Racing the runway in 2026: How to ensure your fashion supply chain keeps up

As global trade patterns shift, fashion brands are rethinking their sourcing strategies. For example in Spain, according to the Fashion Business Barometer 2025², 23% of companies are moving toward nearshoring and manufacturing in geopolitically stable regions. After years of dependency on Asia, this has become a structural trend, fueling growth in intra-European transport, regaining greater control over the fashion supply chain and reducing risk exposure.¹ One way to respond: Setting up satellite warehouses – smaller, regional storage hubs near production or key markets – helps reduce lead times, cut transport costs and increase supply chain agility. This becomes even more relevant given that, according to McKinsey, increased tariffs and global trade turbulence will pose the greatest challenge in 2026.

The Fashion Business Barometer 2025 reveals that for half of the Spanish companies surveyed, profitability has overtaken growth as the main goal. To gain greater operational control, 25 % of Spanish fashion companies have reduced their supplier base.² This means fewer origins, more concentrated flows and closer strategic partnerships. The goal is to optimize resources and improve operating cost efficiency to maintain margins without compromising service levels. This, however, requires more careful logistics planning, as each shipment now carries greater production volume and operational weight.​​​​

While last year, the global luxury goods market was projected to surge to USD 578 billion by 2029³, only a moderate increase is expected for 2026 after a poor 2025. While certain regional markets such as India recorded growth of approx. 10% in 2025⁴, according to McKinsey, the overall focus shifts to the “elevation game” – providing compelling value to justify higher prices. This, coupled with consumers’ “well-being” desire for brands that reach them on an emotional level,¹ creates immense pressure on fashion supply chains. With high-value goods, small batch sizes and an emotional attachment to brands, a comprehensive brand experience is at stake. Logistics need to support this by treating high-quality goods with individual tracking, premium packaging and particularly careful handling.

As online sales continue to grow and consumers become more price-conscious, brands in the premium segment are facing pressure to justify higher prices. One strategy is to return to physical retail in order to build emotional connections, strengthen brand loyalty and make value proposition tangible.¹ Logistics must adapt through omnichannel models, requiring better visibility into product availability and synchronized store and online deliveries.

As purchase volumes grow and return policies become more lenient, return rates are rising - making reverse logistics a critical success factor. The market will continue to grow – presumably also because prices on the primary market are rising with second-hand goods gaining increasing demand. Beyond sustainability, the secondary market holds significant potential, including the luxury sector with platforms such as “TheRealReal”, requiring companies to integrate circular models and resale into their strategy – another factor driving the need for a robust reverse logistics chain.¹

Pressure is mounting from both eco-conscious consumers and EU regulations, such as the ban on destroying unsold clothing. Circular economy initiatives like Looper – a joint venture between H&M Group and REMONDIS – highlight the urgent need for closed-loop fashion supply chain models. At the same time, brands are rethinking the distance, frequency and mode of transport for their products to reduce carbon emissions.