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A new report by Barclays sheds light on several significant changes occurring within the global luxury market. The report, which analyzes data from various sources, including consumer surveys and market trends, indicates the luxury market is expected to experience moderate growth in coming years compared to previous periods.
Growth slowdown in China
The report notes luxury goods sales in China, a major market for luxury brands, have slowed in recent months. This is due to weak economic outlook and a shift in consumer preferences. Barclays predicts a 1% decline in luxury spending by Chinese consumers in 2025. In contrast, India's luxury market is expected to experience significant growth in the coming years. Barclays forecasts an annual expansion of 15 to 25 per cent in India's luxury market over the next seven years, driven by a growing middle class and increasing disposable incomes. However, the report cautions that India will remain a relatively small player in the global luxury market for the foreseeable future.
With China slowing, the US is expected to be the primary driver of luxury market growth in 2025. Barclays predicts a 6 per cent increase in luxury spending by US consumers, due to higher consumer confidence and a potential economic boost from President-elect Trump's policies. Since the US elections, consumer confidence seems to have improved on the back of a better wealth effect," said Carole Madjo, co-author of the Barclays report. The report notes that Americans already account for approximately 25 per cent of global luxury goods revenue. The report highlights the success of British luxury brands like Me+Em and Kurt Geiger in the US market. Me+Em recently opened its fourth US store in Dallas and plans further expansion, while Kurt Geiger has seen North America become its largest and fastest-growing market. Barclays notes that LVMH Moët Hennessy Louis Vuitton is experiencing a rebound in the US market, with its Fashion & Leather Goods division showing quarter-over-quarter improvement. This could signal a broader return to growth for the luxury sector in the US
Table: Luxury market projected growth
|
Region |
Projected annual growth rate |
|
China |
-1% |
|
India |
15-25% |
|
US |
6% |
|
Global |
7% |
The report also states consumers are increasingly concerned about the sustainability of luxury products. The report highlights that brands that can demonstrate their commitment to sustainability are likely to be rewarded by consumers.
The report highlights several case studies of luxury brands that have successfully adapted to changing market conditions. For example, one brand has partnered with local artisans in India to create unique products that appeal to the country's growing middle class. Another brand has launched a line of sustainable products made from recycled materials.
Overall, the findings suggest a significant shift in the global luxury landscape, with the US taking centre stage as China's growth slows. Luxury brands need to be more agile and responsive to changing consumer preferences in order to succeed, particularly in light of the economic and geopolitical uncertainties highlighted in the report. The report also highlights the growing importance of sustainability in the luxury market and the potential impact of political developments, such as President-elect Trump's policies, on the sector.
Offering a glimmer of hope for the turnaround plan of Joshua Schulman, CEO, iconic British fashion house, Burberry reported a lower-than-expected sales decline in Q3, FY25.
The brand’s sales declined by 4 per cent during the quarter ended December 2024 as against the 12 per cent decline predicted by analysts. While sales in Asia and Europe declined, Americas registered a 4 per cent rise in sales, mirroring a broader luxury spending surge in the US
Having joined Burberry in July after the exit of Michael Kors, Schulman has been implementing a ‘course correction’ strategy to revive the brand. This includes streamlining stores and refocusing on core product categories.
While challenges remain, analysts are cautiously optimistic about the strategy. As per RBC analysts, the strategy has had a positive impact on inventory clearance, and renewed focus on core products.
The results come amid a broader luxury market rebound. Richemont, Owner, Cartier, recently reported record-high quarterly sales.
Burberry's efforts to clear out inventory through substantial discounts have helped boost sales and manage stock levels effectively, says Mamta Valechha, Consumer Discretionary Analyst.
This positive news follows a period of underperformance for Burberry, marked by declining sales and several leadership changes. Schulman's turnaround plan, though in its early stages, has instilled renewed investor confidence.
Fabric innovation takes centerstage
The Munich Fabric Start, one of Europe’s leading fabric trade shows, concluded successfully January 22, 2025,in Munich. Together with its companion events - The Source, Bluezone, and Keyhousethe exhibition gathered key decision-makers, industry experts, and designers. Over two days, 625 international exhibitors showcased approximately 1,200 collections, presenting innovative fabrics and trims for Spring/Summer 2026.
Sebastian Klinder, Managing Director of Munich Fabric Start, expressed optimism despite a challenging market environment. “We received positive feedback from visitors and exhibitors. Our show-in-show concepts are fostering meaningful collaborations and driving innovation.” Creative Director Frank Junker highlighted themes like Florescence, which inspired creativity and exploration of AI's impact on fashion. Florescence encapsulated five sub-trendsBetterverse, Unorthodox, Inventing Paradise, Fragile, and Lasting that blended classic beauty with forward-thinking designs.
The market’s cautious yet curious mood was evident in buyers' focus on safe yet decorative choices. Trends favored linen blends, modern floral prints, and light, flowing fabrics in muted shades. Decorative elements like embroidery and shimmering effects gained traction, signaling a shift towards more expressive textiles.
Bluezonehighlights denim's evolution
At Bluezone, held in the Zenith Area, 70 international denim mills showcased the next generation of denim and sportswear. Under the theme ‘The Core,’ exhibitors focused on trends such as Deconstruct & Reconstruct and Green Minimalists. Sustainability and technological innovation were key talking points, with collaborations like Isko x Bluesign and Evlox x Lamosa drawing attention.
Trend researcher TilmannWrobel emphasized the importance of creating ‘Lovemarks’ to evoke emotional connections. Workshops led by MohsinSajid of Endrime demonstrated how to combine craftsmanship and cutting-edge technology. Additionally, David Shah’s keynote, ‘Quantum Fashion,’ explored the balance between innovation and nostalgia, urging the industry to consider exnovationre thinking past designsover continuous acceleration.
Keyhousedrives sustainability conversations
Integrated with Bluezone, Keyhouse served as a hub for sustainable innovation. The event brought together major fashion brands and startups to explore scalable solutions for textile-to-textile recycling and eco-friendly materials. Visitors engaged in discussions about efficient, emotion-driven technologies, emphasizing the synergy between functionality and sustainability.
Curator Simon Angel praised the collaboration between Bluezone and Keyhouse, calling it a ‘perfect match.’ With over 50 talks and panels featuring trend forecasters and industry experts, the event explored pivotal topics such as sustainability, circularity, and material efficiency. The show concluded with a 4 per cent increase in visitors compared to the previous edition, attracting representatives from brands like adidas, Hugo Boss, Prada, and s.Oliver.
The Munique Night networking event capped the first day, offering attendees an opportunity to connect over music and refreshments. With its focus on innovation, collaboration, and sustainability, Munich Fabric Start reinforced its status as a vital platform for shaping the future of fashion.
Perspectives from Visitors and Exhibitors Visitors at Munich Fabric Start highlighted the event as a key platform for discovering new fabrics and trends. Andrea Sefl from Atelier Gardeur emphasized their focus on innovative denims and prints for basic items. Michael Seiter of Holy Fashion Group noted the trade show's importance for staying ahead in fashion, with a strong exhibitor base. Designer Anna Weber from Luisa Cerano appreciated Bluezone’s trend areas for showcasing the latest denim treatments and styles. Annette Schrewe of Betty Barclay mentioned being impressed by new decorative elements like embroidery, while Birgit Kastner from Marc O'Polo looked for sustainable blends and quality fabrics for Spring/Summer '26.
Exhibitors also praised the event for fostering innovation and sustainability. Helene Smits from Looper Textile Co. highlighted their focus on textile-to-textile recycling, pushing for the fashion industry to embrace a circular approach. Simone Bellucci of Bellucci showcased new shiny laminees and cotton-linen mixes, catering to demand for stretch fabrics in the German market. Marc Puigderrajols Bassols of Tejidos Rebes emphasized the importance of offering organic and recycled qualities. Sarah Jankowsky from Valupa focused on sustainable materials, showcasing durable and compostable accessories. The overall sentiment was one of collaboration, innovation, and a shift toward sustainability across the fashion industry.
Uzbekistan-based Global Textile Group plans to establish a significant textile hub in Kazakhstan. The company aims to launch five facilities in the Maktaaral district of the Turkestan region, including a logistics center, a cotton processing plant, a textile factory, dyeing and spinning workshops, and garment factories.
The cotton processing plant will have an annual capacity of 13,800 tons, supplying both the Kazakh market and European exports. The textile factory is slated to begin operations in 2027.
This ambitious project is expected to create over 2,000 permanent jobs and has an estimated total cost of 21 billion tenge ($39.61 million), according to Kazakh media reports.
Muzaffar Razakov, CEO, Global Textile Group, and Nuralkhan Kusherov, Governor, Turkestan region, recently discussed the project's development.
In preparation for this venture, the company introduced 'Namangan-77' cotton seeds last year, cultivating them across 3,200 hectare. Additionally, they have completed construction of a cotton reception center with an annual capacity of 10,000 tons.
Highlighting the significant impact of raw material costs on India’s textile industry, Kulin Lalbhai, Vice Chairman, Arvind, and Chairman, Gujarat Confederation of Indian Industry (CII), emphasizes, import tax continues to hinder the industry's competitiveness. Removing these import duties can help lower production costs and enhance value addition within the domestic textile sector, he opines.
India possesses considerable potential in the global manmade fibers (MMF) market, which accounts for 60 per cent of global trade. However, the Indian MMF industry remains underdeveloped due to high raw material costs.
The industry needs to focus on areas where it can achieve local value addition and ensure a level playing field in terms of costs, Lalbhai states. Without cost competitiveness, the manmade fibers sector will not be able to scale up, he adds.
To help boost the industry growth, Lalbhai emphasizes on the importance of attracting large global investors, particularly from countries like Taiwan and Vietnam. He stresses on the need to create a conducive investment environment, including the development of plug-and-play infrastructure within the PM MITRA (PM Mega Integrated Textile Region and Apparel) parks.
Lalbhai also highlights the critical role of free trade agreements (FTAs) with Western nations in addressing the 11 per cent duty disadvantage India faces in exports to the European Union and the UK. These FTAs could unlock significant growth potential for the Indian textile sector.
Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director, Gokaldas Exports, points out, the primary challenge facing the apparel industry is capacity. He emphasizes on the need to increase production capacity and workforce in key apparel clusters to boost exports.
Nike has unveiled its latest innovation for athletes: the Nike 24.7 Apparel Collection. Designed to meet the demands for a hectic lifestyle, the collection seamlessly blends sport and everyday wear, offering both comfort and functionality without sacrificing style.
Catering to both men and women, the Nike 24.7 collection features innovative materials like Impossibly Soft and PerfectStretch to ensure all-day comfort. The refined four-way stretch fabric, ImpossiblySoft is used to make comfortable pieces like half-zips, crewnecks and joggers while the material PerfectStretch is used in skirts, pants and shirts, allowing athletes to maintain a tailored fit while staying comfortable.
The 24.7 collection embodies Nike's commitment to performance and style, says Jaclyn Safley, General Manager, Global Nike Training, Women's. It offers comfort and an elevated fit for all body types, she adds.
Echoeing this sentiment, track and field star Dina Asher-Smith says, the collection blends functionality with fashion. It offers a perfect balance between style and performance,
The 24.7 collection also pays homage to Nike's rich sporting heritage. Design elements like locker loops and heat-pressed tags with the brand's signature Total Orange stripe subtly confirm to Nike's connection with athletes. Additionally, tonal branding throughout the collection creates a sleek and coordinated look.
The collection launched globally on nike.com on January 25, 2025 and will be available in select retail stores from January 30, 2025.
Iconic Italian clothing brand founded in 1965, Benetton has announced plans to close 420 stores by 2025-end. By 2024, the brand closed 180 stores, marking a significant reduction in its physical presence and reflecting the challenges faced by the brand Benetton in adapting to new consumer habits.
The brand’s difficulties began in the early 2000s as it struggled to keep up with the fast fashion industry’s rise, which changed how people shop. Despite attempts to reinvent, Benetton’s efforts have not been successful, and its market position has weakened over time.
One of the key factors contributing to the crisis is the brand’s franchise model. While this model helped Benetton expand globally, it eventually became a burden. The company faced significant debt, including a reported €30 million in southern Italy. This has highlighted deeper issues with the company’s management and strategy.
The situation worsened with a public dispute between Luciano Benetton, Co-founder and Massimo Rendon, CEO The conflict focused on the company’s financial mismanagement, with a reported deficit of €100 million. This leadership turmoil has added to the company’s difficulties in navigating the crisis.
In an attempt to address these challenges, Benetton has launched a restructuring plan. The plan is aimed at saving the brand, but its success depends on the company’s ability to adapt to the rapidly changing fashion market.
Founded in 1965 and based in Ponzano Veneto, Italy, Benetton Group Srl. operates a network of about 5,000 stores worldwide. It is a wholly owned subsidiary of the Benetton family’s holding company Edizione. The company’s future will depend on how well it can address its internal issues and adapt to the evolving market.
Achieving a significant milestone in its sustainability journey, leading global online fashion and lifestyle retailer, Shein has developed a new polyester recycling process in collaboration with the Donghua University.
This innovative process offers enhanced flexibility compared to existing Shein recycling methods. It can effectively process a wider range of materials, including pre-consumer polyester waste, post-consumer textile waste, and even recycled PET bottles. This expanded feedstock range not only improves sourcing efficiency but also enhances the cost-effectiveness of the recycling process.
To scale this technology, Shein will collaborate with select partner fiber manufacturers to transition the process from a laboratory setting to a larger-scale commercial production facility.
Leonard Lin, President, EMEA, Global Head-Public Affairs and General Manager – Singapore, Shein, says, the company is committed to leverage innovation and technology to address industry-wide sustainability challenges.
The Indian textile industry is grappling with a dramatic rise in imported synthetic knitted fabrics, raising concerns about the impact of the Bureau of Indian Standards (BIS) restrictions on fibers and yarns originating from China. This analysis will explore the potential link between these restrictions and the import surge, examining the available data and industry perspectives.
Rising imports despite Minimum Import Price
Data from The Northern India Textile Mills' Association (NITMA) reveals a substantial increase in fabric imports, even after the government imposed a Minimum Import Price (MIP) on specific categories.
|
Period |
Import Volume (Mnkgs) |
|
Jan-Mar 2024 |
89 |
|
Apr-Jun 2024 |
81 |
|
July-Sept 2024 |
130 |
NITMA claims this surge is driven by importers exploiting HS code loopholes to bring in fabrics at approximately $1 per kg, significantly undercutting the global price range of $4-$6 per kg. Despite the government extending the MIP of US$3.50 per kg on 13 specific HSN codes of synthetic knitted fabrics until March 31, 2025, imports continue to climb.
BIS restrictions and the shift to fabric imports
Industry analysts attribute this surge to BIS restrictions, implemented for quality control purposes, which have inadvertently created a void in the domestic market for synthetic fibers and yarns. Importers are capitalizing on this gap by bringing in finished fabrics at significantly lower prices, undercutting domestic manufacturers.
The BIS restrictions have made it difficult for Indian textile manufacturers to source synthetic fiber and yarn from China, a major supplier. Consequently, they are increasingly importing finished knitted synthetic fabrics, which are not subject to the same restrictions. This shift is evident in the following data:
|
Year |
Imports of Knitted Fabric (in Mnkgs) |
|
2022 |
100 |
|
2023 |
200 |
|
2024 |
300 |
As shown, imports of knitted fabrics have tripled since the BIS restrictions were imposed. Conversely, imports of synthetic fiber and yarn from China have declined sharply:
|
Year |
Imports of Synthetic Fiber and Yarn (in Mnkgs) |
|
2022 |
100 |
|
2023 |
50 |
|
2024 |
25 |
This data clearly illustrates a correlation between the BIS restrictions, the decline in raw material imports, and the surge in finished fabric imports.
Collateral Damage: Eroding India's value-added manufacturing
This shift towards importing finished fabrics represents a significant loss for the Indian textile industry. By importing fabrics instead of fibers or yarns, India is forfeiting valuable opportunities for value addition and job creation within its domestic manufacturing sector. Previously, imported fibers and yarns would be woven, dyed, finished, and processed in India, contributing to the nation's manufacturing output and generating employment across various stages of the textile value chain. With the rise in fabric imports, these value-adding activities are now being performed outside India, resulting in a loss of potential economic benefits.
Impact on domestic manufacturers
A case study by the industry body found that the BIS restrictions have severely hampered the production of synthetic yarns and fabrics in India. Domestic manufacturers, unable to source quality raw materials at competitive prices, are facing a significant disadvantage against fabric importers.
One textile manufacturer, speaking anonymously, revealed that the BIS restrictions have forced him to import knitted synthetic fabrics from China instead of synthetic fiber and yarn due to the difficulty in finding domestic suppliers who meet his quality standards. Another manufacturer emphasized the urgent need for government action, stating, "We need to be able to import synthetic fiber and yarn from China without any restrictions. Otherwise, our industry will continue to suffer."
Government needs to urgently address this issue by revisiting the BIS restrictions
The surge in knitted synthetic fabric imports from China appears to be a direct consequence of the BIS restrictions. While intended to ensure quality, these restrictions have inadvertently created an artificial shortage of raw materials, hampered domestic production, and made Indian textiles less competitive. The government needs to urgently address this issue to support the Indian textile industry, potentially by revisiting the BIS restrictions or implementing complementary measures to boost domestic production of synthetic fibers and yarns.
Kraig Biocraft Laboratories, Inc, a leader in spider silk-based fiber development, announces the receipt of a new investment license in Vietnam. This marks a major step in the Company’s efforts to scale up its production to meet increasing global demand for its cutting-edge spider silk materials.
The investment license enables Kraig Labs to significantly expand its production capabilities and respond to the growing number of inquiries for its high-performance fibers. The expansion will serve various markets, including textiles, defense, and medical sectors, all of which are eager for the availability of these breakthrough materials.
Founder and CEO Kim Thompson expressed excitement about the license, stating, "This is a crucial milestone in our journey towards cost-effective spider silk production. The license solidifies our commitment to scaling production and fulfilling demand."
Kraig Labs plans to develop advanced rearing facilities in Vietnam as part of its growth strategy. The Company remains dedicated to eco-friendly practices, ensuring that its innovative materials are not only strong and lightweight but also sustainable.
This investment marks a significant move forward in Kraig Labs’ vision to revolutionize material science with one of the 21st century's most impactful biomaterials.
