How Shein, Chanel, and Hermès Are Thriving in a Slowing Fashion Market

Despite market challenges, these brands are finding ways to grow. Here’s how they’re staying ahead.

According to WWD, fashion is a tough game, and while many brands are struggling, a few are still thriving. According to a report by GlobalData, Shein, Chanel, and Hermès are standing strong in 2024, growing their market share despite an industry slowdown. So, what’s their secret? Let’s break it down.

Backstage at Hermès Fall 2025 Ready-to-Wear Collection at Paris Fashion Week Kuba Dabrowski/WWD

Shein’s Unstoppable Market Growth

Love it or hate it, Shein is still dominating. The fast-fashion giant grew its market share by 0.24 percentage points since 2023, outperforming brands like Nike, H&M, and Louis Vuitton, which all saw declines.

What’s driving Shein’s success? According to Pippa Stephens, senior apparel analyst at GlobalData, it all comes down to ultra-low prices and lightning-fast trend adaptation. Despite constant criticism for its labor practices and environmental impact, Shein continues to attract shoppers looking for trendy fashion at unbeatable prices.

Shein’s rise is also putting pressure on other fast-fashion retailers. Online brands like Asos and Boohoo have seen significant drops in sales as shoppers flock to Shein instead.

Luxury Brands That Are Holding Strong

While many luxury brands are feeling the pinch, Chanel and Hermès are proving to be the exceptions. Chanel’s market share grew by 0.59 percentage points, while Hermès followed closely with a 0.55 percentage point increase.

Why? Simply put, their wealthy customer base isn’t as affected by economic downturns. High-income shoppers are still willing to invest in luxury, keeping these two French fashion houses ahead of the game.

Gucci’s Struggles in the Luxury Market

Not all luxury brands are thriving, though. Gucci saw the biggest decline, with its market share dropping by 0.10 percentage points. According to the report, former creative director Sabato De Sarno’s minimalistic approach hasn’t created the excitement Gucci needs to stay competitive.

Other Notable Brands

Adidas saw some solid growth, increasing its market share by 0.17 percentage points, while Zara also made gains with a 0.05 percentage point rise. Zara’s success is credited to its fast-moving supply chain and ability to quickly adapt to new fashion trends.

Final Thoughts

Even in a challenging market, brands that can innovate and stay relevant are still thriving. Shein’s market growth highlights the power of affordability and speed, while Chanel and Hermès prove that true luxury remains a stronghold. Meanwhile, brands that fail to evolve—like Gucci—are feeling the impact.

What do you think about Shein’s dominance? Do you see luxury brands continuing to rise, or will the slowdown catch up to them? Let’s chat in the comments!