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Inside the U.S. and EU Fashion Business Landscape

SOURCE: by Katherine Bondy
May 21, 2025

The fashion industry operates on a global scale, with showrooms in key fashion capitals, manufacturers located overseas, and wholesalers distributing products to stores worldwide.

One fascinating, yet challenging aspect of the industry is the dynamic between U.S. and EU businesses. Significant differences exist in business models, consumer preferences, sustainability practices, and marketing strategies. Companies must leverage cultural and strategic insights to successfully navigate these distinct markets.  

Market Structure

EU: Focus on Craftsmanship & Heritage

  • In the EU region, there is a strong emphasis on craftsmanship and storytelling—products use artisanal methods and region-specific identities.
  • Businesses are often multi-generational and are rooted in heritage.  
  • Many EU companies also operate under strict labor and environmental regulations.

U.S.: Consumer driven & Faced-Pace

  • The U.S. fashion market emphasizes speed and scale. The business model favors volume sales with quick turnover and frequent drops.
  • Direct-to-consumer (DTC) is dominant—U.S. brands focus on building strong digital storefronts and social media presences (Example: Skims). They often use celebrities to help influence products.  

Sustainability

EU: Policy-Driven Change

  • The EU Green Deal and other laws are pushing fashion toward circularity: recycling, reusing, and reducing waste.
  • As a result, you see more resale, repair, and rental models gaining traction—such as Vinted or Vestiare Collective.

USA: Market-Led Sustainability

  • In the U.S., sustainability tends to be more consumer-demand driven than policy-driven. For instance, the resale market is fast growing, led by companies like ThredUp and TheRealReal, but largely due to Gen Z/Millennial consumer pressure as opposed to government pressure.
  • Some brands, like Reformation and Everlane, push sustainability initiatives, but overall, there's less regulation enforcing transparency or environmental responsibility.

Innovation & Tech

EU: Innovation Meets Tradition

  • European fashion tends to adopt technology more slowly, balancing innovation with brand image and legacy.
  • There's exciting work happening in textile innovation (like mushroom leather and lab-grown fabrics).  
  • In general, it can be more difficult to access the right data due to factors such as strict data-sharing policies, or lack of technical expertise to exchange information.  

USA: Tech-First, Data-Led

  • The U.S. leans heavily into innovation, with developments in AI-driven sizing, real-time consumer data, and speed-to-insights when it comes to a brands’ sales performance.  

With offices in both New York and Paris, the SKYPAD team understands the challenges of each region and has developed expertise in navigating these market dynamics by creating tailored strategies that blend innovation with local business needs to help your team drive global success.

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