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The Trump administration’s announcement on April 2 of steep tariffs on US imports from garment-producing countries including Cambodia, Bangladesh, Sri Lanka, Indonesia, Lesotho, and Vietnam has sparked concerns about the potential impact on garment workers. The Clean Clothes Campaign (CCC) has urged US and global brands to absorb the financial burden themselves rather than shifting it onto the most vulnerable in the supply chain low-paid workers.
Many of these workers already survive on below-subsistence wages, with little to no savings. Any attempt to mitigate tariff costs by cutting wages, slashing product prices, increasing unpaid overtime, or relocating production could push workers deeper into debt and food insecurity.
The industry’s key players - Nike (2024 revenue $51.4 billion), Gap ($15.1 billion), PVH/Calvin Klein ($8.7 billion), Levi’s ($6.4 billion), and Victoria’s Secret ($6.2 billion) along with major manufacturers like Sri Lanka’s Mas Holdings (valued at $800 million), are well-positioned to absorb added costs. However, reports suggest that brands like Gap, Walmart, and Levi’s have already begun pressuring suppliers to shoulder the tariff impact, exacerbating the strain on workers.
The CCC warns against repeating the mistakes seen during the Covid-19 crisis, when brands cut costs at the expense of millions of workers. In countries like Sri Lanka, where committees have been formed to negotiate with the US, the absence of union representation is alarming. Worker unions must have a seat at the table, the CCC argues, to ensure their voices are heard in policy discussions and crisis responses.
Facing substantial new tariffs imposed by the United States, Sri Lanka is urgently requesting India to significantly expand its apparel export quota under their existing Indo-Lanka Free Trade Agreement. Vjitha Herath, Foreign Minister, Sri Lanka, announced the country is seeking an increase to 50 million units, a considerable rise from the current 8 million.
The Sri Lankan government has also asked India to boost the quota's value by $500 million, arguing that the 25-year-old agreement no longer reflects the current market size.
These appeals follow the US, under a formula reportedly linked to President Donald Trump and based on the trade deficit with Sri Lanka, levying a 44 per cent tax on the island nation. The US claims this accounts for Sri Lanka's tariff and non-tariff barriers. In comparison, India faces a 27 per cent tax under the same US calculation, providing it with a significant advantage in the US market. Several Sri Lankan firms also operate within India, exporting globally.
President Trump's trade policies are being criticized as an attempt to establish a ‘Sri Lanka style protectionist utopia,’ rooted in a mercantilist view of trade deficits. Critics note that the US formula excludes services imported from America, and the European Union is considering retaliatory measures on US services. Despite this, the US remains the world's second-largest exporter.
While Sri Lanka's direct import duties are capped at 20 per cent, the nation employs significant CESS and Port and Airport Development levies. These have been described as creating a complex and burdensome tax system, potentially favoring businesses with political connections from the previous Rajapaksa administration, affecting goods like dairy, shoes, building materials, and maize.
Sri Lanka's move towards protectionism began in November 2024 with new taxes implemented swiftly after foreign exchange shortages. The Office of the US Trade Representative had previously noted Sri Lanka's shift away from liberalization due to declining foreign reserves, aiming to protect domestic industries. They also pointed out that these levies, combined with tariffs, pushed import charges on most finished goods above 48 per cent, leading to complaints from US exporters.
Economists and business leaders are now cautioning President Trump that his sudden tariff plan could lead to similar negative consequences experienced by Sri Lanka.
Luxury conglomerate LVMH has announced new appointments at two of its major fashion brands. The luxury fashion house has named Ramon Ros as the new CEO for Fendi, while Charlotte Coupé has been named as CEO, Kenzo. Both these executives will move from their current leadership positions at LVMH's flagship brand, Louis Vuitton, and report to Sidney Toledano, Senior Advisor - Bernard Arnault, Chairman, LVMH.
Ros's appointment at Fendi, effective July 1, follows Pierre-Emmanuel Angeloglou's brief tenure, who will now become the deputy CEO of Christian Dior Couture on April 15.
LVMH highlighted Ros's successful track record in developing Louis Vuitton's desirability and building strong local teams in Mainland China. His expertise in luxury retail and collaborative leadership are expected to elevate Fendi, preserving its heritage and craftsmanship. Ros previously held senior roles at Marks & Spencer, Diesel, and Tous before joining LVMH in 2013, where he managed Givenchy's business in China and internationally before his time at Louis Vuitton.
Coupé will assume her role at Kenzo on May 1, succeeding Sylvain Blanc, who is departing the group for new ventures after initiating a new phase for the brand. LVMH anticipates Coupé will leverage her extensive fashion experience to further enhance Kenzo's appeal and continue its modernization. Her background includes significant contributions to the growth of Louis Vuitton's men's ready-to-wear division and prior roles at Ralph Lauren and Lacoste.
In a separate leadership change within LVMH, Daniel DiCiccio has been appointed President and CEO, Louis Vuitton - Mainland China, effective April 28. Based in Shanghai, he will report to David Ponzo, Chief Commercial Officer, Louis Vuitton. Having an extensive experience in international retail and merchandizing, including 12 years in Asia, DiCiccio most recently led the Global Retail division at Apple. LVMH emphasizes his expertise in Asian markets and talent development as key to Louis Vuitton's continued growth in China. He has also held several leadership positions at Sony Music and Coach.
India's cotton production is projected to hit a 16-year low at just over 29.4 million bales (each 375 pounds) in MY 2024-25. This marks a significant decline from the peak of 39.8 million bales in 2013-14
The earlier boom in cotton production, which nearly tripled after the introduction of genetically modified (GM) Bt cotton hybrids in 2002-03, also led to a massive rise in exports. However, in recent years, exports have fallen, and India is now expected to import more cotton (3 million bales) than it exports (1.7 million bales) this year.
The primary culprit for this production slump and India's shift to a net importer is the pink bollworm (PBW). This pest's larvae burrow into cotton bolls, feeding on the developing seeds and lint, is causing significant loss in cotton yield and discoloration.
While the currently grown GM cotton hybrids contain two Bt genes offering protection against other bollworms, the PBW, being a monophagous pest (feeding solely on cotton), has developed resistance to these toxins. Its short life cycle has accelerated this resistance buildup. Research indicates PBW resistance to both key Bt toxins emerged by 2014. The pest has since crossed economic damage thresholds across all major cotton-growing regions of India. Consequently, India's average cotton lint yield per hectare has sharply declined from its 2013-14 peak.
However, Indian seed companies are developing new GM cotton hybrids with different Bt genes that they claim will resist the PBW. Several companies are currently undergoing confined field trials for their new technologies, seeking regulatory approvals.
Despite these efforts, the lengthy regulatory process and opposition to GM crops have hindered the commercialization of new GM varieties in India since 2006. The seed industry hopes the severe impact of the PBW and the resulting cotton crisis will prompt the Indian government to adopt a more favorable stance towards new GM cotton hybrids, especially as cotton is not a food crop. The recent announcement of a ‘Mission for Cotton Productivity’ in the Union Budget 2025-26 signals a potential move towards supporting technological advancements in the sector to ensure a stable supply of quality cotton for India's textile industry.
China’s government is reportedly urging fast-fashion giant Shein to slow down its plans to move production out of the country, as Beijing looks to contain a growing wave of manufacturing relocations triggered by mounting US trade tensions. The Ministry of Commerce has asked Shein and other major exporters to reconsider expanding supply chains outside China, especially in the wake of fresh tariff threats by former US President Donald Trump.
In response to the government’s intervention, Shein has suspended supplier scouting trips to Vietnam and other Southeast Asian countries, halting efforts to diversify its production base. The company had been exploring low-cost manufacturing alternatives in the region amid rising labor costs and regulatory scrutiny in China. However, Beijing’s request signals its growing concern over potential job losses and economic strain if more exporters seek to shift operations abroad.
The move also comes as Trump vows to implement sweeping ‘reciprocal tariffs’ on imports if re-elected, escalating trade uncertainties that already prompted several Chinese manufacturers to explore alternative hubs like India, Bangladesh, and Indonesia. Beijing’s appeal to Shein underscores the tension between national industrial policy goals and exporters under pressure to manage rising costs and navigate global trade risks.
While Shein has yet to comment publicly, analysts say China’s stance reflects a broader strategy to preserve its manufacturing dominance and employment levels, even as it faces growing competition from neighboring low-cost economies and shifting global trade dynamics.
The recent announcement of tariffs on garments exports from Bangladesh has led to US buyers halting orders, compelling the Dhaka government to request for a three-month reprieve from these tariffs.
The rise of tariffs on cotton products from Bangladesh to 37 per cent from the earlier 16 per cent has hit the textile and garment industry hard as around 80 per cent of its exports are generated from this sector. The industry had just begun rebuilding itself after being hit hard in a student-led revolution that toppled the government last year.
Muhammad Yunus, Leader, Interim Government, has urged the US to postpone the application of US reciprocal tariff measures for three months to help the government substantially increase US exports to Bangladesh.
UK’s fashion apparel retail is marked by the dynamic interplay between physical stores and e-commerce. While the digital space experienced an increase, particularly during pandemic lockdowns, the enduring appeal of in-store experiences remains a significant factor.
E-commerce growth and stabilization
The pandemic undeniably increased the spread of online shopping, with a notable rise in online apparel sales. The convenience and accessibility of e-commerce has strengthened its place in the retail sector. However, a significant shift is indicated by Next CEO Simon Wolfson, who says, the fact that they’ve returned to opening new stores, even in a modest way, reflects their belief that the biggest shift to online is behind us. This signals a potential stabilization in the rapid online growth seen in recent years. The British Retail Consortium stats show, the proportion of non-food purchases made online rose to 36.4 per cent in February 2025, up from 35.8 per cent the previous year. This reveals that online sales are still growing, but the rate of growth is slowing.
The resilience of physical stores
Despite the e-commerce boom, physical stores continue to hold significant value for consumers, particularly in the fashion apparel sector. Factors such as the ability to touch and feel products, try on clothing, and enjoy the social aspect of shopping contribute to the enduring appeal of brick-and-mortar stores. In fact, a Just Style study revealed that UK consumers still hold a strong preference for in person shopping when it comes to fashion. It noted that the key to success is in a seamless omnichannel strategy that integrates digital convenience with in-store shopping, ensuring customers get similar experience across all touchpoints.
Retailers like Marks & Spencer and Primark highlight the continued strength of physical store sales, with a significant portion of their customers preferring in-store shopping. And Next's decision to increase its physical retail space for the first time in over five years, planning a 0.4 per cent increase in its UK retail footprint by January 2026, reinforces this trend. This includes opening 10 new stores, relocating six existing ones, and converting two homeware stores into fashion outlets.
The most successful retailers are adopting an omnichannel approach, seamlessly integrating their online and offline presence. This involves offering services such as click-and-collect, in-store returns for online purchases, and utilizing digital technology within physical stores. This provides consumers with flexibility and convenience, catering to their diverse shopping preferences. The use of physical stores as distribution hubs, for click and collect, and for returns, is also becoming increasingly important for retailers. The blending of digital technology into the physical store experience, such as digital displays, and virtual fitting rooms, is also becoming more common.
Thus while e-commerce has seen significant growth, it's unlikely that physical stores will disappear. The future of fashion apparel retail lies in an omnichannel approach that caters to the diverse needs of consumers. Retailers who seamlessly integrate their online and offline presence will be best positioned for success.
The scent of mothballs, the rustle of tweed, the comforting weight of a well-worn leather armchair – these were once the hallmarks of fashion and apparel brands catering to an older, more traditional clientele. But in a world obsessed with youth and rapid trends, these venerable institutions faced a stark choice: fade into obscurity or reinvent themselves. The challenge is maintaining their core identity while attracting a new generation and staying relevant in a digital, fast-paced marketplace.
Shifting consumer perception
For decades, brands specializing in classic silhouettes and durable materials were synonymous with ‘old-fashioned’. This perception, coupled with a lack of digital presence and an aging customer base, threatened their very existence. The younger generation, raised on social media and influencer culture, saw these brands as relics of the past, lacking the dynamism and trend-forward approach they craved.
The primary challenges faced by these brands was the age stigma where the needed to overcome the association with ‘old’ and project a contemporary image. Balancing classic designs with modern trends and sustainability was also a concern.
Also, most had a digital disconnect without e-commerce, social media marketing, and online engagements. And bridging the generational gap and appealing to younger demographics too was an uphill task.
Tailoring a transformation
Now several brands have successfully navigated this transformation, demonstrating that heritage and modernity can coexist.
Marks & Spencer (M&S): Dramatic demographic shift
M&S, a British retail giant, provides a compelling case study of a successful turnaround. Once perceived as a brand primarily for older women, M&S has achieved a significant demographic shift, attracting a younger customer base. It started by introducing third-party brands targeting younger shoppers, such as Nobody's Child, expanding its appeal. The focus became more fashion-forward Focus emphasizing more trend-led and stylish clothing collections. Under the chairmanship of Archie Norman, a push to create fashionable clothes for all ages, shifting away from a focus on the over-55s was started. There was significant growth in online customers, with a notable decrease in the average customer age. Its share in the clothing market across all age ranges grew, with a disproportionate increase among under-35s.
As it adopted these changes M&S saw a significant drop in the average age of customers. It caught the attraction of 1.4 million new online customers, with an average age five years younger. Brand perception among younger women improved. The brand saw its strongest financial health since 1997. Market share within the clothing and home market went up. The shift from primarily catering to over 55's to targeting the 35+ customer has proven very effective.
Burberry: From trench coats to streetwear cred
Burberry, a British luxury brand known for its iconic trench coats and tartan pattern, faced the challenge of shedding its ‘stuffy’ image. Under the creative direction of Riccardo Tisci, the brand embraced streetwear influences, collaborated with influencers, and launched bold, contemporary designs. The brand leveraged digital platforms like Instagram and TikTok to engage younger audiences; collaborated with streetwear designers and artists to introduce limited-edition collections; reimagined classic pieces with modern silhouettes and unexpected details; and created a strong digital presence, and used online events and digital drops to create hype.
Now Burberry has successfully attracted a younger demographic while retaining its core identity, proving that heritage and modernity can be seamlessly blended.
Brooks Brothers: A classic cut with a modern twist
Brooks Brothers, a purveyor of classic American menswear, struggled to connect with younger consumers who perceived it as outdated. The brand responded by introducing slimmer fits and contemporary styles alongside its traditional offerings; collaborating with designers to create capsule collections that appealed to a wider audience; focusing on quality and craftsmanship, highlighting the enduring value of its products; heavily investing in online shopping experience, and using data to better understand their modern customers.
Now, Brooks Brothers is working to strike a balance between its heritage and modern appeal, demonstrating that classic style can be relevant in a contemporary context.
L.L.Bean: Outdoor legacy, digital future
L.L.Bean, known for its durable outdoor apparel and iconic Bean Boots, faced the challenge of reaching a digitally savvy audience. It began by investing heavily in its e-commerce platform and digital marketing; creating engaging content on social media, showcasing the versatility and durability of its products; partnering outdoor influencers and content creators; focusing on sustainability, and the long term value of their products.
Now L.L.Bean has successfully expanded its reach and attracted a new generation of outdoor enthusiasts, proving that heritage brands can thrive in the digital age.
Common strategies for change
These case studies highlight several common strategies employed by heritage brands.
Embracing digital transformation: Investing in e-commerce, social media marketing, and online engagement.
Balancing heritage and modernity: Reimagining classic designs with contemporary details and silhouettes.
Collaborating with influencers and designers: Reaching new audiences through strategic partnerships.
Focusing on quality and sustainability: Highlighting the enduring value of well-made products.
Data driven decisions: Using customer data to understand and cater to the changing customer.
Thus the reinvention of these heritage brands is a testament to their adaptability and enduring appeal. By embracing change while staying true to their core values, they are proving that age is just a number in the world of fashion and apparel. The story is not just about the clothes, but about the enduring quality, and the ability to adapt to a changing world.
The United States is a critical export destination for the Indian textile and apparel industry, with annual shipments reaching approximately $10 billion. The recent imposition of tariffs by the U.S. on these imports presents a complex situation. It offers a potential advantage while simultaneously exposing underlying vulnerabilities within the Indian manufacturing sector.
Initially, there was some optimism that India would be better positioned since it faces a 26% duty, lower than the duties imposed on key competitors like Bangladesh (37%), Vietnam (46%), and Cambodia (49%). However, this initial optimism may be premature, according to the calculations done by Wazir Advisors.
Initial optimism vs. Cost reality
Even with an 11% lower import duty than Bangladesh, Indian products might still be more expensive because the basic production cost in India is roughly 10-12% higher.
The numbers don't lie: A cost comparison
Here’s an example illustrating how India's higher production costs can negate the advantage of a lower tariff:
|
Bangladesh |
India |
|
|
FOB Price |
$5.00 |
$5.45 (9% higher) |
|
Old Duty |
$0.83 |
$0.90 |
|
New Duty |
$1.85 (@37%) |
$1.42 (@26%) |
|
Total |
$7.68 |
$7.77 |
India's narrow margin for price competitiveness
This calculation reveals that for products with an old duty rate of 16.5%, India will still be more expensive than Bangladesh if the Indian FOB price was 9% higher from the start. For most products, India's FOB price can only be about 7.2% to 8.3% higher for the final prices to be equal to those from Bangladesh. Otherwise, Indian goods will be more expensive, even with the lower tax.
Bangladesh's production capacity and supply chain inertia
Considering Bangladesh's larger production capacities and the reluctance of brands to change their supply chains for small cost differences, India's ability to significantly gain market share from Bangladesh in many product categories is limited.
India's path to gaining market share
India would have a slightly better advantage over other competitors. However, developing the necessary product-level competency and production capacities will be crucial for India to achieve substantial gains.
In a major step toward circular fashion, Yibin Grace has launched China’s first pilot facility for producing recycled textile dissolving pulp. Located in Sichuan, the new plant marks a significant milestone in transforming the viscose supply chain by replacing virgin forest fibre with circular alternatives.
The facility uses post-industrial and post-consumer textile waste from supply chain partners to produce high-quality, low-carbon dissolving pulp for man-made cellulosic fibre (MMCF) products such as viscose and lyocell.
With an initial capacity of 1,500 tonnes per year, the plant is part of Yibin Grace’s broader strategy to scale Next Gen fibre production to 60,000 tonnes annually by 2027. This aligns with China’s national goal of cutting textile waste by 30 per cent by 2030 and builds on innovations led by pioneers like Circulose. The development is seen as a strategic response to increasing pressure on global fibre supply due to climate-related disruptions like forest fires.
Canopy, a global environmental non-profit, welcomed the launch. “Expanding circular production positions the sector to withstand supply volatility and meet growing demand for low-impact materials,” said Nicole Rycroft, founder of Canopy. “This is just the beginning.”
Yibin Grace, a major MMCF producer with a total capacity of 450,000 tonnes per year, was also among the first to integrate Circulose recycled pulp in its viscose lines under the ReGracell brand. The company earned top environmental ratings in Canopy’s 2024 Hot Button Report and is recognized for avoiding sourcing from Ancient and Endangered Forests.
