant, retailers face a stark choice: adapt to value-driven, digital-first consumers or risk obsolescence. As Consumer Edge’s Michael Gunther notes, “The retailers winning in 2025 aren’t selling products—they’re selling smart solutions to inflationary pressures.”