The Business of Fashion, global e-commerce partner ESW and online commerce platform Shopify gathered senior fashion and retail executives in London on 13 October for an executive breakfast, held under Chatham House Rule, to discuss how brands can win back consumer spend, protect margins and localise in a volatile operating environment.

BoF client strategist Annabel Bolton led the roundtable, joined by ESW Commercial Director Zee Wood, Shopify Enterprise Account Director Simon Bennet and BoF’s UK Editor and Technology Correspondent Marc Bain. Leaders attended from brands and retailers including Alo Yoga, Bang & Olufsen, BoConcept, Dr. Martens, FitFlop, Harvey Nichols, Kurt Geiger, Lululemon, Monica Vinader, Reebok and Thom Browne.

According to The State of Fashion 2026 report by BoF and McKinsey & Company, 78% of executives cite weakening consumer confidence and reduced willingness to spend as the biggest risk to growth. In luxury, the global consumer base has shrunk from 400 million in 2022 to around 340 million in 2025, according to Bain & Company.

“The conversation has shifted away from how many markets we can get into as quickly as possible, to which markets we should actually be in,” said Wood. “And once we’re in them, how can we grow them?”

Key insights from the discussion

• Prioritise profitable markets over global reach - ESW’s Signals 2026 report, a survey of more than 23,000 consumers across 18 markets, found 67% of consumers in the Middle East and 61% in Asia reporting increased discretionary spend. Yet demand alone does not guarantee a market will pay off, with some brands changing their route to market or choosing to scale back.
• Localise the checkout, not just the campaign - Localisation goes beyond translation and campaigns, with unfamiliar payment methods, currency conversion and unexpected costs creating friction at checkout. “Friction has historically been seen as a customer experience problem, but it’s actually a margin issue,” said Wood.
• Compete on experience to stand out - As shoppers grow more value-conscious, product alone no longer justifies a purchase. “Never has there been a more important time to provide a beautiful experience,” said one executive. “Because the alternative is two clicks of convenience, and it’s at my door tomorrow.”
• Invest in AI visibility, trust and governance - According to Adobe Analytics, 41% of USA consumers used generative AI to shop in June 2026. Yet according to ESW Signals, only 6% of consumers want to buy directly through social media and under 30% through AI platforms. “People want the convenience of AI, but they’re also very sceptical of its downsides,” said Bain.
• Balance business agility with brand consistency - 76% of executives expected tariffs and trade disruption to be the defining theme of 2026, according to The State of Fashion 2026. Guests agreed that what should not change is a clear sense of purpose. “It’s the brand, it’s the values, it’s the why. You don’t want to change that when you’re scaling internationally,” said Wood.

For more information, visit businessoffashion.com.