FW
The Indian textile and apparel industry is currently weathering a period of complex recalibration. According to the latest Wazir Textile & Apparel Index (H1 FY26), the sector's performance in the first half of the 2025-26 fiscal year presents a starkly divided picture: while apparel sales are surging, profitability across the board is under pressure, and the core textile segment is facing a noticeable cooling period.
A Tale of Two Segments: Apparel gains while textiles slow
The report highlights a significant divergence between the Wazir Textile Index (WTI) and the Wazir Apparel Index (WAI). The core textile segment has seen a contraction in performance as the WTI sales index dropped by 4% in H1 FY26 compared to H1 FY25. This slowdown was accompanied by a decline in profitability, with the WTI EBITDA index falling by 2% during the same period. Among the top players, Welspun Living and Indo Count saw sharp standalone sales declines of 18%, while Indorama Synthetic bucked the trend with a significant 33% growth spurt.
In contrast, the apparel sector is witnessing robust top-line growth, with the WAI sales index jumping by 9% year-on-year. However, a significant profitability gap has emerged; despite higher sales, the WAI EBITDA index plummeted by 17%. This suggests that while consumers are buying more, manufacturers are grappling with significantly higher operational costs or pricing pressures. Star performers in this segment included SP Apparels, which led the pack with a 27% increase in sales, followed by Pearl Global Industries at 13%.
Consolidated Performance: Revenue up, margins thin
When looking at the broader market—comprising 310 listed companies—the industry appears to be expanding in volume but staying flat in value. Consolidated sales for all listed textile and apparel companies reached Rs. 93,492 crore in H1 FY26, representing an 11% increase over the Rs. 84,370 crore recorded in H1 FY25. While this 11% increase in total sales is a positive signal for demand, the stagnation of consolidated EBITDA margins at 8% indicates that the industry has not yet managed to translate higher revenues into better bottom-line efficiency. Global headwinds and export realities
The export landscape remains a primary concern for the industry, as overall Textile & Apparel (T&A) exports grew by a marginal 1% in H1 FY26. Category shifts reveal a nuanced story: while apparel exports rose by 4%, the filament category saw a massive 28% collapse in export value. The USA remains the largest buyer, though its share of Indian T&A exports dipped slightly to 28% from 29% the previous year. Interestingly, India’s T&A imports rose by 15%, driven by a 25% increase in fabric imports, signaling a potential reliance on external raw materials to meet domestic or export demand.
The Road Ahead: PLI and modernization
As companies review medium to long-term growth plans, particularly in Man-Made Fibre (MMF) based textiles and apparel, the Production Linked Incentive (PLI) scheme continues to be a relevant consideration for the industry. For organizations evaluating the applicability of the PLI scheme, strategic support through eligibility assessment and implementation planning will be vital to turning stagnant margins into sustainable growth.
The conclusion of the 10th edition of Techtextil India in Mumbai marks a definitive transition for the country’s textile landscape, moving away from traditional garment manufacturing toward high-value, engineered solutions.
Attracting over 9,000 visitors from 45 countries, the event underscored a strategic alignment between Indian industrial capacity and the global demand for ‘Sporttech,’ medical textiles, and protective gear. As the Indian government identifies man-made fibers (MMF) as a ‘sunrise sector,’ the event served as a barometer for the industry's readiness to compete in the high-margin global technical textile market, which is increasingly governed by stringent sustainability and performance standards.
Strategic alliances and the influx of specialized technology
A primary driver of growth identified during the three-day exhibition was the formation of cross-border partnerships designed to bridge the technological gap in specialized protective wear. A notable development included the partnership between Brawntex Industries and Japan’s Kurabo Industries, aimed at introducing advanced fire-retardant fabrics to the Indian military and industrial workwear segments. This shift toward domestic production of high-specification textiles for sectors like oil and gas, iron, and steel reflects a broader strategy to reduce import dependency while positioning India as a secondary global manufacturing base for specialized safety apparel.
Sustainability as a competitive framework for global exports
The narrative of the 2025 edition was heavily dictated by the integration of circular economy principles into the supply chain. Rather than viewing environmental responsibility as a regulatory burden, exhibitors like Pulcra Chemicals and Birla Cellulose framed sustainability as a core market differentiator. The exhibition floor showcased a significant move toward resource-efficient manufacturing, including AI-based waste sorting, PET-to-yarn recycling, and the development of bio-based materials. These innovations are critical for Indian exporters aiming to penetrate European and North American markets, where traceability and the lifecycle impact of textiles are becoming mandatory procurement criteria.
Diversification into Agrotech and infrastructure solutions
Beyond apparel, the industry is aggressively diversifying into functional applications that support India’s domestic infrastructure and agricultural goals. Collaborative sessions led by the Indian Technical Textile Association (ITTA) highlighted advancements in ‘Agrotech’ and ‘Geotech,’ specifically focusing on crop protection covers and coastal reinforcement materials. These engineered textiles are being developed to meet the specific climatic challenges of the Indian subcontinent, utilizing natural fibers enhanced with smart materials to improve durability. The focus on infrastructure-related textiles, such as those used in vehicle airbags and construction filtration, indicates that the sector's growth is being fueled by the expansion of the domestic automotive and civil engineering industries.
The rise of performance activewear and scalable manufacturing
The emergence of a dedicated ‘Sporttech’ pavilion highlighted a significant pivot toward the premium activewear market. As global brands look to diversify their sourcing away from traditional hubs, Indian manufacturers are investing in advanced knitting technologies and functional finishing processes to meet the requirements of high-performance sportswear. By focusing on the intersection of chemistry- through specialized additives and coating technologies - and mechanical innovation, the Indian technical textile ecosystem is moving toward a vertically integrated model. This integration, spanning from raw fibre production to post-consumer recycling, suggests a long-term strategy to transform India from a commodity fabric producer into a sophisticated hub for engineered textile solutions.
The landscape of international menswear is witnessing a structural shift as the ‘China Wave’ initiative returns to the 109th edition of Pitti Uomo in Florence.
Scheduled for January 13–16, 2026, this strategic showcase at the Costruzioni Lorenesi represents far more than a simple trade exhibition; it signals a definitive move by the China Apparel Association to transition from ‘product export’ to ‘brand export.’ As traditional manufacturing volumes face headwinds from shifting global tariffs and a cooling domestic economy, China’s leading independent labels are doubling down on creative authorship and cultural identity to secure a premium foothold in the European luxury market.
A strategically anchored cultural dialogue
Under the season’s central theme of ‘Movement,’ eight selected brands are presenting a mature vision of contemporary Chinese aesthetics across a 150-sq-m pavilion. This edition highlights how the initiative has evolved from a tentative exploratory project into a strategically anchored platform. Leading the charge is Septwolves, a dominant force in Chinese menswear known for its high-tech business-travel jackets. Fresh from a showcase at Milan Centrale, the brand is leveraging Pitti Uomo’s global stage to demonstrate how technical innovation- such as modular designs and intelligent heating systems- can be seamlessly integrated into high-end urban tailoring.
The fusion of heritage and high-performance leisure
The 2026 delegation reflects a diverse cross-section of the ‘New China’ design philosophy, moving away from mass-market replicas toward heritage-driven storytelling. For instance, Wu Rang treats Chinese history and geography as its design DNA, translating ancient literary impulses into wearable contemporary fashion. Conversely, labels like A. New Studio and JoeWithLol are capturing the ‘Urban Leisure’ trend, blending minimalist silhouettes with bold, experimental outdoor aesthetics. This shift is critical as global buyers increasingly seek ‘Quiet Luxury’ with authentic cultural roots, allowing these brands to distinguish themselves from the industrial acceleration of the past.
Millinery craftsmanship and sculptural accessories
The initiative extends beyond apparel to include refined craftsmanship in the accessories segment, showcasing a ‘humanistic; approach to design. Founded in New Zealand but rooted in Chinese life philosophy, Swöfcare is bridging nature and millinery through artisanal precision. Meanwhile, jewelry labels Zivgrey and Amano are challenging the reproducibility of industrial production with hand-forged, sculptural pieces that emphasize irregular, organic structures. By positioning these brands as ‘cultural creators’ rather than mere suppliers, China Wave is effectively rewriting the narrative of the Chinese fashion industry for a post-industrial global economy.
A high-level strategic partnership between the China Apparel Association (organizers of the CHIC fair in Shanghai) and Pitti Immagine Uomo, the China Wave initiative aims to promote high-quality Chinese independent designers and established brands on the global stage, focusing on brand identity and design culture.
Now in its fourth edition, the platform serves as a primary gateway for Chinese menswear labels to access international distribution channels and high-end retail networks.
In a decisive move to strengthen its lead in the Australia and New Zealand (ANZ) e-commerce landscape, The Iconic has secured AUD 45 million in new credit facilities from National Australia Bank (NAB). This financial package, effective through January 2028, arrives as Global Fashion Group’s (GFG) ANZ arm reports a standout year, defying broader retail sluggishness with a 7 per cent Y-o-Y growth in Net Merchandise Value (NMV). For The Iconic, this liquidity is more than a safety net; it is a strategic war chest designed to fund aggressive expansion into AI-driven personalization and ultra-fast delivery logistics.
Strategic liquidity for a post-inflationary fashion market
Consisting of a AUD 30 million revolving credit facility and AUD 15 million in bank guarantees, the arrangement is specifically structured to navigate the high-stakes seasonal cycles of the fashion industry. By securing local liquidity through NAB, The Iconic is insulating itself from global volatility while maintaining the agility to ‘seize market opportunities’ in a sector where consumer selective spending is at an all-time high. This move is particularly significant as ANZ remains GFG’s largest market, accounting for approximately half of the Group’s total NMV. The facility ensures that the platform can manage major supplier contracts and commercial leases without disrupting its core operational momentum.
The financing is underpinned by robust financial fundamentals, including a gross margin of 49 per cent and an adjusted EBITDA margin exceeding 6per cent for the twelve months ending September 2025. Unlike many competitors struggling with high return rates and inventory bloat, The Iconic has leveraged its ‘Got You Looking’ masterbrand reset and deeper marketplace integration to stabilize its bottom line. The retailer’s ability to maintain nearly half its revenue as gross profit highlights a successful shift from pure volume-chasing to a ‘quality-first’ retail model. This profitability trend is further supported by the recent launch of ‘The Iconic Front Row’ loyalty program, which aims to boost customer lifetime value through tiered rewards and exclusive perks.
Looking toward 2026, The Iconic is pivoting toward a ‘tech-heavy’ infrastructure. The company has already reported a 50 per cent improvement in delivery times to Melbourne and continues to invest in AI-powered inventory forecasting to minimize markdowns. By integrating warehouse management systems across its Southeast Asian and ANZ operations, the brand is creating a leaner, more responsive supply chain. This technological edge is critical as the Australian fashion market, currently valued at $13.4 billion, moves toward a more digital-centric future where speed and personalized curation are the primary drivers of brand loyalty.
Founded in 2011, The Iconic is the leading online fashion and lifestyle destination in Australia and New Zealand. It is part of the Global Fashion Group (GFG), which operates similar market-leading platforms in Latin America (Dafiti) and Southeast Asia (Zalora).
Marking a strategic pivot for India’s textile and apparel (T&A) apparel, the India–New Zealand Free Trade Agreement (FTA) enables Indian exporters to dismantle the 10 per cent duty wall that previously favored competitors like Bangladesh and China by securing zero-duty access across 1,057 tariff lines.
Industry experts at the Confederation of Indian Textile Industry (CITI) anticipate, the price competitiveness gained from this deal will be the primary driver in closing the current $1.7 billion export gap in New Zealand's apparel market.
Supply chain efficiency and raw material synergy
Beyond finished goods, the agreement introduces a unique ‘cost-down’ model for Indian mills. By eliminating duties on critical manufacturing inputs like coking coal and wooden logs from New Zealand, the FTA directly reduces the overhead for domestic spinning and weaving units. This structural relief is boosted by a $20 billion FDI commitment from Wellington, aimed at injecting modern technology into Indian MSME clusters. As India pushes toward its $100 billion textile export target for 2030, this deal serves as a blueprint for ‘Viksit Bharat 2047,’ integrating local artisans into global value chains through enhanced digital compliance and faster customs clearance.
India is the world's second-largest manufacturer of textiles and apparel, with a domestic market currently valued at over $180 billion and projected to reach $350 billion by 2030. The industry excels in natural fibers (cotton, jute, silk) and is rapidly expanding into technical textiles and man-made fibers (MMF) through the PLI scheme.
The Russian Association of Fashion Industry Participants (RAFI) marked its tenth anniversary in 2025 by fundamentally shifting its focus toward a diversified, multi-national sourcing model.
At the center of this milestone was the 20th season of Bee-Together.ru, the association's premier outsourcing platform, which concluded its November session with a record-breaking conversion rate: nearly 80 per cent of participating brands successfully secured new manufacturing contractors. As the Russian fashion market adapts to supply chain realignments, the event hosted over 200 factories from six nations, signaling a transition from localized production to a sophisticated, cross-border outsourcing network.
Strategic sourcing diversification and the rise of ‘CIS+ Manufacturing’
The November 2025 expo at the Radisson Slavyanskaya underscored a significant geographic broadening of the Russian apparel supply chain. While local exhibitors remained a cornerstone, the presence of over 60 factories from Uzbekistan and 25 from Kyrgyzstan highlighted the growing dominance of the CIS region in providing high-volume, cost-effective garment production. In particular, Uzbekistan has emerged as a critical partner, supported by high-level diplomatic engagement from the Uztextilprom Association. This ‘CIS+’ model is designed to navigate 2026 industry challenges with increased flexibility, allowing Russian marketplaces and large retail chains - represented by over 2,000 professional buyers - to mitigate logistical risks through direct manufacturer-to-brand communication.
Indo-Russian synergy: The rebirth of leather and footwear partnerships
A pivotal development in RAFI’s 2025 strategy was the relaunch of specialized B2B business sessions, specifically targeting the high-demand leather goods sector. In collaboration with the Council for Leather Exports (India) and the Embassy of India, the association facilitated a dedicated trade show where 20 Indian manufacturers showcased premium leather samples to Russia's market leaders, including Finn Flare, Bosco, and Zasport. The inauguration by Nikhilesh Giri, Deputy Chief of Mission, Indian Embassy, emphasized a mutual commitment to developing footwear and accessory production. This initiative directly addresses a gap in the Russian premium segment, where buyers are increasingly seeking high-quality, natural materials to replace departing Western luxury labels.
Established in 2015, the Russian Association of Fashion Industry Participants (RAFI) is a central hub for B2B connectivity in the textile and garment sectors. Over the past decade, it has connected 2,715 manufacturers with over 13,000 Russian corporate customers.
The fashion industry is no stranger to cycles of hype and disillusionment, and 3D technology has been no exception. At the recent PI Apparel NY event, a panel titled ‘3D is Dead. Long Live 3D’ laid bare the current sentiment surrounding this transformative technology. Far from declaring its demise, the discussion served as a powerful declaration of 3D's enduring relevance, recalibrating expectations from magical quick fixes to strategic, impactful implementation.
The 3D journey from hype to reality
The journey of 3D in the apparel industry began with a promise of revolutionary speed and efficiency. Early adopters envisioned a world where physical samples would be obsolete, design iterations would happen at lightning speed, and sustainability goals would be effortlessly met. However, as Christian L. Harris, a Digital Expert on the panel, noted, "The early hype around 3D has worn off. The quick wins didn’t land for all. And for some, the whole thing feels like a false start."
This sentiment resonates with many who invested in 3D tools expecting overnight transformation. Pat Trautman, President and a panelist, highlighted a critical distinction: "What is dying is the myth that 3D delivers magical results. Implementing 3D isn’t just a tech rollout. It’s a shift in mindset, process, and culture."
The Reality: 3D is alive and evolving
Despite the initial missteps and inflated expectations, the core message from the PI Apparel NY panel was unequivocally clear: 3D is not dead; it's thriving. Safir Bellali, Strategic Advisor for DPC and Digital Innovation, and 3DRC Education Chair, emphasized, "It’s alive, evolving, and more capable than ever of driving meaningful change across design and product development."
The key lies in understanding that 3D is a powerful enabler when integrated with intent and supported by a robust strategy, comprehensive training, and a people-centric approach. As the panelists reiterated, expecting instant gratification from 3D without a fundamental shift in operations is a recipe for disappointment.
The tangible benefits
When implemented correctly, 3D technology delivers a compelling suite of business impacts that go beyond the initial hype. These benefits are not just theoretical; they are quantifiable and are being realized by forward-thinking companies.
Benefits of effective 3D implementation
• Faster decisions: Virtual prototyping drastically reduces the time spent on physical sample creation and review cycles.
• Smarter workflows: Digital assets streamline communication between design, development, and manufacturing teams, reducing errors and rework.
• Lower sampling costs: Reduced reliance on physical samples leads to significant savings in materials, shipping, and labor.
• Stronger collaboration: Centralized 3D models and virtual environments foster seamless collaboration across geographically dispersed teams.
To illustrate these benefits, let's look at some hypothetical data and case studies that reflect the industry's progress.
Table: Impact of 3D adoption on product development metrics (illustrative data)
|
Metric |
Before 3D adoption |
After 3D adoption (Well-implemented) |
Percentage improvement |
|
Sample Lead Time |
6-8 weeks |
2-3 weeks |
50-75% |
|
Physical Sample Costs |
$100,000/collection |
$25,000/collection |
75% |
|
Design Iteration Cycles |
5-7 |
2-3 |
40-70% |
|
Time to Market (New Styles) |
12-18 months |
8-10 months |
33-44% |
|
Material Waste (Sampling) |
Significant |
Minimal |
~90% |
A look at some case studies
Agile Apparel Co: streamlining design decisions
Agile Apparel Co, a mid-sized sportswear brand, faced challenges with long design iteration cycles due to reliance on physical samples. After a year-long strategic implementation of 3D design software, including robust training for their design and development teams, they witnessed a significant transformation. "Our decision-making process has accelerated dramatically," stated their head of product development. "We can now review multiple design options virtually within days, rather than waiting weeks for physical prototypes. This has cut our sample lead time by 60 per cent and allowed us to be far more responsive to market trends."
Sustainable Styles Inc: Reducing environmental dootprint
Sustainable Styles Inc, known for its eco-conscious approach, integrated 3D technology primarily to reduce its environmental impact from sampling. By shifting a significant portion of their sampling process to 3D, they achieved a remarkable reduction in physical sample production. "Before 3D, we were producing hundreds of physical samples each season, leading to considerable material waste and carbon emissions from shipping," explained their Sustainability Officer. "With 3D, we've reduced our physical sample count by 85 per cent, lowering our footprint and aligning with our core values."
Implementation with intent
Justin Schlothauer, Global Senior Director of Digital Product Creation at Under Armour, a leader in digital transformation, provided a real-world perspective on the panel. His presence underscored that industry giants are committed to leveraging 3D for strategic advantage.
Karina Ochoa de Baker, Creative Director & Consultant, reiterated the sentiment that "The tech is here. The value is proven. Now it’s about implementation with intent." This encapsulates the forward-looking vision for 3D in the fashion industry. The focus is no longer on ‘if’ 3D will deliver, but ‘how’ it will be integrated into the fabric of an organization's operations, culture, and strategy.
The message from PI Apparel NY is clear: the age of unrealistic expectations for 3D is over. In its place, a more mature, strategic understanding of 3D is emerging. This isn't a death knell, but a call to action for purposeful adoption, promising real, tangible benefits for those ready to commit to the long-term transformation. "3D is dead. Long live 3D." indeed. The future of fashion is undeniably digital, and 3D is at its core.
The global luxury landscape has been reshaped by the HSG’s acquisition of a controlling stake in the brand Golden Goose. Valued at approximately €2.5 billion, the deal marks one of the most significant infusions of Chinese capital into European fashion to date.
While Temasek and True Light Capital have secured minority stakes, the entry of HSG - formerly Sequoia China - signals a pivot toward a tech-integrated, ‘community-first’ luxury model. Expected to close by summer 2026, the transaction aims to leverage HSG’s prowess in consumer technology to scale the brand’s digital and Asian footprint while safeguarding its ‘Made in Italy’ artisanal heritage.
Industrial powerhouse at the helm
The appointment of industry titan Marco Bizzarri as Non-Executive Chairman provides a critical industrial anchor to the transition. The mastermind who scaled Gucci from €3.9 billion to nearly €10 billion, Bizzarri will partner with hard-charging Silvio Campara, CEO to steer the ‘perfectly imperfect’ sneaker label. This leadership duo enters a position of strength: Golden Goose reported a 13 per cent revenue jump in the first nine months of 2025, reaching €517.1 million. Despite a broader slowdown in the luxury sector, the brand’s direct-to-consumer (DTC) channel grew by 21per cent, proving that its ‘co-creation’ experiential retail model is successfully insulating it from the ‘quiet luxury’ downturn affecting traditional heritage houses.
Founded in Venice in 2000, Golden Goose defined the ‘luxury sneaker’ category with its signature distressed aesthetic. It focuses on a high-touch lifestyle model, integrating the Forward Store concept for repair and personalization. The brand operates 227 directly operated stores (up from 97 in 2019) with a massive 79 per cent revenue dependency on DTC channels, particularly strong in EMEA and the Americas.
Unveiling a paradox in its 2025 fiscal strategy, Zara’s parent company, Inditex has closed 60 stores worldwide of the brand while simultaneously hitting record financial heights. The Spanish retail giant reported a 3.9 per cent increase in net income to €4.6 billion for the first nine months of the year, even as it streamlined its physical network to 1,528 Zara locations.
This ‘quality over quantity’ shift is a deliberate move to replace smaller, high-street units with massive, technologically integrated flagships. Óscar García Maceiras, CEO highlighted a key transformation in Osaka, Japan, where a former Zara site is being reimagined as a standalone Zara Man boutique, signaling a new era of gender-specific, curated retail spaces.
Tech-driven growth and premiumization
While the brand’s store count has dipped, its profitability per square foot has surged. Inditex’s gross margin reached a robust 59.7 per cent, fueled by the rollout of ‘soft-tag’ RFID technology and AI-edited e-commerce modeling that slashes operational overhead.
Early Q4 data shows a 10.6 per cent jump in constant currency sales through December 1, proving that Zara’s pivot toward ‘lifestyle’ retail - exemplified by the debut of the Zacaffè coffee shop concept in Japan and Spain - is resonating with consumers seeking an immersive experience. Despite the closures, the group plans a 5 per cent increase in gross floor space through 2026, focusing on prime global ‘trophy’ locations rather than mass-market saturation.
The flagship brand of Inditex, Zara is world-renowned for its ‘fast fashion’ model that moves designs from catwalk to store in under three weeks. It now focuses on an ‘Omnichannel’ approach, blending high-tech physical boutiques with a dominant global e-commerce platform.
The Bangladesh ready-made garment (RMG) industry is facing an unprecedented structural challenge as export momentum falters across both established and emerging frontiers. New data for the July–November period of FY 2025–26 reveals a 3.19 per cent Y-o-Y decline in non-traditional markets, with earnings slipping to $2.67 billion. This downturn is particularly alarming as it coincides with a 1.03 per cent contraction in the European Union, Bangladesh’s largest regional destination. While the US market showed a thin 3.06 per cent growth to $3.22 billion, exporters warn this is a ‘fragile recovery’ under the shadow of a new 20 per cent reciprocal tariff regime that took effect in August 2025.
The pivot to non-cotton and value-added segments
The sector’s internal dynamics show, knitwear exports have plunged by 6.34 per cent due to aggressive price-cutting from Indian and Chinese rivals, whereas woven garments have remained marginally resilient with 0.05 per cent growth. Industry leaders, including former Mohiuddin Rubel, Director, BGMEA, argue, the ‘cotton-dependency’ trap is the industry’s greatest vulnerability. Currently, 75 per cent of global apparel demand is for man-made fibers (MMF) and synthetic blends, yet these account for only 27 per cent of Bangladesh's shipments. To counter the 50 per cent reduction in government cash incentives and rising 14 per cent bank interest rates, factories are now being urged to fast-track investments in ‘smart’ functional fabrics and technical apparel to capture higher margins.
As the industry approaches its LDC graduation in 2026, the absence of an elected government and persistent labor unrest - totaling over 1,600 road blockades this year - have shaken buyer confidence. Beyond the factory floor, the struggle is becoming a matter of commercial diplomacy. Exporters are calling for the revitalization of overseas commercial wings to penetrate high-potential markets like Japan and Brazil, which showed rare growth of 0.98 per cent amidst the general slump. Without a coordinated move toward ‘circularity’ and a shift into the non-cotton segment, analysts warn that one-third of the country's mid-tier factories could face closure before the end of the next fiscal year.
As the apex trade body, BGMEA represents over 4,500 garment factories, acting as the primary negotiator between the industry, the government, and global retail giants.
