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During a meeting with Sussana Campbell, Chairperson, SYRE and Johan Ndisi, Swedish Ambassador to Vietnam, Pham Minh Chinh, Prime Minister, Vietnam urged Swedish textile recycling company SYRE to invest in building a green and sustainable textile industry in the country
Chính invited SYRE to tap into Vietnam’s surplus textile materials and waste for sustainable production. He also emphasized on using clean energy and eco-friendly materials in the manufacturing process.
Further, praising SYRE’s proposed investment location in Bình Định province, Chinh termed it as a ‘strategic choice’ due to its favorable business environment and well-developed infrastructure, including an international airport and a deep-water seaport.
Reaffirming Vietnam’s commitment to fast but sustainable development, Chính said, aiming for 8 per cent economic growth this year, the country aspires to reach double-digit growth in the near future. He emphasized on the critical role of science, technology, innovation, and digital transformation in achieving those goals, while also calling for international cooperation in finance, governance, talent, and technology.
Sharing the company’s ambition to expand globally with a strong focus on green transition, Campbell expressed SYRE’s desire to partner with Vietnam to develop the country into a global hub for circular textile production.
The company’s fully circular manufacturing model creates textile-grade materials from recycled inputs, said Campbell. Vietnam is a strategic location for it, especially with growing global momentum for sustainable production, she added.
SYRE plans to invest $1 billion to build a polyester fabric recycling complex in Bình Định, with the aim of making Vietnam the first high-tech circular textile center in the world. The project will align with EU and U.S. sustainability standards and contribute to Vietnam’s net-zero emissions goal.
PM Chính highlighted Vietnam’s regional leadership in renewable energy and its strong implementation of commitments made at COP26 through COP28, particularly in circular economy and green manufacturing. He also reaffirmed the government’s openness to high-tech foreign investment and pledged full support for SYRE’s operations in Vietnam.
Ndisi welcomed the growing partnership between the two countries, stating that Sweden remains committed to supporting Vietnam’s green transition. He noted that more Swedish businesses are seeing Vietnam as a long-term investment destination and expressed hope for advancing bilateral relations to a higher strategic level.
One of Buenos Aires' most iconic shopping malls, Alto Palermo has inked an agreement with global brand Victoria's Secret to open its first full-line store in Argentina.
To open in Q4, FY25, The new store will be located on the second floor of the shopping mall and will span more than 4,300 sq ft. It will offer a wide selection of products, from classic lingerie to the full Victoria's Secret Beauty line, including fragrances and popular body mists. Launching during one of the mall's busiest shopping seasons, the store will feature signature collections such as ‘Dream Angels,’ ‘Very Sexy,’ ‘Body by Victoria,’ and ‘T-Shirt,’ in addition to sleepwear and accessories.
The store will also offer key services such as ‘bra fitting,’ a personalized experience provided by trained specialists to help customers find the perfect fit. This service will be free and available without an appointment.
Florencia Cortés, Head, Alto Palermo, the opening of this store is a great challenge for the shopping mall as it is an iconic brand recognized worldwide.
With this opening, Victoria's Secret moves forward with an expansion plan in Latin America. The brand currently has over 1,400 stores across the world.
World's largest clothing retailer, Inditex has revealed that its Indian partner, Trent has the option to sell its entire stake in their two joint ventures that operate Zara and Massimo Dutti stores in India.
According to Inditex's latest annual report, the Spanish company also holds an option to buy Trent's 35 per cent stake in the Zara business and 49 per cent stake in the Massimo Dutti business in India. The price for these potential transactions will be based on the value of Trent's share of the businesses at the time Inditex chooses to exercise its option. However, the report did not specify a timeframe for these actions.
Currently, the fast-fashion retailer operates 23 Zara stores and three Massimo Dutti stores in India through these JVs. Inditex has also recently established its own fully-owned companies in India, specifically Bershka Retail and Zara Home.
With a growing number of young people adopting Western-style clothing, India's large population makes it an attractive market for apparel brands. In the existing joint ventures, Inditex handles most of the product sourcing and merchandise, while Trent focuses on finding suitable real estate and store locations.
The agreement between Inditex and Trent requires the joint venture companies to source all their merchandise exclusively from the Inditex Group. Inditex also controls the product selection and specifications. Trent has consistently described its involvement in these ventures as a financial investment.
Earlier this year, Trent sold approximately 29 per cent of its stake in the Massimo Dutti JV for around $2.5 million. Last year, Trent sold about 14 per cent of its stake in the Zara joint venture for roughly $12.6 million.
A recent research by Macquarie Equity Research notes, since Inditex makes all operating decisions for this JV, its ability to determine pricing is higher and hence we conservatively do not factor in any value from this stake when determining our target price.
Zara entered the Indian market in 2010 and became profitable the following year, achieving profitability faster than many other fashion brands in India. However, its growth rate has slowed in recent years, while competitor H&M has become India's largest clothing brand by revenue, driven by aggressive store expansion and lower prices.
As per the government’s recent announcement, the requirement of minimum import price (MIP) for specific synthetic knitted fabrics will not apply to companies holding advance authorizations, export-oriented units, and businesses located in special economic zones.
Currently, certain synthetic knitted fabrics have a MIP of $3.5 per kg. However, inputs imported by holders of advance authorizations, export-oriented units, and units within SEZs (special economic zones) will be henceforth exempted from this rule, the Directorate General of Foreign Trade (DGFT) stated in an official notification.
In a separate trade notice, the DGFT mentioned the introduction of a new field labeled 'Mode of Export of Services' in the electronic Bank Realisation Certificates (eBRC) format for service exports. This change will be effective for documents generated on or after May 1, 2025.
The addition of this field aims to enhance the detail and accuracy of data related to service exports, the DGFT explained.
The e-BRC is a digital certificate issued by banks to exporters, confirming that payment for an export transaction has been received in a foreign currency.
This change also aligns India's data collection policy with international standards under the WTO General Agreement on Trade in Services (GATS), the notice added.
This new field, corresponds to the four ways services are traded: cross-border supply (like IT services, remote consulting, telemedicine); consumption abroad (tourism, medical treatment in India, foreign students); commercial presence (overseas branches of Indian banks, subsidiaries of IT companies); and the presence of natural persons (engineers, doctors, IT professionals on assignment).
Fast-fashion brand, H&M has launched its new 2028 collection, blending high-end design with affordable pricing.
Showcasing superior craftsmanship, eco-friendly materials, and innovative styles at affordable prices, the collection incorporates naturally decomposable materials and responsibly sourced fibers, addressing growing environmental concerns in the fashion industry.
Designed in collaboration with innovative design studios, the collection features the vibrancy of African prints alongside Scandinavian simplicity. This cultural fusion results in versatile clothing options that appeal to city dwellers, with pieces easily transitioning from day to evening wear.
The collection's cost-effective approach prompts competitors to reconsider their pricing models. Production optimization allows the brand to offer high-quality, runway-inspired pieces at affordable prices, attracting consumers seeking prestige at reasonable costs.
Featured in fashion events across the world, the collection has garnered positive feedback from influencers and critics for its bold direction. It combines luxury fashion with widespread accessibility.
For this collection, the brand has collaborated with emerging creative talents to add personalized, handcrafted touches to its mass-produced merchandise, bringing authenticity to large-scale production.
Combined with mass production capabilities, this inventive development process gives each product a unique feel that resonates with customers seeking distinctive style choices.
The collection caters to both trend-conscious individuals and those who prefer classic styles, offering both statement pieces and timeless staples. Its carefully designed clothes strike a balance between cutting-edge designs and easy-to-wear styles, attracting customers in diverse global markets seeking fresh fashion.
With its 2028 collection, H&M consolidates its position as a groundbreaking leader, transforming the perception of luxury beyond traditional boundaries in an ever-evolving modern world.
Trump administration’s unpredictable trade policies compelled footwear brand Skechers’to downcast its annual earnings forecast, causing the brand’s stock to decline by 7 per cent.
The company plans to reduce production in high-cost locations by diversifying their sourcing. From April 9, 2025, 38 per cent of Skechers' US sales originated from products made in China, as per a report by the Bank of America.
President Donald Trump has significantly increased import tariffs on Chinese goods to 145 per cent. These higher tariffs increase input costs for US companies with substantial Chinese manufacturing, ultimately leading to higher prices for American consumers.
The administration's inconsistent tariff policies are making it difficult for businesses to make long-term spending decisions, says David Weinberg, Chief Operating Officer, Skechers.
The current environment is simply too volatile to accurately predict results, he adds.
The company hopes to start experiencing significant effects from the current tariff situation at the end of the current quarter and ‘very sharply’ in Q3, FY25..
California-based Skechers also fell short of its Q1, FY25 sales expectations, growing by 7.1 per cent compared to the projected 7.9 per cent, according to data from LSEG.
The brand’s sales in China declined by approximately 16 per cent during the quarter ending March 31, as against the 11.5 per cent decline in the previous three-month period.
Along with other footwear manufacturers like Adidas, Nike, and Puma, Skechers has significant manufacturing operations in Asia, particularly China.
Several consumer goods companies, including PepsiCo, Procter & Gamble, and Kimberly-Clark, have also lowered their annual forecasts due to the increased supply chain pressures caused by tariff uncertainty.
Edgar Zakharyan, Deputy Minister for Economy, Armenia encouraged a visiting delegation from China, Shaoxing Keqiao City Association for the Promotion of Foreign Markets, to establish joint textile businesses in Armenia.
Highlighting Armenia's plans for industrial zones that meet international standards, Zakharyan pointed out the potential for mutually beneficial collaboration in the textile industry.
Zarkharyan urged delegation to explore opportunities for Armenian manufacturers to participate in international exhibitions held in China. This would help boost the recognition of Armenian textile products in China, he said.
According to local news reports, the Chinese delegation toured several large textile companies and held business meetings.
The delegation's visit to Armenia was a part of the program titled, ‘Creating sustainable value chains in the textile and agribusiness sectors of Armenia’, which is financially supported by the European Union and initiated by the International Trade Centre.
India’s textile and apparel sector, finds itself entangled in a rapidly shifting global trade environment. As geopolitical uncertainties and reciprocal tariffs threaten traditional markets, India must stich a new strategy—one rooted in diversification, strategic alliances, and innovation.
The tariff tango and market diversification
With the threat of reciprocal tariffs looming large, India's reliance on a few export markets poses a significant vulnerability. To reduce this, a broader understanding of the global textile and apparel trade market is essential. Market size, product preferences, and trade agreements all factor into the equation as India evaluates its next moves.
Table: Textile and apparel importers (2023)
|
Country |
Import Value ($ bn) |
Major Import Categories |
|
US |
130 |
Apparel, Home Textiles |
|
EU (Total) |
180 |
Apparel, Fabrics |
|
UK |
35 |
Apparel, Home Textiles |
|
UAE |
18 |
Re-exports, Apparel |
|
Australia |
12 |
Apparel, Home Textiles |
|
Japan |
25 |
Apparel, Technical Textiles |
|
Canada |
15 |
Apparel, Home Textiles |
This data highlights the opportunity intertwined with caution. These countries represent both India's most lucrative targets and its most delicate dependencies.
The US, high-value market, high-risk scenario
The US, with textile and apparel imports valued at $130 billion, continues to be one of India’s largest and most rewarding markets. Indian exporters thrive here, especially in categories like apparel and home textiles. However, the very volume of trade that makes the US attractive also heightens the risk of exposure to tariff retaliations.
Reciprocal tariffs could erode margins and competitiveness, making it crucial for Indian exporters to not only enhance product value through quality and innovation but also reduce dependency on this high-risk yet high-reward market.
The European Union, an anchor
The European Union, with $180 billion in textile and apparel imports, is the largest market in this analysis. Its appetite spans from high-street fashion to premium fabrics, offering a vast canvas for Indian products. The ongoing India-EU Free Trade Agreement (FTA) negotiations are central, as a successful conclusion could provide preferential access and ease tariff burdens. The EU also places a premium on sustainability and compliance—two areas where Indian manufacturers must continue to evolve. A stronger EU partnership could anchor India’s textile exports for the long term.
Australia and Canada, stable growth markets
Australia and Canada may not match the scale of the US or EU, but their consistent demand and stable economic environments make them valuable allies. With import values of $12 billion and $15 billion respectively, they offer room for growth, especially in categories like home textiles and casual wear.
The India-Australia Economic Cooperation and Trade Agreement (ECTA) already offers a tariff edge, making it easier for Indian exporters to enter and expand. Strengthening presence in these markets can provide much-needed balance in India’s export portfolio.
Japan, the technical textile niche
Japan’s $25 billion textile import market is highly specialized, with an increasing focus on technical textiles—a segment where India is investing heavily. This aligns perfectly with India's ambitions to move up the value chain and capture high-margin sectors.
However, there are challenges. Tariffs on imported machinery or raw materials for technical textiles could inflate costs, underscoring the need for domestic capacity building in this segment. Yet, with the right focus, Japan could become a key partner in India’s value-added textile journey.
The UAE, a re-export gateway
Though not a traditional end-user market, the UAE’s $18 billion re-export business in textiles makes it a critical node in the global trade web. For Indian exporters, the UAE offers a logistical and commercial hub to access Africa, Europe, and Central Asia. Leveraging this re-export potential requires agility, competitive pricing, and supply chain efficiency—but the rewards could be significant in tapping into secondary markets via the Gulf.
Diversification, resilience the new realty
The data underscores a clear message: India must spread its bets. The textile and apparel sector must pivot from dependency on singular markets to a diversified export strategy. Here’s what the path forward entails.
- Strengthening the EU connection through a successful FTA to secure tariff relief and long-term stability.
- Leveraging the India-Australia ECTA to deepen trade relations and capitalize on the Pacific's growing demand.
- Expanding footprints in Canada and other mid-tier markets for consistent, stable growth.
- Tapping into Japan’s technical textile segment, with a focus on quality and innovation.
Utilizing the UAE as a re-export base, broadening global access through a strategic hub.
A chilling wave of pessimism has swept across the US, with consumer sentiment falling to levels unseen since the depths of the Great Recession, according to the University of Michigan's latest survey. The preliminary reading of 50.8, the second-lowest since 1952, paints a stark picture of American anxieties due to volatile trade policies and escalating inflation concerns. This sharp decline, as reported earlier this month, raises serious questions about the future of consumer spending, a cornerstone of the US economy, and its ripple effects on sectors like fashion and apparel.
The sentiment-spending disconnect
While "hard data" like employment figures remain relatively robust, the "soft data," reflecting consumer confidence, is flashing red. The Michigan survey reveals a significant increase in the proportion of Americans expecting rising unemployment, a clear indicator of growing economic unease. This disconnect between strong employment and sinking confidence creates a precarious situation.
The fashion industry's fragile position
The fashion and apparel industry, heavily reliant on discretionary spending, is particularly vulnerable to shifts in consumer sentiment. While the affluent have historically driven fashion sales, their confidence is now wavering due to recent market turbulence, triggered by trade-related uncertainties.
As per Bill Adams, chief economist at Comerica Bank wealthy consumers' stock market gains kept the economy growing in 2024 despite high prices, but the wealthy won't feel confident enough to keep spending if this keeps up.
Inflation fears and spending habits
The Federal Reserve's growing concern over rising inflation expectations further complicates the outlook. The survey indicates a significant jump in anticipated inflation rates, which could lead consumers to alter their spending habits. If Americans lose faith in the Fed's ability to control inflation, they may prioritize essential purchases over discretionary items like clothing and accessories.
Data snapshots
· Consumer sentiment (University of Michigan): Preliminary reading of 50.8 in April, the second-lowest since 1952.
· Inflation expectations (1-Year): Rose to 6.7 per cent in April, the highest since 1981.
· Inflation expectations (5-10 Years): Climbed to 4.4 per cent.
Impact on fashion spending
A decline in consumer confidence directly impacts discretionary spending, including fashion and apparel. Rising inflation expectations may lead to reduced spending on non-essential items. Market volatility, driven by trade uncertainties, threatens the spending power of affluent consumers, a key demographic for luxury fashion. In fact, reports indicate a potential slowdown in luxury spending as affluent consumers react to market volatility and economic uncertainty. High-end fashion brands, which have enjoyed strong growth, may face challenges in maintaining sales momentum.
Amidst economic uncertainty, consumers may prioritize value and durability over trendy, fast-fashion items. This could lead to an increase in demand for classic, timeless pieces and sustainable fashion. Moreover, online retailers and discount stores may see increased traffic as consumers seek deals and affordable options.
While the 90-day tariff pause offers a glimmer of hope, the underlying economic anxieties remain. The fashion industry must adapt to this evolving landscape by focusing on value, durability, and sustainable practices. Brands that can resonate with consumers' changing priorities and offer affordable options will be better positioned to weather the storm.
"The economy is facing considerable turbulence," noted JPMorgan Chase CEO Jamie Dimon, highlighting the precarious situation.
The coming months will be crucial in determining whether the current sentiment translates into a significant slowdown in consumer spending and how the fashion industry navigates this challenging environment. The industry must remain vigilant, adapting to the changing consumer landscape and bracing for potential headwinds.
A recent seminar organized by The Textile Association of India (TAI), South Gujarat unit, held at the Baghban Kratos Club in Surat, highlighted the immense potential for Surat to emerge as a major export hub for man-made fiber (MMF) products in India. The seminar, titled "Opportunities in Exports in MMF Products," drew an impressive attendance of over 150 participants, including manufacturers, exporters, traders, and representatives from trade associations and academia, with delegates also present from Vapi and Mumbai.
The keynote speaker, Gurudas Aras, Strategic Advisor and Independent Director, whose presentation formed the crux of the insightful session, emphasized the significant global shift towards MMF consumption. Aras pointed out that MMF currently accounts for approximately 67% of global fiber consumption, with polyester dominating at 85%. Furthermore, the global trade in MMF products is witnessing the highest growth in categories like knitted garments, bedsheets, and woven garments.
Despite this global trend, India's share in the global textiles and apparel (T&A) trade has stagnated at around 5%. Aras attributed this to India's continued reliance on cotton-based products, while the majority of international trade now revolves around MMF-based items.
The presentation by Aras shed light on the dominance of China in the top 10 globally traded commodities within knitted and woven categories, with a staggering 40% to 60% share. Other significant players include Vietnam, Bangladesh, Cambodia, Turkey, and Germany, holding subsequent ranks across various HSN codes. India's global share in different MMF categories currently ranges from a modest 0.2% to 3%, with a few exceptions.
However, the ongoing trade tensions between the US and China present a significant opportunity for India. Aras highlighted that nearly 28% of India's current textile exports are directed towards the USA. There exists excellent potential to increase exports in specific MMF product categories where the US currently imports substantial quantities from China. A detailed list of such products was presented during the seminar.
Aras further elaborated on how the comparatively lower US tariff of 27% could significantly benefit India, provided that critical issues are addressed promptly. These key areas include:
-
Capacity building in MMF raw materials: Enhancing domestic production capabilities for essential MMF inputs.
-
Reducing MMF raw material prices: Addressing the current 15% higher cost of MMF raw materials in India to improve competitiveness.
-
Capacity building in MMF-based apparel manufacturing: Scaling up and modernizing manufacturing units focused on MMF apparel.
-
Removing hurdles of Quality Control Orders (QCO): Streamlining regulations to allow access to cheaper MMF materials for value-added exports.
Aras stressed that tapping into the export market requires a distinct approach and urged the industry in Surat to cultivate an export-oriented culture. This necessitates strategic investments in modern technology, sustainable manufacturing practices, consistent quality control, maintaining high standards of shop floor hygiene, comprehensive worker training, and a strong focus on product development.
Promising product categories for MMF-based manufacturing and exports that Surat should actively pursue include activewear and sportswear, performance fabrics, hygiene products, home textiles, and technical textiles.
The presentation by Aras also showcased successful examples of India's global achievements in T&A products, such as MMF bedsheets and blankets from Panipat, Flexible Intermediate Bulk Containers (FIBC) or jumbo bags, kids' garments, knitted garments from Tirupur, knitted baby garments, and home textiles.
