FW
The global luxury industry, synonymous with exclusivity and opulence, is changing as is revealed in Bain & Company's 23rd Annual Luxury Report. It highlights a nuanced landscape marked by shifting consumer behavior, regional disparities, and evolving market dynamics.
What is driving change?
Macroeconomic uncertainty: Global economic instability, due to geopolitical tensions and fluctuating markets, has affected consumer confidence. This uncertainty has led to more cautious spending, particularly on high-end discretionary items.
Pricing strategies: In recent years, luxury brands have implemented substantial price increases. While intended to increase brand prestige and offset rising operational costs, these hikes have, in some cases, alienated consumers, especially younger demographics who question the value proposition.
Evolving consumer values: There's a shift towards experiential luxury over material possessions. Consumers are increasingly prioritizing unique experiences such as travel and fine dining, reflecting a broader change in what is deemed valuable.
Current scenario of state of luxury
In 2024, the global luxury market saw a slight drop, with overall spending estimated at €1.48 trillion, which was 1 to 3 per cent decrease compared to 2023. This decline is viewed as a normalization following after robust growth in 2022 and 2023, with performance still exceeding pre-pandemic levels.
The personal luxury goods segment which includes fashion, accessories, and beauty products, saw its first drop in 15 years (excluding the COVID-19 period), declining by 2 per cent to €363 billion. This was due to lower consumer spending amid economic uncertainties and resistance to continued price increases.
Regional insights
Asia-Pacific: Japan emerged as a bright spot, leading global luxury sales growth due to favorable currency exchange rates and a rise in tourist spending during the first half of 2024. Conversely, mainland China faced a sharp slowdown, with a significant 18-20 per cent year-on-year decline in luxury spending. This is linked to low consumer confidence and increased overseas shopping as international travel resumed. In fact, the Chinese luxury market's downturn highlights the impact of economic uncertainty and consumer pushback against frequent price increases. Brands are now focusing on footprint consolidation and performance improvement rather than expansion.
Europe and Americas: These regions maintained stability, with Europe benefiting from tourist inflows and the Americas showing improvement as 2024 progressed.
Looking ahead, the personal luxury goods market is forecasted to grow moderately in 2025, with projections ranging between 0 and 4 per cent. This outlook assumes sustained growth in Western countries and the Middle East, a gradual recovery in China gaining momentum in the latter half of the year, and normalization in Japan.
Long-term projections are more optimistic, with expectations of 4 to 6 per cent annual growth leading up to 2030, potentially reaching a market value between €460 billion and €500 billion. This growth is expected to be driven by emerging markets and a growing middle class, introducing over 300 million new consumers to the luxury sector in the next five years.
Shifts in consumer behavior
A notable trend is a decline in luxury consumer base, which has shrunk by approximately 50 million individuals over the past two years. This reduction is particularly evident among GenZ consumers, whose advocacy for luxury brands has reduced. Factors contributing to this shift include economic uncertainty, price sensitivity, and a growing emphasis on sustainability and ethical consumption.
Despite the overall reduction, affluent consumers continue to make up a significant portion of luxury spending. However, there's a growing sentiment among these top-tier customers that their luxury shopping experiences have become less exceptional, prompting brands to reassess and enhance their value propositions.
Claudia D'Arpizio, a partner at Bain & Company and lead author of the report, emphasizes the critical juncture at which the luxury market stands: "Luxury spending has shown remarkable stability this year, despite macroeconomic uncertainty, largely driven by consumers' appetite for luxury experiences." She further notes the imperative for brands to "readjust their value propositions" in response to the evolving consumer landscape.
Thus as the luxury industry transforms it is being influenced by economic factors, shifting consumer preferences, and regional variances. Brands that adapt to these changes by embracing digital innovation, prioritizing sustainability, and enhancing customer experiences are poised to thrive in this evolving landscape. As the market recalibrates, a renewed focus on authenticity, value, and consumer engagement will be paramount in securing future growth.
The Trump Administration’s decision to impose new tariffs on key trading partners has sparked concerns across the textile and apparel industry. Industry leaders argue that these tariffs overlook the deeply integrated Western Hemisphere supply chain, built over more than 30 years under regional trade agreements.
A garment’s journey is complex, far beyond its ‘Made in’ label. From raw material sourcing to production and distribution, the US textile sector is tightly linked with neighboring economies. The impact of these tariffs will be widespread, affecting farmers, retailers, and consumers alike. For instance, US cotton supplies about 60 per cent of Mexico’s textile needs, according to the USDA’s Foreign Agricultural Service. Additionally, US government data shows that in 2024, the US imported $3.1 billion worth of apparel from USMCA partners Canada and Mexico.
Apparel and textile products already face some of the highest US import tariffs, reaching up to 32 per cent. With an additional 20 per cent tariff on Chinese imports, costs are set to rise further, fueling inflation. China remains the top supplier of apparel to US consumers. US Customs and Border Protection reports that American businesses and consumers have already paid $220 billion in additional tariffs under the China Section 301 policy from the first Trump Administration.
Industry leaders urge the Administration to reconsider its tariff strategy. Instead of adding financial strain on American families and businesses, they advocate for policies that lower costs and enhance trade benefits.
TechnoSport has taken a significant leap in activewear manufacturing by integrating high-performance Karl Mayer tricot machines at its new mega factory in Perundurai, South India. This marks a milestone as the first activewear brand in the region to leverage such advanced warp knitting technology. With this investment, TechnoSport aims to enhance production efficiency, expand market reach, and uphold sustainability while delivering high-quality sportswear.
The new HKS 3-M high-speed warp knitting machines now complement TechnoSport’s state-of-the-art production facility. As an initial innovation, the company has successfully launched its ‘DuraCool+’ product line using these machines, catering to growing consumer demands for durable and high-performance sportswear. Building on this success, TechnoSport plans to introduce all-day pants that combine the strength of woven trousers with the comfort and flexibility of knitwear.
Successful open house event showcases innovation
To showcase the technological advancements, TechnoSport, in collaboration with Karl Mayer and A T E, hosted a joint open house event at its Perundurai mega factory in mid-February 2025. The event attracted over 100 industry professionals from key textile hubs, including Tirupur, Erode, and Coimbatore, providing them with valuable insights into warp knitting technology.
Live demonstrations of three HKS 3-M machines, paired with a DS-Warper, showcased specialized warp-knitted fabric production for activewear. The machines, operating at speeds of up to 2,800 rpm, captivated attendees with their efficiency and precision.
The event featured expert presentations, including a welcome address by Navin Agrawal, Senior Vice President of A T E Enterprises Private Limited. Mark Smith, Deputy Vice President Sales at Karl Mayer, delivered an insightful presentation on warp knitting technology, while Franziska Guth, product developer at Karl Mayer, along with the A T E sales team, engaged attendees with fabric samples and finished garment displays.
Expanding market reach with cutting-edge sportswear
Reflecting on the significance of the collaboration, TechnoSport’s Co-founder, Sunil Jhunjhunwala, expressed enthusiasm about the partnership with Karl Mayer. “We are proud to bring this cutting-edge technology to India. With the increasing demand for synthetic materials in both domestic and export markets, we anticipate growing interest in warp knitting. Through partnerships with A T E and Karl Mayer and events like this, we aim to drive that momentum.”
Mark Smith echoed this sentiment, emphasizing the potential of warp knitting in India. “We look forward to hosting more such events to expand warp knitting capabilities across the country.” He also extended his gratitude to Sunil Jhunjhunwala and the TechnoSport team for their support, as well as the A T E Coimbatore team for organizing the successful event.
By embracing advanced technology and sustainability, TechnoSport is set to redefine activewear standards globally. As the brand continues to innovate and expand, it remains committed to making high-quality sportswear accessible to all, promoting an active and healthier lifestyle.
The T2T Alliance - Powering Policy for a Textile-to-Textile Future officially launches today, uniting key recyclers Circ, Circulose, RE&UP, and Syre to advocate for their sector within EU policy. The Alliance aims to ensure textile-to-textile (T2T) recycling is central to Europe’s circular economy.
With the Ecodesign for Sustainable Products Regulation (ESPR) set to define 2025’s textile policy, the T2T Alliance is pushing for stronger requirements on recycled textile content. The Alliance provided expert input on:
The T2T Alliance is advocating for the prioritization of textile-to-textile (T2T) recycled content in the Ecodesign for Sustainable Products Regulation (ESPR) to drive circularity in the textile industry. It supports a closed-loop recycling model that includes post-industrial, pre-consumer, and post-consumer textile waste to maximize sustainability.
Additionally, the Alliance aims to correct misconceptions about the industry, such as the assumption that allowing post-industrial waste to meet recycled content targets would incentivize overproduction. To ensure transparency and efficiency, it also advocates for a wide range of verification methods to accurately trace recycled materials throughout the supply chain.
“Less than 1 per cent of textiles come from recycled fibers, while most end-of-life products are landfilled or incinerated,” said Syre CEO Dennis Nobelius. “We are at a tipping point, and EU policy must accelerate textile circularity.”
The T2T Alliance, facilitated by consultancy 2B Policy, will act as a hub for advocacy, collaboration, and policy engagement. It aims to remove industry barriers and ensure recyclers’ perspectives shape legislation.
“We applaud the EU’s steps toward circularity, but current proposals risk overlooking practical challenges,” said Circ CEO Peter Majeranowski. “We can recycle polycotton blends, but we need well-informed policies to scale impact.”
By uniting industry leaders, the T2T Alliance seeks to secure recognition for textile-to-textile recyclers, influence sustainable policies, and drive systemic change in the textile industry.
Manufacturers facing outdated machinery can now opt for Karl Mayer’s electrical retrofit, a cost-effective alternative to purchasing new equipment. The upgrade modernizes the control and drive systems of older multiaxial and warp knitting machines with weft insertion, ensuring production reliability while minimizing downtime.
Karl Mayer’s solution targets machines running multiple shifts daily, where mechanics remain sound but electrical components become obsolete over time. “Breakdowns due to outdated electronics lead to costly downtimes. Our retrofit prevents this,” explains Falk Preibisch from Karl Mayer Technische Textilien’s Care Solutions Team.
The retrofit package includes a new control cabinet, a modern user interface, and the latest control technology. It also comes with all necessary components for dismantling old motors and cabling. Warp knitting machines with weft insertion require around two weeks for conversion, while multiaxial machines take approximately three weeks. One or two service technicians handle the process, ensuring minimal disruption.
The upgrade standardizes machine operation, making it easier for personnel to adapt, regardless of machine age. Additionally, serviceability improves, with guaranteed spare parts availability something often challenging for older systems. Retrofitted machines can also be networked for enhanced efficiency.
Introduced in 2016, the retrofit has been ordered 55 times, mainly for machines between 15 and 25 years old. “Demand is strong,” says Preibisch. The upgrade extends machine life without costly replacements or environmental waste, making it a smart investment, especially in tough economic conditions.
Cotton growers in both hemispheres are grappling with tough planting decisions due to climate volatility and market uncertainty.
In the Northern Hemisphere, farmers in the United States, India, and China must navigate unpredictable weather patterns. Prolonged droughts and excessive rainfall make water availability a major concern, especially in Texas and Gujarat. Advanced climate models are now crucial in determining optimal planting windows.
Meanwhile, in the Southern Hemisphere, Brazil continues expanding its cotton acreage by converting degraded pastureland in the Cerrado region. Unlike the US and India, Brazil benefits from available farmland and well-defined wet and dry seasons, which minimize harvest disruptions. Australia, however, faces water allocation restrictions, while Argentina struggles with erratic weather.
Market uncertainty adds another layer of complexity. The Secretariat projects the 2024/25 season-average A index to range between 92.00 and 97.00 cents per pound, with a midpoint of 94.00 cents. These price fluctuations could influence planting decisions worldwide as farmers weigh risks against potential returns.
With climate and market pressures mounting, cotton growers must adapt quickly to shifting conditions, relying on technology and strategic planning to ensure a stable crop yield.
GG Fashion (Cambodia) Co Ltd, a subsidiary of Ghim Li Global Pte Ltd., has reported a 1-2 per cent increase in overall production efficiency after implementing Coats Digital’s GSDCost solution in March 2024. The three-phase adoption has reduced unnecessary manual work, improved production planning, and enhanced employee morale across its facilities.
With over 2,200 employees and more than one million garments produced annually, GG Fashion supplies major retailers like Macy’s, Walmart, and Aeropostale. However, prior to GSDCost, the company struggled with high production costs, inconsistent sewing outputs, and inefficient pre-production planning, leading to late deliveries and increased costs.
Wong Chen Hau (Jackson), Continuous Improvement Manager at GG Fashion, noted that past forecasting relied on inaccurate historical data, resulting in unreliable efficiency targets and unplanned overtime. “Without transparent capacity visibility, we faced emergency costs to meet deadlines, impacting profit margins,” he said.
By standardizing time and cost benchmarks using predetermined motion codes, GSDCost has streamlined planning, production, and costing operations. This has led to better collaboration between teams, improved efficiency, and reduced production costs.
Darshana Sanjeewa, Industrial Engineering Supervisor at GG Fashion, highlighted that skill variations among machine operators previously led to inconsistent quality and higher costs. “With GSDCost, we’ve improved productivity and efficiency, making our delivery schedules more reliable and reducing last-minute overtime,” he stated.
The improvements have also enhanced quality control, on-time delivery performance, and customer satisfaction. GG Fashion expects further reductions in Standard-Minute-Values (SMVs) by March 2025, optimizing production efficiency even further.
The 63rd edition of Filo, the International Yarns and Fibres Exhibition, wrapped up in Milan with highly positive results, reaffirming its role as a key industry event. Despite global economic challenges, exhibitors showcased innovative and sustainable collections, attracting significant interest from buyers.
Strong international presence and buyer interest
The exhibition saw a steady flow of buyers over its two-day duration, with a notable increase in international visitors. Thanks to a collaboration between Filo and ITA-Agency, a delegation of 35 professionals and journalists from France, the U.K., the USA, India, Denmark, Germany, Portugal, Spain, South Korea, and Belgium attended the event. Additionally, the Integrated Textile Supply Chain Project (PIF) of the Piedmont Region facilitated the participation of buyers from Denmark, Finland, Ireland, and the U.K. A high-profile delegation from Tunisia, led by the Tunisian Ambassador to Italy, also attended to explore partnership opportunities with Italian manufacturers.
One of the highlights was the Filo Capsule Collection, a curated selection of fabric samples produced with the best manufacturing techniques. The collection, created in collaboration with Tessitura Zanello and Ricamificio Vittorio Vanoni, was well received by visitors and demonstrated the industry’s commitment to quality and sustainability.
Focus on manufacturing and sustainability
Manufacturing took center stage at the event, with the Opening Ceremony titled "The Art of Manufacturing from Yarn to Fabric, from Ideas to Production." Italian Minister for the Environment and Energy Security, Gilberto Pichetto Fratin, emphasized the strength of a unified, high-quality, and sustainable supply chain. Matteo Zoppas, President of ITA-Agency, reiterated the importance of supporting Italian companies in global markets, noting that the textile and apparel sector continues to perform well despite economic uncertainties.
Raffaello Napoleone, President of IT-EX, underscored the significance of trade fairs for the industry, while Pier Francesco Corcione, General Director of Unione Industriale Biellese, highlighted the critical role of innovation and skills development in sustaining growth. Vice-President of the Piedmont Region, Elena Chiorino, reaffirmed the region’s commitment to investing in training and international expansion, emphasizing that competitiveness is driven by quality, innovation, and expertise.
Filo’s role in shaping the industry’s future
Paolo Monfermoso, head of Filo, expressed satisfaction with the event’s outcome, stating that despite economic and geopolitical uncertainties, Filo remains a reference point for the industry. He stressed that success lies in quality, sustainability, and product innovation, key factors in overcoming market challenges. Exhibitors reported positive signals from business interactions, reaffirming Filo’s importance as a platform for supply and demand matchmaking.
Filo’s dedication to manufacturing excellence was further highlighted through the introduction of the Filo Capsule Collection, marking a significant innovation in international exhibitions. Monfermoso noted that Filo not only facilitates business connections but also fosters critical discussions on the future of the textile industry.
The next edition, the 64th Filo, is scheduled for September 10-11, 2025, at Allianz MiCo in Milan, promising another impactful event for the global textile sector.
Adidas reported a strong financial performance for 2024, with a 12 per cent revenue increase, driven by a rebound in China and solid sales in key global markets. The German sportswear giant also posted a net profit of over €1 billion, marking a significant turnaround from the previous year’s struggles.
Adidas revenue for 2024 reached €22.5 billion, up from €20.1 billion in 2023. This growth was largely fueled by a 24 per cent surge in China, where consumer demand rebounded after a slowdown in previous years. North America and Europe also showed steady gains, with sales rising 6 per cent and 8 per cent, respectively. The company’s direct-to-consumer segment, including e-commerce, played a major role, contributing 40 per cent of total sales.
Net profit for the year stood at €1.2 billion, a sharp contrast to the €254 million loss Adidas recorded in 2023 due to excess inventory and challenges linked to the termination of the Yeezy partnership. The company managed to clear surplus stock, improve cost efficiencies, and optimize pricing strategies, which bolstered margins.
Performance in the footwear segment was particularly strong, with demand surging for classic models such as the Samba and Gazelle, as well as newer launches. Adidas also saw success in its collaborations, including high-profile tie-ups with Lionel Messi and Beyonce’s Ivy Park line. Football-related sales gained momentum with the UEFA Euro 2024 and Copa America tournaments boosting demand for jerseys and cleats.
Sustainability remained a focus, with Adidas increasing the share of recycled materials in its products. The company also launched a new circular fashion initiative, allowing customers to return old products for recycling. Looking ahead, Adidas aims to expand its premium product lines, strengthen its digital presence, and enhance innovation in performance wear.
CEO Bjørn Gulden expressed confidence in continued growth, emphasizing that the company has regained momentum. "2024 was a year of transformation, and we are now on a solid path forward. Our brand strength, product innovation, and global reach will drive sustained success."
Following the earnings announcement, Adidas shares rose 5 per cent, reflecting investor confidence in the company’s recovery and future prospects. Analysts expect steady growth in 2025 as Adidas builds on its strong brand presence and market strategy.
According to the Statistics Agency, Uzbekistan exported nearly $2.9 billion worth of textile products between January and December 2024. This constituted 10.6% of the country's total exports.
Of the country’s total textile exports, exports of cotton yarn amounted to $1.237 billion, while exports of finished textile products totaled $1.124 billion. Uzebekistan’s knitwear fabric exports reached $292.1 million during the period while fabric exports totaled $145.9 million. The country also exports socks and hosiery products worth during the year.
While textiles remain a significant industry for Uzbekistan exports, there's a noted trend towards increasing the production and export of finished textile products, adding more value to the exported goods. The country plans to increase its textile exports in the coming years with a special emphasis on exports finished textile products.
The Uzbek government is also actively working to support the textile industry. It is trying to diversify the export markets for textiles. The government is also working towards modernize textile production in the country
