For years, all the fashion fun has happened at two poles. At the cheap end was the instant gratification of a Primark catwalk knock-off, while at the expensive end excitement came in the shape of a £2,500 Roberto Cavalli dress. The stuff in between didn’t seem to matter that much.

Now, the fashion experience is changing. Top-end customers are being squeezed into the middle by the credit crunch (Harvey Nichols is reporting a boom in sales of cheaper second lines, with See by Chloé up 30% in one year), and at every level, shoppers are asking more about what they buy — who makes it, and at what cost? Brands such as Jigsaw, Reiss, Whistles, LK Bennett and Jaeger are shaking off their stuffy product and coming up with some suprirsingly edgy pieces. Significantly, George at Asda, which ushered in the era of fast fashion when it launched in 1990 with its cheap, trend- conscious supermarket clothes, recently announced it was upping the quality, fit, fabric and some of its prices, too. The £3 jeans are still there, but for autumn, there are smart wool-mix coats at £40 (the most a coat has ever cost at George), an extensive cashmere range and a stylish new dress collection.

George at Asda’s brand director, Fiona Lambert, who joined the company last year, says the move was prompted by customer demand. “If you listen, the customers say they want quality, not throwaway fashion,” she says. “They want a good fit, wearable but interesting styling and they want it to be easy to shop. They don’t think value for money necessarily means cheap. Customers will question what they are buying, and buying something just for price isn’t a reason any more.”

The George customer reflects a general increased appreciation of the middle market. Many of the brands in this not-too-expensive, not-too-cheap niche are small compared with the retail giants. What sets them apart is a focus on quality, design and a commitment to producing fashion you might want to keep. In a tough economic climate, these values chime with the way we want to live now, and they are good for business. Jigsaw reported a substantial sales rise this year and is about to launch an e-commerce site. Banana Republic isn’t having a summer sale — because there is no left-over stock. Reiss and All Saints are expanding rapidly, and Jaeger posted a profit of £82m last year.

One of the most exciting fashion relaunches will also be in the middle market. I’ve had a sneak peek at the first collection by the former Topshop guru Jane Shepherdson for Whistles, and it is full of grown-up, gorgeous, covetable clothes. Believe me, the middle market has never looked so good.

Times recommends

• Live chat: Thrifty ways to update your winter wardrobe
• Is anybody out there really listening?
• Nutrition Q&A: Will eating late make me fat?