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The United States apparel industry has established a commanding lead in the 2026 retail landscape, recording a 9.39 per cent Y-o-Y growth in January. According to the latest CNBC/NRF Retail Monitor data, clothing and accessories stores outperformed nearly every other discretionary category. This momentum follows a record-breaking holiday season where spending grew by 4.1 per cent, signaling a robust start to the first quarter. While broader retail sales, excluding automobiles and fuel, showed a moderate monthly uptick of 0.2%, the apparel segment’s high single-digit annual growth highlights a fundamental resilience in consumer demand for soft goods.
Economic fundamentals and technological integration
This fiscal strength is underpinned by healthy household finances and consistent real wage gains, which have effectively increased purchasing power despite a 2.4 per cent annual inflation rate. To maintain these margins, retailers are increasingly deploying advanced supply chain analytics and AI-driven inventory management. These technologies allow firms to stabilize price points and ensure product availability, even as the industry faces shifting tariff landscapes. Consumer spending continues to drive the broader economy forward, states Matthew Shay, President and CEO, National Retail Federation. Retailers are leveraging new technologies to ensure products remain affordable for American families.
Strategic optimization in a value-seeking market
Despite the strong start, the sector faces a structural shift toward value-seeking behaviors. Many retailers are responding by expanding private-label assortments and optimizing physical footprints to capture high-frequency microtrends. The ‘flight to value’ remains a dominant theme, as shoppers prioritize quality and brand trust over pure volume. Successful firms are those that have streamlined operations to balance artisanal appeal with industrial scale, ensuring they remain competitive against regional peers while navigating a "low-hiring, low-firing" labor market.
The CNBC/NRF Retail Monitor is a premier data-driven platform providing real-time insights into US consumer behavior by tracking actual, anonymized credit and debit card transactions. Launched to offer a precise alternative to traditional survey-based estimates, the monitor covers nine major retail categories. It currently tracks a sector transitioning toward a $350 billion valuation by 2031, focusing on digital integration and operational efficiency within the US domestic market. Metakeys: January 2026 retail sales, CNBC
As the February 2026 edition of White Milano commences in the Tortona district, the event marks a significant milestone with a 10 per cent Y-o-Y increase in the number of exhibiting brands. This growth reflects a broader industry trend where international designers now comprise 46 per cent of the show's roster. Amid a volatile retail climate, the fair has successfully doubled its international buyer presence, supported by the Italian Trade Agency (ITA). Significant delegations from the United States, China, and the United Arab Emirates are prioritizing the Milanese platform to secure partnerships that balance artisanal Italian heritage with modern supply chain efficiency.
Innovation in performance and technical textiles
A primary driver for the current season is the integration of high-performance materials into contemporary ready-to-wear collections. The ‘Secret Rooms’ initiative has highlighted designers like Susan Fang, whose ‘air-weave’ techniques demonstrate the increasing commercial viability of technical textiles in luxury apparel. Furthermore, the newly launched White Accessories area underscores a shift toward footwear and leather goods that utilize bio-based materials and recycled polymers. Sustainability is no longer a niche requirement but the baseline for entry into the European market, notes Brenda Bellei, CEO, M Seventy-White, during the opening roundtable.
Strengthening Middle Eastern and Asian corridors
White Milano’s parent company, M Seventy is leveraging the show’s momentum to expand into emerging markets, specifically through ‘The Circle’ in Riyadh. This strategic move aims to facilitate a two-way value exchange between European design houses and the growing Middle Eastern luxury consumer base. Simultaneously, collaborations with Chinese brand platforms are evolving from simple manufacturing outputs to co-creative models, reinforcing Milan’s position as the central nervous system of a more interconnected and resilient global textile ecosystem.
M Seventy-White operates as a premier international fashion incubator and trade platform, specializing in contemporary luxury and high-end accessories. Founded in 2002 and based in Milan, the group has launched renowned designers like Uma Wang while maintaining a strong foothold in European and Middle Eastern markets. Currently, M Seventy is executing a global expansion strategy centered on sustainable innovation and technical textile integration to achieve a target valuation of $350 billion for the broader Italian fashion ecosystem by 2031.
To be launched by the Central Board of Indirect Taxes and Customs (CBIC) on March 1, 2026, the Eligible Manufacturer-Importer (EMI) scheme allows textile manufacturers who lack formal Authorised Economic Operator (AEO) status to access duty deferral benefits for a two-year transition period. By deferring customs duties on essential raw material imports - such as specialty man-made fibers and high-end machinery - apparel exporters can optimize their working capital. Vivek Chaturvedi, Chairman, CBIC, notes, the framework utilizes advanced risk-assessment technologies to expedite cargo clearance, a move critical for the textile industry where seasonal lead times are increasingly compressed.
Bridging the compliance gap for global competitiveness For many small and medium-sized garment exporters, the rigorous audit requirements of Tier III AEO certification have historically acted as a barrier to entry. The EMI scheme serves as a strategic ‘on-ramp,’ granting these entities immediate operational advantages while they align their internal controls with international standards. This development is particularly timely as the industry aims to increase its share in the global apparel market, which is projected to reach $830 billion by 2027. The extension of advance customs rulings from three to five years further stabilizes long-term business planning, allowing manufacturers to lock in duty structures for multi-year export contracts without the risk of sudden fiscal revisions.
Strengthening logistics with technology-driven screening
The integration of machine learning into cargo screening marks a departure from traditional physical inspections, which have often delayed time-sensitive fashion shipments. A brief analysis of the Tiruppur knitwear cluster indicates that reducing customs turnaround by even 24 hours can improve the bottom line of an average exporter by 2-3 per cent. By fostering a trust-based administrative environment, the EMI scheme not only lowers transaction costs but also enhances India’s reliability as a sourcing destination. Industry stakeholders expect the draft framework to catalyze a new wave of capital investment in high-value technical textiles, as manufacturers leverage deferred duties to fund technological upgrades.
The Central Board of Indirect Taxes and Customs manages India’s customs, GST, and excise policies. By overseeing international trade gateways, the CBIC supports various industries through technology-led facilitation. Current growth plans focus on complete digitalization and trust-based compliance to improve India’s ranking in the global Ease of Doing Business index.
The federal government of Germany has launched Textile Factory 7.0 (T7), a landmark initiative in Mönchengladbach designed to transition apparel production from labor-intensive models to automated, high-margin ecosystems. Led by the Institut für Textiltechnik (ITA) at RWTH Aachen University, the facility serves as a ‘real-world laboratory’ where artificial intelligence and robotics are no longer experimental but operational. By integrating on-demand manufacturing and microfactory engineering, the project targets a drastic reduction in lead times, allowing European brands to compete with low-cost global hubs through speed and precision rather than headcount.
Regulatory compliance via DPP
The launch coincides with the 2026 rollout of the EU’s Digital Product Passport (DPP), which mandates full traceability for every garment. T7’s digital infrastructure is specifically built to automate this compliance, utilizing AI to track resource inputs and carbon footprints in real-time. As the global sustainable fashion market is projected to reach $11.78 billion this year, Germany is positioning itself as the primary exporter of the ‘Biosphere’ technology - a branch of T7 focusing on biotechnology-based materials and circular recycling systems that turn textile waste into high-quality virgin-equivalent fibers.
Economic resilience in a volatile market,
Industry data indicates, while traditional textile exports faced a 2.1 per cent contraction recently, the high-tech textile segment - including smart fabrics and bio-engineered materials - is forecast to drive a 3 per cent CAGR for the German market through 2033. The T7 project is a structural pivot,’ notes a spokesperson from the Association of the Northwest German Textile Industry. We are replacing the traditional supply chain with a networked, emission-free industrial estate that treats sustainability as a verifiable data point rather than a marketing claim. This shift is expected to generate specialized technical roles, offsetting the decline in conventional manufacturing positions.
A strategic alliance between ITA RWTH Aachen, Hochschule Niederrhein, and key regional industry associations, Textile Factory 7.0 focuses on high-value technical textiles and AI-driven apparel. The consortium manages Germany’s transition toward carbon-neutral production. Following its 2026 kick-off, the project aims to stabilize regional industrial performance, which currently contributes roughly 3.3 per cent to the global textile market revenue.
Scheduled for April 2026, the implementation of the India-UK Comprehensive Economic and Trade Agreement (CETA) is fundamentally reshaping the bilateral apparel landscape. Following the landmark women-led trade mission to London and Manchester this month, Indian exporters are moving to capitalize on the elimination of the 8-12 per cent import duties that previously hindered price competitiveness. This fiscal advantage places Indian manufacturers on equal footing with regional competitors such as Bangladesh and Vietnam. Industry forecasts suggest this tariff parity will catalyze a 30 per cent to 45 per cent growth in textile exports by 2030, as major UK retailers actively seek to diversify their supply chains away from over-reliance on single-source markets.
Sustainability and high-value specialization
The recent trade mission highlighted a critical shift toward value-added segments, including GI-tagged silks and ethically sourced handloom products. With the UK apparel import market valued at approximately $27 billion, Indian firms are targeting a market share increase from the current 6.6 per cent to over 10 per cent within 24 months. Large-scale operators like Gokaldas Exports and Arvind Ltd are expanding production capacities to meet this anticipated volume, specifically focusing on technical textiles and organic cotton. The zero-duty regime is not merely a cost-saving measure; it is a strategic entry point for high-end, sustainable Indian fashion into the British high street, noted a senior trade official during the London roundtable.
A $174 billion powerhouse and the nation’s second-largest employer, the Indian textile industry, is transitioning toward a $350 billion valuation by 2031. Key clusters in Tiruppur and Noida are prioritizing the UK as a primary growth territory for ready-made garments. Through aggressive capital investments and the adoption of the Double Contributions Convention to streamline labor costs, the sector aims to double its UK revenue to $4 billion by 2029, bolstered by a history of artisanal excellence and modern manufacturing scale.
Set to be held from June 3-5, 2026 at the Impact Center in Bangkok, the 2nd Asia Sourcing Show arrives as the textile industry maneuvers through a historic reconfiguration. With Thailand reporting the opening of 25 new textile factories in the past year alone, the event serves as a critical gateway for brands diversifying away from high-tariff zones. This ‘Bangkok Shift’ is data-backed: recent industry reports indicate, North American buyers have reduced their sourcing concentration in traditional top-three hubs from 61 per cent to 54 per cent, redirecting volume toward Southeast Asian markets that offer both technical sophistication and regional trade insulation.
Navigating the 17% tariff reality
Running concurrently, the Global Sourcing Summit 2026 will address the ‘new status quo’ where average effective tariff rates hover near 17 per cent - the highest since 1932. To remain competitive, Thai manufacturers are moving beyond volume, integrating Green Industry standards to meet the rigorous 2026 rollout of the EU’s Digital Product Passport. We are no longer competing on price wars but on innovation and verifiable sustainability, notes Dr Chanchai Sirikasemlert, Director, Thailand Textile Institute. This strategic focus targets the $11.78 billion global sustainable fashion market, utilizing AI-driven tools to automate the complex traceability now required by Western regulators.
Diversification and the multi-country sourcing model
As global supply chains lean into multi-country redundancy, the summit highlights a 42 per cent Y-o-Y rise in inspection demand across Southeast Asia. The 2026 landscape rewards ‘agile sourcing,’ where brands utilize Bangkok’s connectivity to manage on-demand manufacturing and shorten lead times. By centralizing the value chain - from yarn innovation to finished garments - the Bangkok assembly aims to stabilize regional industrial performance, which currently fuels over 3 per cent of global textile revenue, providing a resilient blueprint for a volatile trade era.
CEMS-Global is a multinational exhibition organizer specializing in high-impact B2B trade platforms across four continents. Dominating the textile and apparel sector through its ‘Textile Series,’ the company facilitates multi-country sourcing and technological exchange. With a 2026 strategy focused on emerging Asian hubs, CEMS-Global drives regional trade integration and helps manufacturers scale through direct access to international procurement executives and verified buyer networks.
The Union Ministry of Textiles has designated Surat as a key pilot site for the establishment of a Textiles Export Facilitation Centre (TEFC), effective February 9, 2026. This initiative aims to transform Surat’s massive man-made fiber (MMF) cluster into a globally competitive export powerhouse. While Surat currently accounts for 40 per cent of India's MMF production, the new centre will provide the critical infrastructure required to shift nearly 40,000 industrial units toward high-value international standards, specifically targeting technical textiles and specialized synthetic fabrics.
Scaling production and compliance
The TEFC will serve as a single-window operational hub at the Textiles Committee office, offering laboratory testing, ISO consultancy, and Harmonised System (HS) classification. With Surat’s current daily output at 60 million meters, industry veterans anticipate a dramatic surge. A dedicated facilitation framework could propel our daily production to 120 million meters within five years, noted Ashok Jirawala, Vice-President, Southern Gujarat Chamber of Commerce and Industry (SGCCI). This growth is strategically timed to leverage the India-US trade deal, which recently recalibrated tariffs on Indian textiles from 50 per cent to 18 per cent, potentially doubling Surat's export volumes to Europe and the Gulf.
Strategic technical textile shift
A primary focus of the Surat TEFC is the advancement of technical textiles, a sector where India remains an emerging player compared to its 70 per cent global market dominance in synthetics. By integrating government schemes like Samarth 2.0 and the National Technical Textiles Mission (NTTM), the centre will assist manufacturers in meeting the rigid compliance standards of the US and EU markets. The shift toward export-quality bedsheets, curtains, and medical textiles is expected to insulate the cluster from domestic demand fluctuations, providing a sustainable roadmap for the region's 5 lakh powerlooms to integrate into the global value chain.
Surat is India’s premier hub for synthetic textiles, producing 50 per cent of the nation’s polyester and 90 per cent of its viscose. The cluster comprises 40,000 units and 75,000 trading shops. Under the new export mandate, the city aims to increase its international trade contribution from $3 billion to $5 billion by 2028.
Amid a complex period of structural realignment, Nike, Inc has reaffirmed its commitment to shareholder returns by declaring a quarterly cash dividend of $0.41 per share, payable on April 1, 2026. Made on February 13, 2026, this announcement marks the 24th consecutive year of payout increases, serving as a critical signal of financial stability as the company navigates its ‘Win Now’ recovery roadmap. The move follows a fiscal second quarter where Nike delivered a modest 1 per cent reported revenue growth to $12.4 billion, exceeding cautious analyst expectations despite significant global headwinds.
Recalibrating the multi-channel offense
The current fiscal year represents a strategic ‘middle inning’ for Nike as it retreats from an overly aggressive direct-to-consumer (DTC) focus to a balanced multi-channel model. While Nike Direct revenues declined by 8 per cent due to a softer digital environment, wholesale revenues increased by 8 per cent, driven by renewed partnerships with major retailers like DSW and Macy’s. This pivot aims to recover ‘mindshare’ ceded to rising competitors by reclaiming shelf space in diverse suburban and urban segments. To protect margins - which faced a 300-basis-point compression to 40.6 per cent in Q2 due to higher tariffs and inventory repositioning - the brand is scaling AI-powered discovery tools and its ‘Nike Mind’ line to enhance full-price sell-through.
Innovation and inventory discipline
As Nike targets a full recovery by FY2027, the focus has shifted toward high-performance product cycles, such as the Air Zoom series, and sustainable innovation. The company successfully reduced year-over-year inventories by 3 per cent to $7.7 billion, reflecting tighter discipline in unit management. However, management remains cautious for the upcoming third quarter, projecting a low single-digit revenue decline as it continues to flush out older styles. We are making the shifts required to position our portfolio for long-term health, notes Matthew Friend, Executive Vice President and CFO. The opportunity lies in the brand’s ability to leverage its $8.3 billion liquidity to fund demand creation while insulating the bottom line from an estimated $1.5 billion annual tariff impact.
Headquartered in Oregon, Nike is the world’s premier designer of athletic footwear and apparel. Under CEO Elliott Hill, the company is executing a multi-year turnaround focused on "athlete-centered innovation" and a balanced wholesale-DTC ecosystem. With a strong presence in North America and Greater China, Nike continues to target premium athletic and lifestyle segments through its Nike and Converse brands.
As of February 14, 2026, Kontoor Brands, Inc continues to signal robust cash-flow resilience, declaring a quarterly cash dividend of $0.53 per share. Payable on March 20, 2026, the payout reflects management's confidence in a newly diversified business model following the strategic $960 million acquisition of Helly Hansen in mid-2025. This acquisition has successfully transitioned Kontoor from a denim-centric operator into a multi-category powerhouse, with the outdoor and workwear segment now projected to contribute over $460 million to annual revenues.
Leveraging synergy and supply chain agility
The company’s ‘Project Jeanius’ initiative remains a critical driver of margin health, targeting over $100 million in run-rate cost savings by 2026-end. While the Lee brand faces inventory recalibrations in the Chinese market, Wrangler has maintained steady global revenue growth of 2%, anchored by its ‘heritage-meets-horsepower’ lifestyle campaigns. The integration of Helly Hansen providesScott Baxter. a high-margin offset to denim volatility; the brand’s penetration into the U.S. outdoor market is expected to be immediately accretive, leveraging Kontoor’s existing Tier-1 retail relationships with partners like Walmart and Amazon.
Capital allocation and market outlook
Despite broader sector challenges, including a 12 per cent rise in operational overheads due to shifting trade tariffs, Kontoor maintains a disciplined capital allocation strategy. The firm recently authorized a voluntary $185 million term loan payment to reduce leverage, strengthening its balance sheet ahead of a projected 12 per cent rise in adjusted EPS for the full fiscal year. The company’s strategic sourcing model and advantaged supply chain allows it to remain agile in a fluctuating macro environment, notes Scott Baxter, CEO. With a forward dividend yield hovering near 3.1 per cent, Kontoor is positioning itself as a premier value play within the apparel manufacturing sector.
Spun off from VF Corporation in 2019, Kontoor Brands owns Wrangler, Lee, and Helly Hansen. The company designs and manufactures premium denim and performance outdoor gear for over 70 countries. With a focus on sustainable innovation and a targeted 10 per cent EBIT margin, Kontoor is aggressively expanding its direct-to-consumer digital footprint to drive long-term stakeholder value.
As of February 14, 2026, French luxury titan Kering is executing a decisive strategic retreat to reset its financial foundations. Following a grueling fiscal year where revenue plummeted 13 per cent to €14.7 billion, the Group has finalized a landmark €4 billion sale of its beauty division, Kering Beauté, to L’Oréal. Encompassing the prestige fragrance house Creed and 50-year licensing rights for brands like Bottega Veneta, this divestment signals a shift away from high-stakes internal diversification toward a more agile, capital-light licensing model designed to weather current macroeconomic volatility.
Navigating the Gucci slowdown
The Group’s primary challenge remains the revitalization of its flagship, Gucci, which saw sales erode by 22 per cent in 2025. Fueled largely by softening demand in the Asia-Pacific region and a broader cooling of the ‘logo-mania’ trend, this decline dragged the Group's recurring operating margin down to 11.1 per cent from 14.5 per cent the previous year. However, a sequential improvement in Q4 - where Gucci's comparable sales decline narrowed to 10 per cent - suggests that the ‘La Famiglia’ collection and a move toward higher-end, ‘quiet luxury’ leather goods are beginning to resonate with affluent consumers.
Deleveraging and the 2026 roadmap
Under the stewardship of Luca de Meo, CEO Kering has prioritized balance sheet health over aggressive expansion. The L’Oréal transaction and strategic real estate disposals in Paris and New York have successfully slashed net debt by €2.5 billion, bringing it down to €8 billion. Looking ahead, the company has scheduled a Capital Markets Day for April 16, 2026, where it will unveil a comprehensive roadmap to reignite brand desirability and enhance operational efficiency. 2025 was the turning point we needed, de Meo noted, emphasizing a fighting spirit aimed at returning to growth and margin improvement by year-end.
Kering manages a portfolio of iconic houses including Gucci, Saint Laurent, and Balenciaga. While historically denim and leather-focused, the Group is currently pivoting toward high-margin ‘soft luxury’ and high jewelry (e.g., Boucheron). Its 2026 strategy focuses on cost discipline and leveraging AI for digital personalization to capture 20 per cent of sales through e-commerce.
