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A potential setback for the online fast-fast retailer as it prepares for a planned listing on the London Stock Exchange, Shein’s net profit declined by 40 per cent to $1 billion in 2024, as per a report by the Financial Times.
Shein's sales increased by 19 per cent to $38 billion during the year. This is notably lower than the projections of $4.8 billion in net profit and $45 billion in sales made by the company earlier.
Recent reports indicate, Shein plans to lower its valuation for the London IPO by almost 25 per cent, aiming for approximately $50 billion. Further reports suggest, the company might be under pressure to accept an even lower valuation of around $30 billion.
The timeline for the London listing may also be affected. Reports have noted that a change in US policy regarding a tax exemption enjoyed by Shein could impact the company's profitability and pricing within the United States. This potential development might lead to a postponement of the London listing to the latter half of the year.
South Asia's leading apparel manufacturer, MAS Holdings has commenced construction on its first venture at the MAS Apparel Park-Bhuinpur in Khurda district, Odisha. This 60-acre facility is expected to focus on value-added products for both local and international markets. It will begin production by 2026.
Malik Ahamadeen, CEO, MAS India, states, the project will help create create employment opportunities in the state, thus contributing to its broader economic growth and long-term development, he adds.
Approved by the High-Level Clearance Authority (HLCA), led by Chief Minister Mohan Charan Majhi, the integrated textile facility will be developed with an investment of Rs 1,211.87 crore (over $140 million). It will also generate 10,000 jobs within the next decade.
Noting this investment as a significant milestone for the company, Suren Fernando, Group CEO emphasizes on India's integral role in their operations and its importance to both the global supply chain and the rapidly expanding domestic retail sector.
The ground-breaking ceremony was also attended by Subhendra Kumar Nayak, Special Secretary and officials from Idco and IPICOL.
Dior has roped in Hollywood actress Monica Barbaro as its new brand ambassador for women's fashion. The announcement follows Barbaro's Academy Award-nominated portrayal of Joan Baez in ‘A Complete Unknown’ and highlights her rising prominence in Hollywood. She will represent the women's collections designed by Maria Grazia Chiuri.
According to Dior, Barbaro embodies the elegance and audacity of Dior style, a continually reinvented femininity. The partnership aims to strengthen the brand's connection to culture and creativity.
This appointment further strengthens Barbaro's relationship with LVMH Moët Hennessy Louis Vuitton, as she was also named a Bulgari ambassador in July.
The announcement comes amidst recent changes at Dior, including the earlie
r announcement of Kim Jones, Artistic Director, Dior Homme, stepping down from his position at the brand after seven years. This new announcement reflects Dior's ongoing strategy to align with influential figures in the entertainment industry and reinforce its brand image.
Lenzing Group reinforced its commitment to India’s textile industry at Bharat Tex 2025, showcasing its latest innovations in sustainable fibers. The event provided a key platform for collaboration across the textile value chain, from spinners to global brands.
Visitors explored Tencel and Lenzing Ecovero fibers at Lenzing’s booth, experiencing their impact on sustainability and performance. The display featured Tencel Lyocell A100, Lyocell LF, Lyocell x Micro, Lyocell Fill, and Lenzing Ecovero Black, offering enhanced fabric versatility, insulation, and color fastness. These solutions cater to various segments, including denim, home textiles, intimate wear, and traditional Indian apparel like sarees and kurtis.
Indian garment makers, mills, and designers responded positively, reflecting the rising demand for eco-conscious textiles. "Bharat Tex 2025 has been a phenomenal platform, highlighting India’s leadership in sustainable textile innovation," said Jayaraman, Vice President - Global Sales, Lenzing Group.
Avinash Mane, Senior Commercial Director - AMEA & NEA, added, "The event continues to drive collaboration and knowledge exchange, aligning our fiber innovations with the evolving needs of India’s textile sector."
Bharat Tex 2025 also opened new avenues with international buyers, reinforcing India’s role in responsible textile manufacturing. As the industry moves toward a more sustainable future, Lenzing remains committed to driving innovation and strengthening partnerships in India’s dynamic textile landscape.
Vietnam's textile and garment (T&A) exports are projected to rise by 11 pe cent to reach $44 billion in 2024, according to the Vietnam Textile and Apparel Association (VITAS). This would help consolidate Vietnam’s position as the world's second-largest textile exporter, behind China.
Vietnam’s T&A exports in the early months of 2024 increased by 1.8 per cent Y-o-Y to $3.19 billion. The industry aims to increase its exports to $47-$48 billion by 2025.
The US remains Vietnam's top market, with exports in January 2025 rising by 6 per cent to $1.4 billion. Since 2018, share of the US in Vietnam’s T&A exports has doubled, reaching nearly 20 per cent in 2024 with companies like Duc Giang Corporation reporting strong revenue growth.
Despite this success, challenges persist. Rising shipping costs, market volatility, and intense global competition, particularly from Bangladesh and India, pose threats.
To counter these issues, Vietnamese companies are investing in automation, modern equipment, and workforce development. They're focusing on operational efficiency and product innovation.
Optimism remains for continued growth in 2025, driven by economic recovery in key markets like the US and EU, and Vietnam's focus on quality and efficient production.
Free Trade Agreements, such as the CPTPP, are crucial for expanding into new markets like Canada and Australia. Enhanced maritime communication and agricultural improvements will also support trade.
Industry leaders emphasize the need for operational excellence, productivity gains, and technological adoption to navigate rising costs and meet evolving consumer demands.
Vietnam's textile industry is demonstrating adaptability and resilience, positioning itself for continued growth and solidifying its role in the global textile market.
Sri Lanka's vital apparel export sector faces potential disruption as the Joint Apparel Exporters Association Forum (JAAF) has raised serious concerns about the government's proposed removal of the Simplified Value Added Tax (SVAT) system. A hasty transition without a robust, well-tested alternative could trigger significant cash flow problems for exporters, jeopardizing the industry's stability, warns JAAF.
The core issue revolves around the VAT refund process. Under standard VAT regulations, exports are zero-rated, allowing businesses to reclaim input VAT. However, chronic delays in refunding these credits in Sri Lanka forced the adoption of the SVAT system. Now, the government's plan to replace SVAT with a risk-based refund mechanism has triggered alarm bells within the apparel industry.
JAAF had previously championed a digitally driven VAT refund solution, emphasizing efficiency and transparency through minimal human intervention. The association fears that a poorly managed transition will strain exporters' cash flow, disrupt operations, and tarnish Sri Lanka's reputation as a reliable sourcing destination, particularly in a global market where supply chain stability is paramount.
The apparel sector's contributes over 40 per cent to the nation's total merchandise exports. Maintaining the industry's competitiveness and boosting investor confidence hinges on a seamless and transparent transition from SVAT. JAAF emphasizes on the importance of timely VAT refunds and a reliable mechanism to prevent delays, safeguarding exporters' liquidity.
The association urges the government to engage closely with industry stakeholders, ensuring a smooth VAT transition that incorporates efficient digital refund processing to prevent disruptions.
Despite these concerns, JAAF welcomes the government's inaugural budget, recognizing its focus on export-driven growth, investment facilitation, and policy consistency. The budget's commitment to economic stabilization and a competitive business environment is seen as a positive step for the textile and apparel sector.
JAAF also applauds the government's efforts to expand Free Trade Agreements (FTAs), align with the industry's strategic goals of protecting market access, and pursue new global partnerships. Initiatives like the National Single Window, e-cargo tracking, and customs law revisions are deemed crucial for enhancing the ease of doing business. Measures such as revisiting the Economic Transformation Act and introducing the Investment Protection Bill are expected to bolster investor confidence and propel export growth.
While expressing optimism about the budget's direction, JAAF reiterates its apprehensions regarding the SVAT removal. They emphasize the necessity of a well-tested alternative, a smooth transition, and continuous engagement with industry stakeholders to ensure policy decisions reflect the realities of the business environment. Clarity on tax administration, timely trade facilitation, and sustained focus on export competitiveness are vital for achieving ambitious export targets.
As Sri Lanka strives for sustainable economic recovery, the apparel industry remains committed to collaborating with policymakers to implement effective reforms, ensuring the nation's export sector remains resilient and globally competitive.
Bangladesh's ready-made garment (RMG) exports saw a robust rebound in the H1, FY25, with shipments rising to all major markets. Total RMG exports by the country from July-December 2024 increased by 13.28 per cent Y-o-Y to $19.89 billion as against $17.56 billion during the corresponding period of the previous year.
The European Union (EU) remains the largest market, absorbing approximately 50 per cent of Bangladesh's total garment exports. EU imports rose by 15.22 per cent to $9.87 billion with imports by Germany rising by 14 per cent to $2.47 billion and imports by France expanding by 10 per cent to $1.09 billion.
Accounting for 19 per cent of Bangladesh’s total RMG exports, the US’ imports increased by 17.55 per cent to $3.84 billion. This growth is attributed, in part, to US tariffs on goods from other countries, leading buyers to explore alternative sourcing options in Bangladesh. Imports by the United Kingdom increased by 6.70 per cent to $2.16 billion while imports by Canada rose 14 per cent to $640 million
Despite these positive export figures, the RMG industry in Bangladesh continues to face significant challenges. Highlighting the issue of low prices offered by buyers, despite rising production costs, Mohammad Hatem, President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), points out, domestic textile mills in Bangladesh continue to struggle due to gas and electricity shortages, leading to increased reliance on imported yarn. Furthermore, banking and law and order issues hinder continued export growth, he adds.
The hum of consumer-driven economy is faltering, and the reverberations are hitting luxury retail with a force that suggests a deeper shift in consumer culture. While inflation fatigue grips many, it's Gen Z's ‘No Buy 2025’ movement that's sending shockwaves through the market, signaling a potential era of prolonged austerity.
The rise of underconsumption
What began as a murmur of ‘underconsumption’ has grown into a social media phenomenon. Driven by economic anxieties and a yearning for authenticity, young consumers are actively choosing to forgo discretionary spending, prioritizing essentials over extravagance. This movement, which got a boost on platforms like TikTok, has garnered millions of views, demonstrating a widespread desire to break free from the cycle of relentless consumption.
Luxury's sudden slump
The impact is palpable, particularly in the luxury sector. LVMH's recent financial report, revealing a 2 per cent sales decline and significant drops in net income, serves as a stark illustration of this trend. Analysts like those at McKinsey & Company, warn of a potential ‘reckoning’ for brands, citing factors like a slowing global economy and evolving consumer habits. Stéphane JG Girod, a Swiss-based professor, further emphasizes this structural shift, noting that luxury brands have lost an estimated 50 million customers in the past two years, with notable impact to brand like Rolex and Porsche.
One major factor behind this mindset is the economic uncertainty. Geopolitical tensions and concerns about asset values are driving even affluent consumers to adopt a more cautious approach. For younger generations, particularly those living paycheck to paycheck, the ‘No Buy’ movement reflects a sense of financial vulnerability and a desire for greater security.
Moreover, Gen Z's embrace of movements like ‘No Mow May’ and ‘No Buy 2025’ underscores a growing preference for authentic experiences and sustainable practices. The influence from social media is massive, with Gen-z consumers finding others like themselves that reinforce their values and opinions. Young consumers are prioritizing low-cost experiences like eating in and hosting game nights, indicating a move away from material possessions. Many reports say, Gen-Z values experiences much more than material goods.
Gen Z's influence extends beyond their own purchasing power. Their ability to sway the spending habits of older generations through social media makes them a crucial demographic for retailers to watch. As consumer culture shifts, brands, from Walmart to Ferragamo, must adapt to meet the evolving needs and values of their customers.
The bottomline is the ‘No Buy 2025’ movement is more than a fleeting trend; it reflects a fundamental shift in consumer behavior. Economic uncertainty and a desire for authenticity are driving forces behind this movement. And luxury retail is particularly vulnerable to these changes. Social media is a huge driving force in this cultural change. Most importantly, brands must prioritize understanding and responding to the values of Gen Z.
So is this a temporary blip or a harbinger of a new era of conscious consumption? Regardless, the retail landscape is undoubtedly undergoing a transformation, with Gen Z leading the charge.
The Ellen MacArthur Foundation’s Fashion ReModel project, now backed by a $1.5 million investment from the H&M Foundation, is accelerating circularity in fashion. The initiative, launched last May, aims to decouple revenue from production and resource use while scaling up circular business models like recycling, rental, repair, and resale.
Brands including Reformation, Primark, and H&M Group’s Arket, Cos, and Weekday have set targets to increase revenue from circular efforts over the next three years. The project will share annual updates, highlighting progress and challenges.
Circular business models, once niche, are proving highly lucrative. In 2019, they represented a $73 billion market, with potential to reach 23 per cent of the fashion industry by 2030 a $700 billion opportunity, according to the Ellen MacArthur Foundation.
For fashion to achieve circularity, both products and business models must be redesigned. The initiative's framework, shaped by over 150 stakeholders, focuses on key areas such as finance, policy, climate, and marketing to drive industry-wide transformation.
Workstream insights will be published annually, with plans to expand Fashion ReModel by mid-2025. A comprehensive progress report is slated for 2028.
As brands work to move beyond the take-make-waste model, the project aims to accelerate circular solutions, tackling emissions and fostering a more sustainable fashion future.
The flagship company of LNJ Bhilwara Group, RSWM was awarded with 1st Runner-Up award in the ‘Innovative Water Management and Conservation’ category at the CITI Textile Sustainability Awards 2024-25.
Presented at Bharat Tex 2025, India’s largest textile trade fair, held from February 14-17, 2025 at Bharat Mandapam, New Delhi, this prestigious award acknowledged RSWM’s pioneering efforts in water conservation and strengthening its leadership in sustainable textile manufacturing. The awards were presented by Pabitra Margherita, Union Minister of State for External Affairs and Textiles, Govt of India, alongside Rakesh Mehra, Chairman, CITI, and other key dignitaries.
Water conservation is a critical priority for RSWM. Over the past three years, the company has invested $10.1 million (Rs 84 crore) in advanced water management technologies across its manufacturing facilities. A few initiatives launched by the company include implementing Zero Liquid Discharge (ZLD) systems for 100 per cent wastewater recycling, and adopting low-liquor HTHP fiber and yarn dyeing machines, which reduce water consumption by up to 50 per cent compared to traditional methods. PLC-controlled auto-controllers have further optimized water usage in dyeing processes, minimizing waste and reducing processing time.
Additionally, RSWM has incorporated counter-current washing techniques for multi-stage water reuse and innovative moisture extraction methods in stenter machines, reducing both water and energy consumption. With 24 rainwater harvesting wells and artificial lakes, the company has also enhanced groundwater recharge, supporting both industrial and community water needs. These combined efforts have resulted in annual water savings of 61.7 million gallons (233,500 KL), setting a new standard for sustainable water management in the textile industry.
Expressing his gratitude for the award, Rajeev Gupta, Joint Managing Director, RSWM, states, the company focuses on sustainably produced products by combining advanced technology with environmental stewardship, reducing their water footprint while maintaining high-quality production.
At Bharat Tex 2025, RSWM showcased its sustainability-driven innovations under the ‘Panchtatva’ theme, featuring eco-conscious and high-performance textiles. The highlight of this showcase include fire-retardant, UV-resistant, and heat-protective fabrics (Fire), organic and biodegradable textiles (Earth), moisture-wicking and water-repellent materials (Water), breathable and anti-odor yarns (Air), and high-tech graphene-enhanced fabrics (Space). Standout products included anti-odor functional yarns, lightweight denim, flame-resistant textiles, water-repellent denim, and Dyneema® fibers. The company received an overwhelming response for its products, reaffirming RSWM’s leadership in eco-conscious and high-performance textile solutions, driving the future of sustainable fashion and functional fabrics.
