What started as the fashion’s “open secret”, a quiet recommendation whispered between editors, has become a market defining house across 2025. And this year, the data has officially caught up.

The H&M-owned brand has exponentially grown in demand for the past five consecutive years. COS reached the Lyst Index of hottest brands in Q4 2024 at #17 position, and by Q4 2025 secured the #3 for 2 consecutive quarters, staying on the podium of the most desirable brands.

The Data Paradigm: Beyond the hype

When COS secured the #3 spot, sandwiched between the hyper luxury of Miu Miu (#2) and the heritage American brand of Ralph Lauren (#4), this made industry insiders realise the validation of a strategy that prioritised wardrobe infrastructure over trend-chasing in the perfect moment.

The numbers speak for themselves:

• Velocity in becoming 14 places in the hottest brand list in a single year
• The surge of demand rising +60 percent quarter-on-quarter in the final months of 2025
• The hero effect product: specifically cashmere knitwear and coat oversized tailoring + quilted bag spiked by over 3000percent, moving the brand to a high-volume market leader

The Strategy

1. The “elevated high street” sweet spot

COS occupies the sweetest spot of 2026 fashion: it is neither disposable fast fashion (although coming from H&M brand) nor prohibitively expensive luxury (quality unaffordable to vast majority). In a moment of global financial stretching, COS offered the The Row and Loro Piana aesthetic at a 10x lower price point, successfully acknowledging the "Quiet Luxury" aesthetic that started in 2023 and that continues to date, into a permanent wardrobe theme.

2. The pivotal growth: David Hägglund’s vision and the elevation game

The brand’s ascent is inseparable from the leadership of Chief Brand Officer David Hägglund and Design Director Karin Gustafsson. Their strategy hasn’t been to compete with Zara on speed, but to compete with luxury on cultural capital.

In early 2025, COS staged its SS25 show in an ancient Greek marble quarry, a masterpiece in perception management. By inviting icons like Adrien Brody and Sharon Stone to a setting that echoed the Acropolis, COS signaled that it belongs in the same conversation as the fashion elite.

This momentum continued into September 2025, as COS returned to New York Fashion Week for the fourth consecutive year. Staged in a Warehouse in Brooklyn, the AW25 show was all about urban minimalism. The front row featured Naomi Watts or Jodie Turner-Smith transitioning from a "high-street alternative" to a legitimate peer of the luxury houses.

The Atelier collection: Price signaling as strategy

This elevation is physically manifested in the COS Atelier collection. Since its 2022 debut at NYFW, Atelier has served for high-end craftsmanship. It introduced exclusive pieces such as crocodile leather coat with price points over 1,000 euros, signaling that it can compete as well with luxury.

While these items are produced in limited quantities, their presence tells the consumer: "We have the same supply chain and design rigor as the brands charging five times more". As CEO Daniel Herrmann noted in his interview for the State of Fashion 2026 report, this "authentic precision" is what captures the "squeezed-out" luxury shopper looking for a smarter investment.

The result is a total perception shift: the consumer no longer feels they are buying from a mass-market retailer; they feel they are buying into a curated world.

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3. Virality as the entry point: turning their new shoppers into loyal customers

The super viral Quilted Bag (45-90 euros) or the chunky cashmere sweater (250 euros) were the doorway, bringing Gen-Z and Millennial audiences into the stores. But virality alone doesn’t sustain five years of growth.

These items served as a low-risk entry for a new demographic. Once inside, retention took over. Customers who entered for a trend returned for the brand’s core. Virality provided the volume, but the quality of the wardrobe infrastructure provided the retention.

4. Why it works now: The "low regret" economy

In a 2025 economic climate defined by price sensitivity and sustainability concerns, COS wins because it minimises "buyer’s remorse" and offers:

• Macro shift: Consumers are "trading down" from luxury as buyers became more price sensitive, but refuse to sacrifice the feeling of an intentional quality purchase.
• Aesthetic stability + sustainability on the rise: micro trend trends are over, vintage shopping is high on demand, and customers make more conscious choices. COS offers a static, reliable identity that does not feel fast fashion.
• Materiality focus: Using GCS-certified cashmere and hydroponic cotton, the brand addresses the ethical demands of younger cohorts without the luxury markup.

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The 2026 prediction for fashion brands

As CEO Daniel Herrmann noted with BoF, COS has successfully achieved the “Elevation Game”. It transitioned from a value player to a bridge-to-luxury powerhouse by offering the efficiency of a global supply chain with the integrity of an architectural house.

The success of COS offers a clear prediction for 2026: The era of quantity over quality is dying and we have officially entered a slow fashion culture where value means being e-conscious but quality-obsessed. Because luxury for the few is too small to change the world, and scalable sustainability is the only way forward.

True impact doesn't come from a tiny boutique selling five organic shirts, it must come from a global giant proving you can rewire industrial infrastructure for longevity. As 2026 EU regulations (ESPR) begin to ban the destruction of unsold textiles, COS’s affordable, scalable and elevated ethos is no longer felt and seen by the consumer as a marketing greenwash campaign, but as a compliant, profitable, and future-proof business model. And brands should take notes if they want to continue in the game.