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UK’s fashion apparel retail is marked by the dynamic interplay between physical stores and e-commerce. While the digital space experienced an increase, particularly during pandemic lockdowns, the enduring appeal of in-store experiences remains a significant factor.
E-commerce growth and stabilization
The pandemic undeniably increased the spread of online shopping, with a notable rise in online apparel sales. The convenience and accessibility of e-commerce has strengthened its place in the retail sector. However, a significant shift is indicated by Next CEO Simon Wolfson, who says, the fact that they’ve returned to opening new stores, even in a modest way, reflects their belief that the biggest shift to online is behind us. This signals a potential stabilization in the rapid online growth seen in recent years. The British Retail Consortium stats show, the proportion of non-food purchases made online rose to 36.4 per cent in February 2025, up from 35.8 per cent the previous year. This reveals that online sales are still growing, but the rate of growth is slowing.
The resilience of physical stores
Despite the e-commerce boom, physical stores continue to hold significant value for consumers, particularly in the fashion apparel sector. Factors such as the ability to touch and feel products, try on clothing, and enjoy the social aspect of shopping contribute to the enduring appeal of brick-and-mortar stores. In fact, a Just Style study revealed that UK consumers still hold a strong preference for in person shopping when it comes to fashion. It noted that the key to success is in a seamless omnichannel strategy that integrates digital convenience with in-store shopping, ensuring customers get similar experience across all touchpoints.
Retailers like Marks & Spencer and Primark highlight the continued strength of physical store sales, with a significant portion of their customers preferring in-store shopping. And Next's decision to increase its physical retail space for the first time in over five years, planning a 0.4 per cent increase in its UK retail footprint by January 2026, reinforces this trend. This includes opening 10 new stores, relocating six existing ones, and converting two homeware stores into fashion outlets.
The most successful retailers are adopting an omnichannel approach, seamlessly integrating their online and offline presence. This involves offering services such as click-and-collect, in-store returns for online purchases, and utilizing digital technology within physical stores. This provides consumers with flexibility and convenience, catering to their diverse shopping preferences. The use of physical stores as distribution hubs, for click and collect, and for returns, is also becoming increasingly important for retailers. The blending of digital technology into the physical store experience, such as digital displays, and virtual fitting rooms, is also becoming more common.
Thus while e-commerce has seen significant growth, it's unlikely that physical stores will disappear. The future of fashion apparel retail lies in an omnichannel approach that caters to the diverse needs of consumers. Retailers who seamlessly integrate their online and offline presence will be best positioned for success.
The scent of mothballs, the rustle of tweed, the comforting weight of a well-worn leather armchair – these were once the hallmarks of fashion and apparel brands catering to an older, more traditional clientele. But in a world obsessed with youth and rapid trends, these venerable institutions faced a stark choice: fade into obscurity or reinvent themselves. The challenge is maintaining their core identity while attracting a new generation and staying relevant in a digital, fast-paced marketplace.
Shifting consumer perception
For decades, brands specializing in classic silhouettes and durable materials were synonymous with ‘old-fashioned’. This perception, coupled with a lack of digital presence and an aging customer base, threatened their very existence. The younger generation, raised on social media and influencer culture, saw these brands as relics of the past, lacking the dynamism and trend-forward approach they craved.
The primary challenges faced by these brands was the age stigma where the needed to overcome the association with ‘old’ and project a contemporary image. Balancing classic designs with modern trends and sustainability was also a concern.
Also, most had a digital disconnect without e-commerce, social media marketing, and online engagements. And bridging the generational gap and appealing to younger demographics too was an uphill task.
Tailoring a transformation
Now several brands have successfully navigated this transformation, demonstrating that heritage and modernity can coexist.
Marks & Spencer (M&S): Dramatic demographic shift
M&S, a British retail giant, provides a compelling case study of a successful turnaround. Once perceived as a brand primarily for older women, M&S has achieved a significant demographic shift, attracting a younger customer base. It started by introducing third-party brands targeting younger shoppers, such as Nobody's Child, expanding its appeal. The focus became more fashion-forward Focus emphasizing more trend-led and stylish clothing collections. Under the chairmanship of Archie Norman, a push to create fashionable clothes for all ages, shifting away from a focus on the over-55s was started. There was significant growth in online customers, with a notable decrease in the average customer age. Its share in the clothing market across all age ranges grew, with a disproportionate increase among under-35s.
As it adopted these changes M&S saw a significant drop in the average age of customers. It caught the attraction of 1.4 million new online customers, with an average age five years younger. Brand perception among younger women improved. The brand saw its strongest financial health since 1997. Market share within the clothing and home market went up. The shift from primarily catering to over 55's to targeting the 35+ customer has proven very effective.
Burberry: From trench coats to streetwear cred
Burberry, a British luxury brand known for its iconic trench coats and tartan pattern, faced the challenge of shedding its ‘stuffy’ image. Under the creative direction of Riccardo Tisci, the brand embraced streetwear influences, collaborated with influencers, and launched bold, contemporary designs. The brand leveraged digital platforms like Instagram and TikTok to engage younger audiences; collaborated with streetwear designers and artists to introduce limited-edition collections; reimagined classic pieces with modern silhouettes and unexpected details; and created a strong digital presence, and used online events and digital drops to create hype.
Now Burberry has successfully attracted a younger demographic while retaining its core identity, proving that heritage and modernity can be seamlessly blended.
Brooks Brothers: A classic cut with a modern twist
Brooks Brothers, a purveyor of classic American menswear, struggled to connect with younger consumers who perceived it as outdated. The brand responded by introducing slimmer fits and contemporary styles alongside its traditional offerings; collaborating with designers to create capsule collections that appealed to a wider audience; focusing on quality and craftsmanship, highlighting the enduring value of its products; heavily investing in online shopping experience, and using data to better understand their modern customers.
Now, Brooks Brothers is working to strike a balance between its heritage and modern appeal, demonstrating that classic style can be relevant in a contemporary context.
L.L.Bean: Outdoor legacy, digital future
L.L.Bean, known for its durable outdoor apparel and iconic Bean Boots, faced the challenge of reaching a digitally savvy audience. It began by investing heavily in its e-commerce platform and digital marketing; creating engaging content on social media, showcasing the versatility and durability of its products; partnering outdoor influencers and content creators; focusing on sustainability, and the long term value of their products.
Now L.L.Bean has successfully expanded its reach and attracted a new generation of outdoor enthusiasts, proving that heritage brands can thrive in the digital age.
Common strategies for change
These case studies highlight several common strategies employed by heritage brands.
Embracing digital transformation: Investing in e-commerce, social media marketing, and online engagement.
Balancing heritage and modernity: Reimagining classic designs with contemporary details and silhouettes.
Collaborating with influencers and designers: Reaching new audiences through strategic partnerships.
Focusing on quality and sustainability: Highlighting the enduring value of well-made products.
Data driven decisions: Using customer data to understand and cater to the changing customer.
Thus the reinvention of these heritage brands is a testament to their adaptability and enduring appeal. By embracing change while staying true to their core values, they are proving that age is just a number in the world of fashion and apparel. The story is not just about the clothes, but about the enduring quality, and the ability to adapt to a changing world.
The United States is a critical export destination for the Indian textile and apparel industry, with annual shipments reaching approximately $10 billion. The recent imposition of tariffs by the U.S. on these imports presents a complex situation. It offers a potential advantage while simultaneously exposing underlying vulnerabilities within the Indian manufacturing sector.
Initially, there was some optimism that India would be better positioned since it faces a 26% duty, lower than the duties imposed on key competitors like Bangladesh (37%), Vietnam (46%), and Cambodia (49%). However, this initial optimism may be premature, according to the calculations done by Wazir Advisors.
Initial optimism vs. Cost reality
Even with an 11% lower import duty than Bangladesh, Indian products might still be more expensive because the basic production cost in India is roughly 10-12% higher.
The numbers don't lie: A cost comparison
Here’s an example illustrating how India's higher production costs can negate the advantage of a lower tariff:
|
Bangladesh |
India |
|
|
FOB Price |
$5.00 |
$5.45 (9% higher) |
|
Old Duty |
$0.83 |
$0.90 |
|
New Duty |
$1.85 (@37%) |
$1.42 (@26%) |
|
Total |
$7.68 |
$7.77 |
India's narrow margin for price competitiveness
This calculation reveals that for products with an old duty rate of 16.5%, India will still be more expensive than Bangladesh if the Indian FOB price was 9% higher from the start. For most products, India's FOB price can only be about 7.2% to 8.3% higher for the final prices to be equal to those from Bangladesh. Otherwise, Indian goods will be more expensive, even with the lower tax.
Bangladesh's production capacity and supply chain inertia
Considering Bangladesh's larger production capacities and the reluctance of brands to change their supply chains for small cost differences, India's ability to significantly gain market share from Bangladesh in many product categories is limited.
India's path to gaining market share
India would have a slightly better advantage over other competitors. However, developing the necessary product-level competency and production capacities will be crucial for India to achieve substantial gains.
In a major step toward circular fashion, Yibin Grace has launched China’s first pilot facility for producing recycled textile dissolving pulp. Located in Sichuan, the new plant marks a significant milestone in transforming the viscose supply chain by replacing virgin forest fibre with circular alternatives.
The facility uses post-industrial and post-consumer textile waste from supply chain partners to produce high-quality, low-carbon dissolving pulp for man-made cellulosic fibre (MMCF) products such as viscose and lyocell.
With an initial capacity of 1,500 tonnes per year, the plant is part of Yibin Grace’s broader strategy to scale Next Gen fibre production to 60,000 tonnes annually by 2027. This aligns with China’s national goal of cutting textile waste by 30 per cent by 2030 and builds on innovations led by pioneers like Circulose. The development is seen as a strategic response to increasing pressure on global fibre supply due to climate-related disruptions like forest fires.
Canopy, a global environmental non-profit, welcomed the launch. “Expanding circular production positions the sector to withstand supply volatility and meet growing demand for low-impact materials,” said Nicole Rycroft, founder of Canopy. “This is just the beginning.”
Yibin Grace, a major MMCF producer with a total capacity of 450,000 tonnes per year, was also among the first to integrate Circulose recycled pulp in its viscose lines under the ReGracell brand. The company earned top environmental ratings in Canopy’s 2024 Hot Button Report and is recognized for avoiding sourcing from Ancient and Endangered Forests.
After 18 years of research, the Schneider Group has unveiled an innovative achievement in the world of fine fibres: the first-ever bale of Superfine Argentinian Vicuna. Known as the ‘Fiber of the Gods,’ this ultra-rare and luxurious wool has now reached an unprecedented level of excellence, officially recognized by the Guinness World Records.
Vicuna, long considered more exclusive than cashmere for its extraordinary softness, warmth, and rarity, was once reserved solely for Incan royalty. Now, Schneider’s newly developed batch takes the fibre to a new peak measuring just 11.7 microns in fineness and 29.3 millimetres in length, with a delicate light fawn colour. It is the finest Vicuna fibre ever recorded.
This exceptional result is the culmination of meticulous, years-long work by artisans who hand-selected fibres using lights and lenses, refining the process with dedication and skill. But this milestone is not only about luxury it is also a testament to Schneider’s deep-rooted commitment to sustainability and ethical production.
The group has played a key role in the conservation of the endangered vicuna species in Argentina, growing its population in managed areas from fewer than 800 to over 5,000. Schneider has worked closely with local communities, teaching sustainable animal management and donating fibres to support regional artisans, preserving local traditions and promoting shared growth.
“This bale represents the future of luxury an achievement of unmatched quality, made responsibly,” said the Schneider Group. “It is a symbol of patience, vision, and ethical craftsmanship.”
As this singular creation enters the market, all eyes are on who will be the first visionary brand to transform this ‘wonder of nature and sustainability’ into a masterpiece of fashion.
India needs to broaden the scope of its current Production-Linked Incentive (PLI) scheme to include sectors like textiles, states a new report by the State Bank of India (SBI). This assumes significance, especially in the wake of the recent announcement of reciprocal tariffs by the United States on several countries, including India, the report adds.
The report also proposes extending the scheme's duration by an additional three years and expanding its coverage to encompass new products. This strategy would not only boost investment in domestic industries but also enhance the competitiveness of Indian products in the international market, it adds.
Exports to the United States present a key area of potential growth for India. Industries such as textiles, apparel, and footwear could see an expanded market share as a result of higher tariffs on Chinese exports, the report opines
However, while United States has imposed a 26 per cent duty on Indian imports, India's tariff on American exports stands at 15 per cent, it points out. The two nations need to address this disparity by engaging in continued trade negotiations, it adds. India is reportedly considering significantly reducing duties on over $23 billion worth of American goods sold in India as part of a potential trade agreement, which could help alleviate this issue.
Furthermore, United States' reciprocal tariffs on countries like China, Vietnam, Bangladesh, and Indonesia could create advantages for Indian exporters, the report highlights. India can benefit from the anticipated reshaping of global supply chains, opening up new avenues for export growth. The textile sector is identified as one of the industries with significant potential to benefit from these shifts, the report affirms.
Khurram Mukhtar, Patron-in-Chief, Pakistan Textile Exporters Association (PTEA), says, despite the recent tariff adjustments, Pakistan maintains a competitive advantage over other textile-exporting nations, owing to its fully integrated supply chain, dedication to quality, and long-established trade relationships.
He emphasizes, although impactful, US actions should not be considered in isolation. The broader consequences of these tariffs will be determined by the global response, particularly concerning services offered by US companies overseas. These tariffs have the potential to set off widespread ripple effects across the global economy, he adds.
Highlighting the long-standing trade relationship between the two nations, Mukhtar notes, a significant importer of US Cotton for decades, Pakistan has been directly supporting American farmers and strengthening mutual economic ties between the two countries. The US administration needs to recognize this partnership and avoid policies that disproportionately harm Pakistan's exports, he adds.
He further points out, the elasticity assumptions commonly used in US tariff models may not accurately reflect the unique trade dynamics between the two countries. The US must take into account the real-world implications of these measures rather than depending on general assumptions.
To tackle these challenges, PTEA aims to actively engage with US trade officials and advocate for preferential market access. Simultaneously, the association aims to diversify export markets, enhance value addition, and urge the government to implement policies that support the industry.
As a gesture of goodwill and a strategic move to strengthen ties, Pakistan is prepared to give preference to key US imports such as cotton, says Mukhtar. Lowering tariffs on these essential commodities can pave the way for reciprocal measures from the US, leading to a more balanced and sustainable trade relationship, he adds
Expressing optimism, he states, PTEA aims to reach a constructive agreement with the United States Trade Representative (USTR) through mutual understanding and proactive dialogue. This will help Pakistan strengthen its trade position and further deepen economic cooperation with the US, he adds.
Contrary to analysts’ expectations of 1 per cent loss, denim company Levi Strauss posted a 3 per cent rise in revenues from continuing operations to $1.53 billion during Q1, FY25.
This excluded the sales from its brand Dockers, shows data compiled by LSEG.
A wholesale brand, Levi prioritises growth in its DTC channel as multi-brand retailers continue to struggle. Betting on steady demand for its denims and a diverse supply chain to navigate an escalating trade war that has hit footwear and apparel retailers, the company maintained its full-year forecast.
Similar to that experienced by rivals such as Abercrombie & Fitch and Gap, demand for wide-legged and skinny jeans by the company stabilized, despite shoppers being selective in spending on discretionary items. The company’s gross margin increased 330 basis points to 62.1 per cent during the quarter from 58.8 per cent in Q4, FY24. This growth was driven by lower product costs and a strong direct-to-consumer channel.
To streamline its operations, Levi plans to sell its brand Dockers, which has seen contracting demand in recent quarters. The company maintained its organic net revenue forecasts for fiscal 2025 as these remained umimpacted from the recently announced tariffs.
Though the company continues to operate in an uncertain environment, its global footprint, strong margin structure, and agile supply chain position it to navigate the balance of the year and beyond, says Michelle Gass, CEO, Levi Strauss.
To foster mutual cooperation and the exchange of ideas and information, the Cotton Association of India (CAI) has signed an MoU with the Australian Cotton Shippers Association (ACSA).
The MoU encompasses sharing of data related to cotton production, trade trends, global pricing, and market forecasts relevant to both countries. It was signed by Atul Ganatra, President, CAI and Cliff White, Chairperson, ACSA.
This bilateral MoU is expected to boost trade between the two nations and improve market access, as well as provide reciprocal support in facilitating discussions that benefit the interests of their respective cotton industries.
Highlighting the advantages of the Australia-India Economic Cooperation and Trade Agreement, which went into effect on December 29, 2022, Ganatra says, this agreement allows duty-free access for Australian cotton into India, with a specific quota of 51,000 metric tons per year. He also emphasizes on the need for greater collaboration and further strengthening of business ties between the cotton industries of both countries.
White delivered a presentation on the Australian cotton market at the event, which was attended by Indian farmers, ginners, brokers, and other delegates.
The global textile industry experienced a slight downturn in March 2025, according to the latest Global Textile Industry Survey (GTIS) released by the International Textile Manufacturers Federation (ITMF). While the sector had shown a slow but steady recovery since November 2023, recent findings reveal a more complex picture marked by regional divergence, cautious optimism, and persistent structural issues.
Business sentiment deteriorated slightly at the global level, though East Asia and North & Central America saw marginal improvements from low baselines. Garment producers remained the most resilient across the textile value chain. Despite current challenges, expectations for the fourth quarter of 2025 were generally optimistic, particularly in Africa and the Americas. East Asia, however, stood out for its more pessimistic outlook. Producers of garments, fibres, and finished fabrics expressed the strongest optimism, in contrast to subdued expectations in the technical and home textiles segments.
Order intake, which had been recovering, lost momentum in March. East Asia and Europe saw declines, while South-East Asia remained stable. Garment producers led in maintaining order volumes. Globally, order backlogs dropped slightly to an average of 2.2 months, with Europe outperforming due to its robust manufacturing base. Capacity utilization stood steady at 73 per cent, bolstered by strong performance in Asia.
Inventory levels started to rise, particularly among yarn producers, while garment manufacturers maintained lean stocks in response to market uncertainty. Demand remained the biggest concern, cited by 62 per cent of respondents, followed by geopolitical tensions (41 per cent). Although concerns over energy and raw material costs eased slightly, worries about interest rates and new sustainability regulations are intensifying, pointing to ongoing challenges ahead for the global textile sector.
