FW
After operating as Textile Recyclers Australia for more than a decade, the company has rebranded itself to Textile Recyclers Group (TRG). This strategic move reflects TRG's expanding global reach, its unwavering commitment to innovation, and a growing network of partners dedicated to transforming textile waste.
This milestone signifies a crucial evolution in TRG’s mission to give textiles a second life and actively shape the future of circular fashion and textile reuse. To date, TRG has successfully diverted over 1 million kg of textiles from landfills and serves more than 200 clients across various industries, showcasing its significant environmental impact.
The rebrand also provides TRG with an opportunity to reaffirm its core mission and guiding principles: viewing textiles as a valuable resource rather than mere waste. The group emphasizes measurable, transparent systems that inform design, logistics, and analysis, reinforcing its commitment to sustainability and harm reduction. It champions scalable, practical innovations that align with Life Cycle Assessment (LCA) standards, ensuring a holistic approach to environmental responsibility.
As Textile Recyclers Group, the company is now strategically positioned to scale its technical capabilities, deepen client partnerships, and accelerate product development for broader commercial applications. The rebrand underscores the essential role that innovation and technology will play in addressing the global textile waste crisis and advancing a truly circular economy.
With established facilities in Sydney and Melbourne, TRG possesses a robust platform that enables it to deliver highly flexible solutions for keeping textiles and apparel out of landfills.
Currently, TRG provides services to customers across Australia and New Zealand, with plans to expand its scope to offer global solutions.
Under the new Textile Recyclers Group umbrella, the company encompasses specialized divisions. Its division, Project Down Under focuses specifically on the recycling of underwear and undergarments. The Composable Plastics division provides innovative, biodegradable packaging solutions tailored for the fashion and textile sectors. Lastly, Textile Recycling Technologies serves as TRG's dedicated research and development division, constantly advancing innovation for true textile circularity. These specialized areas are unified by TRG's four core values: environment, textiles, circularity, and technology.
Leading international fashion brand, Mango has appointed Helena Helmersson, former CEO, H&M Group, as a new independent member of its Board of Directors. This strategic move aligns with the brand’s international best practices and reinforces its commitment to a professionalized management model.
With over 20 years of extensive international experience in the fashion industry, Helmersson has served as the Chief Executive Officer of the H&M Group from 2020 to 2024. In this role, she spearheaded sustainability, production, and global operations. She is currently engaged as the Chairwoman, Circulose and Board Member, On Holding AG and Quizrr. Her global background and experience with a brand present in over 75 markets offer a crucial strategic perspective to Mango’s governing body.
Toni Ruiz, Chairman and CEO, Mango, avers, Helmersson’s vast international perspective and extensive experience in the fashion industry will undoubtedly propel the brand to new heights, Her expertise and visionary approach are invaluable assets that will enrich our leadership team and drive our global ambitions forward, she remarks.
Expressing her joy at the announcement, Helmersson states, Mango is pursuing a very ambitious plan, developing the brand and assortment, and bringing it to more customers around the world. At the same time, they are part of leading the sustainability practices in the industry,
With this addition, the Mango (Mango MNG) Board of Directors now comprises Toni Ruiz Chairman and CEO; Jonathan Andic, Vice Chairman, Daniel López, and Margarita Salvans, Executive Directors. The six independent directors include Jordi Canals, Jorge Lucaya, Jordi Constans, Marc Puig, Manel Adell, and now Helena Helmersson. Eugenia Jover serves as the Non-Director Secretary of the Board.
This strategic strengthening of the Board is a key part of Mango’s 2024–2026 4E Strategic Plan. The plan focuses on reinforcing the brand's differentiated value proposition, its commitment to innovation and sustainability, and driving significant sales expansion globally.
Under the banner of 'Recode 2050: Reimagining the Future,' Taiwan's textile sector is poised to showcase its latest advancements in sustainable innovation and functional fabrics through a groundbreaking fashion event at this year's Taipei Innovative Textile Application Show (TITAS) on October 15, 2025.
Commissioned by the International Trade Administration, Ministry of Economic Affairs (TITA), and organized by the Taiwan Textile Federation (TTF) as a part of the Textile Export Promotion Project, this event will demonstrate Taiwan's deep integration of technology, circularity, and aesthetics in shaping the future of global fashion.
Based on the theme of 'Tech-Driven Textiles × Sustainable Innovation,' the fashion show will bring together some of Taiwan’s leading textile manufacturers and visionary designers. Through this cross-industry collaboration, complex material science and production expertise will be translated into contemporary fashion language, spotlighting Taiwan’s strengths in functional fabrics, eco-conscious processing, and forward-thinking design.
Inspired by the global net-zero carbon vision for 2050, 'Recode 2050' tackles the intertwined challenges of environmental impact, technological progress, and design aesthetics. Taiwan's textile industry, long recognized as a silent champion behind many global brands, is now stepping into the spotlight with agility, creativity, and responsibility.
The event will feature 19 companies representing the entire textile value chain, from fabric development and embroidery to finishing and brand innovation. A few of these participating companies include internationally recognized names like Li Peng, New Wide, Singtex, and Paltex, etc, all celebrated for their quality and innovation.
Through this initiative, TTF strategically pairs these textile suppliers with six leading Taiwanese fashion labels Choir, Gioia Pan, Oqliq, Spfloe, Uuin, and WeaviSM. This collaboration aims to explore how next-generation materials can respond to climate imperatives, embrace smart functionality, and evoke emotional resonance. The ultimate goal is to elevate Taiwan from a ‘fabric power’ to a ‘brand power.’
Designers will unveil 48 original looks crafted from advanced functional textiles provided by their partnered mills. These innovative materials include high-performance fabrics, bio-based yarns, recycled materials, and smart fibers.
More than just a runway show, 'Recode 2050' serves as a conceptual blueprint for sustainable living in the coming decades, offering a glimpse into how the industry can harmonize material innovation, design aesthetics, and ecological responsibility.
The European textile and apparel industry, a major contribute to the continent’s manufacturing ecosystem, is grappling with mounting uncertainty following the US' imposition of a 20 per cent tariff on EU textile and clothing exports. The decision, announced in April 2025 as part of a broader reciprocal trade response, has sent shockwaves through a sector already battling rising costs and fierce global competition.
A €7.5 bn trade at risk
The European Union annually exports nearly €7.5 billion worth of textile and clothing products to the US. The newly enforced 20 per cent import duty could translate into an estimated €1.5 billion in additional customs costs, severely eroding the competitiveness of European products in the US market.
“We’re entering dangerous territory,” warned Dirk Vantyghem, Director General of EURATEX (European Apparel and Textile Confederation). “This is not just about tariffs; it's about the ripple effects on jobs, investment, and transatlantic trade cooperation.”
Table: Estimated impact of 20% tariff on EU exports to the US
Metric Value Annual EU textile/apparel exports to U.S. €7.5 billion Imposed U.S. tariff 20% Estimated additional customs duties €1.5 billion Number of European companies affected Over 143,000 (EURATEX)
Losing market share at home and abroad
The tariffs could prompt a rerouting of supply chains globally. With US buyers potentially shifting away from EU suppliers due to higher prices, Asian exporters—many of whom are facing US restrictions—might increasingly target Europe as an alternative outlet for their surplus production. This could result in increased Asian clothing imports into the EU, heightening competition for already strained European manufacturers.
“We’re not just losing market share in the US,” noted an executive at an Italian knitwear brand. “We might also be swamped at home by redirected Asian production.”
Euratex has urged the European Commission to consider safeguard mechanisms to prevent a sudden surge of third-country imports—particularly from China—which could destabilize local industry capacity utilization and employment.
Already a rocky road
Even before the tariffs, the European textile industry was facing formidable structural headwinds. Rising energy costs following geopolitical tensions and supply shocks post-Ukraine war. Compliance with the EU Strategy for Sustainable and Circular Textiles (2022), which mandates eco-design, extended producer responsibility, and recycling obligations. Persistent labor shortage in some regions and lack of investment in digitization was also an issue.
Table: Existing challenges for EU textile sector (pre-tariff)
Challenge Description Energy prices Up by over 25% between 2021–2024 Green compliance costs Estimated at €10–15 billion over 5 years (EURATEX, 2024) U.S. tariffs before April 2025 Ranging from 11% to 32% on various products (e.g., suits, t-shirts, sewing thread) Global competition Increasing from low-cost producers in Asia
Blow to European trade aspirations
For years, European manufacturers and trade bodies had lobbied for zero-duty access and simplified rules of origin in US markets. They envisioned transatlantic trade reforms that would unlock opportunities for small and medium-sized enterprises (SMEs), foster innovation-driven exports, and offer more choices to American consumers. The April 2025 tariffs are seen as a regressive move, undoing years of diplomatic efforts.
“We had hoped for mutual modernization of textile trade rules—not a tit-for-tat tariff war,” said a EURATEX policy advisor. “It undermines predictability, which is essential for long-term sourcing and investment planning.”
Dialogue or decoupling?
Euratex is pushing for urgent bilateral dialogue, cautioning that the situation could escalate into a lose-lose spiral. If retaliations continue, the impact could extend beyond textiles to broader EU-US trade relations, potentially affecting machinery, chemicals, and automotive sectors.
The European Commission is also weighing retaliatory tariffs and incentives for reshoring production or diversifying into untapped markets such as Latin America and Africa. At a recent EU Council briefing, trade ministers emphasized the need to defend strategic sectors like textiles, which employs over 1.3 million people across the EU and is essential to regional economies in Italy, Portugal, Germany, and Eastern Europe.
Table: European textile industry snapshot (2025)
Key Indicator Value Total sector turnover €162 billion (EURATEX, 2024) Total employment 1.3 million Number of SMEs 99% of all textile and clothing firms Top EU exporters to U.S. Italy, Germany, France, Spain Share of exports to U.S. 12% of total extra-EU textile exports
Thus the European textile sector is at a defining crossroads. As the tariff standoff with the US unfolds, the industry must navigate a fine balance between protecting domestic capabilities and maintaining global competitiveness. While calls for dialogue grow louder, there is also a silent shift underway: brands and suppliers are reassessing supply chains, investing in nearshoring options, and exploring trade pacts beyond traditional partners. The hope remains that pragmatism will prevail over protectionism—but for now, uncertainty looms large.
Europe prides itself on being a leader in sustainability, but ironically, its textile recycling sector is on the verge of collapse. This critical industry is struggling under the weight of policy inertia, economic unsustainability, and severe structural fragmentation. A recent visit by EU Commissioner Jessika Roswall to the Evadam sorting plant, part of the Boer Group, highlighted a reality: the ambitious vision of a textile-to-textile recycling system is dangerously close to unraveling. Yet, symbolism alone won't rescue an industry teetering on the brink.
The disconnect of legislation vs. operational reality
European textile recyclers are caught in a paradoxical bind. They are expected to build a robust circular ecosystem, but without the essential policy framework or financial incentives to do so. While mandatory separate collection of post-consumer textiles began across the EU in 2025, crucial legislation for minimum recycled content or harmonized Extended Producer Responsibility (EPR) remains pending. This gap means recyclers are collecting more textiles than ever, but lack sustainable—or profitable—outlets for them.
The high cost of policy gaps
The struggles of major players in the textile recycling sector underscore the urgent need for systemic change.
Sweden’s Renewcell: From market darling to bankruptcy
Renewcell, once hailed as a pioneer in textile-to-textile recycling with its patented Circulose pulp, filed for bankruptcy in February 2024. Despite a Nasdaq listing in 2020 and partnerships with major brands like H&M and Levi’s, the company could not secure consistent feedstock or sufficient offtake commitments to remain viable.
Table: Renewcell’s losses
|
Metric |
2022 |
2023 |
|
Revenues (€ million) |
10.1 |
15.3 |
|
Net Loss (€ million) |
-23.2 |
-28.5 |
|
Factory Utilization |
40% |
<30% |
"We built a world-class factory. What we lacked was a world that was ready to use it." — Patrik Lundström, former CEO, Renewcell. The core issue: despite initial buzz, brands failed to commit to regular offtake agreements, leaving the plant underutilized and financially unsustainable.
Germany’s Soex shrinking in silence
Soex Group, one of Europe’s largest textile sorters and recyclers, has quietly scaled down operations in multiple countries over the past two years. This is primarily due to rising costs and tightening margins. While not bankrupt, the group has halted planned expansions, citing a lack of regulatory clarity and falling resale values of used garments. As a Soex executive points out, without predictable legislation and incentives for fiber-to-fiber innovation, they can't justify capex.
Table: Soex groups falling investments
|
Area |
Planned Investment |
Status |
|
Spain (2022) |
€12 million |
Cancelled |
|
Romania (2023) |
€8 million |
Delayed indefinitely |
|
Poland (Sorting Hub) |
€6 million |
Scaled back by 60% |
Cheap fashion or system failure? A false binary
Much public and policy ire has landed on Chinese ultra-fast fashion giants like Shein and Temu. Their ultra-low-cost, high-turnover products have flooded the EU market, raising concerns about overconsumption and waste. But critics argue this focus oversimplifies the problem. European brands, too, have long relied on low-cost overseas manufacturing and design garments with little regard for recyclability. "Blaming imports ignores a homegrown crisis: we don’t value durability, and we’ve never built an infrastructure to support circularity," said a sustainability analyst with the European Environmental Bureau.
No business model, no future
Beyond blame, the core challenge remains brutally economic. Most collected textiles are chemically treated, made of mixed fibers (like cotton-poly blends), or embedded with elastane, making fiber recovery expensive and technologically complex. Virgin fibers remain cheaper, especially in the absence of regulatory pressure to change.
|
Challenge |
Impact on Viability |
|
Mixed fiber composition (e.g., cotton-poly blends) |
Low recyclability, high processing cost |
|
Contamination from dyes & elastane |
Blocks high-value recovery |
|
Low resale value of used clothing |
Erodes profitability of sorting |
Policy paralysis, fragmented and faltering
Europe's textile recyclers are currently navigating a policy swamp, with inconsistent rules and patchwork regulation from one country to another. “What we need is policy that matches ambition—not just in words, but in enforceable rules and incentives,” said a policymaker from DG Environment.
Table: EU policies
|
Area |
Status |
Comment |
|
EPR (EU-wide harmonization) |
Pending |
27 different national systems persist, leading to fragmentation |
|
Minimum Recycled Content Mandate |
Not yet enforced |
Pledged but implementation is lagging |
|
VAT exemption on secondhand clothing |
Still under discussion |
Could stimulate reuse but faces opposition from fiscal authorities |
|
Eco-modulation of fees |
Uneven |
Only a few member states link fees to product sustainability |
From crisis to opportunity
For textile recycling to become a cornerstone of Europe's green economy, a fundamental systemic shift is required, not merely symbolic gestures.
Design for circularity: Mandate circular product design (e.g., mono-fibers, no elastane, removable trims) by 2028. If garments cannot be easily recycled, they should not be sold.
Link EPR to real infrastructure: Require EPR funds to be directed specifically to approved recyclers. Mandate long-term procurement contracts between brands and recyclers to ensure stable feedstock and demand.
Replace trade barriers with innovation grants: Instead of high import tariffs, offer EU-wide grants or low-interest loans to Small and Medium-sized Enterprises (SMEs) focused on automated sorting, chemical recycling, and closed-loop fiber technologies.
True cost accounting: Develop consumer-facing labels that display the "true cost" of fashion, including carbon footprint, water usage, and recyclability index, to encourage responsible consumption.
Europe’s choice, collapse or breakthrough?
Thus the European textile recycling industry's struggles are not due to a lack of intent but rather a severe structural misalignment between policy, economics, and technology. The downfall of pioneers like Renewcell proves that vision alone is insufficient.
Europe now faces a critical choice: lead with decisive action or risk languishing in paralysis, watching vital infrastructure erode while legislation lags. As Commissioner Roswall’s visit underscored, the crisis is undeniable. However, this moment of crisis could also serve as the catalyst for transformative change. The future of circular fashion in Europe hinges not on assigning blame, but on bold, grounded, and collaborative reform.
When the latest KPMG and Circular Fashion Federation report landed, it made an immediate splash: a projected €31.3 billion opportunity in Europe’s circular fashion economy by 2030 and more than 88,500 new jobs in the offing. In sustainability circles and C-suites alike, the number has become gospel. It promises growth, green credentials, and renewed relevance in a fast-changing consumer landscape.
But numbers — even ones that large — can be deceptive. Beneath the surface of this economic projection lies a far more consequential battle: the fight for brand ecosystem ownership. In the world of circular fashion, it’s not just about participating in reuse, repair, or recycling. The real advantage belongs to brands that own the entire loop — shaping not only their environmental footprint but also the lifespan of their customer relationships.
From tear to trade-in a story of ownership
Imagine this: A customer buys a sleek, premium denim jacket. Three years in, a sleeve rips. Instead of tossing it, they log into the brand’s platform and schedule a repair. A year later, they want something new. The same platform offers a trade-in and credits them for the jacket, which the brand then refurbishes and resells, or responsibly recycles into next season’s collection.
This is not a hypothetical future. It’s the emerging blueprint for circular success — a closed-loop model that extends the customer lifecycle, fosters loyalty, and keeps value creation firmly within the brand’s orbit.
Circularity as relationship infrastructure
The crux of circularity isn’t in the margin from a second-hand sale or a repair fee. It’s in what those touchpoints represent: repeated engagement. Each interaction — a repair, a trade-in, a resale — is a chance to remind the customer: ‘We’re still here, and we still value you’.
Research consistently backs this. A 5 per cent improvement in customer retention can result in 25 to 95 per cent profit growth. Sustainable initiatives are no longer optional: 79 per cent of global consumers, according to Capgemini, are changing purchasing preferences based on environmental concerns. And 88 per cent, reports Forbes, show stronger loyalty to companies that act on social or environmental issues.
Circularity, therefore, isn’t a CSR project. It’s infrastructure for emotional equity.
The illusion of piecemeal efforts
Some brands are still treating circularity like a patchwork quilt: a recycled capsule here, a resale partnership there. While well-intentioned, these fragmented efforts often result in value leakage — with third-party marketplaces reaping the benefits of consumer engagement and transaction data.
In such models, the brand risks becoming just a product supplier, while someone else becomes the customer relationship owner. In today’s loyalty-driven market, that’s not just inefficient — it’s dangerous.
Environmental impact meets brand value
The sustainability argument is undeniable. The fashion industry emits nearly 10 per cent of global carbon emissions, and 11.3 million tons of textiles are landfilled in the US each year. Circular models can slash this dramatically.
But what elevates this from climate activism to boardroom strategy is how these practices feed directly into brand equity. One pair of pre-loved jeans and a T-shirt can save the water equivalent of 20,000 plastic bottles. That’s not just resource conservation — it’s a story brands can own, market, and make personal to each consumer.
The software backbone: Owning the loop at scale
Of course, turning this circular vision into reality isn’t as simple as launching a new tab on a website. It requires a robust software engine to track, manage, and optimize the full product lifecycle.
Brands have three main options:
• Build custom software: Total control, high cost (often €100,000+), long timelines (6–12 months).
• Partner with a marketplace: Fast, low-cost, but zero control over customer experience or data.
• Deploy white-label circularity platforms: Balance of agility and control, with deployment in 2–3 months and moderate investment.
Table: Brand’s trade-offs in cost, time, control, and flexibility
|
Feature |
Build Your Own (In-house) |
Partner with Marketplace Platform |
Implement White-Label Software Solution |
|
Customization |
Complete control, bespoke features |
Limited, dictated by platform |
High, brand-specific branding/features |
|
Cost (Initial) |
High (e.g., $100,000 - $500,000+) |
Low (commission/listing fees) |
Moderate ($30,000 - $150,000) |
|
Time-to-Market |
Long (6-12+ months, often years) |
Very Fast (days/weeks) |
Fast (2-3 months) |
|
Brand Control |
Full ownership of customer experience |
Limited, platform dictates experience |
Full ownership of customer experience |
|
Data Ownership |
Full ownership, proprietary insights |
Shared with platform |
Full ownership, integrated insights |
|
Scalability |
Requires significant internal resources |
Leverages platform's infrastructure |
Leverages provider's expertise/infra |
|
Maintenance |
Internal responsibility, ongoing costs |
Handled by platform |
Handled by provider (subscription fees) |
|
Integration |
Complex, requires custom APIs |
Standardized APIs, simpler |
Robust APIs, pre-built connectors |
|
Strategic Focus |
Diverts resources from core business |
Can dilute brand focus |
Allows focus on core business |
For brands serious about owning the loop, white-label solutions are increasingly the strategic sweet spot — offering scalability, brand consistency, and full data ownership.
What the leaders are doing
Several forward-looking brands are already proving how powerful circular ownership can be.
• Patagonia’s worn wear: Patagonia has long been a leader in circularity. Their Worn Wear program offers repair services, guides for DIY repairs, and allows customers to trade in used Patagonia gear for credit. This entire ecosystem reinforces their brand message of durability and extends the life of their products, fostering deep loyalty. While not explicitly stated as a white-label software, their integrated approach suggests a sophisticated internal or tailored system managing these complex operations. This program directly enhances their brand image and reduces environmental impact by diverting clothing from landfills.
• IKEA’s buy-back service IKEA's initiative to buy back used furniture from customers and resell it, alongside their spare parts program and furniture rental trials, showcases a commitment to owning the product lifecycle. Their robust logistics and online platforms are crucial to managing this volume, highlighting the need for scalable software solutions to track, assess, and re-circulate items.
• Eileen Fisher Renew This program allows customers to return worn Eileen Fisher garments, which are then cleaned, repaired, and resold. What makes this a strong example of owning the loop is their meticulous process of valuing, repairing, and reselling, ensuring quality control and maintaining brand standards throughout the product's extended life. This requires detailed inventory management and a strong customer interface, likely enabled by specialized software.
These aren’t just side projects. They’re strategic extensions of brand identity.
The bigger payoff
Circularity isn’t just a sustainability upgrade — it’s an economic reinvention. According to the Ellen MacArthur Foundation, the industry’s shift to circularity could unlock $560 billion globally by reducing raw material costs, opening new revenue streams, and boosting brand loyalty.
Compare that with the traditional “take-make-dispose” model — dependent on endless new production and customer churn — and the case for circularity becomes a no-brainer.
Table: Circular vs. Linear Models: Economic Implications
Business Model Key Advantage Primary Revenue Streams Challenges Linear ("Take-Make-Dispose") Simplicity, historically low initial costs New product sales High raw material dependency, waste management costs, environmental impact, limited customer retention beyond initial sale Marketplace (e.g., The RealReal, Vestiaire Collective) Speed to market for brands, broad selection for consumers Commission on sales Loss of brand control, limited customer data, potential brand dilution, customer loyalty directed to platform, not brand Brand-Owned Circularity (via White-Label Software) Full brand control, enhanced loyalty, new revenue streams New product sales, repair service fees, resale margins Initial software investment, operational complexity, need for robust logistics
Owning the future
The €31.3 billion opportunity may be the headline, but the deeper truth is this: brands that truly own the circular loop aren’t just reducing waste — they’re rewriting the rules of fashion loyalty. This isn’t just a trend. It’s a paradigm shift. A move from products to platforms, from transactions to trust, and from sales to lifelong relationships.
In the battle for circular dominance, the victors won’t be those who do the most recycling — but those who build ecosystems that customers never want to leave. The time to stake your claim is now.
Despite prevailing global economic headwinds, Bangladesh's RMG exports grew by 8.84 per cent to $39.35 billion in FY25. This robust performance underscores the country's pivotal role in the international apparel market.
The European Union (EU) remained the dominant destination for Bangladeshi RMG, accounting for a substantial 50.10 per cent of total exports, valued at $19.71 billion. Netherlands led by 21.21 per cent growth in exports followed by Sweden at 16.41 per cent, Poland 9.77 per cent, and Germany 9.47 per cent export. Germany emerged as the largest individual EU market, with imports worth $4.95 billion worth of Bangladeshi RMG.
Bangladesh’s exports to the United States also increased by 13.79 per cent to $7.54 billion. Imports by Canada's grew by 12.07 per cent to $1.30 billion, while the UK experienced a more modest 3.68 per cent growth, totaling $4.35 billion.
Beyond traditional markets, Bangladesh's RMG exports to non-traditional markets expanded by 5.61 per cent, reaching $6.44 billion. Notably, exports to Turkey increased by 25.62 per cent, India by 17.39 per cent, and Japan by 9.13 per cent. However, some non-traditional markets like Russia, Korea, the UAE, and Malaysia saw a decline in Bangladeshi apparel exports.
Within the apparel industry itself, the knitwear sector showed remarkable growth at 9.73 per cent, with the woven sector also contributing positively with a 7.82 per cent increase. Industry insiders note, the global landscape, particularly since the COVID-19 pandemic, has presented continuous new challenges, yet Bangladesh's export performance in traditional markets remains robust, holding an impressive 84 per cent share of total apparel exports.
While non-traditional markets currently account for a more modest 16 per cent, the International Trade Centre (ITC) highlights that the global apparel market reached approximately $500 billion in 2024, with non-traditional markets comprising about $150 billion. Bangladesh, with its current 6 per cent share in this segment, holds significant potential for further expansion.
Valued at an estimated $510.10 million in 2023, the global athleisure market is projected to grow at 8.93 per cent CAGR from 2024-2032 to reach $1113.0074 million by 2032, according to the analysis by global market research and consulting company, MRFR. This significant expansion is being primarily fueled by a growing fitness-conscious populace and a pervasive desire for stylish yet comfortable apparel.
Key drivers of this growth include increased sports participation, particularly among women, alongside the pervasive influence of social media and celebrity endorsements. The women's category is anticipated to exhibit the highest growth rate, while leggings, tights, and joggers currently hold a substantial market share. North America leads the market, followed by Europe, with the Asia-Pacific region poised for the fastest growth, propelled by rapid urbanization and rising disposable incomes.
This upward trajectory reflects a profound cultural shift towards active lifestyles, a strong demand for versatile clothing, and the burgeoning influence of wellness-driven fashion. Once a niche segment, athleisure now blurs the lines between casual wear and activewear, becoming a central component of consumer wardrobes and retail strategies.
Among product types, leggings and joggers are leading consumer preference, especially within the female demographic, owing to their flexibility, fit, and functionality. Sneakers have also witnessed explosive growth, transforming from workout gear into a global fashion staple, driven by limited-edition collaborations, sustainability features, and celebrity endorsements.
The women's segment currently dominates the athleisure market, propelled by increased female fitness participation, body-positive campaigns, and evolving fashion sensibilities. Brands like Lululemon, Nike, and Alo Yoga have successfully capitalized on this trend. Furthermore, unisex athleisure is emerging as a high-growth category, particularly among Gen Z and millennial consumers who favor gender-fluid fashion, pushing brands towards more inclusive designs.
Traditionally, store-based retail dominated sales due to the need for physical interaction. However, the non-store-based channel, especially e-commerce, has experienced exponential growth post-pandemic. Consumers are increasingly comfortable purchasing activewear online, facilitated by seamless return policies, virtual try-ons, and AI-powered personalized recommendations.
North America holds the largest market share due to a strong fitness culture and high disposable incomes. Europe follows, driven by wellness awareness and sustainable fabric preferences. However, Asia-Pacific is projected to be the fastest-growing region, fueled by urbanization, an expanding middle class, and a surge in interest in wellness activities across countries like China, India, and Japan.
Levi Strauss & Co (LS & Co) has raised its full-year financial projections, following a robust 5 per cent increase in net revenues during H1, FY25. The iconic denim brand now anticipates net revenue to grow by 1 per cent to 2 per cent over last year and like-for-like revenue to increase between 4.5 per cent and 5.5 per cent as against the earlier projections from +3.5 per cent to +4.5 per cent. This positive outlook assumes current US tariffs on imports from China and the rest of the world remain consistent.
Harmit Singh, Chief Financial and Growth Officer, Levi Strauss & Co, attributes these revised targets to strong first-half results and sustained business momentum, even with higher tariffs. He emphasizes, the inflection of the company’s financial performance is a direct result of their laser focus on the core Levi’s brand and DTC-first strategy.
For the six months ending June 1, 2024, the fashion group reported net income from continuing operations of $220 million on total net revenues of $2.97 billion. In Q2, FY24, the company’s net income increased to $80 million with revenue rising by 6 per cent to $1.4 billion. Revenues from Europe rose by 14 per cent. The company recently launched rhw Oasis reunion tour clothing range.
The brand’s Direct-to-Consumer (DTC) channels, including Levi's own stores and e-commerce, accounted for 50 per cent of its sales. DTC net revenues increased by 10 per cent like-for-like in Q2, FY25 while e-commerce sales expanded by 13 per cent. This marks the 13th consecutive quarter of global sales growth through direct channels for Levi Strauss.
Michelle Gass, President and CEO of Levi Strauss & Co, states, the brand’s Q2 figures reflect broad-based strength across the board, and are a clear evidence of its strategic agenda gaining traction. The company is entering H2, FY25 from a position of strength as its ambition to transform into a denim lifestyle brand and best-in-class DTC retailer turns into a reality, building on Levi's 172-year heritage as a global icon.
Though poised for a challenging start, earnings by luxury brands are expected to remain strong during the later part of Q2, FY25, as per HSBC analysts in their Global Luxury Goods equities division report. While earnings of some major players are expected to decline, others’ are projected to increase year-over-year.
Having reported their Q1, FY26 earnings on July 18, Burberry is expected to witness a decline in revenues as is LVMH whose H1 2025 earnings are also expected to contract. Conversely, earning of Hermès, Richemont, Moncler, and Prada, are expected to grow. Analysts describe the current period as a ‘sobering time for luxury sales,’ noting ‘Liberation Day’ tariff announcements in April impacted confidence, markets, and the US dollar, though May and June are anticipated to show some recovery.
HSBC analysts believe, Q2 2025 will be a ‘more challenging quarter’ overall, likely bringing a sequential slowdown for most luxury brands. However, Burberry will report flat organic retail comparable sales for the second calendar quarter, a significant improvement from a 6 per cent organic decline in Q4. Analysts credit Burberry's successful ‘It is always Burberry weather’ marketing campaign for this resilience.
For LVMH, analysts expect a 7 per cent decline in organic sales in Q2, a steeper decline than the 3 per cent organic contraction in Q1. Nearly all divisions, except Selective Distribution, are projected to show negative performance, with the crucial Fashion & Leather division potentially declining by 11 per cent Y-o-Y
Overall, the report anticipates a sequential slowdown in luxury sector sales growth for Q2 compared to a 0.4 per cent increase in Q1. Nevertheless, Hermès and Prada Group are expected to maintain growth, with Prada benefiting from consistency in terms of product pipeline. While Q2 isn't a significant sales quarter for outdoor winter luxury brand Moncler, it could still see a 2 per cent organic sales increase, with its brand Stone Island projected for a stronger 8.4 per cent organic rise.
