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The American Apparel & Footwear Association (AAFA) has strongly criticized the US Department of Labor's decision to cancel all contracts for the Bureau of International Labor Affairs (ILAB).
AAFA President and CEO Steve Lamar warned that the move would undermine American businesses and workers. “Our members, and their 3.5 million American workers, rely on ILAB to promote a fair global playing field,” he said. “With these grants eliminated, we are shifting from an even playing field to an uphill battle.”
ILAB provides critical support through grants, technical assistance, and direct engagement to improve labor standards worldwide. It helps prevent labor abuses, ensures fair trade practices, and deploys labor attaches to US embassies to gather intelligence and enforce trade agreements. ILAB also plays a vital role in enforcing the US-Mexico-Canada Agreement (USMCA) and supports the International Labour Organization’s (ILO) Better Work program to enhance transparency in global supply chains.
AAFA Senior Vice President of Policy Nate Herman stressed the negative consequences of the decision. “Eliminating ILAB grants puts American workers and businesses last, exposing them to unfair competition from countries with weak labor standards,” he said.
Among the canceled contracts are programs focused on labor enforcement in Haiti, Jordan, Cambodia, Bangladesh, and Vietnam, as well as initiatives against forced labor in Uzbekistan’s cotton industry and workplace safety efforts in Central America. The “Supporting Safe and Inclusive Work Environments in Lesotho” contract, which combats violence against women, was also terminated.
Earlier this week, AAFA signed a letter urging Labor Secretary Lori Chavez-DeRemer to reinstate ILAB’s contract for monitoring Uzbek cotton. This follows a broader appeal on March 11 to protect ILAB’s programs.
The global apparel trade and retail landscape has thrown up a complex mix of opportunities and challenges in 2025. While major consumer markets continue to display strong import growth, export performances remain uneven across manufacturing hubs, indicating global sourcing trends. A closer look at recent trade data and insights from the Wazir Textile & Apparel Index (WTAI) 9M FY25 reveals the current state of the industry and what lies ahead.
Strong import demand in major economies sign of optimism
January 2025 marked a rise in apparel imports across major consumer markets, reflecting sustained demand and shifting trade dynamics. The US reported a substantial 20 per cent year-on-year increase in total apparel imports, amounting to $7.3 billion. This rise suggests consumer spending on apparel remains resilient despite broader economic uncertainties.
The EU showed even stronger growth, with apparel imports jumping 36 per cent year-on-year to $9.0 billion. This sharp increase could be attributed to multiple factors, including pent-up demand from cautious consumer behavior in previous months, restocking by retailers, and potential shifts in sourcing patterns. Japan, too, recorded a healthy 21 per cent increase in apparel imports, reaching $2.3 billion, reinforcing the positive trend in consumer demand across major markets.
Exports highlight shifting sourcing dynamics
While import demand remains strong in consumer markets, February 2025 threw up a mixed picture for major apparel-exporting nations, highlighting potential shifts in global sourcing preferences. Bangladesh, a dominant player in global apparel manufacturing, maintained steady export levels at $3.2 billion, reflecting its stable position in the international market.
India, on the other hand, displayed positive momentum, with a 7 per cent year-on-year increase in apparel exports, reaching $1.5 billion. This growth underscores India’s rising competitiveness, possibly driven by improved manufacturing capabilities, competitive pricing, and an expanding product mix catering to global demand.
China, the world's largest apparel exporter, experienced a sharp decline, with exports dropping 30 per cent year-on-year to $6.4 billion. The reduction could be due to multiple factors, including rising labor costs, ongoing trade tensions, supply chain disruptions, and a push by global brands to diversify their sourcing strategies. This downturn in Chinese exports signals a potential shift in the global apparel supply chain, as retailers and brands look to alternative manufacturing hubs.
US retail’s positivity amidst economic nuances
The retail sector in the US showed encouraging signs, with apparel store sales in February 2025 registering an 11 per cent increase compared to the same period last year. This upward movement suggests strong consumer interest in fashion despite economic uncertainties. Home furnishing stores also reported a 12 per cent rise in sales, reflecting continued consumer spending in lifestyle and home-related categories.
However, the broader economic picture in the US is a mixed one. Inflation eased to 2.8 per cent in February, providing some relief, yet consumer confidence dipped slightly to 102.7 from 104.1 in the previous month. This decline, despite easing inflation, hints at underlying economic concerns that could impact retail spending in coming months. The interplay between robust retail sales and cautious consumer sentiment will be critical to monitor as 2025 unfolds.
Indian T&A sector shows resilience
Amidst the shifting global landscape, India’s textile and apparel sector continues to display strong performance, as highlighted in the Wazir Textile & Apparel Index (WTAI) 9M FY25 update. The index, which tracks the financial performance of leading textile and apparel companies in India, underscores robust growth in both segments.
In the textile sector, the Wazir Textile Index (WTI) reported a 9 per cent increase in sales over the first nine months of FY25 compared to the previous year, indicating strong demand for Indian textile products. More importantly, profits showed significant growth, with EBITDA rising 20 per cent, reflecting improved efficiency and better cost management by companies. The third quarter of FY25 continued this positive momentum, with consolidated sales growing by 11 per cent and EBITDA margins improving by one percentage point.
The apparel segment, as captured by the Wazir Apparel Index (WAI), showed even stronger growth, with a 25 per cent rise in sales over the same period. EBITDA for apparel companies grew 19 per cent, suggesting that the industry is capitalizing on growing global demand and higher-value product offerings. Q3 continued this trend, with a notable 11 per cent increase in consolidated sales.
The overall performance of listed Indian textile and apparel companies further reinforces this positive outlook, with consolidated sales rising by 10 per cent in 9M FY25 compared to the previous year. Improved EBITDA margins signal greater profits, positioning India as a key contender in the global apparel trade.
Positivity in global apparel trade in 2025
The global apparel trade and retail landscape in early 2025 is marked by strong consumer demand in major economies, evolving sourcing strategies, and fluctuating macroeconomic conditions. While apparel imports in markets such as the US, EU, and Japan remain robust, export trends reveal a more complex picture, with India gaining traction and China experiencing notable setbacks. The US retail sector’s positive sales figures contrast with reducing consumer confidence, indicating potential headwinds that must be carefully monitored.
In India, the textile and apparel industry continues to grow steadily, with strong sales and profit metrics underlining its growing role in global trade. As sourcing patterns evolve, India’s increasing competitiveness may position it as a key alternative to traditional manufacturing giants.
Looking ahead, the industry will need to navigate a dynamic environment shaped by consumer demand shifts, supply chain realignments, and broader economic trends. The performance of major exporting countries and consumer confidence in leading markets will remain critical indicators of the global apparel trade’s growth path. India’s sustained growth in both textiles and apparel suggests it is well-positioned to leverage these global shifts, potentially emerging as a stronger force in the apparel manufacturing space. Companies across the value chain will need to stay agile, adapting to changing consumer preferences, economic trends, and trade policies to sustain momentum in this evolving marketplace.
Yarn manufacturers globally are seeing impressive gains with Trutzschler’s next-generation TC 30i carding machine, launched in January 2024. Designed for both cotton and man-made fibers, it delivers higher productivity and superior quality with self-optimizing functions that reduce operator intervention.
In Indonesia, Budi Texindo Prakarsa, a leading spinning mill with 80,000 spindles, reported a 30 per cent productivity increase in ring-combed cotton yarn (Ne 20 to Ne 30) while maintaining the same IPI quality level. Energy and air consumption per kilogram also dropped.
Turkiye’s Mem Tekstil, one of the largest integrated textile manufacturers, tested the TC 30i on Ne 20 cotton soft waste yarn using open-end spinning. Productivity jumped from 70 kg/h to 160 kg/h with equal or better quality, reinforcing the benefits of modernization.
Another Turkish mill, Safteks, producing 2,100 tons of cotton yarn monthly, upgraded to the TC 30i for its OE spinning process. This change increased daily production from 70 tons to 85 tons a 20 per cent boost without compromising quality.
In the man-made fiber sector, Indonesia’s PT Dhanar Mas Concern tested the TC 30Si for polyester and viscose vortex spinning. Output reached 125 kg/h, marking a 40 per cent productivity increase compared to its previous benchmark.
The TC 30i’s success stems from innovations like the T-GO automated gap optimizer, an expanded active flats system, and a precise mote knife that minimizes waste. With installations expanding globally, Trutzschler’s TC 30i is setting new industry standards in efficiency and quality.
To be held from April 16-17, 2025 at Sugar Factory, the upcoming edition of Kingpins Amsterdam will be the first to be held under the leadership of Messe Frankfurt’s new CEO-Vivien Wang. This denim supply chain trade show will feature over 100 exhibitors, from manufacturers to tech specialists.
A highlight of this show will be is the ‘Made In Japan’ section, which will showcase premium Japanese denim from companies like Kurabo and San Marino. Japanese denim has been central to Kingpins since its very first show, emphasizes Wang. Located near The Boxes, this edition of the show will welcome attendees with a commissioned oversized denim kimono and matcha tea.
The show's program includes insightful discussions and trend forecasts. A panel discussion titled, ‘Denim Drought: Tackling Water Waste in Fashion’ will address sustainability, featuring industry experts discussing water conservation. A talk on 3D and AI innovation in denim design and production will be held where a panel comprising Rajby Industries and DArchive, will explore replicating vintage apparel.
Further discussions will be held to explore denim's future evolution and provide educational insights for students. Michael Morell, Freedom Denim will lead a session covering denim fundamentals.
ZDHC will launch an initiative with Testex to emphasize sustainable chemical management, promoting safer textile production through testing and certification. The debut ‘Best of Denim by Material Exchange’ digital platform will offer a curated collection of sustainable denim fabrics.
This digital platform will provide detailed fabric information and samples, helping companies source eco-friendly materials.
A well-known Italian brand specializing in seamless underwear and apparel, Pompea has unveiled a new environmentally conscious collection featuring Q-Cycle yarn.
Produced by Fulgar, this collection was launched with a pop-up store within MAUA, an electric bicycle shop dedicated to green mobility, located in Milan. The pop-up shop will be held from March 24-30, 2025 at Corso Garibaldi.
Established in 1996 in Medole, Mantua, Pompea quickly rose to prominence within the Italian and international hosiery and underwear sectors. The brand earned recognition for its extensive product line and groundbreaking seamless technology, which continues to define its underwear offerings. The brand's iconic slogan, ‘It doesn't tear, it doesn't tighten, it doesn't stress,’ emphasizes its focus on comfort and durability.
Pompea's success is rooted in its continuous investment in textile innovation, meticulous stylistic research, and collaborations with certified international suppliers. These efforts have yielded a diverse product range catering to a wide customer demographic.
Following its acquisition by Fulgar, a leading Italian manufacturer in the man-made fiber market, the company underwent a rebranding in 2019. This strategic move aimed to revitalize Pompea's presence in the European market while preserving its Italian heritage. With a strong emphasis on sustainable fashion and evolving consumer preferences, Pompea is positioning itself as a leader in trendy, eco-friendly comfortwear.
Harbour Guidance Pty Ltd, the parent company of Jeanswest, has entered voluntary administration, marking another blow to Australia’s retail sector.
Administrators from Pitcher Partners Melbourne have been appointed to oversee the process, which will result in the closure of 90 stores and impact 600 employees.
The administrators are exploring options to sustain the brand’s online presence. The decision follows ongoing economic challenges, making physical stores unviable.
This is Jeanswest’s second collapse in five years, after Harbour Guidance previously rescued it from administration.
The news comes amid the recent downfall of Mosaic Brands portfolio, including Rivers and Noni B.
The Netherlands, once a bastion of brick-and-mortar retail, is going throough a multifaceted transformation. From bustling city centers to quaint provincial towns, the familiar landscape of shops is morphing, due to several reasons that are reshaping consumer behavior and forcing businesses to adapt or perish. The fashion and apparel sector, in particular, is facing tough competition from online retailers, changing consumer preferences, and economic pressures, now further complicated by the explosive growth of discount retailers.
The digital disruption and discount divergence
The most significant change driver is, undoubtedly, the relentless rise of e-commerce. Dutch consumers are increasingly opting for the convenience and accessibility of online shopping, leading to a decline in foot traffic for traditional retailers. As per Statistics Netherlands (CBS), online retail sales in the Netherlands have consistently increased over the past decade. However, a parallel trend is emerging: the rapid expansion of discount stores, driven by economic uncertainty and inflation.
Table: Growth of online retail sales in the Netherlands
|
Year |
Online retail sales (bn €) |
Percentage change |
|
2018 |
23.7 |
12.80% |
|
2019 |
25.8 |
8.80% |
|
2020 |
30.5 |
18.20% |
|
2021 |
33.2 |
8.90% |
|
2022 |
34.5 |
3.90% |
|
2023 |
35.8 (estimated) |
3.80% |
Source: Statistics Netherlands (CBS)
"The ease of comparing prices and accessing a vast selection online is undeniably appealing," says consumer behavior analyst, Annelies de Vries, from the University of Amsterdam. "For many, the physical store is becoming less about purchasing and more about experiencing or trying before buying. However, with rising inflation, another factor is now heavily influencing consumer behaviour: price."
Discount store takeover
Recent research by Locatus, reported by the Volkskrant, reveals a significant rise in discount retail. Nearly 120 discount drugstores and textile supermarkets have opened in the Netherlands in the past five years. This trend highlights the growing price sensitivity of Dutch consumers. "The higher the deal content, the sooner the consumer comes and buys," says sector manager Olaf Zwijnenburg of Rabobank, emphasizing the impact of inflation on consumer behavior.
Discount store growth (2020-25)
· Medikamente die Grenze: +50 stores
- Kik: +30 stores
- Wibra: +34 stores
- Action: +31 stores
The bankruptcy of Blokker created an opportunity for discount retailers. Approximately 350 large retail spaces became available, which were quickly snapped up by chains like Wibra, Kik, Normal, TerStal, and Kruidvat. Kik, for instance, is planning to take over around 20 former Blokker locations. This case shows how economic instability can create opportunities for discount retailers to expand their footprint.
The fashion and apparel sector is particularly vulnerable to these shifts. The rise of fast fashion giants like ASOS, Zalando, and Shein, with their aggressive pricing and rapid trend cycles, has put immense pressure on traditional Dutch clothing retailers. Now those same retailers face competition from discount clothing stores.
Zeeman, while closing some branches, is still the largest discount clothing chain in the Netherlands, and that shows the need for lower priced clothing. The company is now focusing on online sales and southern Europe growth. This shows that even discount retailers are needing to adjust. "The fashion industry is facing a perfect storm," says retail consultant, Mark van Dijk. "Consumers are demanding more sustainable and ethical products, while also expecting fast delivery, competitive prices, and now lower prices due to inflation. This is a difficult balance to strike."
Headwinds and how to survive
Beyond the digital disruption and the rise of discount stores, several other factors are contributing to the challenges facing Dutch retailers. Rising operating costs is a bane. Increasing rents, energy prices, and labor costs are squeezing profit margins. Consumers too are prioritizing experiences over material possessions, leading to a decline in spending on traditional retail goods. Then there are sustainability concerns. Growing awareness of environmental issues is prompting consumers to demand more sustainable and ethical products, which can be more expensive to produce. Inflation and economic slowdowns too have reduced consumer spending, and amplified the want for discount options.
Despite the challenges, many Dutch retailers are finding ways to adapt and thrive. They are opting for omnichannel integration which involves blending online and offline experiences to provide a seamless customer journey. The focus is on creating unique and engaging in-store experiences to attract customers.
More and more retailers are now focus on niche markets which means they are catering to specific customer segments with specialized products and services. They are also focusing on personal interactions and providing excellent customer service. Investing in sustainable practices and offering eco-friendly products is another important step.
Retailers are using data to understand customer behavior and personalize offerings. What’s more, many retailers need to offer competitive pricing, or risk losing customers to discount stores. "The future of retail is not about choosing between online and offline," says de Vries. "It's about creating a seamless and engaging experience that meets the evolving needs of the consumer, which now includes a strong emphasis on value and affordability."
Thus the Dutch retail space is in a state of flux, and the coming years will undoubtedly bring further changes. Retailers that can adapt to the digital age, embrace sustainability, provide exceptional customer experiences, and offer competitive pricing will be best positioned to succeed. The fashion and apparel sector, in particular, must navigate the complexities of fast fashion, sustainability, changing consumer preferences, and the increasing dominance of discount retailers to remain competitive. The need to offer value, and lower priced options is more important than ever.
India is planning to shift sourcing of certain products from other countries to the US to reduce its trade surplus as both nations continue negotiations on a trade deal. As a first step, New Delhi may cut apple imports from Turkey and New Zealand, and high-end fibre from China, instead sourcing them from the US, say officials said. This move will have an impact on various sectors
Impact on the textile & apparel industry
Synthetic fiber sourcing: India imports significant quantities of high-tenacity and specialty synthetic fibers (like certain polyesters, nylons, and aramids) from China, Taiwan, and Germany. These are crucial for technical textiles, high-performance apparel, and industrial applications. Sourcing these from the US could diversify India's supply chain and reduce dependence on a single region. However, it raises questions about cost competitiveness and the availability of specific fiber types as US-produced synthetic fibers may be more expensive than that from China or Taiwan, impacting the cost of finished goods. Also ensuring the US can supply the exact types and quality of fibers needed is crucial. Logistics and lead times is another issue as establishing reliable supply chains from the US needs careful planning.
As per various trade data, China is a dominant player in supplying synthetic fibers to the world. Supply of specific high end fibres is very important. For example, Aramid fibers are important for defence and high end applications and there is a price difference between the fibre from China and the US.
Cotton sourcing: India imports cotton from various countries, including Egypt (long-staple cotton), Australia (high-quality cotton), and others. Fluctuations in global cotton prices significantly impact the Indian textile industry. The US is a major cotton producer. Shifting some cotton sourcing could strengthen trade ties and potentially provide a stable supply. However, matching the specific quality and staple length of cotton from Egypt or Australia with US cotton is essential. For example, Egyptian cotton is known for its long staple length and high quality, it's used in luxury textiles. Replacing this with US cotton requires careful assessment of fiber properties. Similarly, Australian cotton is also known for its good quality and sustainable farming practices.
Meanwhile global cotton prices are subject to volatility, and sourcing from the US won't eliminate this risk. And disrupting existing cotton trade relationships could have repercussions for India.
Impact on finished goods
Increased costs of raw materials like fibers and cotton could lead to higher prices for finished textile and apparel products. This could impact the competitiveness of Indian exports in the global market. However, if the US can provide high-quality materials, it could enhance the value and premium positioning of Indian textile products.
However cost competitiveness is a primary concern for US-sourced materials compared to existing suppliers. And shifting sourcing could disrupt existing supply chains and require significant adjustments. Trade relations too could get impacted and balancing trade relations with the US while maintaining relationships with other trading partners is crucial.
However, the threat of reciprocal tariffs adds uncertainty and could impact trade flows. At the same time, efficient logistics and infrastructure are essential for smooth trade between India and the US.
Potential benefits
One major benefit of increasing sourcing from the US it will help in diversification of supply chains and reducing reliance on single-source suppliers. It would also strengthen US-India trade relations and foster closer economic cooperation. What’s more, it could lead to collaborations in textile technology and innovation. And better trade relations with the US could lead to better market access for Indian finished goods.
However detailed cost-benefit analysis of sourcing materials from the US compared to existing suppliers needs to be done going ahead. Establishing robust quality assurance mechanisms to ensure US-sourced materials meet the required standards is also important.
Indian manufacturers need to forge strategic partnerships with US textile companies to facilitate technology transfer and supply chain integration. The Indian government too needs to provide support to the textile industry to navigate these changes.
India’s cotton production is projected to decline to 29.5 million bales during the current season ending in September 2025 from the 32.5 million bales produced in the previous season.
As a per a report by the Committee on Cotton Production and Consumption, India’s cotton imports in the 2024-25 season are expected to increase to 2.5 million bales from 1.6 million bales in 2023-2024. Cotton exports are predicted to rise to 1.8 million bales. Domestic textile industry consumption is estimated to decline by 700,000 bales to 30.2 million bales from the last season. This cotton season is expected to end with a stock of lower stock of 3 million bales as against 6.2 million bales in 2022-2023 and the 4.7 million bales in 2023-2024.
With textile and clothing exports increasing, the demand for yarn has also risen. SK Sundararaman, Chairman, Southern India Mills’ Association, has urged the government to eliminate the import duty on cotton. This would ensure textile mills have sufficient cotton supplies between August and November of this year, he argues.
North Eastern Handicrafts and Handlooms Development Corporation (NEHHDC), has obtained the Oeko-Tex certification from Germany for eri silk under the leadership of the Ministry of Development of North Eastern Region.
Oeko-Tex is a globally recognized certification that ensures textiles, including raw and finished materials, are free from harmful substances and safe for human use. This certification enhances eri silk’s marketability in the global textile industry, ensuring compliance with international safety and quality standards. It strengthens consumer confidence, supports eco-friendly initiatives, and boosts the global acceptance of Indian eri silk in high-end markets.
This eri silk certification ensures the fiber meets global textile safety standards. It boosts consumer confidence by guaranteeing chemical-free, eco-friendly production. It also enhances global marketability and aligns with sustainability trends, attracting ethical and environmentally conscious buyers.
The government has established Central Muga & Eri Research Institute (Lahdoigarh, Assam) for R&D, training, and extension of support to eri silk. These R&D efforts focus on modernization, improved production techniques, and technological upgrades.
The government has also established the Muga Eri Silkworm Seed Organization for the production and supply of quality eri silkworm seeds besides implementing the Silk Samagra-2 Scheme (2021-26) for the overall development of India’s sericulture industry, including eri silk.
The eri silk sector is currently largely unorganized with traditional methods still being widely used. The sector needs to be modernized to improve production efficiency and productivity. The sector suffers from a limited awareness among stakeholders about global certification requirements.
