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The American Apparel and Footwear Association (AAFA) cautions that tariff policies under former President Donald Trump could drive up apparel costs if campaign proposals are fully enacted. These policies, particularly the Section 301 tariffs from 2018, have contributed to the highest inflation in decades for clothing and footwear, according to AAFA.
These tariffs, which US businesses and consumers ultimately pay, disproportionately impact lower-income Americans, particularly female consumers, as tariffs are higher on affordable clothing and women’s apparel.
AAFA President and CEO Steve Lamar expressed concern over the effects of these tariffs and emphasized the need for immediate renewal of essential trade programs, including the African Growth and Opportunity Act (AGOA), the Generalised System of Preferences (GSP), and the Haiti Help/Hope preference program.
Lamar argued that a stable trade environment, bolstered by these programs, would support industry diversification, create jobs, and make fashion more affordable.
The AAFA also advocates for policies to protect shipping channels, curb counterfeit goods in e-commerce, and ensure effective, practical trade legislation. These measures, the organization hopes, will offer a balanced approach to sustaining the US apparel and footwear industry while providing affordable options to consumers.
The Confederation of Indian Textile Industry (CITI) has expressed optimism over Donald J Trump's recent presidential win in the United States, anticipating a positive impact on India's textile and apparel (T&A) trade with its largest export destination. In 2023, the US accounted for over 27 percent of India’s T&A exports, underscoring its critical role in India’s global trade expansion.
CITI Chairman Rakesh Mehra highlighted a notable rise in textile and apparel (T&A) exports to the US, reporting nearly 6 percent growth in the current fiscal year compared to the same period last year. This rate exceeds that of key competitors, with China showing a 2.2 percent increase, Vietnam at 0.4 percent, and Bangladesh experiencing a 2.2 percent decline. Mehra pointed out that this improvement in India’s export performance indicates a growing interest from American consumers in Indian T&A products.
Mehra pointed to the Trump administration’s previous efforts to diversify sourcing away from China as a favorable factor aligning with India’s ambitions to expand in the American market. This shift has opened doors for Indian textiles, providing a viable alternative for US buyers seeking to reduce dependence on Chinese imports.
However, high US tariffs, which can reach up to 32 percent on certain apparel categories, remain a barrier to further growth. These tariffs, Mehra noted, limit India’s ability to fully capitalize on its growing market share in the US. CITI is hopeful that Trump’s new administration will prioritize trade discussions with India to address tariff-related obstacles, enhancing India’s role as a major supplier of high-quality textiles and apparel to the US.
Such a collaboration, according to Mehra, could mark a new era in US-India textile trade, offering American retailers and consumers a competitive alternative to Chinese products.
Marking a significant turnaround from a net loss of Rs 4.15 crore in Q2, FY24, Ramco Industries (RIL), part of the Chennai-based Ramco Group, reported a consolidated net profit of Rs 16.88 crore for Q2 FY25. The company’s revenue from operations increased by 11.83 per cent Y-o-Y to Rs 353.17 crore during the quarter.
Profit before exceptional items and tax increased by 86 per cent to Rs 32.55 crore in Q2 FY25, compared to Rs 17.50 crore in the corresponding quarter of the previous year. Total expenses for the quarter rose by 7.41 per cent to Rs 323.79 crore from Rs 301.44 crore in Q2 FY24. The cost of materials consumed increased by 20.3 per cent YoY to Rs 232.69 crore, while employee benefits expenses grew by 19.85 per cent Y-o-Y to Rs 41.85 crore.
In H1, FY25, RIL's net profit increased by 58.92 per cent to Rs56.29 crore, driven by an 11.65 per cent increase in revenue from operations, which reached Rs 896.33 crore during the period.
In a strategic move, the company's board approved an investment to purchase shares of The Ramco Cements, with a commitment of up to Rs 160 crore in one or more tranches. Additionally, the board sanctioned the raising of credit facilities from banks, mutual funds, or non-banking financial companies (NBFCs) through secured, rated, redeemable non-convertible debentures, term loans, or other borrowing methods. The total amount for these credit facilities is set not to exceed Rs 160 crore, which will support corporate requirements and fund the investment in The Ramco Cements.
RIL’s core business includes spinning of cotton yarn as well as manufacture of asbestos-based fiber cement (FC) sheets used as roofing material and the production of calcium silicate boards. The company operates a fully-owned subsidiary in Sri Lanka, Sri Ramco Lanka, which manufactures and markets FC sheets. The broader Ramco Group has diversified interests spanning cement, FC sheets, textiles, and information technology.
As India strengthens its position as a key global hub for apparel sourcing, the US International Trade Commission (USITC) attributes its industry growth to India's political stability, which appeals strongly to US buyers.
According to the Ministry of Commerce and Industry, India’s stability enables it to manage risks and meet production deadlines of the complex global garment chains, making it an increasingly attractive sourcing destination.
Over the past decade, India's share in US apparel imports has grown steadily from 4 per cent in 2013 to 5.8 per cent in 2023. In 2023, India exported $4.6 billion in apparel to the US, positioning it as the fourth-largest supplier. This trend reflects rising confidence in Indian-made garments as the US shifts some sourcing away from China.
Political stability is essential for maintaining efficient supply chains, particularly in time-sensitive industries like apparel, the USITC report highlights. While disruptions and delays due to political unrest often impact apparel supply chains in countries like Bangladesh, India’s relatively stable environment provides a dependable alternative, especially in high-value, fashion-focused apparel.
India’s competitiveness in the apparel industry is driven by several factors, including vertical integration, which allows it to manage all stages of production from cotton farming to garment manufacturing. This self-reliance limits dependency on external suppliers, enabling more efficient and reliable production.
Additionally, India’s large, skilled labor force excels in producing high-quality, customised garments that are increasingly popular in global markets. Government initiatives such as the Production Linked Incentive (PLI) Scheme have further bolstered India’s manufacturing capabilities by encouraging investments in technology and innovation, expanding production capacity to meet rising demand.
India’s focus on cotton-based garments, supported by its role as one of the world’s largest cotton producers, offers a competitive edge in the US market, where cotton apparel remains in high demand. This focus aligns with India's established strengths and provides a valuable niche in the broader US apparel market.
The USITC report compares India with other major US apparel suppliers, such as Vietnam, Bangladesh, Indonesia, and Pakistan. Vietnam holds 17.8 per cent of the US market, excelling in both cotton and synthetic fiber garments but facing rising labor costs. Bangladesh benefits from low labor costs and duty-free access to the US but is hindered by political instability. India, on the other hand, boasts advantages like vertical integration, skilled labor, and government support, though challenges remain in labor costs, infrastructure, and limited capacity for man-made fibers.
As India addresses challenges related to labor productivity, fiber diversification, and infrastructure, its apparel sector is positioned for further growth in the US market. With its focus on reliability, high-quality production, and political stability, India is emerging as a strong and dependable partner for US buyers in an increasingly competitive global apparel industry.
Setting a new national record for large-scale mechanical cotton harvest yields, a cotton field in northwest China’s Xinjiang Uygur Autonomous Region, Bortola has achieved a yield of 11,154 per hectare. The cotton field achieved this on a 7.1-hectare field in the Mongolian Autonomous Prefecture of Bortala.
The Xinjiang Regional Department of Agriculture and Rural Affairs, along with experts from the National Agro-Tech Extension and Service Center, the Chinese Academy of Agricultural Sciences, the Xinjiang Academy of Agricultural Sciences, and Shihezi University, monitored and evaluated the harvest and output data.
Wang Daguang, a researcher in agro-tech extension services from Jinghe County in Bortala, notes, this new record highlights the progress in agricultural science and technology, encouraging cotton farmers to integrate more advanced techniques in cultivation.
With 92,667 hectare of cotton fields, Bortala is among the top cotton-producing regions in Xinjiang, supporting the area's prominence in China’s cotton industry.
The return of Donald Trump as the next President of the United States could help India strengthen textile and apparel trade with its largest international market, opines the Confederation of Indian Textile Industry (CITI).
In 2023, the US represented approximately 27 per cent of India’s total textile and apparel exports, emphasising its vital role in India's global industry reach.
From Apr-Aug’24, India’s textile and apparel exports to the US grew by around 6 per cent compared to the same period last year. The growth surpassed key competitors, with China recording a 2 per cent increase, Vietnam at 0.4 per cent, and Bangladesh seeing a decline of 2.2 per cent. India's enhanced performance in the textile and apparel sector reflects its expanding share in this critical market, notes Rakesh Mehra, Chairman, CITI
The previous Trump administration focused on diversifying its trade sources to reduce the country’s dependence on China. This approach also aligns with India's goal of strengthening its position in the U.S. market.
However, high tariff rates, reaching up to 32 per cent for certain apparel categories, remain a significant hurdle to further market expansion, Mehra cautions.
A new administration could work with India to potentially revise tariffs, positioning India as a leading supplier of high-quality textiles and apparel to the US, he adds. This could mark a new chapter in India-US textile trade relations, offering American retailers and consumers a valuable alternative to Chinese products, CITI states.
Global Fashion Agenda (GFA) has revealed the theme for the 2025 Global Fashion Summit: Copenhagen Edition, ‘Barriers and Bridges.’ Under the patronage of Her Majesty the Queen of Denmark, the summit will take place from June 3-5, 2025, at the Copenhagen Concert Hall. Registration is now open.
As the fashion industry faces mounting pressures to innovate and comply with complex regulations, the summit will explore how today’s challenges can drives sustainable growth. By bringing together key stakeholders, the event will highlight how barriers can be transformed into bridges for positive change, navigating the blurred lines between voluntary and mandatory efforts in sustainability.
The Summit will tackle critical social and environmental issues, discussing the balance between climate leadership, business resilience, regulatory compliance, and innovation. Three key stages will feature speakers addressing these dualities, focusing on both immediate solutions and long-term visions.
Additionally, the Innovation Forum will spotlight pioneering solutions, including materials and end-of-use processes, providing opportunities for tailored collaborations through the Matchmaking Programme.
Federica Marchionni, CEO of Global Fashion Agenda, emphasized that fashion’s transformative potential is immense, requiring bold leadership, investment, and a reimagined approach to business models. The summit aims to facilitate collaboration, guiding the fashion industry towards meaningful, sustainable change.
Activists from Clean Clothes Campaign (CCC) and XR Fashion Action disrupted Inditex’s European distribution centre in Lelystad, The Netherlands, protesting the brand’s failure to protect garment workers rights in Bangladesh. The action escalates CCC’s ongoing campaign against brands linked to the crackdown on workers involved in the 2023 minimum wage protests in Bangladesh.
Inditex, the parent company of Zara, is one of the top offenders on CCC’s tracker, which links brands to factories pressing unjust criminal charges against workers. According to CCC’s research, over 5,500 workers in Inditex’s supply chain are at risk of prison sentences due to baseless charges filed by factory owners after the protests. At least eight factories in the supply chain were involved in worker repression.
As one of the world's largest garment manufacturers, Bangladesh is especially vulnerable to climate change. CCC argues that the fashion industry’s massive contribution to global carbon dioxide emissions is enabled by the exploitation of Bangladeshi workers. KalponaAkter, president of the Bangladesh Garment & Industrial Workers Federation, criticized Zara’s empty promises on living wages and labor rights, stating that workers remain trapped in a cycle of repression.
CCC campaigner Bogu Gojdz emphasized that major fashion polluters are often the worst violators of labor rights, urging Inditex to put an end to worker exploitation throughout its supply chain.
The activists demand that Zara urge its suppliers to drop all charges against workers and publicly support the call for Bangladesh’s interim government to dismiss the politically motivated legal actions.
The global fashion industry is bracing for a turbulent 2025, as a cyclical slowdown, rising prices, and shifting consumer preferences are creating a perfect storm of challenges. But amidst the chaos, there are also opportunities for brands that can adapt quickly and strategically.
Navigating a Complex Landscape
The McKinsey Global Fashion Index predicts industry-wide growth in the low single digits for 2025, with non-luxury brands driving the majority of profits. This represents a significant shift from recent years, where luxury brands have been the primary growth engine.
"The old playbook is now obsolete; the industry will need a new formula for differentiation and growth," says Imran Amed, founder and CEO of The Business of Fashion.
Key Challenges and Opportunities
The report identifies several key themes that will shape the fashion industry in 2025:
1. Trade Barriers and Geopolitical Tensions
Global trade is undergoing a significant reconfiguration, with major economies diversifying their sourcing and reducing their reliance on China. This is partly due to rising costs and geopolitical tensions, but also reflects a growing focus on sustainability and nearshoring.
2. Asia's New Growth Markets
As China's economy slows and consumer preferences evolve, international brands are turning their attention to other Asian markets. India, in particular, is attracting significant interest, with its large and growing middle class and potential in the luxury market.
3. The "Silver Generation"
The fashion industry has traditionally focused on younger consumers, but the "Silver Generation" of shoppers aged 50 and over represents a growing and increasingly affluent demographic. Brands that can engage these previously overlooked customers will be well-positioned for growth.
4. The Value Shift
Consumers are increasingly price-sensitive and value-conscious, fuelling growth in segments such as resale, off-price, and "dupes." Brands will need to prove their value to customers, whether through innovative products, compelling brand stories, or exceptional customer experiences.
5. The In-Store Experience
Despite the growth of e-commerce, physical stores remain an important part of the fashion ecosystem. Brands that can differentiate their in-store experience, for example by empowering their sales associates and creating a sense of community, will be able to attract and retain customers.
Case Studies
The report highlights several brands that are successfully navigating the changing fashion landscape:
• Myntra, an Indian e-commerce platform, is helping international brands reach millions of young and aspirational consumers.
• J.Crew has turned its business around by focusing on timeless designs and creating intergenerational appeal.
• Ralph Lauren is successfully selling a "dream" at every price point, by creating a strong brand identity and offering a range of products to suit different budgets.
• Aritzia, a Canadian retailer, is experiencing rapid growth thanks to its focus on customer service and creating an engaging in-store experience.
Looking Ahead
The fashion industry is facing a period of unprecedented change and uncertainty. But as the report makes clear, there are also significant opportunities for brands that can adapt and innovate. By understanding the key trends shaping the industry and embracing new strategies, fashion brands can position themselves for success in 2025 and beyond.
Economic challenges shape 2025 fashion landscape
The global fashion industry enters 2025 facing significant challenges amid economic uncertainty, shifting consumer behaviors, and environmental pressures. A cyclical economic slowdown and recent high inflation have heightened consumer price sensitivity, while increased regional disparities and the rise of affordable ‘dupes’ add to industry unpredictability. A survey by Business of Fashion (BoF)–McKinsey reports that only 20 percent of fashion executives anticipate improved consumer sentiment this year, while 39 percent foresee worsening conditions.
Revenue growth for 2025 is projected to remain in low single digits, mirroring 2024's sluggish pace. Notably, non-luxury segments are expected to drive economic profit growth, a first since 2010, as the demand for accessible fashion options grows. Geographic revenue trends are also shifting, with Europe benefiting from falling inflation and tourism, the US buoyed by high-net-worth consumers, and Asia experiencing growth outside of China, as brands increasingly turn to Japan, Korea, and India.
New strategies for a value-driven consumer base
To adapt, fashion brands are recalibrating strategies by broadening price ranges, localizing models, and expanding resale and off-price channels. For brands aiming to sustain premium positioning, enhancing customer experience is crucial. As consumers return to physical stores, well-trained staff and a compelling in-store experience are increasingly important. Meanwhile, e-commerce faces disruptions due to falling demand, high acquisition costs, and the challenge of product discovery, driving brands to leverage AI-powered curation for better online shopping experiences.
Demographic shifts present further opportunities. While youth markets remain key, the over-50 ‘silver generation’ is gaining traction, representing a growing share of fashion spending. Challenger brands, especially in sportswear, are effectively capturing market share by innovating in product and consumer approach, unlike traditional incumbents.
Sustainable supply chains and environmental responsibility
Supply chain agility, driven by nearshoring and geopolitics, will be critical, with brands aiming to minimize inventory risks while adapting to environmental regulations. The climate crisis also remains a top concern; though some consumers hesitate to pay extra for sustainable products, regulatory pressures and long-term cost benefits keep sustainability at the forefront.
In this landscape, fashion leaders who swiftly identify and act on geographic, demographic, and technological opportunities will stand out. Success in 2025 will require a fresh playbookone focused on adaptability and forward-thinking solutions.
