India’s textile and apparel (T&A) sector entered FY2027 with a striking internal contradiction. While the country’s overall merchandise exports increased 18 per cent year-on-year to cross $45 billion in May 2026, the textile and apparel sector moved in the opposite direction, exposing a growing divide between upstream textile manufacturing and downstream garment production.

Latest Confederation of Indian Textile Industry (CITI) data shows India’s textile base that includes spinning, weaving and value-added fabric production continues to show resilience. Apparel exporters, however, are grappling with tariff disruptions, rising competitive pressures and changing global demand patterns. The result is a sector split between a growing raw-material and intermediate-goods business and a struggling finished-garment segment.

This difference has become significant enough to reshape the contribution of T&A to India’s export basket. In May 2026, the sector’s share of total merchandise exports declined to 6.69 per cent from 8.35 per cent a year earlier, despite the broader export economy recording strong growth.

Textile exports find stability

The textile segment emerged as the brighter spot in May. Total textile exports rose 2.47 per cent year-on-year to $1.73 billion, while cumulative exports for April-May 2026 increased 3.03 per cent to $3.40 billion. A closer look of core textile categories excluding jute and carpets reveals a sector benefiting from steady global demand for fibres, fabrics and artisanal products.

Table: Core textile export performance (excluding jute & carpets)

Cotton-based products remained the backbone of the sector, generating nearly $985 million in exports during May. Even amid domestic debates over cotton availability and import policies, Indian spinning and weaving mills continued to secure overseas orders.

The strongest momentum came from handicrafts excluding handmade carpets. Exports from this category jumped nearly 24 per cent in May and over 25 per cent during the first two months of the fiscal year, underscoring growing international demand for premium, handcrafted and culturally distinctive Indian products. Another notable development was the sharp 43.18 per cent rise in cotton raw and waste imports during May. Rather than indicating weakness, the rise reflects mills importing higher-grade fibre to meet stringent international quality specifications and maintain export competitiveness.

The experience of several spinning units in southern India reveals this shift. Following the reinstatement of Quality Control Orders (QCOs) on certain fibre imports, many manufacturers moved away from low-cost synthetic blends and invested in higher-value cotton-based production. The strategy helped preserve export opportunities in premium markets, particularly Europe, where traceability and sustainability have become critical purchasing criteria.

Apparel faces a perfect storm

The resilience visible in textiles has not extended to ready-made garments. Apparel exports fell 14.17 per cent year-on-year in May 2026 to $1.30 billion. The cumulative picture was equally challenging, with exports declining 12.98 per cent during April-May. Stakeholders attribute the drop to a combination of global trade disruptions and structural competitiveness issues. The US, India’s largest apparel market, remained a major source of pressure. Tariff increases over the past year forced many exporters to absorb part of the additional costs through price reductions, squeezing margins and reducing export earnings even where shipment volumes remained stable.

Europe presented another challenge. The suspension of preferential trade benefits at the start of 2026 increased duties on Indian apparel exports, placing suppliers at a disadvantage against competitors such as Bangladesh, Vietnam and Pakistan that continue to enjoy more favourable market access.

At the same time, India’s product mix remains heavily skewed toward cotton apparel, while global demand increasingly favours synthetic and performance-wear categories. Over 70 per cent of apparel demand in developed markets is now linked to synthetic-based products, yet synthetic-rich products account for less than 40 per cent of India’s apparel export portfolio.

Manufacturers in Tirupur, India’s largest knitwear hub, describe the current environment as one of survival rather than growth. Several exporters have accepted lower prices from overseas buyers to protect order volumes, effectively shipping more garments while earning fewer dollars. Many are now redirecting investments toward compliance upgrades, product diversification and preparation for future free-trade opportunities rather than expanding existing cotton-focused capacities.

Numbers behind the divide

The cumulative April-May data highlights just how sharply the sector has split into two distinct paths.

Table: Understanding the export gap

The data suggests that India has become more efficient at exporting fibres, yarns, fabrics and intermediate products, but faces growing obstacles when converting those materials into finished garments for international consumers.

Looking beyond FY2026

Despite current challenges, the medium-term outlook remains constructive. Industry observers expect apparel exports to stabilise over the course of FY2027 supported by easing tariff pressures and anticipated gains from trade agreements.

The India-European Union free trade agreement could significantly improve the competitiveness of Indian garments in one of the world's largest apparel markets. Industry estimates suggest India's market share in Europe could rise substantially once duty barriers are reduced. Similarly, new trade arrangements with West Asian markets are expected to create fresh opportunities for exporters seeking alternatives to traditional destinations.

For India’s textile and apparel industry, the message from May 2026 is clear. The country has strengthened its position as a reliable supplier of fibres, fabrics and specialised textile products. The next challenge is to translate that strength into higher-value garment exports. Success will depend on expanding synthetic capabilities, upgrading manufacturing technologies and leveraging emerging trade agreements to move further up the global value chain. Until then, India’s textile mills and garment factories will continue to tell two very different export stories.

ThredUp has officially entered the peer-to-peer (P2P) market with the launch of the ‘Direct Listing,’ service to bridge the gap between its traditional managed marketplace and the rising demand for seller-controlled distribution. By integrating this service directly into its existing platform, the company is shifting from a purely managed consignment model to a hybrid ecosystem. This development allows sellers to bypass the conventional ‘Clean Out’ bag process for high-value items, enabling them to set their own prices while utilizing ThredUp’s established technological infrastructure. According to James Reinhart, CEO this expansion is a strategic evolution to capture the ‘full spectrum’ of consumer resale needs, ensuring the platform remains the primary destination for both mass-market closet clearing and curated, high-end fashion transactions.

AI-driven efficiency in apparel resale

The introduction of Direct Listing comes as the global secondhand apparel market trends toward a projected $393 billion valuation by 2030. To maintain a competitive edge, ThredUp is deploying sophisticated AI tools that automate listing creation, pricing, and authentication, significantly reducing the friction that historically deterred individual sellers. The next phase of this market will be defined by who can best unlock supply and utilize AI to connect that inventory with the next generation of shoppers, noted Neil Saunders, Managing Director, GlobalData. By offering 0 per cent seller fees on these new listings, ThredUp is aggressively pursuing a greater share of the digital apparel trade, directly challenging fragmented P2P platforms while positioning its infrastructure as the backbone for both individual sellers and major retail brands.

Founded in 2009, ThredUp is a prominent online resale platform specializing in secondhand apparel, footwear, and accessories. Beyond its consumer marketplace, it provides Resale-as-a-Service (RaaS) to major brands, enabling circular retail programs. The company operates in the U.S. and Europe, prioritizing long-term growth through operational automation and scalable, technology-driven circular fashion solutions.

Onitsuka Tiger is preparing to re-establish its physical presence in the United States with a singular, high-profile flagship in Los Angeles, scheduled to open in February 2027. This move represents a marked departure from conventional retail expansion, opting for a restrictive, experience-driven model over rapid nationwide store proliferation. By concentrating its North American footprint into one marquee urban location, the brand seeks to cultivate a sense of geographic scarcity. 

This strategy aligns with its overarching transition into a standalone luxury lifestyle entity, distancing the brand from its heritage as a performance-based sports footwear manufacturer. 

Operational autonomy and market positioning 

The forthcoming Los Angeles storefront serves as a primary litmus test for the brand’s luxury ambitions following a total withdrawal from US physical retail in 2023. As Onitsuka Tiger prepares to spin off from parent firm Asics Corporation on January 1, 2027, this independent structure grants the brand the autonomy to manage its own retail and product cadence. Ryoji Shoda, CEO, OT Group, notes, the focus remains on ‘one very large store that clearly communicates the brand's direction’ rather than high-volume sales expansion. With premium silhouettes like the Mexico 66 already commanding price points near $190, the brand is successfully competing in a luxury tier that emphasizes heritage design and exclusivity rather than traditional mass-market sporting utility.

Renowned for premium lifestyle apparel

Founded in 1949, Onitsuka Tiger is a Japanese label renowned for its retro-inspired footwear and premium lifestyle apparel. Following its 2026 sales growth of 34 per cent, the brand is transitioning into an independent luxury entity under Asics, focusing on high-margin collections, global flagship expansion, and elevated consumer experiences. 

Italian heritage house Max Mara recently marked its 75th anniversary with a high-profile Cruise 2027 presentation at Shanghai’s Long Museum. By bypassing traditional fashion capitals like Milan or Paris in favor of the Bund, the brand underscored a broader industry pivot toward Asia-Pacific as the epicenter of luxury engagement. This departure from conventional European-centric marketing highlights a strategic priority for houses to deepen regional connections through immersive, experience-led events that resonate with local demographics rather than relying on globalized messaging.

Curation as commercial currency

The event featured ‘The Max!’, a retrospective exhibition curated by fashion historian Olivier Saillard. This move reflects a growing trend in luxury retail where heritage storytelling serves as a vital tool for brand equity. The archives are never static; they are the bedrock of our future creativity, noted Maria Giulia Prezioso Maramotti, Board Member. By contextualizing its signature outerwear - such as the iconic 101801 and Teddy Bear coats  - alongside the new collection, Max Mara successfully transformed a sales-driven runway into a narrative-led exhibition, capturing the attention of a younger, value-conscious cohort.

Market context and resilience

This shift arrives at a critical juncture for the luxury sector, which is currently managing shifting consumer demands toward sustainability and authenticity. With the Italian luxury goods market projected to maintain a steady CAGR, brands like Max Mara are focusing on direct-to-consumer relationships and experiential retail to drive growth. By maintaining its identity while adapting its distribution and engagement strategies, the house demonstrates a blueprint for enduring relevance in a volatile global market.

Renowned for precison-tailored womenswear and coats

Founded in 1951 by Achille Maramotti, Max Mara is a family-owned Italian luxury house renowned for its precision-tailored womenswear and iconic coats. Headquartered in Reggio Emilia, the brand operates globally with a focus on high-quality materials and ‘quiet luxury.’ It continues to prioritize long-term heritage expansion and modern retail experiences.

Harper's Bazaar

The global spinning machinery landscape is undergoing a significant transformation, with market valuations projected to reach US$ 8.3 billion by 2033. This growth trajectory is underpinned by a fundamental shift toward Industry 4.0 standards, where textile manufacturers are prioritizing the integration of IoT-enabled monitoring and artificial intelligence to optimize fiber-to-yarn production. As production facilities seek to mitigate rising labor costs and enhance output consistency, capital investment is increasingly flowing toward fully automated ring and rotor spinning platforms. Industry data confirms, approximately 47 per cent of global textile mills are actively pursuing machinery upgrades to incorporate real-time energy monitoring and automated piecing systems, effectively targeting a 12 per cent to 18 per cent reduction in energy expenditure per kilogram of yarn produced.

Technical textiles fueling niche demand

Beyond the conventional apparel sector, the demand for sophisticated spinning solutions is being heavily influenced by the expansion of technical and industrial textiles. The production of high-tenacity yarns for automotive nonwovens, medical filtration materials, and protective workwear currently commands a premium market position, with selling prices 40 per cent to 65 per cent higher than standard commodity yarns. This segment shift provides a compelling return-on-investment case for mills to deploy high-specification machinery capable of processing sustainable materials like recycled polyester and Tencel. While high initial capital requirements and raw material price volatility remain persistent challenges, the strategic push for localized, high-performance manufacturing in markets such as India and Vietnam is expected to sustain robust demand for advanced machinery throughout the forecast period.

Maintaining a steady growth outlook

The textile machinery industry designs and manufactures essential equipment for yarn production, weaving, and finishing. Key market segments include ring, rotor, and air-jet spinning systems. Current growth plans emphasize energy efficiency, digitalization, and circular economy compatibility. The sector maintains a steady financial outlook, driven by consistent replacement cycles and emerging market industrialization. Historically, the industry has evolved from mechanical looms to the modern smart-factory models currently defining global production. 

The Dallas retail landscape is witnessing a surge in high-profile arrivals as Philadelphia-based activewear brand Addison Bay prepares to establish its first Texas storefront on Knox Street this September. Occupying a 3,603-square-foot space at 3212 Knox Street, the brand’s entry signals a shift in the neighborhood’s identity, moving toward a highly curated, lifestyle-centric destination. This expansion is part of a broader trend where digitally native brands are increasingly prioritizing physical footprints in walkable, high-density hubs to foster direct community engagement. We were looking for a location that felt approachable and energetic," notes Marguerite Adzick,Founder, emphasizing, the store is designed to facilitate styling appointments and community activations, moving beyond the traditional transactional retail model to support a comprehensive 7 am to 7 pm wardrobe philosophy.

Curating the future of high-end commerce

Addison Bay joins a significant roster of luxury and lifestyle tenants, including Doen, Staud and Toteme, which are also establishing their first standalone Texas locations within the district. This influx of premium brands aligns with the ongoing delivery of the Knox Street mixed-use development - a project involving a partnership between Trammell Crow Company and BDT & MSD Partners. As the neighborhood readies for the fall 2026 opening of The Knox Hotel and Residences, Auberge Collection, commercial real estate analysts observe that Knox Street is successfully capturing a premium market position. With asking rental rates in North Central Dallas rising over 7 per cent Y-o-Y, the district’s ability to attract these brands underscores its status as a critical nexus for both national retailers and the affluent Dallas consumer base.

A women’s activewear and lifestyle brand, Addision Bay focuses on versatile, high-performance apparel designed for seamless transition from fitness to daily activities. Key markets include Philadelphia and Naples, with its new Dallas outpost serving as a strategic entry point for Southern expansion and future growth.

French sporting goods leader Decathlon has inaugurated its latest retail destination in Delémont, marking a strategic expansion into the Swiss Canton of Jura. This launch serves as a focal point for the company’s objective to integrate sustainable service models directly into its physical retail network. By embedding dedicated technical workshops within the store, the company is shifting its regional value proposition from simple product turnover toward lifecycle management. These onsite facilities prioritize maintenance and repair, directly supporting the brand’s commitment to extending the functional lifespan of sporting equipment for outdoor enthusiasts across the region.

Data-driven growth in competitive markets

The Delémont opening contributes to a broader, aggressive expansion strategy that aims to reach a baseline of 100 strategic points of sale across Switzerland. This growth trajectory is underpinned by strong financial momentum; in 2025, the Decathlon Group reported net sales of €16.8 billion, with profitability metrics showing significant strength, including a 16 per cent rise in net income. As Decathlon scales its physical footprint, it is simultaneously accelerating its circular economy initiatives- such as buy-back programs and second-hand sales - which are now active in 43 markets. Our ambition is to decouple business growth from our carbon footprint while ensuring sports remains accessible to all, noted a company spokesperson regarding the firm's 2026 sustainability mandates. The integration of these repair services acts as a primary catalyst for customer retention, aligning with a global retail trend that emphasizes product durability as a cornerstone of brand loyalty.

Maintaining an integrated business model

Founded in France in 1976, Decathlon is the world’s largest sporting goods retailer, offering a wide array of technical gear and apparel. The company maintains an integrated business model covering design, production, and distribution. Currently present in 82 countries, Decathlon is focused on aggressive international retail expansion and long-term sustainability goals.

Abercrombie & Fitch Co entered into a multi-season collaboration with retail giant Target for its to expand the wholesale operations of its brand Hollister. Commencing June 28, 2026, ‘The Hollister Collection at Target’ will introduce a 60-item assortment across apparel, bedding, and home decor. This initiative marks Hollister’s inaugural entry into the lifestyle and home categories, aiming to capture significant foot traffic during the critical back-to-college shopping season. The collection, featuring iconic logos and signature seagull motifs, will be available both online and in the majority of Target’s physical store locations.

Strategic diversification amid consumption shifts

This wholesale expansion serves as a calculated maneuver to maintain top-line growth as Abercrombie & Fitch contends with cooling consumer sentiment and persistent inflationary pressures. While the company reported a 1.5 per cent Y-o-Y revenue increase in Q1 2026, Hollister sales have remained relatively flat. By integrating into Target’s high-traffic ecosystem, the brand seeks to secure a broader customer base and bolster its presence in the competitive $89 billion back-to-college market. The partnership allows the brand to amplify their lifestyle positioning through a proven retail channel, balancing their direct-to-consumer focus with broader wholesale visibility, notes Corey Robinson, Chief Product Officer, Abercrombie & Fitch.

Operational resilience and future outlook

The move underscores a wider industry trend of legacy retailers utilizing high-profile brand collaborations to differentiate their assortments. Beyond the immediate seasonal impact, the strategy forms part of a broader fiscal effort to navigate rising tariff costs and supply chain complexities. As the company continues its store optimization program  - targeting approximately 30 net new openings for 2026 - this wholesale integration provides an asset-light vehicle for volume growth. Market analysts view the collaboration as a vital catalyst for the second half of the year, potentially stabilizing margins as the company manages promotional activity and inventory levels across its North American and international portfolios.

Abercrombie & Fitch Co. is a global specialty retailer operating the Abercrombie, Hollister, and Gilly Hicks brands. It provides apparel, accessories, and home goods across North America, Europe, Asia, and the Middle East. Headquartered in New Albany, Ohio, the company focuses on digital-first retail, store-based experience, and strategic wholesale partnerships.

Currently underway at the International Convention City Bashundhara in Dhaka, the 18^th edition of Intex Bangladesh has positioned itself as the critical nexus for the future of the nation’s $45 billion apparel export sector. With over 300 international booths, the exhibition marks a departure from traditional volume-centric sourcing, emphasizing instead the industry's rapid transition toward advanced man-made fibers (MMF), technical textiles, and circular economy solutions. By hosting major delegations from India, China, and Taiwan, the platform serves as a vital bridge for Bangladeshi garment manufacturers seeking to diversify their supply bases beyond cotton to meet the sophisticated demands of global buyers.

Strategic integration of high-performance materials

This year's event highlights a significant shift toward ‘value-added’ manufacturing, with specialized pavilions dedicated to functional fabrics, performance textiles, and eco-friendly chemical processing. As global brands demand greater traceability - facilitated at this year’s show through partnerships with entities like TextileGenesis - manufacturers are under pressure to adopt transparent, sustainable production methods. The emphasis has clearly transitioned from mere capacity to qualitative capability, noted a senior trade analyst present at the exhibition. With live matchmaking sessions and industry-led seminars, the event is actively fostering long-term commercial alliances that prioritize resource efficiency and supply chain resilience against fluctuating utility and raw material costs.

Navigating the complexity of global sourcing

For the broader textile ecosystem, Intex Bangladesh 2026 serves as a litmus test for the industry's ability to remain competitive amidst intense regional rivalry. While the sector faces challenges ranging from rising energy overheads to the requirement for more rapid compliance certifications, the high level of international participation underscores Bangladesh’s enduring status as a cornerstone of the global apparel value chain. By facilitating direct access to next-generation raw materials and dyeing innovations, the exhibition provides the essential infrastructure for local manufacturers to elevate their product offerings, ultimately strengthening their bargaining position with tier-one global retailers.

Intex South Asia is a premier international B2B textile sourcing exhibition series. It connects global fiber, yarn, fabric, and accessory suppliers with South Asian garment manufacturers. The platform aims to foster cross-border collaboration, technological adoption, and sustainable sourcing practices to drive competitiveness in the regional and global textile markets.

A subsidiary of the Dhaka-based Evince Group, Evitex Apparels has been awarded the prestigious Gold Supplier Status by global retail powerhouse LC Waikiki. This accolade, conferred during the LC Waikiki Supplier Partnership Certificate Ceremony held in Istanbul, recognizes the facility's superior performance throughout the March 2025 to February 2026 evaluation cycle. Outperforming more than 128 other suppliers within the retailer's Bangladesh network, Evitex distinguished itself through exceptional metrics in operational efficiency, production quality, and timely delivery.

Sustainability as a competitive edge

The recognition underscores a strategic alignment between Evitex’s green manufacturing agenda and LC Waikiki’s growing focus on responsible sourcing. Already LEED Gold-certified, the Bangladesh-based manufacturer has leveraged its investment in resource-efficient infrastructure to meet the rigorous compliance standards required by the global retailer. Shah Rayeed Chowdhury, Director of Evince Group, noted that the award serves as both validation of current practices and a catalyst for further innovation. By securing this top-tier status, Evitex reinforces its position as a high-value partner in an increasingly quality-conscious global apparel market, where retailers are tightening vendor lists to favor suppliers who can demonstrate both environmental stewardship and consistent volume output.

Deepening international collaborative ties

Beyond the formal award, the recognition facilitates deeper strategic integration. During the ceremony, the Evince Group delegation participated in the 9^th S7 Overseas Quotation Event in Istanbul, a platform designed to align long-term growth strategies between international manufacturers and LC Waikiki’s leadership. For the broader textile sector, this development highlights the shifting dynamics in global apparel sourcing; as brands pivot toward "preferred" status models, manufacturers that integrate sustainable, tech-enabled operations—like Evitex—are better positioned to retain market share despite the ongoing economic pressures and intense global competition currently shaping the industry.

Evitex Apparels is a prominent Bangladesh-based garment manufacturer and a concern of the Evince Group. The company specializes in producing shirts, blouses, and trousers for international brands. Committed to sustainability, it holds LEED Gold certification. It aims to scale its production capacity and enhance its global footprint.