FW
A comprehensive 2026 safety evaluation conducted by the American Apparel & Footwear Association (AAFA) and Intertek has exposed a critical public health crisis within the counterfeit textile market. Of the 39 products tested - ranging from apparel and footwear to accessories - an alarming 41 per cent failed to meet US and international safety standards. The study, titled Unboxing Fake Fashion: Unleashing Real Dangers, reveals that these illicit goods are frequently saturated with restricted hazardous substances. One specific sample contained diethyl phthalate (DEP) at levels exceeding 327,000 parts per million, which is more than 650 times the threshold permitted under the AAFA Restricted Substances List (RSL).
Chemical contamination and health risks
The findings highlight a pervasive presence of ‘forever chemicals’ and heavy metals in finished garments and footwear. Beyond phthalates, investigators identified widespread failures involving per- and polyfluoroalkyl substances (PFAS), formaldehyde, and bisphenol-A (BPA). In extreme cases, products showed lead concentrations as high as 191 parts per million, alongside formaldehyde levels nearly ten times the legal regulatory limit. These results indicate that counterfeiters operate outside of established chemical management frameworks, prioritizing low-cost production over consumer health. Experts warn that prolonged dermal contact with such substances can lead to severe endocrine disruption, respiratory issues, and long-term toxicity.
Social commerce as a fraud pipeline
Data from the report suggests that social media platforms have become the primary facilitators for these hazardous transactions. Approximately 25 per cent of the non-compliant items were purchased or marketed via Meta-owned platforms, prompting the AAFA to renew its demand for Meta, Shopee, and Alibaba to be included in the US government’s Notorious Markets List (NML). Counterfeiting has evolved from a brand protection issue into a significant public health threat, stated Steve Lamar, President, AAFA.
With major 2026 events like the FIFA World Cup and the Winter Olympics approaching, the industry is calling for urgent policy intervention to hold third-party marketplaces accountable for the toxic merchandise trafficked through their networks.
The American Apparel & Footwear Association (AAFA) represents over 1,000 world-famous brands, focusing on supply chain integrity and product safety. It manages the industry-standard Restricted Substances List (RSL) and advocates for legislative reforms to protect global consumers. The association targets 100 per cent compliance in verified supply chains while actively combating the digital counterfeit devalue chain.
The Union Budget 2026-27 has moved beyond subsidies and incremental incentives and instead attacked the sector’s three most persistent constraints simultaneously: logistics inefficiency, raw material volatility and fragmented manufacturing infrastructure. The combination of a 2,052 km Dedicated Freight Corridor (DFC), an expanded Yarn Bank Scheme and a new National Fiber strategy signals a coordinated industrial policy rarely seen in India’s textile history. For a sector targeting $350 billion in value by 2030 and competing head-on with Bangladesh, Vietnam and China, this may prove to be the most consequential reset since the dismantling of the quota regime two decades ago. What makes the moment different is not just scale, but integration.
Surat-Dankuni corridor rewires textile logistics
Textiles are deceptively heavy. Yarn, grey fabric, chemicals, garments every stage depends on moving bulk loads across thousands of kilometres. India’s traditional rail and road systems inflate costs, eroding competitiveness by 6-8 per cent compared to regional rivals. The new 2,052 km Dedicated Freight Corridor linking Surat to Dankuni directly addresses this handicap.
The route connects:
• Surat’s man-made fiber and synthetic textile clusters
• Maharashtra’s spinning and processing units
• Central India’s weaving belts
• Eastern India’s powerloom and jute clusters
• Dense consumption markets across West Bengal, Bihar and the Northeast
By enabling heavy-haul trains running at speeds up to 100 km/h, the corridor reduces transit delays, lowers fuel costs and cuts inventory holding time, three metrics that directly determine export competitiveness.
Table: Logistics performance before and after dedicated freight corridor
|
Parameter |
Current network |
Dedicated freight corridor |
Improvement |
|
Average Speed |
25-30 km/h |
100 km/h |
3-4x faster |
|
Surat–Kolkata Transit |
5-6 days |
36-40 hours |
70% reduction |
|
Freight Cost per Tonne |
Rs 2.8-3.2/km |
Rs 1.8-2.0/km |
30-35% lower |
|
Inventory Holding |
12-15 days |
5-7 days |
50% lower |
|
Damage/Loss Rate |
Moderate |
Low |
Significant decline |
The faster turnaround time alone can save exporters millions annually. Lower freight costs and reduced inventory days free up working capital a critical advantage for MSMEs. Faster supply chains also allow just-in-time production, helping India match the responsiveness of Bangladesh and Vietnam in fast-fashion orders. Analysts estimate that logistics efficiencies could add 2-3 percentage points to operating margins across spinning, weaving and garmenting segments.
Yarn price stability, a lifeline for MSME weavers
Daily price fluctuations in cotton and polyester yarn frequently cripple small weaving units that lack the bargaining power to procure bulk volumes. Sudden price spikes can wipe out already thin margins, forcing shutdowns or contract defaults. The Yarn Bank Scheme, now expanded from Rs 20 crore to Rs 50 crore, seeks to correct this structural asymmetry. Through Special Purpose Vehicles (SPVs), yarn is procured at wholesale rates and distributed to MSMEs at stable prices. The scheme effectively acts as a buffer stock mechanism.
Table: Yarn bank scheme expansion impact
|
Metric |
Earlier allocation |
Budget 2026 allocation |
Expected outcome |
|
Budget Size |
Rs 20 cr |
Rs 50 cr |
2.5x capital increase |
|
Yarn Coverage |
8,000 MSMEs |
20,000+ MSMEs |
Wider industry inclusion |
|
Avg. Price Volatility |
±15-20% |
±5-7% |
Stabilized raw material costs |
|
Bulk Procurement Discount |
3-5% |
8-10% |
Better profit margins |
|
Working Capital Savings |
Low |
High |
Improved liquidity for units |
With greater scale, SPVs gain negotiating leverage with mills. Even a 5-8 per cent price advantage significantly boosts margins for small weavers, who operate on single-digit profitability. More predictable input costs also enable exporters to quote stable prices to global buyers, a crucial factor in securing long-term contracts. The scheme effectively converts volatile commodity risk into manageable institutional procurement.
The National Fiber Strategy building self-reliance
The National Fiber Scheme is aimed at deeper structural resilience. India has historically been strong in cotton and natural fibers but dependent on imports for specialized man-made fibers, performance textiles and technical yarns. This dependence weakens value addition and leaves the country vulnerable to global supply disruptions. The new strategy focuses on expanding domestic production across the entire fiber spectrum: silk, wool, cotton, recycled polyester, specialty synthetics and advanced technical fibers.
Table: India’s fiber mix and targeted expansion
|
Fiber category |
Current share |
2030 target |
Focus |
|
Cotton |
48% |
45% |
Productivity Gains: Focus on high-yield varieties and "Kapas Kranti" to maintain dominance while reducing land footprint. |
|
Polyester/MMF |
38% |
42% |
Capacity Expansion: Utilizing PLI schemes to scale Man-Made Fiber (MMF) to meet global demand for athleisure and fast fashion. |
|
Technical Fibers |
4% |
8% |
High-Value Exports: R&D in Meditech, Mobiltech, and Geotech; shifting from commodity to specialized engineering textiles. |
|
Silk & Wool |
6% |
7% |
Rural Clusters: Strengthening local supply chains (e.g., PM MITRA parks) to empower handloom weavers and artisanal units. |
|
Recycled/Sustainable |
4% |
8% |
ESG Compliance: Transitioning to circular economy models (recycled polyester, organic cotton) to meet EU/Global green norms. |
The projected shift toward man-made and technical fibers reflects how global consumption patterns are evolving. Athleisure, activewear and functional fabrics are expanding faster than traditional categories. Increasing recycled and sustainable fibers also aligns India with the environmental standards increasingly mandated by European and American buyers. By building capacity at home, the country reduces import dependence and captures more value addition within its borders.
At the manufacturing level, the PM MITRA parks represent another attempt to cure a long-standing inefficiency: fragmentation. Historically, spinning, weaving, processing and garmenting have been scattered across regions, forcing goods to travel repeatedly before completion. This fragmentation inflates costs and stretches lead times, undermining competitiveness against tightly integrated hubs in Bangladesh and Vietnam. The MITRA model clusters the entire value chain in one location with plug-and-play infrastructure, common utilities and simplified approvals, effectively compressing geography.
Consolidation reduces coordination delays and shortens production cycles. Exporters can move from fiber to finished garment within weeks rather than months, a capability critical for fast-fashion and seasonal orders. Lower costs and faster turnaround make India more attractive to global sourcing managers seeking both scale and speed.
The reforms also arrive at a critical geopolitical moment. China’s rising labour costs, Bangladesh’s infrastructure strain and Vietnam’s capacity limits are prompting brands to diversify sourcing. Buyers are looking for scale, speed and reliability. India’s new logistics corridor, stabilized yarn ecosystem and fiber self-sufficiency create exactly that combination. For the first time, the country is not merely offering cheaper labour but a structurally efficient supply chain. That difference changes the pitch from alternative supplier to primary sourcing hub.
Budget announcements often produce short-term optimism. This time, however, the changes touch the foundational mechanics of how textiles are produced and moved; steel tracks to move goods faster; institutional buffers to protect small weavers; fiber strategies to reduce import dependence; integrated parks to shorten lead times. Each measure alone helps. Together, they reshape competitiveness.
If implemented with discipline, the Surat-Dankuni freight corridor may become more than a transport line. It could be remembered as the spine on which India’s next textile century is built connecting not just cities, but the country’s ambition to move from volume producer to global value leader.
Frasers Group has accelerated its European growth trajectory by finalizing a majority shareholding in a prominent Italian premium multi-sport retailer, Maxi Sport SpA. This transaction serves as a critical structural anchor for the group’s entry into the Italian market, transitioning from its historical UK-centric model to a diversified continental powerhouse. By integrating Maxi Sport’s established 18-store network - which includes six flagship locations—Frasers is effectively bypassing the high barriers to entry in the Italian technical sports sector.
The agreement ensures operational continuity, as the founding Sala family maintains a minority stake and leadership roles to preserve regional brand equity while leveraging Frasers’ massive logistical scale.
Elevation strategy boosts fiscal performance amid market volatility
The acquisition aligns with Michael Murray, CEO’s ‘Elevation Strategy,’ which has shifted the group’s focus toward high-margin, premium retail environments. Fiscal results for H1, FY26 reflect the success of this model, with international revenue rising by 42.8 per cent, driving total group revenue to approximately £2.58 billion. While broader retail conditions remain subdued due to inventory surpluses and cautious consumer spending, Frasers has maintained its profit guidance of £550 million to £600 million. The group’s gross margin improved by 160 basis points, largely credited to a more sophisticated product mix and the ‘Frasers Plus’ loyalty ecosystem, which now accounts for a significant portion of online sales volumes.
Unlocking direct retail corridors in Southern Europe
Beyond the immediate acquisition, Frasers intends to utilize Maxi Sport’s infrastructure to introduce its core Sports Direct brand to Italian consumers. This move mirrors recent expansions in Hungary, Romania, and the Netherlands, where the group has absorbed regional competitors to build an interconnected European retail web. By combining Maxi Sport’s expertise in technical categories like winter sports and technical running with Sports Direct’s global brand partnerships - including enhanced ties with Nike and Hugo Boss - Frasers is positioning itself to dominate both the aspirational and performance-wear segments. This cross-border synergy is expected to mitigate domestic UK cost pressures, such as the £50 million increase in statutory operational overheads, by diversifying revenue across more resilient European markets.
Frasers Group is a global retail conglomerate specializing in sports, premium lifestyle, and luxury goods through brands like Sports Direct and Flannels. Operating extensively across Europe and Asia, the group is currently executing an international ‘Elevation Strategy’ to modernize store formats and enhance margins. Founded in 1982, Frasers now maintains a robust £3 billion credit facility to fund its aggressive multi-year global expansion.
While much of the accessible luxury sector grapples with consumer fatigue, Ralph Lauren Corporation has reported a robust fiscal third quarter for 2026, defying broader retail deceleration. The company achieved a 12 per cent increase in reported revenue, reaching $2.4 billion, alongside a significant expansion in gross margin to 69.9 per cent. This performance was primarily fueled by a high-teens surge in average unit retail (AUR) and a disciplined reduction in promotional activity. By prioritizing full-price sales over volume-driven discounts, the brand has effectively buffered itself against rising logistical costs and heightened US import tariffs.
Asian momentum counteracts western caution
The narrative of ‘cautious luxury’ is being rewritten in the East, where Ralph Lauren’s strategic focus on China has yielded a revenue increase exceeding 30 per cent. This regional strength provided a critical offset to a more tempered North American market, where growth remained in the high-single digits. Management attributed this geographic resilience to the ‘Next Great Chapter: Drive’ strategy, which emphasizes winning in key global cities. During the quarter, the group scaled its ‘ecosystem’ by opening 32 new stores in high-traffic hubs including New Delhi, London, and Chengdu, reinforcing its physical presence even as digital commerce grew by mid-teens globally.
High-potential categories lead product evolution
A significant internal shift is visible in the brand’s product mix, with ‘high-potential’ categories - Women’s apparel, outerwear, and handbags - consistently outperforming the core business. These segments grew in the high-teens, signaling a successful move beyond the brand’s traditional menswear heritage. Despite a 5 per cent pre-market dip in stock price as investors weighed long-term macro risks, the company raised its full-year constant currency revenue guidance to low-double digits. As Justin Picicci, CFO noted, the current trajectory reflects an ‘accelerated quality of sales,’ suggesting that the brand’s elevation is effectively attracting a younger, more affluent demographic willing to pay for perceived value and longevity.
Ralph Lauren is a global leader in luxury lifestyle products, spanning apparel, footwear, home, and fragrances. Founded in 1967 with a line of men's ties, the company now targets premium markets worldwide, with a heavy emphasis on direct-to-consumer expansion in Asia and Europe. Current growth plans focus on brand elevation through the ‘Next Great Chapter’ initiative, aiming for sustainable long-term margin expansion.
The long-anticipated trade corridor between the European Union and Mercosur has reached a critical juncture as industry leaders move to safeguard the deal’s future. In a unified front, the Argentine Textile Industry Federation (FITA), the Brazilian Textile and Apparel Industry Association (ABIT), and the European Apparel and Textile Confederation (EURATEX) have signaled their continued backing for the Mercosur-European Union Partnership Agreement. This collective endorsement comes at a pivotal moment, as the pact faces a rigorous legal assessment by the Court of Justice of the European Union, a move that introduces a layer of procedural complexity to an already decade-long negotiation process.
Strategic integration as a shield against global volatility
For the textile and apparel sectors on both continents, the agreement represents far more than a simple reduction in tariffs. Industry representatives argue, the partnership is a vital mechanism for establishing predictable trade rules in an increasingly fractured global market. By cementing a formal framework for cooperation, the associations aim to position their member companies as dominant, stable actors in the global economy. This strategic alignment is intended to bolster multilateralism, providing a counterbalance to the supply chain disruptions and shifting geopolitical alliances that have characterized the post-pandemic industrial landscape.
A multibillion-dollar economic anchor across two hemispheres
The scale of the industries hanging in the balance underscores the high stakes of the current judicial deliberations. The European textile sector remains a powerhouse, supporting approximately 1.2 million workers across 200,000 companies and generating an annual turnover nearing €170 billion. Across the Atlantic, the Mercosur contingent brings equally significant weight to the table; Brazil’s industry sustains 1.3 million jobs with a $40.9 billion turnover, while Argentina’s value chain employs over half a million people. Proponents of the deal argue that the sheer volume of this combined workforce necessitates a swift resolution to provide the ‘technological cooperation’ and ‘investment certainty’ required to modernize these traditional manufacturing hubs.
Beyond trade: Elevating environmental and technical standards
While market access remains a primary driver, the narrative of the partnership has shifted toward a shared commitment to higher industrial standards. The three federations are highlighting the agreement’s role in strengthening environmental benchmarks and fostering technological exchange between the two blocs. By aligning regulatory frameworks, the entities hope to create a synchronized market that prioritizes sustainable production methods, making the EU-Mercosur corridor a potential benchmark for international textile trade. As the Court of Justice reviews the legalities, the industry’s leadership remains focused on a vision where economic integration serves as the catalyst for environmental and technical evolution.
India has officially formalized its participation in the BRICS Centre for Industrial Competencies (BCIC), a strategic move designed to modernize the nation’s textile and apparel manufacturing base. By signing a Trust Fund Agreement with the United Nations Industrial Development Organization (UNIDO) on February 4, 2026, the Department for Promotion of Industry and Internal Trade (DPIIT) has established a direct pipeline for technical exchange. This partnership arrives as the Indian textile sector, which contributes 2.3 per cent to national GDP and 12 per cent to export earnings, seeks to counter competition from regional peers through advanced automation and digital engineering.
National Productivity Council to spearhead apparel cluster upgrades
The National Productivity Council (NPC) has been designated as the domestic nodal agency to lead this technological transition. Under the BCIC framework, apparel clusters in Tier II and Tier III cities will gain access to ‘Factory of the Future’ methodologies, focusing on smart manufacturing and resource efficiency. This initiative dovetails with the recently announced Union Budget 2026-27, which allocated Rs 10,000 crore to an SME Growth Fund. By leveraging UNIDO’s technical oversight, Indian exporters aim to meet the stringent ESG (Environmental, Social, and Governance) and circularity standards currently being implemented in major European and North American markets.
Strategic supply chain resilience across BRICS networks
This membership provides Indian MSMEs - which employ over 45 million people - with a collaborative technology marketplace to share best practices with Brazil, Russia, China, and South Africa. As global brands seek to diversify production away from high-risk corridors, the BCIC framework offers a platform for Indian firms to integrate into more resilient, cross-border value chains. Industry leaders anticipate that the adoption of Industry 4.0 will stabilize input costs and improve manufacturing margins, which have faced pressure from volatile raw material prices and shifting global demand.
The NPC is an autonomous organization under the DPIIT, Ministry of Commerce & Industry, dedicated to enhancing India's industrial competitiveness. It provides consultancy and training in lean manufacturing, energy management, and digital transformation. The NPC is currently expanding its footprint into technical textile clusters to support India's Vision 2030 export goals of $250 billion.
The ratification of the 2026 India-US trade agreement has fundamentally altered the competitive landscape for Odisha’s textile and garment manufacturers. By reducing reciprocal tariffs from a peak of nearly 50 per cent down to a streamlined 18 per cent, the deal effectively positions Indian goods at a more favorable rate than regional peers such as Vietnam and Bangladesh, which currently face duties exceeding 20 per cent. This fiscal de-escalation is a strategic victory for Odisha’s ‘Field to Fashion’ initiative, which aims to integrate the state’s annual production of 6 lakh bales of high-quality long-staple cotton with local processing units. Historically, limited domestic ginning capacity forced raw cotton exports to other states, but the state government is now capitalizing on this trade window by establishing new textile mills in the cotton-rich belts of Bolangir, Kalahandi, and Sonepur.
This policy shift is supported by a significant capital influx, with Odisha TEX 2025 having already secured investment proposals worth Rs 7,808 crore. Industrial leaders, including Aditya Birla Group and Shahi Exports, are expanding their footprints in clusters like the Chhatbar Apparel Park. To further secure these investments, Chief Minister Mohan Charan Majhi announced an increase in monthly employment subsidies to Rs 7,000 for female workers. This infrastructure-led growth, combined with reduced US import barriers, is expected to accelerate the state's mission to achieve Rs 3.5 lakh crore in total exports by 2027 while elevating traditional handlooms like Sambalpuri Ikat into high-value American fashion segments.
Odisha’s textile department manages the state’s apparel and technical textile policies, focusing on the entire value chain from ginning to high-end garmenting. It targets the US and EU as primary markets for its sustainable handlooms and ready-made garments. Growth plans include creating 1 lakh jobs by 2030 through specialized textile parks and increased worker subsidies.
The ratification of the 2026 India-US trade agreement has fundamentally altered the competitive landscape for Odisha’s textile and garment manufacturers. By reducing reciprocal tariffs from a peak of nearly 50 per cent down to a streamlined 18 per cent, the deal effectively positions Indian goods at a more favorable rate than regional peers such as Vietnam and Bangladesh, which currently face duties exceeding 20 per cent. This fiscal de-escalation is a strategic victory for Odisha’s ‘Field to Fashion’ initiative, which aims to integrate the state’s annual production of 6 lakh bales of high-quality long-staple cotton with local processing units. Historically, limited domestic ginning capacity forced raw cotton exports to other states, but the state government is now capitalizing on this trade window by establishing new textile mills in the cotton-rich belts of Bolangir, Kalahandi, and Sonepur.
This policy shift is supported by a significant capital influx, with Odisha TEX 2025 having already secured investment proposals worth Rs 7,808 crore. Industrial leaders, including Aditya Birla Group and Shahi Exports, are expanding their footprints in clusters like the Chhatbar Apparel Park. To further secure these investments, Chief Minister Mohan Charan Majhi announced an increase in monthly employment subsidies to Rs 7,000 for female workers. This infrastructure-led growth, combined with reduced US import barriers, is expected to accelerate the state's mission to achieve Rs 3.5 lakh crore in total exports by 2027 while elevating traditional handlooms like Sambalpuri Ikat into high-value American fashion segments.
Odisha’s textile department manages the state’s apparel and technical textile policies, focusing on the entire value chain from ginning to high-end garmenting. It targets the US and EU as primary markets for its sustainable handlooms and ready-made garments. Growth plans include creating 1 lakh jobs by 2030 through specialized textile parks and increased worker subsidies.
Coterie New York is set to return to the Javits Center from February 24–26, 2026, marking a significant evolution in the wholesale trade model through a landmark partnership with the digital platform Joor. This collaboration extends the traditional three-day event into an eight-week digital window, allowing global retailers to engage with collections two weeks prior to the physical showcase and finalize orders for six weeks following. This hybrid approach addresses the retail sector's demand for greater flexibility and ‘accelerated transactions,’ providing a critical bridge for contemporary brands from Italy, Korea, Turkey, and Brazil to maintain visibility in a competitive international market.
Curated sustainability and the rise of ‘Apres Ski’ circularity
Reflecting a shift toward circular fashion, this season introduces a sustainable dimension to the popular ‘Apres Ski’ neighborhood. In partnership with Normal NYC, the event will feature curated, upcycled vintage collections, offering a cash-and-carry option for on-site acquisitions. This initiative highlights the growing commercial viability of high-end vintage in the advanced contemporary space. Designers are responding to a sophisticated consumer palette for Fall/Winter 2026-27, showcasing sculptural silhouettes that blend silk with technical fabrics and refined neutrals. Notable returnees, including French Connection, Dolce Vita, and Mavi, are leveraging these trends to capture market share as domestic retail inventories stabilize.
Fostering equity through targeted designer incubators
Central to the 2026 edition is the expansion of Informa’s Incubator Program, which provides a dedicated platform for emerging Black-owned brands such as Yesaet and Nia Thomas. By offering complimentary participation, mentorship, and editorial exposure, Coterie is actively lowering the high barriers to entry for minority-owned enterprises. With over 1,000 brands and an estimated 134,000 industry attendees expected across the Javits floor, the event remains a vital economic engine, connecting niche designers with elite global buyers and media to drive long-term commercial growth.
Coterie is the premier global platform for women's contemporary to advanced contemporary apparel, footwear, and accessories. Owned by Informa Markets, it serves the North American and international wholesale sectors through biannual New York events. The group's growth plans focus on digital-physical integration and diversity initiatives to maintain its 40-year legacy as fashion’s most influential business hub.
A landmark study by the American Apparel & Footwear Association (AAFA) and quality provider Intertek has exposed a severe public health crisis within the fashion supply chain. Released in February 2026, the ‘Unboxing Fake Fashion’ report reveals, 41 per cent of counterfeit apparel, footwear, and accessories failed rigorous safety standards. The findings are particularly alarming for the textile sector: one tested product contained diethyl phthalate (DEP) at 327,000 parts per million - exceeding regulatory limits by a staggering 650 times. These results arrive as illicit traders gear up for high-demand windows, including the 2026 Winter Olympics and FIFA World Cup, where fan merchandise is frequently targeted by sophisticated ‘super-fake’ networks.
Marketplaces face heightened scrutiny over ‘Digital Devalue Chains’
The report identifies a systemic failure in digital oversight, noting, 25 per cent of the hazardous failed products were marketed or purchased via the Meta platform. This has prompted the AAFA to formally nominate Meta, Shopee, and Alibaba for the US Government’s Notorious Markets List. Beyond brand protection, the crisis is now framed as a ‘Digital Devalue Chain’ where unregulated third-party marketplaces facilitate the trafficking of PFAS, formaldehyde, and heavy metals. Industry leaders are pivoting toward more aggressive policy advocacy, urging the enactment of stricter liability laws for e-commerce platforms to shield consumers from what Steve Lamar, CEO, AAFA characterizes as a direct threat to national health.
Economic erosion and sustainable supply chain disruption
The proliferation of toxic counterfeits does more than endanger users; it destabilizes the legitimate textile economy, which already faces a projected loss of $1.89 trillion to piracy by 2030. These illicit goods undermine ‘circular economy’ initiatives, as consumers increasingly fear purchasing second-hand luxury items that may be contaminated with restricted substances. While legitimate brands invest millions in ESG compliance and non-toxic dyes, counterfeiters leverage a ‘completely unfair advantage’ by operating outside legal frameworks. This disparity not only stifles innovation but also threatens global employment, with estimates suggesting that millions of legitimate manufacturing jobs remain at risk due to the flooding of substandard, hazardous apparel.
The American Apparel & Footwear Association (AAFA) is the premier national trade association representing over 1,000 world-famous brands. It manages the industry’s Restricted Substances List (RSL) and advocates for global supply chain integrity. Its 2026 growth plans focus on strengthening digital trade laws and expanding consumer safety education across North American and European markets.
