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Rising inflation, increasing interest rates, and global uncertainties are have impacted consumer behaviour and spending has become more cautious. This has had a ripple effect across sectors, with fashion and retail real estate feeling the pinch.
Changing priorities
Consumer spending, a key driver of economic growth is affected as the cost of living grows households are forced to make tough choices. Non-essential purchases, such as clothing and accessories, are often the first to be cut. Changing priorities is reflected in recent data.
McKinsey’s, ‘The State of Fashion 2023’ report indicates that after a period of post-pandemic growth, the fashion industry is facing renewed challenges due to deteriorating macroeconomic conditions. The US Bureau of Labor Statistics too shows that apparel prices have fluctuated but overall consumer spending on clothes has become more sensitive to economic downturns. Meanwhile luxury malls in major Chinese cities are also feeling the impact. For example, Shanghai K11 is easing tenant criteria, and Beijing’s Parkview Green is attracting more diverse restaurant operators after high-end brand exits.
Table: Retail trends
|
Indicator |
Trend |
Source |
|
Fashion Industry Trends |
Slowdown, prioritizing value, durability, sustainability, rise in demand for second-hand clothing and rental services |
McKinsey, Reports on apparel rental services |
|
Mall Industry Challenges |
Reduced foot traffic, rental pressures, the rise of e-commerce |
CBRE |
|
Consumer Spending (US) |
Growth, surpassing $705 billion in September 2023 |
JLL’s 2024 City Retail Report |
|
High-End Consumption |
Slowdown in spending on luxury goods |
Reports on Beijing & Shanghai Luxury Malls |
|
Mall Rental Income Growth |
Increase of 9-10% YoY in FY2024 and 8-9% in FY2025 |
ICRA |
The fashion industry in flux
The fashion industry, known for its sensitivity to consumer sentiment, is experiencing a slowdown. While some luxury brands may continue to thrive, mid-range and fast-fashion retailers are facing challenges.
Consumers are increasingly prioritizing value, durability, and sustainability. This has led to a rise in demand for second-hand clothing, rental services, and classic pieces that transcend fleeting trends. Reports indicate a growing interest in apparel rental services, driven by a desire for sustainable consumption. Many fashion retailers are grappling with declining footfalls, higher inventory, and pressure to offer discounts. This is squeezing profit margins and forcing some to re-evaluate their business models. Some retailers are even downsizing to meet evolving demands.
Malls feel the heat
The decline in consumer spending has had a direct impact on mall rentals. Malls, once bustling hubs of retail activity, are now dealing with vacant spaces and lower rental income.
With consumers cutting back on shopping, mall footfalls has decreased. This has a domino effect on retailers, who are struggling to meet sales targets and, in turn, find it difficult to justify high rental costs. However, CBRE data indicates that footfalls have rebounded to above pre-pandemic levels for all formats. Mall owners facing pressure due to lower rents are now offering concessions to retain existing tenants and attract new ones. However, even with reduced rents, some retailers are downsizing their physical footprint or closing stores altogether, leading to higher vacancy rates. A CBRE report also indicates that retail asking rents in high-street and dense suburban clusters reached the highest level since 2013 in Q2 2024.
The rise of e-commerce has further aggravated the challenges for brick-and-mortar retailers. Consumers can now shop from the comfort of their homes, reducing the need to visit stores. Malls thus need to reinvent themselves as experiential destinations, focusing on entertainment, dining, and services, rather than just shopping.
The decline of major department stores, once anchor tenants in many malls, is a prime example of this trend. As consumers shift their spending habits, these retail giants have struggled to adapt, leading to store closures and increased vacancies in malls. Meanwhile, some malls are successfully adapting by focusing on creating unique experiences. For example, malls that have incorporated entertainment venues, gourmet food courts, and interactive installations have managed to attract foot traffic and maintain occupancy rates.
In China high-end malls in Beijing and Shanghai, such as Parkview Green and K11, are adjusting to a slowdown in luxury spending by slashing rents and changing their tenant mix to attract middle-class shoppers.
The road ahead
The future of retail, particularly for fashion and malls, will depend on the ability of businesses to adapt to the changing consumer landscape. Retailers need to:
· Embrace omnichannel strategies: Integrate online and offline channels to provide a seamless shopping experience.
· Focus on value and sustainability: Offer products that meet the evolving needs and preferences of consumers.
· Create compelling experiences: Transform physical stores into destinations that offer more than just shopping.
Mall owners, on the other hand, need to:
· Diversify their tenant mix: Attract a wider range of businesses, including restaurants, entertainment venues, and service providers.
· Invest in technology: Enhance the customer experience with digital tools and platforms.
· Reimagine the mall as a community hub: Create spaces that foster social interaction and engagement.
The reign of the skin-tight legging, once the undisputed monarch of the fitness world, is showing signs of a graceful abdication. A revolution is brewing in the changing rooms, a shift that mirrors the broader evolution of fashion towards comfort and self-acceptance. The era of restrictive gymwear is gracefully yielding to a more relaxed and liberating aesthetic. But this trend isn't confined to the gym; it's permeating athleisure and mainstream sportswear too.
From second skin to flowing fabrics
For years, the gym was a showcase for sculpted physiques clad in form-fitting Lycra. Leggings, the epitome of this trend, became a symbol of both fitness and fashion, their price tags reflecting their status as coveted wardrobe staples. However, a new wave of gym-goers is embracing silhouettes that prioritize ease of movement over a sculpted outline.
Fitness studios are now witnessing the emergence of looser styles: yoga pants that flow with every pose, tracksuit bottoms that exude effortless cool, and ballet-inspired wrap cardigans that offer a touch of elegance. Tissue-thin, long-sleeved tops, reminiscent of off-duty dancers, are also making their presence felt, signalling a move away from the constricting embrace of tight-fitting apparel.
A holistic approach to fitness
This shift in gymwear aligns with the wider fashion landscape. Skinny jeans have been dethroned by baggy denim and horseshoe shapes, while pleated waistbands and oversized shirts have become the hallmarks of contemporary style. The once-dominant notion that tight clothing equates to effort has given way to an appreciation for generous silhouettes and relaxed fits.
The move towards looser gymwear isn't merely a fashion statement; it reflects a deeper shift in our relationship with fitness. There's a growing recognition that exercise is about more than just physical transformation. It's about cultivating mental well-being, enhancing mood, and fostering a positive mindset.
Working out in Lycra can inadvertently focus our attention on our physical appearance, potentially fueling self-criticism. By embracing looser garments, we can redirect our focus from outward appearances to the intrinsic joy of movement.
Comfort and functionality reign supreme
Ultimately, gymwear should be about functionality. Clothes that distract or hinder our movements are simply not doing their job. While leggings with practical features like zipped pockets remain essential for outdoor activities like running, indoor workouts are embracing the comfort of looser styles.
Vuori: The brand stands out as a prime example of the shift towards comfort-focused gymwear. Rooted in menswear, Vuori prioritizes comfortable fabrics and ease of movement. Their ‘Miles Ankle Pant’, a body-skimming jogger, exemplifies this trend, seamlessly transitioning from the gym to everyday wear. Its popularity highlights the demand for versatile, comfortable activewear that transcends traditional gym boundaries. Vuori's success demonstrates that a focus on comfort and functionality resonates deeply with consumers seeking a more relaxed approach to fitness.
M&S Goodmove: For those seeking affordable options, the ‘M&S Goodmove’ high waisted hareem yoga joggers offer all-day comfort and versatility. This brand is successfully democratizing the trend, proving that comfortable, loose-fitting gymwear doesn't have to break the bank. This shows how mainstream retailers are responding to the demand for accessible, comfortable activewear.
Frame (fitness studio influence): While not a clothing brand, Frame's instructors, like Cassie Davenport, are influential trendsetters. Their choice of tracksuit bottoms and loose T-shirts in classes demonstrates the practical and psychological benefits of relaxed gymwear. This case study underscores the importance of fitness professionals in shaping gymwear trends, showing how their personal style influences consumer choices.
Nike: Even established sportswear giants like Nike are embracing looser fits. Their ‘Nike Life’ collection, for instance, features relaxed silhouettes in everyday wear, drawing inspiration from workwear and vintage styles. This demonstrates that the trend is not just about gym wear, but a broader shift in how we want our clothing to feel. The ‘Nike ACG’ line also utilizes looser fitting garments designed for outdoor exploration, prioritizing movement and comfort.
Lululemon: Kknown for their leggings, Lululemon has increased its offerings to include a wider range of looser styles. Their ‘City Sweat’ collection, featuring relaxed-fit joggers and hoodies, caters to the growing demand for comfortable athleisure that can be worn beyond the studio. This shows how brands that were initially built on tight fitting garments, are adapting to the changing consumer demands.
Therefore, the era of restrictive gymwear is drawing to a close, ushering in a new era of comfort, functionality, and self-acceptance. This trend extends beyond the gym, influencing athleisure and sportswear as well. As we embrace looser silhouettes and prioritize ease of movement, we can create a more positive and empowering experience in all aspects of our active lives. The message is clear: loosen up, and let your body move freely, whether you're in the gym, on the street, or exploring the outdoors.
Underscoring its local connections as a part of broader efforts to improve the shopping experience both in stores and online, Spanish fashion brand Zara launched its latest collaboration with Chinese textile artist Lin Fanglu on April 24, 2025.
Marking her first venture into wearable design, Lin's collection features apparels for women, men and children along with a home furnishings range.
Eugenio Bregolat Lukashov, President, Inditex-Greater China, emphasized the significance of partnering with local artists, now for the fifth time, noting, such collaborations deepen their connection with Chinese consumers while improving their understanding of the market.
Through this collection, Zara joins a growing trend of fashion and luxury brands actively collaborating with Chinese designers and artists to explore innovative content and formats that go beyond simple cultural representation.
The brand continues to invest in various initiatives aimed at enhancing both in-store and online retail experiences. Recently, it opened its Asian flagship store in the Xinjiekou area, a thriving business hub in Nanjing, Jiangsu province. Designed in collaboration with a local architectural studio, the store introduces innovative features including a salon, fit check, vending machine, and cafe, according to Lukashov.
Thermoplastics are taking centre stage in fibre reinforced composite innovations, as noted in the latest JEC Composites Innovation Awards 2025 report by Textiles Intelligence. While carbon and glass technical fabrics remain the backbone of the industry, thermoplastics are emerging as a sustainable and versatile alternative to thermosets.
Unlike thermosets, thermoplastics can be reheated and reshaped, offering recyclability and reduced waste key factors driving their appeal. Their malleability also supports complex designs and advanced manufacturing techniques like welding and overmoulding.
Several 2025 JEC award winners highlighted these advantages. Airbus (Germany) showcased a full-scale demonstrator of a single-aisle aircraft fuselage made from carbon fibre reinforced thermoplastics (CFRTPs). The CFRTPs can be moulded at high temperatures, allowing for lighter fuselage structures without heavy fasteners.
The CIMNE-led FIBRE4YARDS project received recognition for promoting thermoplastics in shipbuilding. Traditionally used in vessels under 25 metres, thermoplastics are now being applied to boats up to 50 metres. The project tackled high production costs by replacing manual methods with automated systems.
IRT Jules Verne won for the Zebra project, which developed full-scale wind turbine blades using Elium liquid thermoplastic resin from Arkema. Designed with recyclability in mind, the project marks a significant shift toward circular solutions in wind energy.
Despite these advancements, thermosets continue to dominate, especially in aerospace, due to established trust and long qualification cycles. Still, thermoplastics are positioning themselves as the future of composites through sustainability and innovation.
Fitness apparel giant Gymshark’s revenues increased to $760.5 million in FY24 as against $696,5 million in FY23.
The Solihull-headquartered company’s adjusted EBITDA rose to $64.7 million despite rising costs as against $56.7 million in FY23. However, pre-tax profits decreased from $16.4 million to 14.9 million
Led by Ben Francis, CEO, the group traded successfully during FY24 as it revenues grew, profitability improved and it continued to satisfy customers".
During the year, the company focused on reinvesting its profits back into the business instead of declaring a divided. It continued to face challenges due to the general macroeconomic environment which in general affected all apparel businesses and consumers alike.
According to the company’s Board, the group’s inputs costs, including raw materials and labor costs continue to rise, although other costs, notably freight, have significantly normalised when compared with the prior two financial years.
The Board monitors these costs along with the changes in the macro environment, from a general perspective and with regard to conditions in key geographies.
Following a successful debut, Shift is set to host its second menswear-focused edition on June 29 and 30, 2025, at the iconic Muza building in the Taets Art and Event Park, Zaandam, Netherlands. Housed in a former bullet factory, the venue offers a distinctive industrial backdrop ideal for an event dedicated to connection, innovation, and menswear trends.
With its growing reputation in Northern Europe, particularly across the Benelux and Germany, Shift continues to attract attention. Over 80 per cent of last year’s participating brands are returning, joined by new and established names spanning classic menswear, streetwear, denim, sportswear, and avant-garde fashion.
The event follows a ‘plug & play’ model, providing brands with pre-arranged facilities, eliminating costly booth setups. This approach fosters open dialogue and collaboration, staying true to Shift’s mission of accessibility and creative exchange.
Responding to feedback from brands and retailers, Shift is introducing new features, including dedicated order areas and temporary showrooms. These additions are designed to streamline the buying process, enabling brands to schedule appointments and write orders during the event.
Beyond fashion, Shift is expanding its scope to include partners from branding, digital marketing, and in-store retail solutions, offering attendees insights into customer engagement and business development.
The raw, open spaces of Muza lend themselves to creative expression, making it an ideal venue for brands to showcase identity and for retailers to discover new ideas and partnerships. Shift positions itself not just as a trade fair, but as a catalyst for change in the menswear retail landscape.
D’Decor's luxury home furnishings label Sansaar has launched its first ever bedding range alongwith expanded curtain and upholstery offerings in partnership with Bollywood celebrity Ranveer Singh.
Launched at an event at Mumbai's Jio World Convention Centre, the showcase spanning 16,000 sq ft, was attended by over 800 partners and industry stakeholders.
Focusing on spatial storytelling, the event featured a swatch display wall, oversized chair installations, and a full-scale 3D mock-up of Sansaar’s franchisee store and shop in shop formats. It also included a virtual reality walkthrough that enabled attendees to visualise layout options in real time.
The exhibition featured 1,500 new Sansaar products spanning upholstery, curtains, and D’Decor Exports’ premium rugs and blinds. Reinforcing Sansaar’s strategy to offer holistic and sustainable home solutions, the new bedding range is customised to evolving consumer preferences.
Currently boasting over 450 retail touchpoints, and achieving 35 per cent revenue growth in its first year, Sansaar plans to expand its network of standalone stores besides also entering into new strategic partnerships. The business aims to generate revenues worth Rs 500 crore in the next three years.
French actor Adèle Exarchopoulos has been named as the new brand ambassador for the iconic sportswear and lifestyle brand, Lacoste.
At Lacoste's recent runway show in March, held on the center court at Roland Garros in Paris, Exarchopoulos made a notable appearance. She sported a complete Lacoste ensemble for the event featuring a black leather jacket, a matching balaclava, and wide-leg trousers, complemented by a white Lacoste handbag.
The campaign showcases Exarchopoulos as Lacoste's new ambassador with the Lenglen leather handbag, a clear nod to the runway show. However, the overall styling of the campaign is quite different. In one image, Exarchopoulos is seen lying on an apple green floor against a backdrop of the same vibrant hue, her face directed towards the camera. She wears a green open-back top, with the handbag positioned like a skirt and the Storm 96 2K sneakers on her feet, creating a tennis-inspired look.
Besides being the winner of the Best Supporting Actress award at the 2024 César film awards for her role in ‘All Your Faces,’ Exarchopoulos is also an ambassador for Yves Saint Laurent Beauty. She now becomes the new French face of Lacoste, serving as the female counterpart to actor Pierre Niney, who has been a Lacoste brand ambassador since 2024.
Having reported revenues just under €3 billion in 2024, Lacoste aims to reach €4 billion by 2028-2030, according to Thierry Guibert, CEO. The brand aims to expands its business in North America besides increasing sales of its women's products.
Rising pressure from the cotton industry may compel the Indian government to eliminate the 10 per cent import duty and an additional 10 per cent levy on cotton. Removing these duties is crucial for boosting textile exports, the industry argues, citing a current shortage of domestic cotton. However, this potential policy shift could have negative consequences for Indian cotton farmers, it adds.
If import duties are scrapped, the influx of cheaper imported cotton could force domestic growers to lower their prices. This price reduction would not only impact farmers' incomes but also affect the Cotton Corporation of India (CCI), the government agency responsible for purchasing cotton at the Minimum Support Price (MSP). The CCI currently holds about three-quarters of the 10 million bales it acquired this season.
Sources suggest, the Ministry of Textiles supports the removal of the import duty, and the CCI is also likely to concur. The yarn and fabric industries have been actively lobbying for this change, as they currently face an effective import duty of 11 per cent due to a 10 per cent basic customs duty and a 10 per cent levy.
Lalit Kumar Gupta, Chairman and Managing Director, CCI, points out, India annually imports 1 to 1.5 million bales of specific high-quality cotton not produced domestically, which is already exempt from customs duties. He stated, CCI would support the government's decision. While acknowledging potential losses from falling prices, he noted, CCI sells cotton throughout the year, sometimes securing better prices later. The government compensates the CCI for any losses incurred.
CCI is currently selling cotton at Rs 55,000–Rs 56,000 per candy (approximately 785 pounds). In the 2024–25 season, the CCI procured 10 million bales (about 375 pounds each), with roughly 25 per cent sold.
With the MSP-based cotton procurement season concluded, about two-thirds of the crop remains with farmers or has been sold to traders. Industry estimates suggest farmers hold 6–6.5 million bales. Removing the duty could allow imported cotton to land at Rs 48,000–Rs 50,000 per candy, undercutting domestic prices and potentially causing over Rs 20 billion in losses on unsold stock.
The Cotton Association of India (CAI) revised its 2024–25 cotton production estimate downward to 29.53 million bales in March 2025, projecting consumption at 31.3 million bales. The government's second advance estimate aligns closely, placing production at 29.42 million bales.
India's cotton production costs are about 1.5 times higher than in Brazil or Australia, enabling these countries to export cotton to India at lower prices. The yarn and fabric industry argues that expensive domestic cotton hinders the competitiveness of Indian textile exports. However, their existing option to import duty-free cotton under the advance licensing scheme weakens this argument.
Eliminating import duties now could discourage farmers at the start of the planting season, undermining the Cotton Mission aimed at boosting domestic production. Cheaper imports could harm farmers and derail government objectives, potentially leading to political protests in the approximately 220 Lok Sabha constituencies where cotton is grown.
Although Adidas reaffirmed its financial outlook for 2025, the German sportswear company said, it anticipates production costs of all its products sold in the American markets to rise on account of the planned higher tariffs on imports into the United States.
Bjorn Gulden, CEO, says, although the brand has reduced its imports from China to a minimum, it remains exposed to the current high tariffs to a certain extent..
Unexpectedly high US import taxes on Southeast Asian nations like Vietnam and Indonesia, which are currently paused until July, have caught sportswear manufacturers off guard. These companies had depended on supplies from those countries to lessen the impact of US tariffs on goods from China.
Having released stronger-than-anticipated quarterly sales and profit figures in an unscheduled announcement last week, Adidas said, the increased costs would eventually lead to price increases. However, the company added, it is currently impossible to quantify these increases or to assess their impact on consumer demand for its products.
Gulden noted, Adidas would have raised its forecast for the full year, both for revenue and operating profit, following a solid quarter and a strong order book, if it weren't for the uncertainty surrounding the tariffs.
