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The conferment of the Geographical Indication (GI) tag for Ryndia - Meghalaya’s traditional Eri silk- has catalyzed a major shift in India’s high-end textile exports as of January 27, 2026. This ‘Ahimsa silk,’ produced without harming silkworms, has found a lucrative niche in European eco-luxury markets, where traceability is now a regulatory prerequisite. Capitalizing on this, the Union Ministry of Textiles recently identified Ryndia as a flagship success of the 2025 reforms, noting its role in elevating raw silk production to 41,121 metric tons nationally. By securing GI protection, Meghalaya has effectively insulated its 42,000 weavers from mass-market imitations, allowing them to command premium pricing from international fashion houses seeking ethical fabric alternatives.
Strategically, the state has integrated this textile heritage with a "textile-tourism" model, inaugurated at the new Integrated Textile & Tourism Centre (ITTC) in Nongpoh. This initiative addresses the long-standing challenge of unorganized marketplaces by providing direct-to-consumer digital channels and e-commerce tie-ups. "The GI recognition is not just a label; it is a legal safeguard that ensures our women-led weaving communities capture the full value of their craftsmanship," stated Textiles Minister Bah Paul Lyngdoh. With employment in India’s sericulture sector growing to 9.8 million people, the Ryndia case study illustrates how regional fibers can transition from heritage symbols to formidable economic assets within the global $23 billion silk market.
The Meghalaya Department of Textiles oversees the promotion and regulation of the state's indigenous handloom and sericulture sectors. Primarily focused on Eri and Muga silk, the department plans to scale rural incomes to ₹50,000 monthly through the "Pachlakhia Didi" model. Historically a cottage industry, it now drives Meghalaya's export-oriented growth strategy.
Danish fashion powerhouse Bestseller is fundamentally recalibrating the wholesale landscape with the 2026 rollout of Hypedrop, a digital-first brand designed to eliminate the traditional six-month lead time. By integrating AI-supported decision-making and real-time market sentiment analysis, Hypedrop delivers curated weekly product collections with a guaranteed six-week turnaround. This model addresses a critical 2026 industry shift: JOOR data indicates that average wholesale lead times have collapsed from 263 days in 2019 to just 102 days in 2024. Hypedrop pushes this frontier further, offering independent retailers and multi-brand stores the agility of fast-fashion giants like Zara or Shein within a wholesale framework.
Strategic response to ‘in-season’ market demands
The initiative arrives as Bestseller celebrates its 50th anniversary with record 2025 revenues of DKK 38 billion ($5.5 billion) and a 10 per cent rise in pre-tax profit. Hypedrop immediately translates rapidly evolving demand into curated drops, ensuring our partners avoid the risk of stagnant, out-of-season inventory,’ a company spokesperson noted during the Belgian launch. By focusing on ‘high-heat’ items - characterized by bold graphics and premium utility - the brand targets a younger demographic that values scarcity and novelty. This ‘sense-and-respond’ stramtegy not only minimizes overproduction but also secures Bestseller’s dominance in a volatile retail climate where 2026 GDP growth in the EU is projected at a modest 1.1 per cent.
Founded in 1975, Bestseller is a global fashion leader with over 20 brands, including Jack & Jones and Vero Moda. Operating in 90 markets with 3,100 retail stores and 16,500 wholesale partners, the group focuses on digital innovation and sustainable scaling. For 2026, the company is intensifying its retail expansion while investing heavily in circular material technologies.
Anta Sports has formally entered a share purchase agreement with Groupe Artémis to acquire a 29.06 per cent stake in Puma SE for €1.5 billion ($1.8 billion), positioning the Chinese powerhouse as Puma’s largest shareholder. The transaction, executed at €35 per share—a substantial 62 per cent premium over Puma’s recent trading price - comes at a critical juncture for the German brand. Puma has faced a challenging ‘reset year’ in 2025, characterized by a 15.3 per cent sales decline in Q3 and a broader struggle to maintain market momentum against rising competitors like New Balance and Hoka. By leveraging its internal cash reserves, Anta is effectively betting on Puma’s brand equity as a catalyst for its ‘single-focus, multi-brand’ globalization framework.
Strategic synergy and the 2026 growth roadmap
The investment provides Anta with a strategic foothold in Europe and South America, while offering Puma an optimized distribution gateway into the complex Chinese market. ‘We believe Puma’s recent share price does not reflect its long-term industrial potential, stated Ding Shizhong, Chairman, Anta Sports. While Anta intends to seek representation on Puma’s Supervisory Board, the group has emphasized a hands-off approach to preserve the brand's Herzogenaurach-based identity. This move mirrors Anta's successful revitalization of FILA and its 2019 acquisition of Amer Sports, where direct-to-consumer (DTC) excellence and operational discipline were used to scale premium heritage labels into high-growth global platforms.
As China’s leading sportswear entity by market value, Anta manages a diverse portfolio including Fila, Descente, and Kolon Sport. The company specializes in technical footwear and high-performance apparel, maintaining a robust ‘Brand + Retail’ model. With 2025 revenue showing consistent resilience, Anta is currently scaling its presence across Southeast Asia and the Middle East to offset domestic market saturation.
In a move described by European Commission President Ursula von der Leyen as the “mother of all trade deals,” India and the European Union (EU) officially signed a historic Free Trade Agreement (FTA) today. This landmark pact, concluding nearly two decades of negotiations, creates a free trade corridor for approximately two billion consumers and aims to double bilateral trade to $200 billion by 2030. For India’s fashion, apparel, and textile industry, the country’s second-largest employer, the deal provides a critical competitive edge at a time when global trade faces significant fragmentation and high U.S. tariffs.
1. The Core Shift: Eliminating the "Tariff Handicap"
Historically, Indian apparel exporters operated at a distinct disadvantage, subject to duties of approximately 9.6% to 12% in the EU, while competitors like Bangladesh and Vietnam enjoyed duty-free access. The FTA eliminates these barriers, providing a definitive timeline for tariff removal across the value chain.
Tariff Transformation Table
The following table outlines the transition from high MFN (Most Favoured Nation) rates to the new FTA regime:
|
Category |
Pre-FTA Duty (Avg) |
Post-FTA Duty |
Timeline |
|
Ready-Made Garments |
12% |
0% |
Immediate / EIF* |
|
Cotton Yarns & Fabrics |
4% – 10% |
0% |
Immediate / EIF |
|
Home Textiles |
10% – 12% |
0% |
Immediate / EIF |
|
Synthetic/Man-Made Fibres |
8% – 12% |
0% |
Phased (3-5 years) |
|
Luxury European Apparel |
25% – 35% |
10% - 15% |
Phased (7-10 years) |
*EIF: Entry Into Force (expected early 2027 following legal scrubbing).
The immediate removal of the 12% duty on RMG and 10% on cotton products is expected to be the primary catalyst for growth, while the phased reduction for Synthetic and Man-Made Fibres allows the domestic industry time to scale up production to meet European technical standards.
Industry Reactions: Voices from the frontlines
The signing has been met with rare unanimous praise from industry leaders on both continents. A. Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC), hailed the pact as a game-changer for the apparel industry, noting that while India currently exports over $4.5 billion worth of apparel to the EU, manufacturers have been fighting with one hand tied behind their backs. He believes this agreement finally provides the level playing field sought for decades.
Pallab Banerjee, Managing Director of Pearl Global Industries Limited (PGIL), stated that the removal of this tariff differential would help level the playing field for Indian manufacturers and catalyze fresh investments in advanced synthetic raw materials. Banerjee noted that while the US market was previously larger for Indian garments, the EU represents an even greater untapped opportunity, and India is well-positioned for ESG compliance.
Ashwin Chandran, Chairman of the Confederation of Indian Textile Industry (CITI), added that this FTA serves as a massive confidence boost during a period of steep US tariffs, creating a structural roadmap to achieve $100 billion in textile exports by 2030.
Bartoli, a European Trade Strategist, remarked that for European brands, India is now a vital, reliable democratic partner, highlighting a shift toward stable supply chains.
Durai Palanisamy, Chairman of The Southern India Mills’ Association (SIMA), complimented the leadership of Prime Minister Narendra Modi and Commerce Minister Piyush Goyal, stating that the FTA enables India to effectively compete with key supplier countries such as Bangladesh and Vietnam.
Impact on exports & imports
The FTA is expected to transform the volume of Indian goods moving into the Eurozone. Ready-made garment and apparel exports are projected to grow by 20–25% year-on-year, aiming to bridge the gap with competitors. Furthermore, increased demand for Indian cotton and technical textiles is expected as European giants look to diversify supply chains.
Conversely, India has provided a phased opening for Luxury European Apparel, with duties dropping from 35% down to 10-15% over the next decade. This creates a balanced gateway for premium European brands to enter the Indian market while protecting local manufacturers in the short term. Additionally, India will gain easier access to high-tech European machinery, which is crucial for modernization. Durai Palanisamy pointed out that India currently imports around $2.62–3 billion worth of textile machineries from EU countries, and this deal will further lower costs for technology adoption.
Case Study: The Tiruppur transformation
The Tiruppur knitwear cluster in Tamil Nadu serves as a primary example of the FTA's potential impact. Tamil Nadu currently accounts for 29% of Indian textile exports to the EU. Historically, Tiruppur’s exporters struggled because their products were more expensive than duty-free alternatives from neighboring countries. With the immediate removal of the 12% tariff, local clusters are expected to double their exports and restore capacity utilization.
Outlook and Projections: The 2030 vision
The immediate outlook is bullish, with bilateral goods trade expected to surge to $200 billion by 2030. India aims to increase its share of the EU apparel market from the current 6% to nearly 9% by 2029.
Industry leaders believe the FTA will be the driver required to increase India's textile business size to $250 billion and create new jobs for 20 million people, specifically benefiting rural masses and women across the nation.
The Bottom Line: For the first time in two decades, "Made in India" labels will sit on European shelves without a price penalty, ending a long-standing disadvantage and allowing India's strong capabilities in quality and compliance to drive global market share.
Bangladesh is set to fortify its position as a premier global textile hub following the Council of Advisers' approval to sign a landmark Economic Partnership Agreement (EPA) with Japan on January 22, 2026. Scheduled for formal execution on February 6, 2026, this treaty grants immediate duty-free access to 7,379 Bangladeshi products. For the textile and apparel sector, the agreement is transformative, providing zero-tariff entry for Ready-Made Garments (RMG) from day one. This proactive move effectively safeguards Bangladesh’s competitive edge as it navigates its scheduled graduation from Least Developed Country (LDC) status, ensuring that the 10–12 per cent tariff cliff typically associated with graduation is bypassed in the Japanese market.
Technical concessions and rules of origin
A critical victory for the industry is the inclusion of the ‘Single Stage Transformation’ facility. Unlike more restrictive trade regimes that require double transformation (yarn-to-fabric-to-garment), this provision allows apparel made from imported fabrics to qualify for duty-free status, offering immense flexibility to manufacturers. This EPA is a milestone that secures our $1.5 billion annual export footprint in Japan while inviting sophisticated Japanese technology into our backward linkage industries, stated Sheikh Bashir Uddin, Commerce Adviser. The deal also opens 120 Japanese service sub-sectors to Bangladesh, facilitating high-tech knowledge transfers in specialized textile machinery and sustainable dyeing processes.
Countering global headwinds
The EPA arrives as a vital counterbalance to shifting global trade dynamics, including recent tariff fluctuations in the US and EU markets. By securing the world’s fourth-largest economy, Bangladesh aims to diversify its export basket beyond basic knits into high-value functional wear and technical textiles. The agreement is projected to catalyze a fresh wave of ‘China Plus One’ investments, with several Japanese retailers already signaling plans to relocate production lines to Bangladesh's Special Economic Zones to leverage the new duty-free corridor.
France is accelerating its regulatory offensive against the ultra-fast fashion sector, moving beyond legislative rhetoric to concrete financial penalties. The Ministry of Ecological Transition has formally instructed Refashion, the state-accredited eco-organization, to finalize a robust ‘eco-modulation’ framework targeting high-volume, low-cost importers. This initiative aims to internalize the environmental costs of the ‘disposable’ business model, primarily targeting platforms like Shein and Temu. Market data indicates, these firms have secured a combined 23 per cent share of France’s online fashion market, a dominance the government seeks to curb through targeted environmental surcharges.
Implementing the 'polluter-pays' mechanism
The proposed fiscal architecture integrates with existing Extended Producer Responsibility (EPR) laws, which already mandate that apparel firms finance waste management. Under the new directive, the ‘bonus-malus’ system will be sharpened; while sustainable brands receive rebates, ultra-fast fashion products could face surcharges ranging from €5 to €10 per item by 2030. Industry analysts suggest this levy could effectively double the retail price of entry-level garments, eroding the primary competitive advantage of high-churn retailers. The objective is to ensure that the industry pays for the true impact of its logistics and waste footprint, stated Monique Barbut, Minister of Ecological Transition.
Strategic shift toward circularity
This regulatory shift is a part of a broader French strategy to boost domestic circularity. Revenue generated from these penalties is earmarked to subsidize local textile recyclers and sustainable French labels, creating a protectionist yet green industrial buffer. As Shein reportedly prepares for a potential European public offering, France’s aggressive stance represents a significant headwind, signaling a shift toward a "slow fashion" economy where volume-based growth is increasingly penalized by stringent environmental taxation.
Refashion is the government-mandated eco-organization overseeing the Extended Producer Responsibility (EPR) for clothing, footwear, and household linens in France. Funded by industry contributions, it manages the collection and recycling of over 800,000 tonnes of textiles placed on the French market annually.
With a 2028 target to reach a 60 per cent textile collection rate, Refashion is currently deploying a €58 million aid package to modernize sorting facilities. Its financial stability is anchored by mandatory fees from over 5,000 member brands, with a focus on scaling fiber-to-fiber recycling technologies to meet upcoming EU-wide circularity mandates.
Guess Inc has launched its new Spring/Summer 2026 global advertising campaign with global entrepreneur and fashion icon Chiara Ferragni. Captured through the unmistakable cinematic lens of the renowned Morelli Brothers, the campaign brings this vision to life with refined intensity and contemporary allure.
The campaign arrives as Guess reports a 7 per cent Y-o-Y revenue increase in its most recent fiscal quarter, reaching $791.4 million, boosted by strong wholesale performance in the Americas and Europe.
Reclaiming ‘IT’ status with heritage and innovation
The SS26 collection centers on a ‘refined dialogue’ between iconic West Coast heritage and modern silhouettes. Captured by the Morelli Brothers, the imagery alternates between classic black-and-white and saturated color. A focal point of the expansion is the Camden Bag, positioned to capture the burgeoning demand in the global accessories market. By reintroducing archival staples like the Bellflower Pants and the iconic bandage dress alongside elevated tailoring, Guess aims to bridge the gap between its heritage consumers and the digital-native Gen Z demographic.
Navigating volatility through portfolio diversification
Despite revenue growth, the brand faces a complex industrial climate characterized by 8 per cent sales declines in Asia and rising operational costs. To counter these headwinds, Guess is executing a dual-pronged strategy: integrating its newly acquired Rag & Bone assets to capture the high-end contemporary market and implementing AI-driven forecasting to reduce markdowns. This operational pivot is essential as the company targets double-digit operating margins, leveraging Ferragni's massive digital influence to drive conversion across its 1,058 directly operated stores.
Guess is a vertically integrated lifestyle brand operating over 1,500 retail stores across 100 countries. Specializing in premium denim, contemporary apparel, and high-margin accessories, the firm recently expanded its portfolio by acquiring rag & bone. Its current growth strategy focuses on digital modernization and optimizing retail productivity to sustain its multi-billion-dollar revenue trajectory.
Sweden’s H&M Group managed to widen its absolute revenue lead over regional competitors in FY25. Reporting net sales of approximately $24.8 billion (SEK 264 billion), the group successfully leveraged its ‘omni-model’ to integrate digital and physical retail. Despite closing nearly 120 underperforming locations, H&M achieved a 2 per cent increase in local currency sales. This growth was particularly robust in Western and Eastern Europe, where refurbished flagship stores and high-profile designer collaborations served to defend market share against ultra-fast fashion disruptors.
Uniqlo's performance-driven global breakout
While H&M dominates in total volume, Japan’s Fast Retailing - parent company of Uniqlo—emerged as the year’s definitive growth narrative. Uniqlo International reported a record-breaking 11.6 per cent revenue rise to $12.5 billion (¥1.91 trillion), signaling a successful export of its ‘LifeWear’ philosophy. Our popularity is rising worldwide as the focus shifts from disposable trends to high-quality, functional essentials, stated a spokesperson for Fast Retailing. The brand’s expansion into North America and Europe was particularly aggressive, with revenue in these regions rising by 24.5 per cent and 33.6 per cent respectively, effectively absorbing costs from recent US tariff adjustments through premium pricing and inventory precision.
Navigating logistics and consumer shifts
The retail landscape remains challenged by logistical volatility and a heightened consumer focus on durability. While H&M is prioritizing a circular economy - reaching a 29 per cent threshold for recycled materials in its latest sustainability audit- Uniqlo is capturing the ‘utility’ segment by expanding its uniform and high-performance athleisure lines. Both giants are now competing for a new category of ‘purposeful shoppers,’ where the winner is determined less by the speed of new arrivals and more by the technical resilience and environmental transparency of the supply chain.
H&M and Uniqlo are the primary pillars of the global apparel market, collectively operating over 6,500 stores. H&M focuses on trend-driven fashion and premium sub-brands like COS, while Uniqlo specializes in technical basics like HeatTech and Airism. Both companies are currently expanding in India and Southeast Asia to offset softer demand in Greater China. Financially, both target steady single-digit revenue growth while aiming for double-digit operating margins through automation and store optimization.
China’s textile and apparel manufacturers are aggressively redirecting focus toward emerging markets, with shipments to ASEAN and Belt and Road Initiative (BRI) partner countries now representing a larger share of the export portfolio.
This is in response to the 2.4 per cent Y-o-Y decline in total T&A exports to $293.77 billion during 2025. This downturn was primarily driven by a significant 5.0 per cent contraction in finished garment exports, which totaled $151.12 billion. Analysts attribute this decline to sustained inventory corrections in the United States and Europe, coupled with escalating tariff pressures that pushed US apparel imports from China to their lowest levels in over two decades. In response,
Resilience in upstream industrial feedstocks
In contrast to the garment segment, upstream textile products - including yarns and fabrics—demonstrated resilience, posting a modest 0.5 per cent growth to reach $142.6 billion in 2025. This relative stability highlights China's entrenched position as a critical provider of intermediate components for global supply chains. As apparel assembly increasingly relocates to lower-cost hubs like Vietnam and Bangladesh, China is transitioning into a high-tech supplier of functional fabrics and specialized machinery. This structural shift is supported by substantial investments in "circular" cellulose and waterless dyeing technologies, aimed at maintaining a competitive edge through technical innovation rather than labor-intensive volume.
China remains the world's largest textile producer, contributing over 20 per cent of global revenue. The sector is currently transitioning from mass-market apparel assembly to high-margin technical textiles and automated machinery. With a projected CAGR of 5.6% through 2033, growth plans emphasize vertical integration and sustainable fiber innovation to mitigate geopolitical trade risks.
The global landscape for technical textiles has undergone a structural shift following the finalization of American Industrial Partners’ (AIP) $1.5 billion acquisition of the Global Cellulose Fibers (GCF) business from International Paper on January 23, 2026. This divestiture transitions one of the world’s most significant specialty pulp operations into a standalone entity. For the textile and apparel sector, this move is pivotal; the high-purity cellulose produced by these nine manufacturing facilities serves as the fundamental raw material for lyocell and rayon filaments, as well as specialty non-wovens used in medical-grade protective wear.
Scaling sustainable feedstocks for global markets
The newly independent GCF business, which generated approximately $2.3 billion in revenue in 2024, is now positioned to bypass traditional paper-grade commodity constraints. Industry analysts suggest, AIP’s ‘industrial-first’ investment strategy will likely accelerate the development of ‘circular’ cellulose - pulp derived from recycled textile waste - to meet the soaring demand from ESG-conscious apparel manufacturers. With the global specialty pulp market projected to grow at a CAGR of nearly 5 per cent through 2029, this transaction provides the capital depth required to scale high-tenacity fibers that compete with synthetic polyesters in performance apparel.
GCF is a premier producer of high-quality absorbent fluff and specialty pulps, serving the personal care, medical, and technical textile industries. With a global workforce of 3,300, the company targets high-growth markets in North America, Europe, and Asia. Its growth strategy emphasizes operational excellence and the expansion of bio-based materials to replace fossil-based synthetics in global supply chains.
