Textile manufacturer Sportking India registered a 122.8 per cent Y-o-Y growth in net profit to Rs 75.97 crore in Q1 FY27, backed by a 20.1 per cent increase in operational revenue to Rs 703.68 crore. The company’s operational efficiency and reduced finance costs expanded EBITDA margins by 693 basis points to 18.8 per cent. Their quarterly performance reflects solid volume consistency and improved product realizations, positioning us to capitalize on strengthening demand across domestic retail and key export corridors, states Munish Avasthi, Chairman and Managing Director.

Value addition anchors Greenfield manufacturing push

To leverage shifting global sourcing preferences and imminent trade pacts such as the India–UK Free Trade Agreement, the Ludhiana-headquartered firm is deploying Rs 1,000 crore toward a greenfield facility in Odisha. Concurrently, board-approved mergers with Marvel Dyers and Sobhagia Sales will consolidate downstream dyeing and garment manufacturing. This vertical consolidation addresses regional supply chain volatility, enhancing yarn-to-apparel throughput and gross margins.

Expanding garmenting capacity for long-term returns

Established in Punjab, Sportking India manufactures cotton yarns, processed fabrics, and casualwear for major domestic brands and export destinations across Europe and Asia. Supported by annual revenues above Rs 2,500 crore, current capital investments target integrated garmenting capacity to sustain long-term return metrics.

Rising summer temperatures across Western export markets are driving global apparel brands to expand lightweight, breathable linen lines. Capitalizing on the recent removal of Bangladesh’s 35 per cent import tariff on raw flax fiber, local manufacturers are scaling integrated linen spinning and circular recycling operations to cut reliance on imported woven fabrics. Leading this structural shift, NZ Tex Group is expanding its 6,700-spindle wet-spinning capacity while integrating mechanical waste recovery to capture post-industrial linen remnants.

Overcoming wet-spinning complexities through closed-loop efficiency

Unlike traditional cotton processing, wet spinning linen demands four times the initial capital investment alongside specialized effluent treatment systems. Continuous moisture exposure also accelerates component wear, requiring machinery overhauls every seven years. To optimize resource use, NZ Tex Group implemented closed-loop water recovery alongside mechanical fiber recycling, converting production waste into high-value blended yarns. Securing policy parity for raw flax allows Bangladeshi mills to build localized, fully circular linen ecosystems, says Saleudh Zaman Khan, Managing Director,  NZ Tex Group. Uninterrupted grid power remains critical for mills to sustain these capital-intensive wet-spinning operations.

Founded in 1982, NZ Tex Group is a Bangladeshi textile conglomerate producing 52,000 tons of yarn and 72 million yards of woven fabric annually for European and Asian markets. Pioneering domestic 100 per cent linen spinning 16 years ago, the group aims to double circular flax output backed by steady double-digit export growth.

Profits are taking precedence over physical expansion in global apparel retail today. Years of building extensive store networks are giving way to a leaner operating model as fashion retailers adapt to slow discretionary spending, rising operating costs and rapid growth of ecommerce. H&M Group's latest half-year result for fiscal 2026 reflects this shift. Rather than pursuing aggressive store expansion, the Swedish fashion retailer is continuing to rationalise its physical footprint while investing in inventory efficiency, technology and supply chain agility, a strategy now being mirrored across the global fashion industry.

Smaller network, better returns

H&M ended the first half of fiscal 2026 with 4,038 stores worldwide, which is a net reduction of 128 outlets over the past year and over 600 fewer stores since 2022. The company plans to open around 90 stores during the full year while closing approximately 170, resulting in a net reduction of 80 locations. The retailer has also completed the closure of standalone Monki stores, integrating the youth fashion brand into Weekday to simplify operations and reduce duplication. While the restructuring contributed to a modest decline in sales, it strengthened profit.

Table:  H&M Group financial performance (H1 2026)

Despite a 1 per cent decline in net sales in local currencies, operating profit excluding one-time restructuring costs rose 14 per cent to SEK 8.1 billion, while gross margin improved to 53.8 per cent, highlighting the financial benefits of a leaner operating model.

H&M's strategy reflects a broader change across global fashion retail rather than an isolated restructuring exercise. Several established apparel retailers, including Gap Inc., have spent recent years reducing underperforming stores, while Inditex, the owner of Zara, has steadily consolidated its retail network by investing in larger, experience-led flagship stores instead of maintaining widespread smaller outlets. The economics of physical retail have changed significantly. Higher commercial rents, wage inflation, long-term lease obligations and increasingly stringent sustainability regulations particularly in Europe have raised the cost of operating extensive store portfolios.

At the same time, consumer purchasing patterns continue to shift online, increasing competition from digital-first platforms such as Shein and Temu that operate with shorter product development cycles. For traditional retailers, maintaining large inventories across thousands of physical stores has become an increasingly expensive proposition.

Table: H&M regional store net changes (May 2025-May 2026)

H&M's regional footprint reflects these changing priorities. The sharpest drop occurred across Asia, Oceania and Africa, where the company reduced its network by 97 stores over the past year. Western Europe also recorded a net decline of 20 stores, while the Americas posted a modest increase of eight outlets, indicating continued selective expansion in growth markets.

Inventory becomes the competitive edge

Beyond store closures, inventory management has emerged as one of the industry's most important profit drivers. For long fast-fashion retailers have relied on large seasonal inventory commitments that frequently resulted in aggressive markdowns when demand weakened. Today's focus has shifted towards faster stock rotation and more disciplined purchasing.

H&M reduced inventory by 10 per cent year-on-year to SEK 34.9 billion, equivalent to just 15.8 per cent of rolling 12-month sales. Lower inventory levels helped reduce promotional activity and supported higher full-price sales, contributing directly to improved margins. However, lean inventories also increase operational complexity. Smaller stock buffers require far more accurate forecasting to avoid missed sales opportunities.

Chief Executive Officer Daniel Ervér acknowledged that tighter inventory controls had occasionally limited the company's ability to fully meet customer demand. To improve responsiveness, H&M is flattening management structures, investing in RFID-based inventory tracking and bringing merchandise decisions closer to regional markets. The retailer absorbed restructuring costs of SEK 679 million as part of this organisational overhaul.

Supply chains move closer to consumers

Store optimisation is also reshaping sourcing strategies. As retailers operate with lower inventory levels, long production lead times have become a competitive disadvantage. Many global apparel companies are therefore shifting portions of manufacturing closer to major consumer markets through regional sourcing and nearshoring models.

Shorter supply chains allow retailers to replenish popular products more quickly, reduce excess inventory and respond faster to changing consumer preferences. Analysts believe this strategy is improving long-term financial resilience even if traditional retailers still trail digital-native competitors on speed.

As Yanmei Tang, Analyst at Third Principles Advisory opines, H&M may not lead the market in speed-to-market, but it has significantly strengthened profitability, inventory discipline and supply chain resilience compared with previous years. The company's future investments reflect this strategy. Rather than allocating significant capital to expanding store numbers, H&M plans selective growth in markets such as Paraguay and Argentina while upgrading flagship stores in major cities including Stockholm and Rio de Janeiro.

For global apparel retailers, the measure of success is shifting away from the number of stores they operate. Instead, sustainable growth is being defined by lean inventories, resilient supply chains, stronger margins and the ability to respond rapidly to changing consumer demand. H&M's latest restructuring suggests that in today's fashion retail landscape, fewer stores may ultimately deliver stronger financial performance.

Vietnam replacing Bangladesh as the world's second-largest ready-made garment (RMG) exporter is more than a change in rankings. It marks a modification in how global fashion companies evaluate manufacturing partners. Labour cost, long considered the defining advantage in apparel sourcing is steadily giving way to speed, supply chain resilience, trade access and raw material integration.

Latest WTO merchandise trade data reveals, China continues to dominate global apparel exports with more than 31 per cent market share. But the contest for the second position has grown, with Vietnam edging ahead of Bangladesh as international brands rebalance sourcing strategies amid volatile demand, rising logistics costs and tighter sustainability requirements.

Table: Global apparel export market share

Source: WTO Trade Statistical Review

A changing hierarchy

The shift reflects years of investment rather than a sudden competitive gain. Vietnam has systematically strengthened its textile sector through foreign direct investment from China, South Korea and Taiwan. These investments have pushed up domestic production of synthetic fibres, weaving, dyeing and finishing, reducing dependence on imported inputs and shortening manufacturing cycles.

Equally important is Vietnam's extensive trade pattern. Agreements such as the EU-Vietnam Free Trade Agreement (EVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP) give preferential market access across major consumer economies. Lower duties and smoother customs procedures have made Vietnam increasingly attractive for multinational apparel brands.

Bangladesh, meanwhile, remains one of the world's most efficient producers of basic cotton garments, particularly knitwear and denim. Its manufacturing base is supported by more than 200 LEED-certified green factories. However, structural weaknesses have become increasingly visible. They import nearly 70 per cent of its synthetic fibre requirements, while energy shortages, congestion at Chittagong Port and extended production schedules continue to weigh on competitiveness. Manufacturing-to-shipment lead times typically range between 60 and 90 days, almost double Vietnam's 30 to 45 days. For retailers operating in fast-changing consumer markets, those additional weeks often translate into excess inventory and markdowns.

The speed advantage

The apparel industry is no longer led solely by production costs. It is increasingly governed by inventory productivity. Global retailers such as Inditex, H&M, Nike, Adidas, Lululemon and Fast Retailing are moving towards diversified sourcing models that assign products as per manufacturing strengths rather than concentrating production in one country.

Basic cotton essentials continue to be sourced from Bangladesh, while technical apparel, performance wear and synthetic garments are being produced in Vietnam. Ultra-fast fashion items are often nearshored to markets such as Turkey or Mexico to reduce replenishment cycles. This multi-country strategy reduces risk while improving speed-to-market, a critical component in fashion retail.

Why fibres matter

The rise of athleisure, sportswear and performance apparel has altered the industry's raw material requirements. Studies by RAPID and the Centre for Policy Dialogue indicate that man-made fibres now account for almost half of global apparel trade value, while cotton is roughly 42 per cent. Vietnam aligned its manufacturing with this transition years ago. Around 57 per cent of its garment exports are based on synthetic fibres and blended fabrics, making it well positioned to serve growing demand for activewear, outerwear and technical clothing.

Bangladesh, in comparison, continues to derive roughly 72 per cent of its exports from cotton-based products. While this remains a strength in basics it limits participation in faster-growing apparel categories. Industry estimates suggest that growing Bangladesh's share of the global man-made fibre apparel market could significantly increase export earnings by 2030, although doing so would require substantial investment in spinning, weaving, chemical processing and textile infrastructure.

Table: Vietnam vs Bangladesh, the competitive divide

Source: WTO, BGMEA, VITAS, McKinsey, GSO Vietnam, EPB Bangladesh

New sourcing playbook

A frequently cited retail supply-chain case shows this change. A global fashion retailer that previously sourced nearly three-fourths of its production from Bangladesh diversified its manufacturing network by shifting synthetic apparel to Vietnam while retaining Bangladesh for high-volume cotton basics. The result: a significant reduction in lead times, stronger full-price sales and improved inventory efficiency despite somewhat higher manufacturing costs. The lesson is clear, retailers increasingly optimise sourcing around product category, responsiveness and logistics rather than simply labour arbitrage.

Bangladesh's next chapter

Vietnam's rise should not be interpreted as Bangladesh's decline. Instead, it highlights the next phase of competition in global apparel manufacturing. Bangladesh retains formidable advantages in scale, manufacturing expertise and sustainability credentials. But sustaining long-term growth will require increasing investment in man-made fibre capacity, improving logistics infrastructure, ensuring reliable energy supplies, expanding automation and preparing trade arrangements for its post-Least Developed Country transition.

The global apparel industry is entering an era where flexibility outweighs scale and speed commands a premium. Vietnam's ascent shows that competitiveness today depends less on producing garments cheaply than on delivering them quickly, efficiently and in line with the changing demands of international fashion retailers.

In H1, FY26, UK-based component supplier Coats Group plc registered a 1 per cent organic growth to $837 million in revenue, despite a mid-single-digit contraction in global apparel and footwear markets. Amid retail inventory destocking and cautious order volumes, Coats sustained a 19.8 per cent adjusted EBIT margin, generating $166 million in operating profit. The apparel division reached $486 million, anchored by market share gains in China and strong demand for 100% recycled threads, which yielded $297 million in sales. David Paja, Group CEO, notes, the company was pleased with their H1 outperformance relative to the market and confident in our second half outlook.

M&A integration and digital platforms offset headwinds

Strategic acquisitions and software investments provided critical commercial resilience. Through its digital supply chain platform, Coats Digital, and the integration of insoles maker OrthoLite, the company expanded into premium adjacencies. While footwear organic sales remained flat before accelerating 6per cent in Q2,FY26 the OrthoLite integration remains on track to deliver $5 million in cost synergies during 2026 and over $40 million in annual sales synergies by 2030. Management reaffirmed its full-year guidance, supported by planned second-half cost savings of $15 million.

 Eyeing revenue growth with sustainable operations

Tracing its heritage back over two centuries, Coats Group plc manufactures industrial threads, structural footwear components, and engineered performance yarns. Operating globally across apparel, sports, and automotive sectors, the FTSE 250 enterprise targets medium-term organic revenue growth exceeding 5 per cent and operating margins of 21–23 per cent.

South Korea’s RMG imports expanded by 2.27 per cent Y-o-Y to $5.66 billion during the first six months of 2026. Knitted garment categories led the increase, rising faster than woven items as domestic retailers responded to strong consumer demand for casual wear and technical activewear. Vietnam and China remained the dominant sourcing hubs, leveraging competitive production costs to supply South Korean distribution networks.

Domestic upstream textile mills face export contraction

This rise in finished garment imports coincides with a contraction in South Korea’s upstream textile exports. Outbound shipments of man-made filaments and knitted fabrics fell sharply, highlighting structural stress across local yarn and fabric mills.

Korean fashion conglomerates are accelerating direct offshore manufacturing to defend gross retail margins against rising domestic operational overhead, notes Park Jin-woo, Senior Trade Analyst, Seoul Textile Institute.

In a representative industry case study, retail major Shinsegae International shifted additional apparel production quotas to Southeast Asian manufacturing facilities, cutting domestic fabric procurement while securing lower unit costs.

A premier consumer apparel trade destination

Originating as a high-volume synthetic fiber producer in the 1970s, South Korea's textile market now functions primarily as a premium consumer apparel trade destination. Major retail brands concentrate on activewear and synthetic blends. Sourcing plans prioritize low-cost Asian supply networks, maintaining a positive financial outlook for retail sales while upstream fabric manufacturing yields ground to foreign producers.

A research report by the Bangladesh Foreign Trade Institute (BFTI) reveals, Bangladesh aims to increase total apparel export revenues to $95 billion by 2030-end by expanding its MMF exports share to 12 per cent. Currently, cotton-based garments account for over 70 per cent of the nation's $42 billion RMG exports, leaving manufacturers exposed as global retail demand transitions toward synthetic activewear, sportswear, and technical fabrics.

Policy reform and capital allocation drive synthetic garments expansion

Achieving this target requires an estimated $25 billion investment in domestic backward linkages, alongside tariff rationalization on raw material imports like polyester staple fiber. Expanding bonded warehouse access and accelerating foreign direct investment approvals are essential to building local synthetic yarn production. Capturing a meaningful share of the global MMF market is an economic necessity for sustaining export competitiveness as Bangladesh prepares for post-LDC trade adjustments, states Dr. Saif Uddin Ahammad, CEO, BFTI.

Navigating post-LDCtariff changes with MMF expansion

As the world's second-largest apparel exporter, Bangladesh's textile sector supplies knitwear and woven clothing to North American and European retail markets. Targeting $100 billion in total export revenue, the industry is scaling synthetic manufacturing to navigate post-LDC tariff changes, leveraging five decades of commercial garment manufacturing expertise.

As global apparel sourcing recalibrates toward high-performance materials, scheduled for August 25–27 at the National Exhibition and Convention Center, , Intertextile Shanghai Apparel Fabrics Autumn 2026 is expanding its technical scope to feature climate-adaptive and functional textiles. Building on the 2025 showcase that hosted over 3,700 exhibitors and 100,000 international buyers across 240,000 square meters, the upcoming edition highlights four major themes: Fashion Forward, Performance Textiles, Sustainability, and Textile Future. The upgraded Functional Lab introduces temperature-regulating fabrics alongside lightweight, easy-care materials engineered specifically for silver-age demographic needs.

Specialized zones drive value-chain diversification

Addressing emerging commercial opportunities, the event features the autumn debut of the Pet Boutique, catering to a pet textile market projected to grow at a 5.6 per cent CAGR through 2031. Furthermore, the Econogy Hub consolidates verified eco-conscious materials and international environmental certifications to assist mills and garment manufacturers in meeting strict global compliance mandates. In today's evolving market, buyers are looking for more than materials - they are looking for direction, innovation, and long-term partners, states Wilmet Shea, General Manager, Messe Frankfurt (HK).

A global sourcing fair for fibers and woven fabrics

Co-organized by Messe Frankfurt (HK). CCPIT-Tex, and China Textile Information Center, Intertextile Shanghai Apparel Fabrics is a global sourcing fair showcasing fibers, woven fabrics, trims, and CAD software. Serving international retail buyers and garment manufacturers, the platform expands its global footprint through concurrent staging with Yarn Expo, CHIC, and PH Value.

Luxury fashion house Fendi has partnered with Italian mill Berto Industria Tessile and fabric innovator Bananatex to introduce premium denim crafted from abacá banana plant fibers. Debuted in Fendi’s Fall/Winter 2026–27 collection under Maria Grazia Chiuri, Creative Director the material combines 55 per cent organic cotton with 45 per cent naturally durable abacá (Musa textilis). Cultivated in biodiverse agroforestry systems across the Philippines without synthetic pesticides, the crop yields high-tensile, biodegradable fibers that withstand industrial indigo dyeing and finishing processes without plastic additives.

Scaling sustainable fibers across premium market tiers

While alternative plant fibers often struggle with commercial viability due to processing overheads, high-end retail pricing allows luxury houses to absorb initial production costs. Market analysts note,  integrating abacá into commercial denim establishes a viable pathway for bio-based textile scaling across wider fashion segments. Demonstrating that natural leaf fibers can endure high-stress spinning and industrial wash cycles validates their utility for mass-premium supply chains, notes Laura Rossi, Senior Textile Innovation Analyst, Milano Fashion Tech. By replacing petroleum-based synthetics with renewable agricultural inputs, high-fashion houses are building commercial blueprints for low-carbon luxury manufacturing.

Offering high-margin ready-to-wear apparel

Founded in Rome in 1925 as a luxury fur and leather goods house, Fendi operates as a core brand within LVMH's fashion division, generating multi-billion-euro annual revenues across global markets. The brand expands its global footprint through sustainable material innovations, experiential retail flagships, and high-margin ready-to-wear lines.

India's textile and apparel manufacturing hubs are accelerating technology integration to scale export capabilities and optimize operational costs. Spearheading this transition, the August 2026 edition of Gartex Texprocess India, alongside the dedicated Denim Show at Bharat Mandapam, brings together 185 exhibitors and over 700 brands across 14,850 sq m of exhibition space. The event showcases automated sewing, digital printing, and water-efficient finishing technologies designed to modernize domestic production lines.

Denim innovation and resource efficiency

With domestic denim mills generating nearly 1,600 million m of fabric annually, the sector faces growing pressure to align with international environmental benchmarks. Supported by the Denim Manufacturers Association, the co-located Denim Show emphasizes closed-loop washing systems, low-water dyeing, and ozone processing machinery. This focus allows garment exporters to mitigate rising raw material expenses while fulfilling stringent sustainability mandates required by European Union and North American retail buyers.

Upstream modernization and supply chain resilience

Factory managers and apparel sourcing executives are directing capital investments toward high-speed digital textile printing and automated cutting systems to counteract wage inflation and margin pressure. Industry specialists highlight, shifting toward modular, automated setups enables mills to lower energy consumption by 25 per cent and cut cycle times. By integrating advanced hardware with real-time shop-floor analytics, domestic apparel manufacturers are positioned to capture shifting global sourcing flows and secure sustainable export growth.

Driving modernization to expand capacity and reach

Organized jointly by Messe Frankfurt India and MEX Exhibitions, Gartex Texprocess India is a B2B trade platform covering the complete apparel technology value chain. Serving key manufacturing clusters across South Asia, it targets machinery automation, digital printing, fabrics, and laundry equipment. The trade fair drives industry modernization to expand domestic manufacturing capacity and international trade reach.