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The Confederation of Indian Textile Industry (CITI) analysis for October 2025 confirmed the deepening crisis stemming from the 50% reciprocal US tariff, with overall Apparel exports recording a sharp 12.88% year-on-year decline. The most critical data confirming the tariff impact is the month-on-month (MoM) collapse of shipments to the US, India’s largest market. Exports to the US plunged approximately 20% between August and September (the first full month of the levy), a drop that wiped out over $1.3 billion in shipment value.
Although US-bound shipments saw a minor MoM recovery in October to $6.3 billion, CITI Chairman Ashwin Chandran warned, "The sustained pressure demands aggressive market recalibration, especially as Textiles and Apparel are among the hardest hit sectors." The T&A share in total national exports dipped to 7.76% in October.
In response to the US uncertainty, the industry is accelerating its pivot towards non-traditional markets. Data for Q2 FY26 showed significant growth in emerging destinations, with exports to Japan rising 19% and the UAE climbing 14.5%. The government's recently approved Export Promotion Mission is intended to provide structural support, especially for MSMEs struggling with affordable finance.
Simultaneously, major integrated firms, like Alok Industries, are prioritizing compliance with looming EU sustainability regulations and investing in technical textiles, a segment forecasted to reach $45 billion by 2026. This focus on "green compliance" is emerging as the industry’s central long-term growth plan, replacing reliance on price competitiveness alone.
While China’s overall personal luxury market saw a contraction of 15-20% in 2024, the Guo Chao (National Tide) cultural movement is fueling a significant boom for local apparel brands that fuse Chinese heritage with contemporary design. This trend reflects a crucial shift where younger consumers prioritize cultural authenticity and value over foreign brand status.
Heritage brands turn performance stars
Domestic powerhouses in the apparel sector are reporting impressive growth, capitalizing on this new cultural confidence. Bosideng, China's largest down clothing company, reported record results for the FY2024/25, with revenue climbing 11.6% year-over-year to 25.90 billion RMB ($3.62 billion). Similarly, sportswear giant Li-Ning reported a 2.3% year-over-year revenue growth in the first half of 2024, significantly outpacing some global competitors.
The ‘Guo Chao’ advantage
These domestic success stories are driven by Neo-Chinese Style product innovation, which incorporates traditional motifs and artisanal techniques into modern silhouettes. For brands like Bosideng, this strategy has involved upgrading their product lines and digital engagement to resonate with Gen Z. This market pivot demonstrates that for luxury and premium apparel, the "Made in China" label now signifies unique design and cultural relevance, forcing global fashion brands to rethink their localization strategies.
The Make America Great Again (MAGA) is initiative aimed at breathing new life into US manufacturing, but its impact on the textile and apparel sector has created a stark paradox. While the industry is innovating and shifting towards high-tech production, the very trade policies intended to protect it are simultaneously a source of significant pain and decline.
The shift from threads to tech
The US textile industry is no longer competing in the global race for low-cost apparel. Instead, it has undergone a quiet revolution, focusing on high-tech and industrial textiles. These specialized products, such as those used in medical equipment and protective clothing, are where the industry is finding its footing and generating value. Data shows a moderate rise in the value of US yarn and fabric manufacturing, reaching $24 billion in 2023.
This turn is crucial, as the industry recognizes it can't fight on a level playing field with foreign competitors on price alone. It’s a move to reclaim relevance by focusing on what the US does best: innovation and advanced manufacturing.
The tariff backlash
While the Made in America push was intended to shield domestic companies, many in the industry argue that the tariffs have backfired, creating a ‘lose-lose’ situation. As one textile company CEO lamented, the tariffs are "hurting small exporters" and have led to "stalled investments" and even discussions of moving operations abroad. This sentiment is echoed by major fashion companies, with one reporting an estimated "gross incremental cost of approximately $250 million to $300 million" from the tariffs.
This is not just anecdotal; it is a direct consequence of a trade policy that is seen as "a policy misstep that goes against the US national interests." The tariffs disrupt established global supply chains, increasing costs for American companies that rely on imports to produce their goods. The result is a cycle where, as a Bloomberg report highlighted, US textile exporters are now finding themselves punished by the very policies designed to help them.
The Human Cost: Productivity up, employment down
The promise of job creation under the MAGA initiative has also been a complex and often contradictory story. The data reveals a troubling trend: while the industry is becoming more productive, total employment continues its long-term decline.
Table:
|
Year |
Labor Productivity Index (textile mills) |
Labor Productivity Index (apparel mills) |
Total employment |
|
2019 |
89.7 |
105.8 |
33,190 |
|
2023 |
94.4 |
110.78 |
N/A |
|
2024 |
N/A |
N/A |
270,700 |
Note: Data for employment in 2023 is not readily available, but the trend shows a consistent decline. Labor productivity is measured as output per hour.
This paradox is driven by a focus on automation and efficiency. Fewer workers are producing more output, which is a success from a productivity standpoint, but a failure from a job-creation perspective. As one analyst noted, it is a sad reality that while the industry is making a comeback, it may be a comeback that leaves many workers behind. The story of Made in America in the textile sector is a battle between modernization and protectionism, with the industry's future
Digital darling Kim Kardashian's Skims brand aggressively challenges legacy apparel giants with global store push.Skims, has solidified its status as a major market disruptor, achieving a staggering $5 billion valuation after securing a $225 million funding round. This new capital isn't just a financial win; it signals an aggressive shift from its roots as a digital-first, direct-to-consumer (DTC) success to a global physical retail powerhouse.
Skims, co-founded with CEO Jens Grede, achieved an estimated $750 million in 2023 revenue by championing inclusive sizing (XXS to 5X) and diverse skin tones—a strategy that directly undercut legacy brands like Victoria’s Secret. The brand’s product line, spanning shapewear, loungewear, and activewear, is now pivoting to brick-and-mortar.
The Physical Gambit
While Skims currently operates around 20 physical locations, Grede has declared the brand will become a "predominantly physical business" globally. This move is crucial for intimate apparel, allowing customers the essential try-on convenience that digital channels lack.
Skims challenges the athleisure king
The expansion into physical retail, combined with recent high-profile moves like the NikeSkims collaboration, positions the brand as Lululemon’s most potent new competitor in the $440 billion activewear market. The brand's ability to generate massive FOMO with viral product drops (like a 250,000-person waitlist for a simple dress) demonstrates a marketing engine legacy players struggle to replicate.
Skims is forcing retail reckoning, the future belongs to brands that can seamlessly merge digital hype with accessible, inclusive physical shopping experiences. Its performance and valuation prove celebrity influence, when paired with genuine product innovation and a smart retail strategy, can rapidly eclipse established market leaders.
The recent opening of COS (Collection of Style) at Bellevue Square in Washington State is a highly visible signal of the London-based brand's escalated campaign to dominate the "affordable luxury" niche in the competitive US market. Spanning 2,454 square feet and designed in-house, the store, reportedly featuring elements like sculptural furnishings and Armourcoat clay lime plaster, is an integral part of COS's Elevation Strategy, blurring the line between high-street retail and art installation to attract a discerning clientele. This move directly addresses a consumer shift toward conscious, quality-driven style that values longevity over fleeting trends.
The H&M Group’s quiet luxury counterpart
Founded in 2007 by the Swedish H&M Group, COS was established as the sophisticated sibling to H&M, offering contemporary, minimalist clothing at a mid-range price point. This historical positioning is now amplified by the broader "quiet luxury" movement, where, according to a brand director, customers are "looking for investment pieces... at an accessible level," bypassing conspicuous logos for quality and craftsmanship. The brand's focus on "modern style, designed to last" is reinforced by its emphasis on premium materials, including fine merino wool and innovative recycled textiles, differentiating it from ultra-fast fashion rivals.
Aggressive multi-channel expansion as a growth plan
The Washington State store's debut, which features the new Autumn Winter 2025 collection, is a continuation of a multi-pronged growth plan. Following a significant US wholesale entry via partners like Nordstrom in 2022 and high-profile showings at New York Fashion Week (NYFW), the physical expansion is designed to build brand awareness beyond its core online base. This strategic visibility is essential for the brand, which has successfully captured the attention of the fashion industry, recently jumping significantly in the Lyst Index, demonstrating strong consumer demand.
COS as a critical revenue driver and market challenge
The brand is a vital growth engine for the H&M Group, with its primary online store, cos.com, generating a robust US$725 million in revenue in 2024, with the US consistently identified as its largest market. However, this growth requires tackling the challenges faced by mid-tier brands. COS navigates this by investing heavily in experiential retail and refining its supply chain to justify its higher price point.
As Design Director Karin Gustafsson stated, the team focuses on making pieces that will last a long time "in terms of quality and relevance," countering consumer fatigue with disposable fashion. The new Bellevue location itself is a case study in this approach, replacing a long-standing Eddie Bauer store, signifying the shift from traditional outdoor retail to aspirational, design-focused contemporary fashion in prime retail real estate.
The beleaguered BEXIMCO Textile Division is set for a monumental resurgence, powered by a transnational financial lifeline that underscores a renewed global confidence in Bangladesh's manufacturing sector. The Japanese-Bangladeshi sustainability venture, Revival Group Co Ltd, has finalized an agreement to lease and restart the massive, shuttered textile complex, bringing back over 25,000 jobs lost following the facility's recent closure.
Multi-National financing boosts industrial revival
This ambitious project is receiving crucial support from the United States-based financing partner, Ecomilli, a firm established by non-resident Bangladeshi (NRB) professionals. The initial financial injection includes $20 million in back-to-back Letter of Credit (LC) facilities, with the potential to scale up to $100 million based on export performance. The global structure, Japanese expertise leading the management and US-backed financing providing the capital, mitigates risk and ensures governance.
"This is a statement of international solidarity with the Bangladeshi worker," stated Huda Mohammed Faisal, CEO and Co-Founder of Revival Group. He confirmed production is targeted to restart by December 2025. By 2027, Revival projects an annual profit of approximately $45 million (BDT 500 crore). This profit is strategically earmarked to support the repayment of BEXIMCO's colossal outstanding debts, which had pushed the division into default and closure. Crucially, REVIVAL is not liable for the old loans, focusing only on generating new value.
The BEXIMCO: A crisis of capital and governance
BEXIMCO, a major Bangladeshi conglomerate, was historically renowned for its Textile Division, which maintained a global supplier footprint for major retailers like Zara and Marks & Spencer. The division was fully vertically integrated, making it a key player in the Ready-Made Garment (RMG) supply chain. Before its closure in February 2025, it averaged $32 million in monthly exports.
The shutdown was precipitated by political turmoil, management crisis, and escalating loan defaults, totaling an estimated BDT 350 billion. The government had to intervene to ensure workers received their initial severance pay. The new plan leverages the facility's modern machinery and established buyer relationships. Revival will implement Japanese-style management and lean manufacturing principles while appointing a global audit firm for financial transparency, directly addressing the governance shortcomings that led to the original financial collapse.
The future of India’s textile and textile machinery sector is poised for exponential growth, driven by strategic international collaborations, notably the UK-India Free Trade Agreement (FTA) and the Singapore Comprehensive Economic Cooperation Agreement (CECA). This was the consensus at a high-profile networking event hosted by the India ITME Society in Singapore on October 29, 2025.
The event, "Fabricating the Future of Textile Industry—From Heritage to High-Tech," took place on the sidelines of the ITMA ASIA +CITME exhibition and gathered 183 delegates from over ten countries, including the USA, UK, China, Germany, and Singapore, signalling a strong global interest in the Indian market.
India: A promising hub for investment
Highlighting India’s immense potential, Rohit Kansal, Additional Secretary, Ministry of Textiles, Government of India, stated that India is already among the top global hubs for weaving and knitting machinery installations.
"India stands as the most promising global destination for textile machinery investment in the decade ahead," said Kansal. He emphasized the rapidly growing domestic market, with over 1.4 billion consumers, as a significant draw for global investment and collaboration.
The business program was part of a strategic push by the Indian textile and textile engineering industry to accelerate trade partnerships, technology sourcing, and manufacturing joint ventures, aiming for joint economic growth and mutual benefits.
UK-India FTA and a new global textile order
The recently concluded discussions surrounding the UK-India FTA garnered significant attention. Jason Kent, CEO of the British Textile Machinery Association (BTMA), described the alignment as a "once-in-a-generation opportunity."
"The UK-India FTA is about co-creating a new global textile order—one that is more balanced, more sustainable, and more forward-looking," Kent remarked. He envisions the FTA creating a platform where India’s manufacturing and digital talent meets the UK’s excellence in design, research, and sustainability.
Singapore-India ties and market resilience
High Commissioner of India to Singapore, Dr. Shilpak Ambule, observed Singapore's crucial role, noting it is India's 6th largest trade partner and the largest trade partner in ASEAN. Relations in the textile sector are strong, with India as a major garment supplier and Singapore serving as a hub for distribution, design, and retail.
The resilience of the Indian market was underscored by Ketan Sanghvi, Chairman of the India ITME Society, who pointed to a robust economy. He noted that the Indian consumer spend for the 2025 Diwali festival marked a 25% increase compared to 2024 figures.
Towards a $30 trillion economy
Representing the Indian textile sector, Hemant Sharma, President – Polyester, Reliance Industries Ltd., spoke on the industry's role as a driver of manufacturing growth, jobs, exports, and innovation.
"With strong policy support and the spirit of enterprise, the sector is set to consolidate its position as a global major—a truly responsible, resilient, and trusted sourcing hub for textiles, contributing to India’s journey toward a $30 trillion economy by the year 2047," Sharma affirmed.
The Indian delegation, led by Kansal, engaged in discussions with major institutional counterparts from across the globe, including the BTMA, the Taiwan Association of Machinery Industry (TAMI), the International Textile Manufacturers Federation (ITMF), and the Turkish Textile Machinery, Accessories Industrialists Association (TEMSAD).
The India ITME Society confirmed its commitment to continuing the dialogue and facilitating business at India ITME 2026, the most relevant textile engineering business event in S.E. Asia, scheduled to be held from December 4th to 9th, 2026, in Greater Noida, India.
The closure of over 200 garment factories, primarily small knitting and dyeing units, across Narayanganj has triggered a socio-economic disaster, transforming a labor crisis into an alarming law-and-order threat. With up to 50,000 workers estimated to be jobless, authorities are linking the mass unemployment to a sharp increase in theft, drug trafficking, and petty crimes.
Narayanganj is a crucial specialized node within Bangladesh's Ready-Made Garment (RMG) sector, an industry that dominates the nation's economy and contributes over 80% of its export earnings. The factories shut down largely focus on high-volume knitwear and dyeing, supplying essential product lines to major global brands. Factory owners, struggling to survive, blame the crisis on a combination of external and internal pressures. They cite "unethical buying practices" by international retailers who exploit suppliers by demanding short sales cycles and refusing to pay fair, full prices. Simultaneously, they face crippling domestic costs, particularly utility inflation, including a recent 33% gas price hike that decimated operating margins for the energy-intensive dyeing and processing plants. This domestic cost pressure, coupled with a persistent global order crisis, has made these smaller, less-resourced factories financially untenable. While the broader national RMG market is forecast for growth, the closures reveal a major rift: larger, technologically advanced, and green-certified factories, which benefit from a reduced 10% corporate tax rate, are absorbing market share and concentrating wealth, effectively pushing the smaller, less compliant units toward systemic collapse. The government's future-focused industrial plan prioritizes automation and efficiency over pure wage arbitrage, a transition that has severely disadvantaged the massive, unskilled workforce that is now on the streets.
Shein has postponed the rollout of five new concession stores across France, a strategic reversal prompted by customer backlash over unexpectedly high prices at its flagship Paris outlet. Department store operator, Société des Grands Magasins (SGM), announced the delay, aiming to "get around the table, improve the range, expand the spaces, and offer lower prices" for future locations. The decision follows a case study in Paris where in-store items, such as faux leather shorts priced at €41, were likened to Zara's premium range, confusing shoppers accustomed to Shein’s ultra-low online pricing.
This omnichannel hurdle is complicated by a severe regulatory environment. France is leading the charge against ultra-fast fashion, recently passing legislation that includes escalating environmental fees, up to €10 per item by 2030, and a blanket advertising ban. These challenges directly threaten the Chinese giant’s core C2M (Customer-to-Manufacturer) model which drives its profitability through rapid, algorithmically-driven, low-cost production.
Despite the European friction, Shein's growth plan remains aggressive. The company, which dominates the Gen Z market with millions of styles and is transitioning into a global marketplace for third-party sellers, projected ambitious financial performance, targeting $2 billion in profit and $58.5 billion in annual revenue by 2025. The French debacle underscores the central challenge facing Shein’s physical retail initiative: can the brand maintain its rock-bottom pricing identity while complying with stringent European sustainability laws?
The grand opening of the 80,000 sq ft Marks & Spencer flagship store at Cabot Circus marks a crucial moment, not just for the retail giant, but for the future health of Bristol's city centre high street. The £21 million investment signals a definitive shift in M&S's strategy and a massive vote of confidence in physical retail, four years after its previous Broadmead branch closure.
The new three-floor store, which has replaced the former House of Fraser anchor unit, is a key piece in M&S’s national 'store rotation' strategy—an ongoing plan aiming for 180 modern full-line stores across the UK by FY 2028. This move tackles the challenge of modern shopping habits head-on, focusing on an immersive, quality-led experience over outdated, expensive legacy stores.
New model, new momentum
The Cabot Circus store is a living case study of this new model. It combines a huge, modern 17,000 sq ft market-style Foodhall with a sprawling Fashion, Home, and Beauty offering, including one of the retailer's largest in-store beauty sections. The addition of a 200-seater Coffee Shop emphasizes the shift toward destination shopping—giving customers a reason to visit and stay longer.
For Bristol, this is a much-needed injection of life and optimism. The store is expected to attract an estimated extra one million customer visits to Cabot Circus annually, according to the centre's owner, Hammerson. This boost in footfall is critical for surrounding businesses in the city centre, which have faced challenges from online competition and the closure of major department stores.
Regional Manager Ali Ivery underscored this sentiment, stating: "Bristol, we are back. Our Cabot Circus flagship will be one of the most modern stores in the UK... It’s fantastic to be making such a significant investment in the city." The store has also created over 150 new local jobs, providing a welcome boost to the local employment market in the run-up to the crucial festive season.
The challenge ahead
Despite the celebratory queues for the opening, the long-term challenge for M&S and Cabot Circus remains: sustaining this city centre momentum against the backdrop of changing consumer spending and the continued success of out-of-town retail parks like The Mall at Cribbs Causeway. However, the store's central location, accessibility via public transport, and commitment to a comprehensive, high-quality offering—including products from over 1,200 Select Farm partners in the South West; positions it as a powerful anchor in the battle for the city's shoppers.
