FW
After 18 years of research, the Schneider Group has unveiled an innovative achievement in the world of fine fibres: the first-ever bale of Superfine Argentinian Vicuna. Known as the ‘Fiber of the Gods,’ this ultra-rare and luxurious wool has now reached an unprecedented level of excellence, officially recognized by the Guinness World Records.
Vicuna, long considered more exclusive than cashmere for its extraordinary softness, warmth, and rarity, was once reserved solely for Incan royalty. Now, Schneider’s newly developed batch takes the fibre to a new peak measuring just 11.7 microns in fineness and 29.3 millimetres in length, with a delicate light fawn colour. It is the finest Vicuna fibre ever recorded.
This exceptional result is the culmination of meticulous, years-long work by artisans who hand-selected fibres using lights and lenses, refining the process with dedication and skill. But this milestone is not only about luxury it is also a testament to Schneider’s deep-rooted commitment to sustainability and ethical production.
The group has played a key role in the conservation of the endangered vicuna species in Argentina, growing its population in managed areas from fewer than 800 to over 5,000. Schneider has worked closely with local communities, teaching sustainable animal management and donating fibres to support regional artisans, preserving local traditions and promoting shared growth.
“This bale represents the future of luxury an achievement of unmatched quality, made responsibly,” said the Schneider Group. “It is a symbol of patience, vision, and ethical craftsmanship.”
As this singular creation enters the market, all eyes are on who will be the first visionary brand to transform this ‘wonder of nature and sustainability’ into a masterpiece of fashion.
India needs to broaden the scope of its current Production-Linked Incentive (PLI) scheme to include sectors like textiles, states a new report by the State Bank of India (SBI). This assumes significance, especially in the wake of the recent announcement of reciprocal tariffs by the United States on several countries, including India, the report adds.
The report also proposes extending the scheme's duration by an additional three years and expanding its coverage to encompass new products. This strategy would not only boost investment in domestic industries but also enhance the competitiveness of Indian products in the international market, it adds.
Exports to the United States present a key area of potential growth for India. Industries such as textiles, apparel, and footwear could see an expanded market share as a result of higher tariffs on Chinese exports, the report opines
However, while United States has imposed a 26 per cent duty on Indian imports, India's tariff on American exports stands at 15 per cent, it points out. The two nations need to address this disparity by engaging in continued trade negotiations, it adds. India is reportedly considering significantly reducing duties on over $23 billion worth of American goods sold in India as part of a potential trade agreement, which could help alleviate this issue.
Furthermore, United States' reciprocal tariffs on countries like China, Vietnam, Bangladesh, and Indonesia could create advantages for Indian exporters, the report highlights. India can benefit from the anticipated reshaping of global supply chains, opening up new avenues for export growth. The textile sector is identified as one of the industries with significant potential to benefit from these shifts, the report affirms.
Khurram Mukhtar, Patron-in-Chief, Pakistan Textile Exporters Association (PTEA), says, despite the recent tariff adjustments, Pakistan maintains a competitive advantage over other textile-exporting nations, owing to its fully integrated supply chain, dedication to quality, and long-established trade relationships.
He emphasizes, although impactful, US actions should not be considered in isolation. The broader consequences of these tariffs will be determined by the global response, particularly concerning services offered by US companies overseas. These tariffs have the potential to set off widespread ripple effects across the global economy, he adds.
Highlighting the long-standing trade relationship between the two nations, Mukhtar notes, a significant importer of US Cotton for decades, Pakistan has been directly supporting American farmers and strengthening mutual economic ties between the two countries. The US administration needs to recognize this partnership and avoid policies that disproportionately harm Pakistan's exports, he adds.
He further points out, the elasticity assumptions commonly used in US tariff models may not accurately reflect the unique trade dynamics between the two countries. The US must take into account the real-world implications of these measures rather than depending on general assumptions.
To tackle these challenges, PTEA aims to actively engage with US trade officials and advocate for preferential market access. Simultaneously, the association aims to diversify export markets, enhance value addition, and urge the government to implement policies that support the industry.
As a gesture of goodwill and a strategic move to strengthen ties, Pakistan is prepared to give preference to key US imports such as cotton, says Mukhtar. Lowering tariffs on these essential commodities can pave the way for reciprocal measures from the US, leading to a more balanced and sustainable trade relationship, he adds
Expressing optimism, he states, PTEA aims to reach a constructive agreement with the United States Trade Representative (USTR) through mutual understanding and proactive dialogue. This will help Pakistan strengthen its trade position and further deepen economic cooperation with the US, he adds.
Contrary to analysts’ expectations of 1 per cent loss, denim company Levi Strauss posted a 3 per cent rise in revenues from continuing operations to $1.53 billion during Q1, FY25.
This excluded the sales from its brand Dockers, shows data compiled by LSEG.
A wholesale brand, Levi prioritises growth in its DTC channel as multi-brand retailers continue to struggle. Betting on steady demand for its denims and a diverse supply chain to navigate an escalating trade war that has hit footwear and apparel retailers, the company maintained its full-year forecast.
Similar to that experienced by rivals such as Abercrombie & Fitch and Gap, demand for wide-legged and skinny jeans by the company stabilized, despite shoppers being selective in spending on discretionary items. The company’s gross margin increased 330 basis points to 62.1 per cent during the quarter from 58.8 per cent in Q4, FY24. This growth was driven by lower product costs and a strong direct-to-consumer channel.
To streamline its operations, Levi plans to sell its brand Dockers, which has seen contracting demand in recent quarters. The company maintained its organic net revenue forecasts for fiscal 2025 as these remained umimpacted from the recently announced tariffs.
Though the company continues to operate in an uncertain environment, its global footprint, strong margin structure, and agile supply chain position it to navigate the balance of the year and beyond, says Michelle Gass, CEO, Levi Strauss.
To foster mutual cooperation and the exchange of ideas and information, the Cotton Association of India (CAI) has signed an MoU with the Australian Cotton Shippers Association (ACSA).
The MoU encompasses sharing of data related to cotton production, trade trends, global pricing, and market forecasts relevant to both countries. It was signed by Atul Ganatra, President, CAI and Cliff White, Chairperson, ACSA.
This bilateral MoU is expected to boost trade between the two nations and improve market access, as well as provide reciprocal support in facilitating discussions that benefit the interests of their respective cotton industries.
Highlighting the advantages of the Australia-India Economic Cooperation and Trade Agreement, which went into effect on December 29, 2022, Ganatra says, this agreement allows duty-free access for Australian cotton into India, with a specific quota of 51,000 metric tons per year. He also emphasizes on the need for greater collaboration and further strengthening of business ties between the cotton industries of both countries.
White delivered a presentation on the Australian cotton market at the event, which was attended by Indian farmers, ginners, brokers, and other delegates.
The global textile industry experienced a slight downturn in March 2025, according to the latest Global Textile Industry Survey (GTIS) released by the International Textile Manufacturers Federation (ITMF). While the sector had shown a slow but steady recovery since November 2023, recent findings reveal a more complex picture marked by regional divergence, cautious optimism, and persistent structural issues.
Business sentiment deteriorated slightly at the global level, though East Asia and North & Central America saw marginal improvements from low baselines. Garment producers remained the most resilient across the textile value chain. Despite current challenges, expectations for the fourth quarter of 2025 were generally optimistic, particularly in Africa and the Americas. East Asia, however, stood out for its more pessimistic outlook. Producers of garments, fibres, and finished fabrics expressed the strongest optimism, in contrast to subdued expectations in the technical and home textiles segments.
Order intake, which had been recovering, lost momentum in March. East Asia and Europe saw declines, while South-East Asia remained stable. Garment producers led in maintaining order volumes. Globally, order backlogs dropped slightly to an average of 2.2 months, with Europe outperforming due to its robust manufacturing base. Capacity utilization stood steady at 73 per cent, bolstered by strong performance in Asia.
Inventory levels started to rise, particularly among yarn producers, while garment manufacturers maintained lean stocks in response to market uncertainty. Demand remained the biggest concern, cited by 62 per cent of respondents, followed by geopolitical tensions (41 per cent). Although concerns over energy and raw material costs eased slightly, worries about interest rates and new sustainability regulations are intensifying, pointing to ongoing challenges ahead for the global textile sector.
Siding with environmental group Environmental Action Germany (DUH) in a greenwashing lawsuit, a German court has banned Adidas from advertising its climate neutrality plans in their current form.
Issued by the Nuremberg-Fürth Regional Court on March 25, 2025, the order prevents Adidas from claiming it will be ‘climate neutral by 2050.’ According to the court, Adidas misled consumers by not providing specific details on how it would achieve this goal beyond 2030, particularly regarding the potential use of carbon offsets. The court also stated, the term ‘climate neutral’ is unclear and Adidas should have provided a clear definition in its advertising to avoid confusing consumers.
Jürgen Resch, Federal Director, DUH, stated, Adidas had ‘deceived its customers’ with its climate neutrality promise. He emphasized, the crucial factor is the extent to which a company genuinely aligns its products and operations with greater climate sustainability. Resch opines, the court's decision highlights the need for clear and transparent future promises.
Adidas has the option to appeal the judgment. However, according to a company spokesperson, the ruling doesn't necessitate any immediate action, as it pertains to specific wording on their website that was already updated in August 2024. The company’s emissions reduction plans and targets remain unchanged, the spokesperson stated. Their climate goals were reviewed and validated by the Science Based Targets initiative and that Adidas received a top ‘A’ grade from the Carbon Disclosure Project (CDP) in February 2025 for its climate program, he added. Adidas also registered 20 per cent reduction in absolute emissions, including its supply chain, since 2022, the spokesperson noted.
Adidas' website states, the company’s primary goal is to achieve net-zero emissions by 2050, following SBTi guidelines to align with a 1.5°C warming pathway. Their 2030 targets include a 70 per cent reduction in Scope 1 and 2 emissions and a 43 per cent reduction in Scope 3 emissions. Their 2024 annual report indicated achieved reductions of 17 per cent in Scope 1 and 2, 20 per cent in Scope 3, 5.3 per cent in carbon intensity, and 20 per cent across all three scopes.
The lawsuit raises concerns about the use and transparency of carbon offsets, which are tradeable certificates representing greenhouse gas emission reductions. While they can come from projects like reforestation and renewable energy, the market lacks universal standards for verification, leading to potential issues like double-selling or ineffective offsetting. Critics also argue that carbon credits can distract from the need for direct emissions reductions.
This case aligns with a growing trend of legal challenges against companies' environmental claims. Notably, Apple is facing a lawsuit in California over its ‘carbon neutral’ Apple Watch claims, citing concerns about the legitimacy of some offsetting projects. In March 2024, a Dutch court ruled against KLM airline's sustainability advertising, deeming claims about its offsetting products misleading under EU consumer law. These cases underscore the increasing scrutiny of corporate environmental messaging and the demand for verifiable and transparent climate action.
Balenciaga has launched a new capsule footwear collection in partnership with the Italian heritage brand Scholl.
Merging the Parisian fashion house’s expertise with Scholl’s knowledge in comfortable orthopedic footwear and insoles, the collection introduces footwear with cork soles and footbeds. These include heeled mules, booties, and boots, as well as flat sandals and mules crafted from high-quality materials like Nappa sheepskin and calfskin.
Key design elements of this collection include metal buckles inspired by Scholl’s original 1956 Pescura sandal and reimagined beechwood platform clogs with perforated uppers. The collaboration also features co-branded versions of Balenciaga’s popular Pool Slide Sandals.
Debuting as part of Balenciaga’s Fall 2025 collection, the collection originates from Demna, Creative Director’s vision to create the most comfortable heels ever made, infusing the House's distinctive silhouettes with Scholl’s unparalleled comfort. It is currently available at select Balenciaga stores worldwide and online.
Last month, Balenciaga launched a Brand Ambassador Fanclub Series, featuring a lineup of global icons, including Isabelle Huppert, Kim Kardashian, Michelle Yeoh, Nicole Kidman, and PP Krit Amnuaydechkorn.
Are the reciprocal tariffs in the textiles and apparel sector a fleeting political maneuver, or a harbinger of a protracted trade war? The question hangs heavy, devoid of easy answers. While the announcements suggest permanency, the inherent volatility of international relations leaves room for speculation. However, assuming these tariffs are indeed ‘for real’ their ramifications will reshape the global textile and apparel landscape.
Supply chain realignment
The most immediate and predictable consequence will be a significant diversion of the global supply chain. Manufacturers, driven by the need for cost efficiency, will shift towards countries offering low or no tariffs for exports to the US. This isn't merely a theoretical exercise; it's a fundamental economic principle. In the textiles and apparel sector, where margins are thin and turnaround times are tight, even minor disruptions trigger sourcing shifts. Brands and sourcing agents are already recalculating their country-of-origin equations. Expect a rise in investments and production capacity in countries like Vietnam, Bangladesh, and potentially those in Sub-Saharan Africa, where preferential trade agreements exist or can be negotiated. These shifts won’t happen overnight, but with every container rerouted from a tariffed country to a duty-free one, the momentum builds. Tariffs, thus, become catalysts for long-term structural reorientation rather than mere policy levers. It’s not a seamless transition. Substantial infrastructure development and logistical adjustments are imminent. The speed and scale of this shift will be contingent upon the tariff differentials and the perceived longevity of these measures.
The illusion of reciprocal rollbacks
The notion of a retaliatory tariff regime has opened up a dangerous game of brinkmanship. However, many countries—especially those with trade surpluses with the US—may choose not to escalate but rather de-escalate. The logic: maintain competitiveness by rolling back duties and landing in the minimum 10 per cent slab, keeping access to the world’s largest consumer market intact. This is fundamentally flawed. Countries will be reluctant to concede their bargaining chips without commensurate concessions. Emerging economies with heavy reliance on apparel exports to the US are unlikely to sustain high reciprocal tariffs for long. Quiet recalibrations are more probable than loud confrontations. Already, murmurs suggest that trade ministries in a few ASEAN nations are weighing tariff rollbacks quietly to avoid headlines but protect market share. The 10 per cent figure is unlikely to serve as a universal benchmark. Expect sector-specific negotiations.
Inevitable retaliatory storm
Retaliatory tariffs from China, Canada, and the EU are inevitable—but how impactful are they in textiles? China's play may not be in tariffs alone but in non-tariff barriers—customs delays, compliance red tape, sourcing bottlenecks. For the US apparel exporters (though a minority) this could hurt. But the bigger threat lies in China weaponizing its raw material dominance—polyester, cotton yarn, textile machinery—subtly throttling global supply. This will trigger a cascade effect, disrupting supply chains and inflating input costs. Canada and the EU may respond more symbolically, particularly in luxury goods and specialized apparel. Their impact will be felt more as sentiment shifts in trade alliances, pushing US apparel players to hedge supply chains even further. The potential for non-tariff barriers, like regulatory requirements and customs delays, looms large.
The intricate web of global trade means that the consequences of these retaliations will ripple through the entire ecosystem, affecting not only manufacturers and retailers but also ancillary industries like logistics, warehousing, and transportation.
Are these tariffs for real?
These are not token gestures—they signal a structural shift in how trade negotiations are being weaponized. But tariffs rarely live forever. Their shelf-life depends on two things: domestic inflationary backlash and multilateral pushback. The erosion of multilateralism and the rise of protectionist policies will create an environment of uncertainty and instability. With elections, consumer price sensitivities, and shifting global alliances, tariffs may be diluted or recalibrated. But by then, the supply chains will have already adapted—sometimes permanently.
Beyond the immediate economic impact, the geopolitical implications cannot be ignored. These tariffs are likely to increase existing tensions, potentially leading to a fragmentation of the global trading system. The erosion of multilateralism and the rise of protectionist policies will create an environment of uncertainty and instability, hindering long-term investment and innovation.
And for the textiles and apparel sector, this is less about reacting to tariffs and more about future-proofing sourcing, diversifying markets, and digitizing compliance. The winners won’t be the lowest-cost producers, but the most agile ones—those who treat tariffs not as roadblocks but as signposts for strategic redirection. The industry must prepare for a period of significant upheaval, characterized by supply chain restructuring, price volatility, and heightened geopolitical risk.
While China’s of textile and apparel sector’s export prowess is formidable, now there is a growing focus within the industry towards the domestic market. This isn't merely a reaction to external pressures, but a calculated move to capitalize on its own evolving consumption patterns.
The pressures at work
On major factor is that China's manufacturing wages have steadily increased, eroding its competitive edge in labor-intensive industries like textiles. As per the National Bureau of Statistics of China, the average annual wage of manufacturing employees in urban areas reached approximately 101,598 yuan in 2022. Also, the US-China trade war that led to the US introducing 20 per cent tariff hike on Chinese goods, too has accelerated the need for diversification. And the ‘China+1’ strategy adopted by many global retailers have prompted a diversification of sourcing away from China. And the recent global economic uncertainties have dampened consumer spending in many export markets, impacting Chinese T&A exports. In fact, China's export growth has shown signs of strain. As per report China's exports grew 2.3 per cent year on year during the first two months of 2025, a significant fall compared to the 10.7 per cent growth recorded in December. This reinforces the need for alternative markets. The reported pressure from US retailers like Walmart, "pressuring its Chinese suppliers to lower their prices to offset the impact of higher tariffs," further reveals the challenges faced by Chinese exporters.
However, China's domestic market presents a compelling counter-narrative. The country’s middle class, estimated at over 400 million, is driving a domestic consumption growth. As per the National Bureau of Statistics of China’s per capita disposable income reached 36,883 yuan in 2022. This growing purchasing power has led to an increase in demand for higher-quality, branded apparel. China's domestic retail sales have shown resilience. Recent stats show China's retail sales rose 4 per cent year on year in the first two months of 2025, beating market expectations. This positive trend reinforces the potential of the domestic market.
Table: China’s domestic retail sales growth
|
Year |
Retail sales of clothing, footwear, headgear, knitwear (bn Yuan) |
Growth rate (%) |
|
2018 |
1370.7 |
8 |
|
2019 |
1347.1 |
-1.7 |
|
2020 |
1237.9 |
-8.1 |
|
2021 |
1398.2 |
13 |
|
2022 |
1338.4 |
-4.3 |
|
2025 (Jan/Feb) |
A 4% rise in total domestic retail sales, |
4% (total retail sales) |
(Source: National Bureau of Statistics of China, SCMP)
And China's e-commerce ecosystem too is highly developed, providing a seamless platform for T&A brands to reach consumers across the country. Platforms like Alibaba's Taobao and Tmall, and Pinduoduo, have revolutionized retail. Moreover there is a growing trend of ‘Brand Nationalism’ that is national pride is driving demand for domestic brands. Chinese consumers are increasingly favoring products that reflect their cultural identity. For example, Li-Ning, a domestic sportswear brand, exemplifies the success of leveraging the ‘Guochao’ trend. By incorporating traditional Chinese design elements and embracing a youthful, street-style aesthetic, Li-Ning has resonated with a new generation of consumers. Their focus on domestic marketing and e-commerce has resulted in significant revenue growth.
Chinese government’s interventions
In response to the exports slowdown, reports suggest Chinese government, through the Ministry of Commerce, is actively planning to roll out measures to help foreign trade firms expand into the domestic market. Another step is integrating domestic and foreign trade and supporting export firms in expanding their local sales will be a long-term strategy, rather than a temporary response to external shocks.
The Ministry of Commerce too has taken several initiatives. To facilitate the transition, the ministry plans to host exhibitions across the country to advise exporters on adapting their sales channels and product standards for the domestic market. This approach aims to bridge the gap between export-oriented businesses and the domestic consumer. The government's broader strategy to push domestic demand, includes plans to boost consumption, which covers everything from reducing childcare costs to stabilising the property and stock markets, provides a supportive environment for T&A companies targeting the domestic market.
However, while the government is taking positive steps adapting to domestic preferences and switching to selling domestically for China's exporters brings a host of challenges, including adapting to different consumer preferences, payment systems and regulatory regimes. Moreover, pushing domestic sales in place of exports isn't just about offloading unsold good. It's involves bringing high-quality foreign trade products to the domestic market. This requires a fundamental shift in strategy.
The bottomline is the shift is not merely a reactive measure, but a strategic long-term vision. The need to adapt to the domestic market's unique demands, invest in brand building, and leverage e-commerce remains is crucial. By embracing these changes, Chinese T&A companies can forge a sustainable future in a dynamic and evolving market.
