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The global fashion industry is recalibrating its compass, recognizing the vibrant and diverse opportunities across Asia beyond China. While China remains a significant player, brands are increasingly being attracted by the unique potential of other Asian suppliers. With rising incomes, digital adoption, and distinct cultural influences in countries like India, Indonesia, South Korea, Hong Kong, and Thailand are emerging as crucial growth engines for the industry. This shift is evident in the strategic initiatives and impressive growth figures reported by leading fashion brands.
India, a market of a billion aspirations
India's apparel market is expected to reach $118 billion by 2028, with a young demography and increasing disposable incomes. No wonder brands like Zara, H&M, Uniqlo, and luxury giants like Gucci and Louis Vuitton are expanding their footprint.
And to spread their footprint, these brands are adopting various strategies like localized collections. Brands are embracing Indian craftsmanship and design elements to resonate with local preferences. They are also looking at seamless integration of online and offline channels as it is crucial to cater to India's diverse consumer base. And ethical sourcing and production are gaining traction among environmentally conscious consumers.
Table: India brand sales and market share
|
Brand |
Share of sales from India |
Growth in India (YoY) |
|
Zara |
8% |
15% |
|
H&M |
5% |
12% |
|
Uniqlo |
3% |
20% |
Indonesia, the digital fashion frontier
Indonesia's fashion scene is characterized by a thriving e-commerce market, with local players like Zalora and Berrybenka leading the way. International brands like ASOS and Shein are also making inroads, adapting to the digital-first landscape. And to succeed brands have adopted mobile-first approach. They are prioritizing mobile optimization and engaging content to capture the attention of young, digitally savvy consumers. Moreover, collaborations with local influencers are key to building brand awareness and driving engagement.
Table: Indonesia brand sales and market share
|
Brand |
Share of sales from Indonesia |
Growth in Indonesia (YoY) |
|
Zalora |
60% |
25% |
|
Shein |
10% |
30% |
South Korea, the style icon
South Korea's fashion influence extends far beyond its borders, shaping trends in streetwear, K-pop fashion, and beauty across the globe. Luxury brands are vying for a share of the affluent South Korean market, while local brands like Gentle Monster and Stylenanda are gaining global recognition.
Experiential retail is a priority for success in this market. Flagship stores are designed as immersive brand experiences, showcasing cutting-edge design and engaging consumers. Moreover, celebrity collaborations is also crucial. Partnering with K-pop stars and designers amplifies brand visibility and taps into the ‘Korean Wave’
Table: South Korea brand sales and market share
|
Brand |
Share of sales from South Korea |
Growth in South Korea (YoY) |
|
Gucci |
12% |
10% |
|
Louis Vuitton |
10% |
8% |
Hong Kong, the luxury hub
Hong Kong serves as a crucial gateway to the Chinese market and a major shopping destination for affluent tourists. Luxury brands maintain a strong presence, with flagship stores and exclusive events catering to high-net-worth individuals.
Brands are focusing on personalized services and exclusive experiences to cultivate customer loyalty. Also on their agenda is providing seamless shopping experiences across online and offline channels to cater to the digitally savvy consumer.
Table: Hong Kong brand sales and market share
|
Brand |
Share of sales from Hong Kong |
Growth in Hong Kong (YoY) |
|
Chanel |
15% |
7% |
|
Hermès |
12% |
5% |
Thailand, the rising tourist destination
Thailand's growing tourism industry is driving demand for fashion and luxury goods, particularly among Chinese and Southeast Asian tourists. A mix of international and local brands, cater to diverse tastes and budgets, from luxury labels to affordable fast fashion. Brands are investing in large-scale shopping malls with a wide variety of brands and entertainment options. Brands are creating engaging shopping experiences that combine retail with entertainment and cultural elements.
Table: Thailand brand sales and market share
|
Brand |
Share of sales from Thailand |
Growth in Thailand (YoY) |
|
H&M |
6% |
10% |
|
Zara |
5% |
8% |
The Asian fashion landscape is multifaceted, offering numerous opportunities for brands that can adapt to its diverse consumer preferences and market dynamics. With localization, digital innovation, and sustainable practices, fashion companies can unlock the immense potential of these exciting markets and secure their position in the global fashion arena.
The new tariffs on the textiles and apparel industry by the US have sparked concerns amongst industry leaders. Highlighting the effect of these tariffs on business decisions, Stephen Lamar, President and CEO, American Apparel and Footwear Association, says, acting as a tax on the supply chain, these tariffs will ultimately raise prices for consumers and drive their costs significantly.
Echoeing the same concerns, Jonathan Gold, National Retail Federation, emphasizes, forced to pay these tariffs, US imports may ultimately pass on these costs to consumers.
Blake Harden, Retail Industry Leaders Association points out, the trade policy of the new US government indicates a wide range of tariffs on the horizon.
Carlos Couttolenc Lopez, Textiles La Libertad, a Mexican textile company, explains, a tariff of 25 per cent on Mexican and Canadian imports would significantly impact customers, potentially forcing them to raise prices. Under such conditions, it would become extremely difficult to maintain free trade among the US, Mexico and Canada, he emphasizes. An employer of around 160 people, Lopez’ company, Textiles La Libertad relies on the US for a substantial portion of its market share.
Vuong Duc Anh, Vietnam National Textile and Garment Group opines, increased tariffs would ultimately burden US consumers by triggering inflation and impacting the interest rates plans of the Federal Reserve. This would force businesses to find ways to reduce production costs and share the burden with buyers, he adds.
Moda x Pure, the highly anticipated fashion destination at Spring Fair, is making its debut next week, from 2-5 February at Birmingham’s NEC. This exciting new event will showcase a diverse range of both new and returning brands across four key fashion destinations: Womenswear, Clothing & Footwear, Fashion Accessories, and Jewellery & Watch.
The Womenswear and Clothing & Footwear destinations will feature fresh brands such as Angeleye, City Goddess, Luxtyle, and Trixxi, a Los Angeles-based brand offering creative and stylish dresses. Premium occasionwear brand Liberosis Paris will also make its debut, along with AX Paris, known for classic silhouettes and bold colors. Nova of London will present a wide collection of women's dresses, skirts, tops, and coats, while Urban Bliss will showcase its sustainable and versatile fashion.
Footwear collections will include MooChuu, a UK-based brand specializing in environmentally friendly and customizable shoes, and Nina Atelier, a Turkish artisan designer known for their comfortable and premium leather footwear. Returning favorites, including Yumi, Finding Friday, and Pistachio, will also be featured at the show.
The Fashion Accessories destination will offer luxury items such as leather handbags, scarves, and socks. Brands like Kris-Ana and Mopak will highlight innovative and stylish accessories, with Miss Sparrow offering unique bamboo socks. Powder will return with glamorous scarves, cover-ups, and pyjamas.
In the Jewellery & Watch sector, expect to find unique pieces from Zsiska, Sea Gems, Scream Pretty, and many others, offering a blend of classic and contemporary designs.
A highlight of the event will be the New Business Pavilion, where emerging designers can showcase their latest collections, providing buyers with the opportunity to discover fresh talent.
Soraya Gadelrab, Event Director at Spring Fair, says, "Moda x Pure offers an inspiring mix of established brands and exciting newcomers, elevating the fashion offering at Spring Fair. We’re excited to deliver a dynamic experience, allowing visitors to explore trends and connect with the industry."
The Aid by Trade Foundation (AbTF) is set to unveil its new Transparency Standard in early 2025, enhancing the traceability and reliability of sustainable cotton certified under Cotton made in Africa (CmiA) and the Regenerative Cotton Standard (RCS). This initiative aims to strengthen global confidence in sustainable cotton across the textile supply chain.
Building on its 2018 tracking system, the new standard introduces independent audits and digital transaction documents (DTDs) to ensure rigorous compliance. "This sets a new benchmark for reliability and traceability," said GerlindBaz, senior project manager at AbTF. Independent auditors will conduct risk-based audits, verify production data, and review documents like delivery notes, providing greater transparency.
Tobias Wollermann, Vice President of Corporate Responsibility at the Otto Group, highlighted the significance of this step: “The new standard enhances safety and reliability, supporting due diligence in global supply chains.”
Key features include risk-based audits, mandatory self-assessments, and on-site onboarding audits for spinning mills. The introduction of DTDs enables seamless tracing of CmiA and RCS cotton throughout the supply chain. Any missing data in the process renders the DTD invalid, reinforcing the integrity of the system.
Tina Stridde, Managing Director of AbTF, emphasized the growing demand for traceable raw materials: “The new transparency standard addresses mounting political and social pressures, empowering textile companies and brands to verify product origins and sustainability.”
This landmark initiative reaffirms CmiA and RCS as globally trusted certifications, ensuring that sustainable cotton is reliably tracked from field to finished product.
The British Fashion Council (BFC) has received £1 million in additional funding from the UK government to support emerging designers facing a challenging economic climate. Allocated through the Department for Culture, Media and Sport, this funding will help secure show venues, cover presentation costs, and provide business mentoring for BFC Newgen designers.
Acknowledging the difficulties faced by the British fashion industry, Caroline Rush, CEO, BFC cited Brexit's impact, access to finance challenges, and payment terms as contributing factors. She urged the government to further support the industry by reinstating tax-free shopping to boost confidence and stimulate growth.
Emphasizing on the BFC's commitment to support designers in navigating these challenges, Rush offered various showcasing options, including digital presentations and events, to accommodate budget constraints. The BFC is also facilitating connections between designers and potential partners and venues, with ongoing support from sponsors like 1664 Blanc. Furthermore, they've expanded their international guest program to attract high-spending buyers and press, utilizing government funding and the Great Campaign. A showroom in Paris during Paris Fashion Week will also provide further opportunities for emerging brands.
Rush reiterated the BFC's dedication to evolving its platform to meet designers' changing needs, ensuring LFW remains a vital showcase for brand awareness, sales, and industry collaboration. Her announcement coincided with the release of the London Fashion Week (LFW) schedule for Fall 2025, running from February 20-24, 2025. New additions to the lineup include Ashish, Maison Sara Chraïbi, and Maison Artc. The week will kick off with Harris Reed, followed by established brands like Burberry, Erdem, Simone Rocha, Richard Quinn, and Edeline Lee, alongside emerging talent showcased through BFC Newgen.
A graduate from the NED University in Karachi, Suboohi Arif has developed IntelliInspect, an AI-driven system to detect fabric defects in real time. This innovation promises to save considerable costs for the textile industry by identifying quality issues early in the production process. IntelliInspect addresses the recurring problem of rejected export consignments due to faulty textiles, a major challenge for Pakistan's largest export sector.
The AI-powered technology detects various defects in both knitted and woven fabrics, including broken threads, stains, tears, and holes. Unlike traditional inspection methods, IntelliInspect analyzes unprocessed (grey), dyed, and printed fabrics in real time. Tests on over 3,000 samples showed accuracy above 95 per cent for knitted fabrics and 90 per cent for woven fabrics, with detection times ranging from 40 to 77 seconds.
Using high-speed sensors and cameras installed on textile manufacturing lines, IntelliInspect quickly identifies defects during production. This prevents manufacturers from using faulty fabric, improving profitability by reducing production losses. The system has applications across various textile segments, including garment production, automotive textiles, home furnishings, and industrial textiles. It enhances efficiency, accuracy, and production continuity while lowering operational costs.
Arif is seeking collaborations with industry stakeholders to integrate IntelliInspect into manufacturing facilities, improving the quality of export products and maximizing business profits. She emphasizes that the technology not only reduces costs but also provides data-driven analytics for better decision-making. IntelliInspect has the potential to transform Pakistan's textile sector, which accounts for over half of the country's exports and has historically struggled with quality control. Widespread adoption of this technology could significantly boost the industry's global competitiveness, she adds.
A key player in the Indian textile industry, Mafatlal Industries achieved a major milestone as the company completed 120 years of operations in India. To commemorate this achievement, the company organized an event at its Nadiad plant, honoring four generations of leaders who contributed to its success. It also inaugurated its new experience center at the event showcasing Mafatlal's history through visuals and artifacts.
Priyavrata Mafatlal, Vice-Chairman, Arvind Mafatlal Group, expressed gratitude to employees, partners, and supporters. Looking forward, the company remains committed to innovation, sustainability, and community engagement. The anniversary celebration recognized the company's past while inspiring future generations to continue its tradition of excellence.
With inflationary pressures impacting textiles demand during the festive season, Trident’s consolidated net profit increased by 27 per cent Y-o-Y to Rs 797 million in Q3, FY25. A supplier of home textiles to major global retailers such as Walmart, Target, Ikea and JC Penney, the company reported a 9 per cent decline in revenue to Rs 16.67 billion during the quarter.
The company’s revenues across all four segments declined. Accounting for 41 per cent of total revenue, sales from the company’s yarn segment fell by 5 per cent while sales in the towels, bedsheets and paper and chemicals segments declined by 10 per cent, 13 per cent and 17 per cent respectively.
This revenue decline persisted despite the third quarter coinciding with the country's festive season, where retailers register a boost in demand as consumers splurge on products. The revenue decline also surpassed expenses, which contracted by about 7.2 per cent to Rs 15.79 billion, mainly due to lower raw material costs.
As per analysts at Antique Stock Broking, textiles sales in India have been dampened by persistent inflationary pressures that continue to reduce consumer demand and lower discretionary spending.
In October 2024, India's retail inflation increased to 6.21 per cent. This figure continued to remain above the Central Bank’s medium-term target of 4 per cent despite a slowdown in the following two months.
A new report by Cotton Incorporated, ‘Cotton As A Possible Bellwether for Global Economies: Why International Cotton Markets Matter’, brings good news for India's cotton industry. The report predicts a stable global cotton market in 2025, with favorable pricing and increasing global demand, offering opportunities for Indian cotton growers and textile manufacturers.
Report findings
Supply: Global cotton production is projected to increase in the 2023-24 crop year, with favorable weather conditions in key producing countries like the US and India. However, potential disruptions like pest infestations and water scarcity could impact output.
Demand: Despite a slight uptick in demand, the global cotton market is expected to remain relatively balanced in the coming years. The study notes that mill use, a key indicator of demand, is projected to increase modestly.
Pricing: Cotton prices have been volatile in recent months, influenced by factors such as fluctuations in the US dollar, changes in speculative activity, and shifts in demand from major consuming countries. The study anticipates continued price volatility in the near term.
Global cotton production outlook
The U.S. Department of Agriculture expects a rise in global cotton production in 2024/25, with an increase of 3.12 million bales to 116.2 million. World mill-use is also projected to grow by 1.4 million to 115.2 million.
United States: A significant increase in production is expected, primarily due to the unusually small crop in 2023. Hot and dry conditions in West Texas impacted the previous year's harvest.
China: As the world's largest cotton producer, China's production increased by 300,000 bales last year. The country also holds reserve stock, making it well-supplied for 2025. However, a housing market crisis and cautious consumer spending could affect demand.
India: The second largest cotton grower faces challenges due to weather and government intervention through minimum support prices (MSPs). This could lead to the government holding cotton stock and potentially selling at a loss.
Pakistan: Cotton production decreased due to seed quality issues, flooding, and extreme heat.
Brazil: With its ability to plant two crops a year, Brazil could be a key player in 2025. The country's record crop last year and its impact on global prices are noteworthy.
Table: Cotton production
Region Production (mn bales) Mill use (mn bales) World 119.5 115.9 United States 18.5 3.3 India 26.5 25 China 30 39
The study highlights India's growing importance in the global cotton market. With a projected increase in both production and mill use, India is poised to play a significant role in meeting global cotton demand. China remains the world's largest consumer of cotton. However, the study notes that recent policy changes and shifts in domestic consumption patterns could impact China's cotton imports in the coming years.
Stable global market benefits Indian growers
Cotton Incorporated forecasts stable cotton prices in 2025, a welcome change from recent volatility. This stability is crucial for Indian farmers who have faced fluctuating incomes due to unpredictable market conditions. Experts point out this stability should enable better planning for Indian cotton growers. Predictable pricing allows farmers to make informed decisions about planting and invest in their operations with greater confidence.
India's role in the global cotton landscape
The report acknowledges India's position as the second largest cotton grower globally. While acknowledging recent weather challenges impacting Indian production, the report highlights the role of India's Minimum Support Price (MSP) system in supporting farmers' livelihoods.
The report also points out challenges for India, including the potential for government-held cotton stocks to be released into the market at a loss, impacting prices. However, the projected increase in global mill use, particularly in countries like China, offers a significant opportunity for India to increase exports and strengthen its position in the global cotton value chain. "Indian textile manufacturers should capitalize on this growing demand by focusing on quality and sustainability to compete effectively in the international market."
The study's findings have significant implications for various stakeholders in the cotton value chain, including farmers, textile mills, and consumers. Understanding the dynamics of the global cotton market is crucial for making informed decisions and navigating the challenges and opportunities that lie ahead.
A look at the growing potential of India's fashion, apparel, and textile trade with ASEAN countries
India's relationship with the Association of Southeast Asian Nations (ASEAN) is blossoming, driven by the 'Act East Policy' and a shared vision for economic growth. Here is a look at the exciting potential for collaboration in the fashion, apparel, and textile sectors, drawing insights from the provided article, current data, and expert opinions.
India-ASEAN trade partnerships
In India-ASEAN trade, apparel and textiles are key sectors and it is driven by several factors. Uppermost is the complementary economies as India's strength in raw materials and skilled labor complements ASEAN's manufacturing prowess and growing consumer markets. The India-ASEAN Free Trade Area (AIFTA) has significantly reduced trade barriers, boosting bilateral trade. Also, they have shared cultural heritage and aesthetics that facilitate a deeper understanding of consumer preferences. And initiatives like UPI-PayNow linkage enhance financial transactions, making cross-border trade smoother.
In fact, Singapore's robust trade and investment relationship with India exemplifies the potential for collaboration. As the largest source of FDI into India, Singaporean companies are actively investing in India's fashion and textile industries. On similar lines, platforms like Shopee and Lazada are witnessing an increase in cross-border fashion trade between India and ASEAN. Indian ethnic wear and textiles are gaining popularity in Southeast Asia, while ASEAN's trendy apparel finds a market in India.
Table: India ASEAN trade overview
|
Indicator |
Value |
|
India-ASEAN total trade (2018-19) |
$96.79 bn |
|
Projected India-ASEAN total trade (2025) |
$300 bn |
|
Cumulative FDI from Singapore to India (2000-2024) |
$ 159.94 bn |
|
ASEAN's projected growth rate (2024) |
4.60% |
The way forward
However, despite the collaborations there are some challenges in future growth. Non-tariff barriers are bug bear as technical regulations and standards can hinder trade. Harmonization efforts are crucial. Improving connectivity and streamlining supply chains are must to further enhance trade efficiency. Simultaneously, promoting ethical sourcing and sustainable production practices is essential for long-term growth.
