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The rise of localized luxury MEA North America and India lead growth

 

The global luxury industry is no longer defined by relentless expansion. The ‘2025 Global Luxury Brandwatch Report’ highlights a sector readjusting in response to geopolitical uncertainty, inflationary pressures, and a more selective consumer base. Despite projections indicating a modest fall in the personal luxury goods market to €358 billion, a 2 per cent decline at current exchange rates, the pace of brand activity suggests an industry that is increasing its fight for consumer attention rather than retreating. Brand activations rose by 21 per cent year-on-year, showcasing that luxury houses are investing in visibility and engagement even in a cautious market.

From broad strokes to surgical focus

The most striking shift in 2025 is what analysts describe as the operational focus on localized initiatives. Global campaigns, once the mainstay of brand storytelling, have ceded prominence to market-specific activations tailored to local tastes, behaviors, and cultural nuances. This change became most pronounced in the second half of the year, when activation intensity accelerated sharply. The brandwatch data illustrates this clearly.

Table: Activation growth performance (2025-26)

Activation type

Annual growth (YoY)

H2 2025 growth (vs H2 2024)

Localized Activations

+40%

+65%

Global Initiatives

-1%

+21%

Total Monitored Activations

+21%

+46%

The table underlines a dual trend. While overall activations grew 21 per cent across the year, the acceleration in H2 2025, up 46 per cent compared to the same period in 2024 underscores brands’ strategic urgency. Localized activations, in particular, demonstrated explosive growth, rising 65 per cent in the latter half of the year. In contrast, global initiatives saw negligible annual growth, revealing that large-scale global campaigns are no longer the primary lever of engagement. Brands are increasingly betting on precision: tailoring content, partnerships, and experiences to resonate within individual markets.

Emerging regional leaders

Geography has become a defining factor in luxury growth, with momentum shifting away from traditional strongholds toward emerging and revitalized hubs. While China remains the largest single market by activation volume, posting a moderate 16 per cent increase, it is no longer the sole engine of growth.

The Middle East & Africa (MEA) emerged as the standout performer. Brand activations in the region more than doubled, climbing 105 per cent, led by sustained expansion in Gulf countries and accelerated activity in South Africa. North America, a mature market, rebounded significantly, particularly in watches and jewelry, with activations up 102 per cent. Canada contributed meaningfully, highlighting renewed investment in hard luxury. Latin America continued its move ahead as a rising luxury destination, posting robust growth that narrows the gap with mature Asian markets. Meanwhile, Asia-Pacific beyond China saw Japan increase activations by 23 per cent and South Korea by 12 per cent, demonstrating that secondary Asian markets are increasingly critical to regional strategies.

Divergence across segments

The luxury scenario in 2025 was marked by uneven performance across sectors. Perfume and cosmetics emerged as the most dynamic category, driven by retail-based activations that emphasized in-store experiences and consumer education. By contrast, product-linked activations, campaigns tied directly to specific SKUs slowed, suggesting a recalibration of marketing spend toward holistic brand engagement rather than transactional pushes.

Fashion and leather goods, in contrast, experienced the largest decline in activation volume. Given the high operational and geopolitical complexity, brands in this category prioritized recalibration over expansion, focusing on inventory management, pricing discipline, and selective market targeting. Watches and jewelry adhered to market discipline, refining distribution channels and reassessing pricing structures in response to rising production costs and uncertain macro conditions.

Cultural capital becomes currency

A defining trend in 2025 is the expansion of luxury into cultural territories. Brands are increasingly positioning themselves as arbiters of lifestyle, taste, and longevity to strengthen emotional resonance with consumers. In beauty, firms shifted toward longevity-focused positioning, integrating scientific research and preventive health narratives to capture sustained demand, particularly from younger audiences in the US and China.

India has emerged as a strategic hub for global beauty groups, consolidating local capabilities and reinforcing the country’s importance in the global innovation and value chain. Jewelry brands, meanwhile, intensified experiential engagement through music partnerships and immersive events, elevating brand interaction beyond the product itself and embedding lifestyle associations into consumer perception.

Execution outweighs expansion

In 2026 the industry is expecting a gradual resumption of growth, particularly in the latter half of the year. However, the Brandwatch report emphasizes that the next cycle will be defined less by geographic reach and more by execution. In a climate of lower consumer confidence, luxury brands are expected to compete on the basis of precision, cultural leverage, and operational discipline. Expansion alone will no longer suffice; it is the brands that can balance local relevance with global prestige, and craft culturally resonant experiences, that will secure sustainable competitive advantage.

  

Hormuz blockade sends shockwaves through Indias textile chain as polyester costs rise

 

What began as a geopolitical escalation in the Gulf has rapidly metastasized into a full-scale industrial disruption for India’s textile economy. The effective closure of the Strait of Hormuz, has done more than rattle oil markets; it has ruptured the foundational supply lines of the global synthetic fibre chain.

For India, where the textile sector is deeply intertwined with imported petrochemical derivatives, the fallout has been swift and unforgiving. Nearly a fifth of the world’s crude oil and a disproportionate share of polypropylene exports flow through this narrow corridor. With Gulf-origin feedstocks such as naphtha and paraxylene suddenly constrained, Indian manufacturers are confronting an unprecedented raw material vacuum. Contracts are being renegotiated under duress, spot cargoes are disappearing, and force majeure clauses have moved from legal fine print to operational reality.

Polyester’s price spiral and the unraveling cost curve

Inside India’s spinning mills and polymer plants, the crisis is manifesting as a sharp and immediate cost escalation. Polyester, the backbone of India’s mass-market apparel ecosystem, has become the first casualty of the feedstock squeeze. Prices have surged within days, compressing already thin margins and destabilizing procurement cycles. The scale of volatility is captured starkly in the movement of raw materials.

Table: Polyester price volatility

 

Raw Material

Early Feb 2026 Price

Mid-March 2026 Price

% Change

Polyester Staple Fibre (1.2D)

Rs 102.25 /kg

Rs 114.25 /kg

+11.7%

Purified Terephthalic Acid (PTA)

Rs 74.50 /kg

Rs 94.98 /kg

+27.5%

Polypropylene (PP) Raffia

$1,000 /MT

$1,310 /MT

+31.0%

Brent Crude Oil

$82.00 /bbl

$101.68 /bbl

+24.0%

The sharpest showck has come from Purified Terephthalic Acid, the critical upstream input for polyester production. A near 28 per cent spike in PTA prices within weeks has cascaded downstream, pushing polyester staple fibre costs up by double digits. Domestic giants such as Reliance Industries and Haldia Petrochemicals have responded with successive price revisions, reflecting the steep rise in imported naphtha costs, which have crossed the $800 per metric tonne threshold.

What makes this moment particularly destabilizing is not merely the magnitude of the increase, but its velocity. The synthetic fibre value chain, typically accustomed to gradual input shifts, is now operating in a near real-time pricing environment where procurement decisions carry immediate financial risk.

The long route around Africa and the cost of delay

As feedstock scarcity tightens, logistics has emerged as the second front of disruption. With the Gulf corridor effectively compromised, global shipping lines are abandoning traditional routes and diverting vessels around the Cape of Good Hope. This detour, while necessary, is proving economically punitive.

Transit times have stretched by as much as three weeks, a delay that is particularly damaging for India’s fast-fashion export clusters. In hubs like Tiruppur, where delivery schedules are calibrated to seasonal retail cycles in Europe, such delays threaten to render shipments commercially irrelevant upon arrival. The just-in-time model that underpins global apparel sourcing is being fundamentally challenged. Freight economics have deteriorated in tandem. Emergency conflict surcharges, sometimes reaching $4,000 per container—are now being layered onto already elevated shipping costs. For exporters, this creates a dual pressure point: escalating input costs at origin and shrinking reliability at destination. European buyers, facing their own demand uncertainties, are increasingly unwilling to absorb delays, raising the specter of order cancellations and contract penalties.

Domestic reallocation and the polymer supply crunch

The Indian government’s response has underscored the severity of the crisis. Invoking the Essential Commodities Act, the Ministry of Petroleum and Natural Gas has initiated a diversion of gas supplies toward priority sectors such as domestic cooking fuel and transport. While socially necessary, this move has had cascading industrial consequences.

Petrochemical facilities operated by ONGC Petro additions and GAIL have experienced curtailed gas allocations, forcing production adjustments and, in some cases, output reductions. The impact is particularly acute in polypropylene-based segments.

For manufacturers of nonwoven technical textiles, critical inputs for hygiene, medical, and filtration products, the result is a shortage within domestic market. Even locally sourced polymers are becoming difficult to secure, as supply is rationed and pricing becomes increasingly opaque. The term ‘supply desert’, once reserved for global shortages, is now being used to describe conditions within India’s own industrial ecosystem.

From China plus one to feedstock plus one

Yet, embedded within the disruption is the outline of a shift. For global brands already pursuing a China Plus One approach, the Hormuz crisis has introduced a new dimension: feedstock security. The conversation is no longer limited to diversifying manufacturing bases; it is extending upstream into the sourcing of raw materials themselves. India, with its growing man-made fibre ecosystem, is emerging as a potential beneficiary of this shift. The government’s Production Linked Incentive framework, anchored by over Rs 10,700 crore in committed investments, is now being reframed as a strategic hedge against global supply volatility. The focus is increasingly on high-performance fabrics and integrated value chains that reduce dependence on single-region feedstock pipelines.

This shift demands more than incremental capacity additions. It requires Indian manufacturers to reposition themselves as vertically integrated players capable of offering not just cost competitiveness, but supply assurance. In effect, the industry is being nudged toward a material science-led future, where resilience becomes as critical as scale.

A high-stakes decade for synthetic dominance

India’s textile sector stands at a complex inflection point. With ambitions to scale exports to $100 billion by 2030, the industry has been aggressively shifting towards MMF and technical textiles, segments that promise higher margins and global relevance. The current crisis, however, has exposed the fragility underlying this transition.

Historically anchored in cotton, India’s synthetic expansion revals its most significant shift since the dismantling of global textile quotas in the early 2000s. But unlike cotton, which is domestically abundant, synthetic fibres tie the industry to global energy markets and geopolitical fault lines.

The Hormuz blockade has made that dependency impossible to ignore. It has transformed distant geopolitical tensions into immediate operational risks, compressing timelines and forcing strategic recalibrations across the value chain.

What emerges from this disruption will likely define the path of India’s textile economy for the next decade. Whether the sector can convert this moment of stress into a platform for resilience will determine if India evolves into a true global hub for synthetic textiles or remains vulnerable to the next shock that ripples through a narrow stretch of water in the Persian Gulf.

  

Global architect of stretch-fiber technology, The Lycra Company aims to eliminate approximately $1.2 billion in long-term debt, effectively recalibrating a capital structure that has been strained by years of high-interest obligations and fluctuating demand.

The company filed for a prepackaged Chapter 11 bankruptcy in Texas backed by nearly 100 per cent of its senior lenders. The company has secured $75 million in debtor-in-possession (DIP) financing and an additional $75 million in exit funding. Unlike a traditional insolvency, this ‘prepackaged’ approach is designed for speed, with the firm expecting to emerge as a leaner entity within 45 days. The restructuring follows a period of intense pressure where facility utilization rates dropped to 60 per cent amidst a surge in low-cost generic spandex competition from Asian manufacturers.

Strengthening technical leadership and bio-derived innovation

Despite the financial realignment, Lycra remains focused on defending its 80 per cent market share in the premium apparel segment through advanced material science. The company is currently scaling its partnership with Qore to launch the first commercial-scale bio-derived Lycra fiber, utilizing QIRA (corn-based BDO) to reduce carbon emissions by up to 86 per cent compared to fossil-fuel alternatives.

Industry data indicates, while the global spandex market is projected to reach $12.45 billion by 2032, the ‘green’ elastane sub-sector is growing at double the rate of conventional fibers. This milestone is about strengthening our foundation so we can continue to lead in comfort and lasting performance, states Gary Smith, CEO. By insulating its balance sheet from past debt burdens, Lycra intends to accelerate its ‘high-tenacity’ product roadmap, ensuring that its proprietary brands like Coolmax and Thermolite remain the technical standards for the global athleisure industry.

The Lycra Company is a Delaware-based pioneer in elastane and performance fibers, serving 80+ countries. Originally a DuPont division founded in 1958, it now leads the $9 billion spandex market. The current restructuring aims to stabilize finances following a 2022 ownership change, positioning the firm for a sustainable, bio-based manufacturing future.

  

Authentic Brands Group (Authentic) has partnered with New York-based C-Life Group to design, manufacture, and distribute apparel for the iconic racquet sports brand, Prince. Announced in mid-March 2026, this strategic alliance aims to elevate Prince from a traditional equipment manufacturer into a comprehensive lifestyle and performance apparel label.

The multi-year partnership covers a broad spectrum of categories, including on-court activewear, off-court sportswear, outerwear, and swimwear for men, women, and children across the United States and Canada. By leveraging C-Life Group’s vertically integrated sourcing model and extensive retail relationships, Authentic intends to capitalize on the ‘tenniscore’ aesthetic, which has seen a 24 per cent growth in demand for fashion-forward court silhouettes over the past year.

Strategic capitalization on the racquet sports resurgence

The reintroduction of Prince apparel is timed to intersect with the escalating global participation in tennis, padel, and pickleball, which now encompasses over 106 million players worldwide. The first collections are slated for a Summer 2026 launch, targeting key retail channels that bridge the gap between specialty sports shops and premium department stores.

Industry data projects, the Americas tennis apparel market will grow at a CAGR of 4.2 per cent through 2030, presenting a high-margin opportunity for Authentic’s asset-light business model. As racquet sports gain significant cultural and commercial momentum, we see a profound opportunity to scale Prince beyond the equipment bag, states Christina Martin Pieper, Executive Vice President, Authentic Brands Group. The initiative focuses on technical fabrics featuring UV protection and moisture management while maintaining a design language rooted in Prince's 50-year heritage of performance.

Prince is a premier racquet sports brand specializing in high-performance equipment and technical apparel. Operating as a core entity within the Authentic Brands Group portfolio, it targets global tennis, squash, and pickleball enthusiasts. The brand is currently executing an apparel-first growth strategy to leverage its legacy of racquet innovation for wider lifestyle retail dominance.

  

Lulus is fundamentally restructuring its distribution model to move beyond its direct-to-consumer origins, securing high-visibility placements on Amazon and the Victoria’s Secret digital storefront. Finalized in mid-2026, these strategic integrations represent a calculated effort to leverage third-party traffic for aggressive customer acquisition. By listing its signature $100 occasionwear on Amazon, Lulus joins a growing cohort of premium labels seeking the logistical efficiency of a global marketplace.

Simultaneously, the partnership with Victoria’s Secret allows the brand to cross-pollinate with a highly loyal lingerie audience, positioning its event-driven dresses as a natural ‘lifestyle extension’ for existing shoppers. This multi-platform approach is essential for maintaining growth as digital marketing costs for independent webstores continue to rise across the apparel sector.

Scaling through physical retail and curated wholesale ecosystems

The brand’s broader wholesale expansion follows a successful rollout into all 350 Nordstrom locations and increased floor space at Urban Outfitters and Dillard’s. This physical footprint provides a necessary touchpoint for ‘high-intent’ shoppers who prefer tactile engagement before purchasing event-specific attire. Industry data indicates, brands adopting a hybrid wholesale-DTC model often see a 15 per cent to 20 per cent uplift in brand recall compared to purely digital entities.

While expanding into curated ecosystems like the clothing rental service Nuuly, Lulus is successfully insulating its margins by balancing high-volume marketplace sales with prestige department store presence. Despite the challenge of maintaining brand exclusivity while scaling on mass platforms, the company remains focused on its 2026 objective to double its wholesale revenue contribution to the total group turnover.

Lulus is a California-based fashion house specializing in accessible luxury and event-driven dresses. Originally a vintage boutique founded in 1996, it has transformed into a data-driven retail giant targeting Gen Z and Millennial women. The brand is currently prioritizing wholesale expansion and third-party marketplace integration to sustain its double-digit revenue growth.

  

The Spanish apparel giant Mango has appointed Sara Donninelli as its new Brand Director, signaling a decisive move to integrate luxury-market sensibilities into its high-street operations. Donninelli, whose professional pedigree includes significant tenures at Prada and Valentino, joins at a time when Mango is outperforming broader sector averages with a record turnover exceeding €3.1 billion. This leadership change is intended to refine the aesthetic direction of the brand’s core divisions - Woman, Man, Kids, and Home - while reinforcing its Mediterranean heritage across 115 global markets. By shifting from a volume-centric retail model to one defined by brand equity, Mango is positioning itself to capture the growing ‘premium-casual’ segment, where consumers increasingly demand elevated design at accessible price points.

Executing the 4E roadmap through aggressive global expansion

Donninelli’s expertise will be instrumental in executing the final stages of the ‘4E’ strategic plan (Elevate, Expand, Earn, Empower), which targets a €4 billion turnover by 2026-end. To reach this milestone, the group is committing €600 million to infrastructure, including the opening of 500 new brick-and-mortar locations. A substantial portion of this investment is earmarked for the United States, where Mango aims to establish a top-five market presence. The strategy hinges on the success of higher-tier offerings like the ‘Capsule’ and ‘Selection’ collections, which utilize superior materials to drive transaction values. Industry data indicates that these premium lines are central to maintaining the brand's double-digit growth trajectory amidst a challenging global economic landscape.

Mango is a Barcelona-based fashion group specializing in trend-focused apparel for a global audience. The firm is currently undergoing a massive expansion in the UK and US markets to diversify its revenue streams. With a focus on digital-to-physical integration and high-quality design, the family-owned giant continues to set record-breaking financial benchmarks.

  

UK’s premier destination for responsible garment and textile procurement, Source Fashion plans to deploy enhanced meetings technology for the upcoming July 2026 edition. This will help the platform to facilitate data-driven matchmaking between audited manufacturers and sourcing professionals.

Besides, Source Fashion has also announced its relocation to Excel London for the upcoming edition. This strategic move follows a period of sustained commercial expansion, including a 12 per cent increase in attendance during the January 2026 show. The transition to the 100,000-sq-m campus at Royal Victoria Dock reflects a broader mandate to accommodate a rise in global participation, with 75 per cent of the floor space already rebooked by international pavilions. By leveraging Excel’s high-speed Elizabeth line connectivity, the event aims to improve accessibility for a growing base of overseas buyers and domestic retailers looking to diversify their supply chains amidst shifting global trade dynamics.

Integrating advanced technology and regional heritage

The July 2026 edition is set to prioritize meaningful commercial engagement through the deployment of enhanced meetings technology, designed to facilitate data-driven matchmaking between audited manufacturers and sourcing professionals. This digital integration complements the show’s ‘Fashion Deconstructed’ initiative, which emphasizes material intelligence and craftsmanship. While maintaining its global reach with exhibitors from India, Turkey, and Bangladesh, Source Fashion is also expanding its ‘British Heritage’ segment. Backed by a three-year, £500,000 investment plan, this initiative supports UK-based manufacturers in scaling their operations and gaining international visibility. Event Director Suzanne Ellingham noted that the relocation provides the necessary scale to evolve the show in alignment with the industry’s increasing demand for transparent and resilient manufacturing partnerships.

Source Fashion is a leading B2B trade platform owned by Hyve Group, dedicated to connecting global manufacturers with retailers committed to ethical production. Spanning raw materials to finished garments, the show focuses on major markets including the UK, Europe, and Asia. As Hyve Group reports its fourth consecutive year of double-digit growth, Source Fashion serves as a critical pillar in its ‘GO27’ strategy to build high-impact, tech-enabled event ecosystems.

  

Indias National Fibre Scheme decouples textiles from global supply risks

 

For decades the Indian dominated spinning, weaving, and garment exports while remaining paradoxically dependent on imported man-made fibres and specialty raw materials. This imbalance long viewed as the industry’s most persistent vulnerability has now become the focus of a sweeping policy overhaul. With the Union Budget 2026-27, the government has unveiled the National Fibre Scheme, a strategy designed to reposition India not just as a manufacturing hub but as a primary producer of high-value fibres. The programme is an attempt to secure upstream control over raw materials, reduce exposure to global supply disruptions, and align the domestic industry with the fibre composition of the modern global apparel market.

The initiative arrives at a critical moment. Global fashion supply chains are shifting toward synthetics, recycled fibres, and technical materials used in everything from performance wear to industrial textiles. India’s reliance on cotton, once a competitive advantage has increasingly left the industry mismatched with evolving demand patterns.

Rebalancing India’s fibre economy

The global textile economy now operates on a roughly 60:40 consumption ratio favouring MMFs over natural fibres. Polyester, viscose, nylon, and specialty technical materials dominate categories ranging from athleisure to medical textiles. Yet India’s fibre production structure still reflects its agrarian legacy, with cotton forming the backbone of domestic supply.

This imbalance has forced manufacturers to import synthetic inputs, particularly specialty fibres required for performance garments and technical applications. The National Fibre Scheme seeks to close that gap by scaling domestic capacity. Government projections indicate that India’s fibre production will rise from approximately 15.2 million metric tonnes in 2025 to 22.8 million metric tonnes by 2030-31. This increase is expected to reduce import dependency while boosting the country’s share in global fibre production.

The policy framework also anticipates a 22 per cent reduction in fibre imports within five years. By increasing local manufacturing of synthetic and specialty fibres, policymakers hope to insulate garment exporters from volatile international raw-material prices, a persistent challenge that has eroded margins in recent years.

Globally, India’s share of fibre production is expected to increase to about 8-12 per cent during the same period. If achieved, this shift would transform the country from a downstream processor to a strategically integrated textile economy.

Employment generation is another major focus. The policy estimate the creation of nearly eight million new jobs across fibre production, processing, technical textiles, and associated value chains.

Capital for a synthetic future

To increase the shift toward MMFs, the government has spread the scope of the Production-Linked Incentive programme for textiles. The scheme, has now been extended until March 31, 2026 to attract additional participants.

One of the most consequential policy adjustments has been the reduction of minimum investment thresholds. Large players that previously required a minimum commitment of Rs 300 crore can now participate with investments starting at Rs 150 crore. This will encourage mid-sized manufacturers to enter the synthetic and technical textile segments, so far dominated by a small group of integrated conglomerates.

Early indicators suggest the policy is gaining traction. By February 2026, the Ministry of Textiles had received 84 new investment proposals under the revised PLI framework. Together these projects add up investment of approximately Rs 10,789 crore.

Analysts view this wave of capital commitments as the first real sign that India’s manufacturing base is shifting toward the high-margin synthetic segment. Investments are expected to increase domestic production of polyester filament yarn, recycled fibres, and advanced technical materials.

Closing the upstream efficiency gap

For years, policymakers have argued that India’s aspiration to dominate the fibre-to-fashion value chain has been constrained by fragmentation in upstream supply networks. Cotton farmers, fibre processors, and textile manufacturers often operate in silos, leading to inefficiencies that affect the entire production system.

The National Fibre Scheme introduces a fibre-neutral policy framework intended to address this imbalance. Rather than favouring a single raw material like cotton, the new approach prioritizes technological innovation and supply readiness across all fibre categories.

An integral initiative is research and development. Government agencies and private laboratories are working toward the filing of more than 100 new patents in fibre engineering, including advanced synthetic blends, biodegradable polymers, and performance materials tailored for technical textiles. Also, agricultural reforms linked to the programme aim to improve raw-material quality through certified seed adoption and improved fibre grading systems. These measures are designed to raise the consistency and reliability of domestic fibre supply.

Another important aspect is rationalizing import duties on raw materials and intermediates. The objective is to create a balanced tariff structure that protects domestic manufacturers without inflating input costs for downstream producers.

Infrastructure for a fibre-to-fashion ecosystem

Scaling fibre production requires not only capital but also industrial infrastructure capable of supporting integrated manufacturing. This is where the government’s PM MITRA Mega Textile Parks programme plays a critical role. The seven parks planned under the initiative are designed as fully integrated industrial clusters where fibre production, spinning, weaving, processing, and garment manufacturing coexist within a single ecosystem. The concept aims to replicate the scale efficiencies seen in leading textile manufacturing nations such as China and Vietnam.

By early 2026, land acquisition for all seven parks had been completed. Infrastructure development projects worth Rs 2,590.99 crore are currently underway. The government expects these parks to function as anchor ecosystems for the National Fibre Scheme, providing the industrial backbone required to support large-scale synthetic fibre manufacturing.

Integrated parks also address one of India’s long-standing cost disadvantages: logistics inefficiency. By clustering production stages in a single location, manufacturers can reduce transportation costs, shorten lead times, and improve supply-chain transparency.

As the industry shifts toward synthetic fibres and advanced materials, workforce capabilities must also evolve. Traditional textile training programmes have focused on spinning and garmenting skills, leaving a gap in polymer science, technical fabric engineering, and automated processing systems.

The government’s Samarth skilling programme has therefore, been upgraded to address the labour demands of the next generation textile economy. The Samarth 2.0 initiative aims to train workers in specialised manufacturing processes associated with man-made fibres and technical textiles.

As of 2026, the programme has already skilled approximately 5.41 lakh individuals. Notably, women constitute around 88 per cent of these trainees, reflecting the sector’s continued role as one of India’s largest employers of female labour.

Sustainability and decarbonisation push

Indian manufacturers are increasingly aligning with environmental compliance expectations. For example, the collaboration between Arvind Limited and the innovation platform Fashion for Good under the ‘Future Forward Factories’ initiative. Launched in late 2025, the partnership produced the country’s first open-source blueprint for near-zero-emission dyeing and processing of both knitted and woven fabrics. The project focuses on integrating renewable energy sources with advanced dry-processing technologies that drastically reduce water consumption.

By retrofitting its facilities with these innovations, Arvind has shown that environmentally sustainable textile production can also increase export competitiveness. Global brands increasingly prioritise suppliers capable of meeting stringent environmental standards, making decarbonised manufacturing a strategic advantage rather than merely a compliance requirement.

The initiative also complements the objectives of the National Fibre Scheme, which emphasises innovation and sustainability as key drivers of long-term growth.

The road to a $350 billion textile economy

The National Fibre Scheme forms part of a broader policy architecture aimed at transforming India’s textile sector into a $350 billion industry by 2030. Achieving that scale will require rapid growth in three priority segments: MMF apparel, technical textiles, and sustainable garment manufacturing.

Export growth is central to this strategy. India’s textile exports currently hover around $37 billion, but policymakers have set an ambitious target of $100 billion by the end of the decade. Reaching that milestone will require a CAGR of 17 per cent, far higher than the sector’s recent growth.

Trade diplomacy is expected to play a crucial role. Ongoing negotiations for free trade agreements with the European Union and the United Kingdom could grant Indian textile exporters duty-free access to some of the world’s largest apparel markets. Such agreements would improve India’s competitiveness against rival exporters in Southeast Asia.

The integration of fibre production, advanced manufacturing, and sustainable practices could ultimately reshape India’s position within the global textile hierarchy. Instead of remaining a downstream assembler dependent on imported inputs, the country is attempting to control every stage of the value chain from molecular fibre engineering to finished garments.

Whether the National Fibre Scheme can fully deliver on its ambitious targets remains to be seen. Yet its intent is unmistakable: to convert India’s textile industry from a manufacturing powerhouse into a raw-material sovereign capable of influencing the global fibre economy itself.

  

In a strategic move to modernize its product development framework, Southampton-based Specialist Sports Group has transitioned from fragmented manual workflows to an integrated digital ecosystem. By adopting Product Lifecycle Management (PLM) and Purchase Order Management (POM) solutions from Discover e-Solutions (DeSL), the performance sports distributor is dismantling a legacy system of disparate Excel spreadsheets and email-heavy communication. This shift is designed to centralize critical data - ranging from Bills of Materials (BOMs) and size charts to Requests for Quotation (RFQs) - within a single, real-time platform. The digital overhaul addresses a common industry bottleneck where manual "copy and paste" tasks across design software often lead to data siloes and increased error margins in technical specifications.

Strengthening global distribution and procurement control

The integration extends beyond design into the commercial logistics of the brand, as the new system links directly with Microsoft Business Central to refine procurement cycles. This connectivity allows for more precise timing of purchase order placements, a critical factor for ensuring on-time deliveries within the competitive performance sports market. By utilizing a live portal for factory collaboration, Specialist Sports can now share high-accuracy product information with manufacturing partners and global brands like adidas without the traditional reliance on PDF exports and lengthy email chains. Amandine Tentelier, Head - Product Development, noted, centralizing this information provides the operational bandwidth necessary to reduce complexity as the agency scales its international presence.

Scaling operations for new athletic categories

This digital transformation serves as a foundational step for Specialist Sports’ broader ambition to diversify its portfolio into additional sporting categories. By automating the administrative burden of tech pack management and sample reviews, the agency is redirecting its internal capacity toward new product initiatives beyond its existing licensed teamwear operations. With over 30 years of experience in brand marketing and a warehouse infrastructure capable of global fulfillment, the adoption of AI-powered PLM tools positions the company to maintain high-quality control standards while increasing its total development volume. The transition signals a growing trend among mid-sized distribution agencies to leverage enterprise-level software to compete with larger, vertically integrated retail entities.

A UK-based performance sports distribution and brand marketing agency, Specialist Sports specializes in sales strategy, product creation, and logistics for global partners. The company manages comprehensive market entry and fulfillment services, supported by in-house creative teams and a dedicated global distribution network. To facilitate this growth, they have partnered with DeSL, a Cardiff-headquartered provider of AI-powered PLM and digital transformation software. Founded in 2002, DeSL delivers modular solutions for the fashion and footwear industries, focusing on improving speed, sustainability, and supplier collaboration across the global textile value chain.

  

The global shift toward digitized apparel supply chains has gained significant momentum as Shima Seiki MFG, Ltd. and CLO Virtual Fashion announce a strategic technical integration. This partnership addresses a long-standing friction point in the knitwear sector: the disconnect between high-fidelity 3D garment simulation and actual machine-executable data. By aligning Shima Seiki’s APEXFiz design software with CLO’s simulation engine, the collaboration moves beyond aesthetic visualization to create a functional digital thread. This development allows designers to transition from a virtual concept to a physical knitted product with a high degree of technical accuracy, effectively reducing the need for multiple physical prototypes and accelerating the traditional product development cycle.

Streamlining workflows through automated data exchange

Technical barriers that previously required the manual layering of material data are being replaced by a sophisticated ‘one-click’ import-export environment. Historically, designers using both platforms faced a fragmented process where material properties and structural settings had to be adjusted individually upon transfer. Under the new protocol, scheduled for a phased rollout starting in March 2026, Shima Seiki’s V-09C update will introduce a dedicated export function tailored for the CLO ecosystem. Concurrently, the CLO 2026.0 enterprise release will feature a specialized integration plugin. This automation is designed to optimize resources for large-scale manufacturers and independent labels alike, ensuring that digital assets are not only visually realistic but also structurally compatible with computerized flat knitting machines.

Expanding knitwear utility into the metaverse and gaming

The implications of this partnership extend into the burgeoning digital-only fashion markets, including gaming and the metaverse. By leveraging CLO’s strength in high-quality animation and movement simulation, knitwear designs created in APEXFiz can now be deployed in virtual environments with lifelike physics. This versatility opens new revenue streams for brands, allowing them to monetize the same digital asset across physical retail and virtual platforms. As the fashion industry faces increasing pressure to adopt sustainable practices, this "digital-first" approach provides a data-backed solution to overproduction by ensuring that a garment’s fit and drape are perfected in a virtual space before a single centimeter of yarn is consumed.

Headquartered in Wakayama, Japan, Shima Seiki has been a dominant force in the textile machinery industry since its inception in 1962. The company is renowned for inventing the WholeGarment technology, which allows for the production of seamless knitwear. Today, Shima Seiki focuses on integrating its hardware with advanced software solutions like APEXFiz to support a sustainable, on-demand manufacturing model. With a global presence spanning major fashion capitals, the firm continues to lead the industry’s transition toward Total Fashion Integration, combining mechanical precision with cutting-edge 3D design capabilities to improve fiscal and environmental efficiency for global retailers.

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