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Building on a successful April initiative in Alangulam, Tenkasi, three women’s self‑help groups in Vannikonenthal, Tirunelveli district, Tamil Nadu, have launched a new ready‑to‑wear garment facility.
Supported by the Department of Micro, Small and Medium Enterprises, this project was development with an investment of Rs 1.15 crore and brought together 20 SHG members to partner with a major exporter in the SIDCO Industrial Estate, Valliyoor. It now employs 80 women directly and supports over 200 indirectly, producing not only ready‑to‑wear garments but also embroidery, pattern‑making, cutting, stitching, ironing and packaging for international markets.
The Vannikonenthal unit follows the same model. The Department of Backward Class and Denotified Community Welfare awarded Rs 3 lakh to each of three SHGs (ten women apiece) to set up the cluster. These groups have already signed supply agreements with established exporters in Rajapalayam and Srivilliputtur.
Under this arrangement, SHG members receive fabric and trims from the export houses, stitch the garments at the new facility, and return finished pieces for global distribution. Payments for each garment are credited directly to the women’s bank accounts, based on output and style.
The National Union of Textile, Garment, and Tailoring Workers of Nigeria (NUTGTWN) recently praised the government's approval to establish a Textile and Garment Development Board. The union called this decision a significant move to revitalize the country’s long-ignored textile industry.
Issa Aremu Godonu Ali Baba, General Secretary, NUTGTWN, says, it’s commendable that the current administration is taking concrete steps to re-industrialize the country and bring back the labor-intensive textile and garment industry.
The union is optimistic that the board will support the modernization of the textile value chain, improve worker productivity, and reposition the industry for global competition.
The Union states, the board will be privately run, with input from public sector stakeholders. Its funding will come from taxes on textile imports collected by the Nigeria Customs Service.
The board will include governors from Nigeria’s six geopolitical zones, along with the ministers of agriculture and food security, budget and economic planning, and industry, trade, and investment.
The union pledged to intensify its efforts and expand its activities in areas such as skills development, conflict resolution, and national and international cooperation.
Once a staple in American fast fashion, Forever 21 has officially shuttered all 354 of its US stores, with closures completed by May 1. The move follows the retailer's Chapter 11 bankruptcy filing in March with the US Bankruptcy Court for the District of Delaware.
The retailer started closing many of its locations from April 1 onwards. As per court documents obtained by USA Today, it plans to shut down the remaining stores by the beginning of May. However, the brand’s international locations will continue to operate, as per its website.
The company’s financial struggles reflect broader shifts in the retail landscape. According to The Street, approximately 57 per cent of global online shoppers purchase at least some of their clothing online, and more than 20 per cent of all fashion sales now occur via e-commerce. As a result, traditional brick-and-mortar retailers are seeing fewer in-store shoppers, making it harder to stay afloat.
Brad Sell, CFO, Forever 21, cities multiple reasons including growing competition from foreign fast fashion brands, rising operational costs, and changing consumer preferences for the bankruptcy. Forever 21 has also been hit hard by economic pressures and an increasingly competitive market.
One major challenge faced by the company is the de minimis import exemption, which allows goods valued under $800 to enter the U.S. duty-free. This gives overseas e-commerce giants like Shein and Temu a pricing advantage, allowing them to offer cheaper products without paying import taxes—something US retailers can’t easily match.
Parent company, F21 OpCo had hoped a buyer would step in to rescue the brand and halt store closures, but as of April 30, no serious offers had materialized.
Despite the shutdown of its physical locations, some industry leaders remain optimistic about the brand's future. Jarrod Weber, Global President, Lifestyle, Authentic Brands, one of the most recognizable names in fast fashion, Forever 21 is adapting to strike the right balance across physical stores, e-commerce, and wholesale.
While the brand’s expansion in US has ended, it is expected to focus on its global footprint and digital presence moving forward.
India’s cotton yarn industry is poised to clock 7-9 per cent revenue growth in fiscal 2026, up from 2-4 per cent in the previous year, backed by a rebound in exports especially to China and steady domestic demand. This growth will be volume-led, supported by a modest rise in yarn prices.
Operating margins are projected to improve by 50-100 basis points this fiscal, following a recovery last year, thanks to stable cotton yarn spreads and enhanced domestic cotton availability from the Cotton Corporation of India (CCI).
An analysis of 70 major spinners, contributing 35-40 per cent of the industry’s revenue, indicates that export recovery will be the key driver. Cotton yarn exports, which make up around 30 per cent of revenue, are expected to grow 9-11 per cent, reversing last year’s 5-7 per cent decline. China, which accounts for 14 per cent of yarn exports, is resuming imports as its domestic cotton production normalises.
According to Crisil Ratings, spinners will benefit from India's stable cotton production and regain market share in China. Additionally, India’s textile exports to the US remain competitive due to higher tariffs on Chinese goods, supporting 6-8 per cent growth in downstream sectors like home textiles and garments.
CCI’s extensive procurement in the current cotton season will ensure supply stability, reduce inventory losses, and further support profitability. Capital expenditure will stay moderate, containing debt levels. With better margins and efficient working capital use, interest coverage is set to rise to 4.5-5 times, while gearing remains stable at around 0.55-0.6 times.
However, changes in global tariffs, inflation, or a demand slowdown in the US could impact this positive outlook.
The rarefied world of luxury goods is facing a numerous challenge that strikes at the very heart of its allure: exclusivity. Social media platforms like TikTok have become a stage for Chinese factories to assert their role in producing handbags for iconic brands such as Gucci, Louis Vuitton, Hermes, Dior, Coach, and Prada, offering to sell these goods directly to consumers. This revelation, regardless of its veracity, casts a shadow of doubt over the industry and forces a critical examination of authenticity, origin, and the very nature of luxury in a globalized world.
Genuine or fake, impact on brand image
The immediate question is whether these claims point to the production of genuine goods or mere knock-offs. Either scenario presents a significant threat to luxury brands. If the claims are true and a substantial portion of the manufacturing process occurs in China, with only finishing touches applied in Europe, the ‘Made-in-Italy’ or ‘Made-in-France’ label loses its prestige and the premium pricing it commands. This exposes a vulnerability in existing system, particularly given the EU's lax country-of-origin rules.
Conversely, if these factories are producing counterfeit goods that are virtually indistinguishable from the originals, the brand's value is diluted. The core appeal of luxury items lies in their exclusivity and the status they confer upon the owner. As the document highlights, "The woman who spends $25,000 for a Louis Vuitton handbag does so for the status, knowing that very few belong to her class". The proliferation of indistinguishable, lower-priced alternatives erodes this exclusivity, undermining the brand's carefully cultivated image.
Is it misfired backlash
It's noteworthy that many of the luxury brands in question are European. While the claims originate in China, it's debatable whether this constitutes a "misfired" hit due to the ongoing trade tensions between the US and China. The issue at hand transcends geopolitics; it's fundamentally about brand integrity and supply chain transparency. Regardless of the broader political context, the potential for reputational damage to European luxury brands is undeniable. The focus is shifting towards the actual production of goods, and this is where China's role is being questioned.
Impact on genuine luxury buyers
The impact of this perceived dent in brand image on genuine luxury buyers, particularly in the US, is complex. It's likely to affect different segments in varying degrees.
Core luxury buyers: These high-net-worth individuals often seek out rare and exclusive items, valuing heritage and craftsmanship. While concerns about authenticity might give them pause, their purchasing habits may be less affected in the long run, especially if brands can reinforce their commitment to quality and exclusivity (e.g., through bespoke services, limited editions, and private sales).
Aspirational luxury buyers: This segment, which includes those who purchase luxury goods as a symbol of upward mobility, is more vulnerable. Their purchase decisions are heavily influenced by the perceived status associated with the brand. If that status is compromised, they may be discouraged from investing in luxury goods.
For example, Hermes a brand built on heritage and meticulous craftsmanship faces a crisis of confidence if doubts arise about its production processes. The strategic response must involve radical transparency, reinforcing the "made-in-Europe" narrative with detailed supply chain information, and potentially investing in even more exclusive, limited-edition offerings to reaffirm exclusivity.
However, a brand like Louis Vuitton with a broader appeal might see a more significant impact on its aspirational buyer base. Their strategy could involve diversifying into experiential luxury (e.g., exclusive travel, events) and focusing on brand storytelling that emphasizes heritage and artistry, rather than just the status associated with owning the product.
Even though precise figures on genuine vs. aspirational luxury buyers across the US, EU, and other regions are difficult to pinpoint, as these categories are fluid and depend on various factors like income, lifestyle, and purchase motivation market research firms like Statista and Bain & Company provide valuable insights into the luxury goods market. Reports consistently suggest the significant growth of the luxury market in Asia, with China being a key driver. This highlights the importance of addressing the current challenges to maintain brand value in this crucial market. Studies also indicate a growing demand for authenticity, sustainability, and ethical sourcing among luxury consumers, particularly younger generations. Brands that fail to address these concerns risk alienating a significant portion of their target audience.
Therefore, the claims on the production of luxury goods in China have started a crucial conversation about authenticity, origin, and the evolving nature of status. While the immediate impact on sales may vary, the long-term implications for luxury brands are profound. They must prioritize transparency, reinforce their commitment to quality and exclusivity, and adapt their brand narratives to resonate with a more discerning and informed consumer base. Failure to do so could lead to a significant erosion of brand value and a fundamental shift in the luxury landscape.
The European Commission has released its first Working Plan under the Ecodesign for Sustainable Products Regulation (ESPR), and textiles and apparel have been identified as the top priority. This initiative signals a major shift towards integrating sustainability into the textile industry, driven by the sector's significant environmental impact and market size.
The ESPR provides the legal framework for setting ecodesign requirements, aiming to promote more sustainable products across the EU market. The focus on textiles is part of a broader effort to meet the EU's climate, environmental, and energy efficiency objectives. “The ESPR is a key contribution to the Clean Industrial Deal's ambition to make the EU the world leader on circular economy by 2030,” the European Commission stated, emphasizing the regulation's role in fostering a circular economy.
Key changes and specifications for the textile industry
Textiles constitute a significant market in the EU, with substantial potential for environmental improvement. The EU market for textiles & apparel is €78 billion. Due to its vast size it has numerous potential for improvement in the product lifetime extension, material efficiency and to reduce their impact on water, waste generation, climate change and energy consumption.
The ESPR will bring about several changes for the textile and apparel industry, with specific requirements and timelines outlined in the working plan. The prioritization of textiles followed extensive consultations with stakeholders, including member states, industry representatives, academics, NGOs, and international partners. The final working plan was shaped by feedback from a public consultation in 2023 and discussions at the Ecodesign Forum in February 2025.
Table: ESPR timeframe for textile and apparel industry
|
Requirement |
Description |
Timeline |
|
Durability & Repairability |
Textiles must be designed to be more durable and easily repairable to extend product lifespan and reduce waste. |
2027 |
|
Material Efficiency & Recycled Content |
Regulations will mandate efficient use of materials and minimum percentages of recycled content in textile products. |
2027 |
|
Digital Product Passport |
A digital system to track environmental and material data across the supply chain, enhancing transparency. |
2027 |
|
Alignment with Textile Labelling Regulation |
Ensuring coherence with the revised Textile Labelling Regulation to provide clear consumer information. |
2027 |
Compliance and regulations
The textile industry will need to comply with a set of new regulations under the ESPR, aimed at fostering sustainability and reducing environmental impact. While the new regulations present challenges, they also offer opportunities for the textile industry to lead in circular design, transparency, and product traceability. Companies that embrace these changes can increase their competitiveness and meet the growing demand for sustainable products.
Highlighting the benefits of harmonized standard the European Commission points out, “Stakeholders support this initiative because it reduces compliance costs, simplifies the system and enables producers and consumers to benefit from the economies of scale that a market with 450 million consumers provide.”
Thus the prioritization of textiles under the ESPR marks a critical step towards a more sustainable future for the industry. By focusing on durability, material efficiency, and transparency, the EU is driving the textile sector towards greater environmental responsibility and circularity.
Thika Cloth Mills has launched a Sh1.2 billion project to establish a cotton ginning and oil extraction factory in Lamu County.
Launched in collaboration with the Kenyan government, this initiative is expected to generate 300 direct and indirect jobs.
The factory will have the capacity to process up to 20 million kg of cotton annually, sourced from local farmers through structured contract farming arrangements.
Emphasizing on the significance of the project, Lee Kinyanjui, Trade Cabinet Secretary stated, , More than just a factory; this project is a bold signal of Kenya's industrial future. He envisioned Lamu becoming a model for county-based industrial transformation, revitalizing local production, creating jobs, and strengthening domestic value chains.
The Kenya Development Corporation (KDC) will provide support to facilitate access to long-term and working capital for the project, as well as assist in the purchase of machinery through the Exim Bank of India.
Abubakar Hassan, Principal Secretary-Investment Promotion highlighted the benefits for cotton farmers and cooperative societies in the coastal region, including structured markets, stable incomes, and strengthened cooperative economies.
Cotton is cultivated in various semi-arid regions across Kenya, including parts of the former Eastern, Central, Nyanza, Coast, Western, and Rift Valley provinces.
Benjamin Muketha, Director, KDC emphasized the broader economic impact of the factory, stating that it will produce not just garments or oil but an economic opportunity. The processing of cotton yields lint (40 per cent) and seed (60 per cent), with the seed further processed into oil for human consumption and seedcake for animal feed.
India’s key textile-producing states, Gujarat and Maharashtra, are grappling with an acute labor shortage, disrupting fabric and garment production across the region. Being highly labor-intensive, these sectors have been particularly hard hit by the reduced workforce. Gujarat’s well-known textile hub, Surat, has witnessed up to a 50 per cent decline in textile factory output. However, weak retail demand may prevent price hikes despite slower textile supply.
Surat is renowned for its weaving, processing, and garmenting activities—all of which rely heavily on manual labour. A large portion of the workforce hails from Uttar Pradesh and Bihar and typically returns to their native villages during summer for one to two months. These workers are not permanently employed but are paid based on output, making their absence financially consequential for them, yet beyond the control of factory owners. Many leave to engage in agricultural work or assist with harvesting, where they often earn higher seasonal wages.
Ashish Gujarati, Former President, Southern Gujarat Chamber of Commerce & Industry (SGCCI), says factories are compelled to reduce production by up to 50 per cent as the textile industry faces a labor crunch. It is estimated that around half of the workforce has gone on leave to their native states. Workers are expected to return after the first rains, likely in the second half of June. He adds, power looms and auto looms are facing the most severe worker shortages. Textile processing and garmenting are also affected.
The textile industry is facing similar challenges in other parts of Gujarat and Maharashtra. Bharat Shah, a power loom owner in Ichalkaranji (Maharashtra), states, power looms have had to cut fabric production as the number of workers has dropped in the past two to three weeks. Labour shortage has become an annual issue as industries are increasingly dependent on workers from UP and Bihar. These workers typically return by the end of June when the rainy season starts.
Labor shortages have dented textile factory production, but a sudden drop in supply or spike in fabric prices is unlikely. There are clear signs of consistent supply and stable prices, unless there is an unexpected surge in demand for end products like garments and other finished goods. Shah explained that this is an annual labour migration, and factory owners have already planned production accordingly. Wholesalers have also built up adequate stock for the summer months.
More importantly, the current demand for textiles and garments is steady to slow, which is not conducive to price increases.
Gujarati further notes, a short supply is unlikely during the summer months unless there is a sudden rise in demand. The present level of demand has already been factored in by manufacturers. This steady to slow demand will not cause a shortage of supply. However, occasional short supply of specific textile varieties may be experienced during this period of slow production.
K M Subramanian, President, Tiruppur Exporters’ Association, avers. garment manufacturing units in the Tiruppur region are also facing a labour shortage. There is a shortage of around 40,000 workers in the region. Workers are getting better jobs in other sectors including IT sector, which is the main reason for the labour shortage. Growing IT and other sectors need non-technical workers for supporting and ancillary services. Garment production activities are being affected by this problem.
However, another industry expert said that the region is not facing a seasonal labour shortage, as workers in the region typically return to their native places in Uttar Pradesh and Bihar before the Holi festival. They are now coming back to the factories.
Marilina Armellin, Italian Ambassador to Pakistan, reaffirmed Italy's long-standing support for Pakistan's textile sector, calling it crucial for the nation's economic growth and export performance. She highlighted Italy's role as a reliable partner in Pakistan's textile development for decades, offering advanced machinery and technology across the entire production chain.
During a visit to Business Recorder's Karachi headquarters, Ambassador Armellin emphasized on the need for stronger trade cooperation. She stated,, Italy is committed to strengthening this important partnership by facilitating access to the latest textile technologies and machinery to help Pakistan boost its economic activitie. However, she urged Pakistan to lower import tariffs on textile machinery to make advanced equipment more accessible. This would help modernize the industry and significantly contribute to Pakistan's GDP, she opined
Emphasizing on the the importance of IGATEX Pakistan 2025 in Karachi, Armellin noted, IGATEX is a very important exhibition—not just for Pakistan but for the entire region, she stated, adding that Italian companies see strong potential in the Pakistani market.
Highlighting broader economic ties, Armellin pointed out, the €1.5 billion trade balance and the potential for growth. Italy exports machinery for various sectors, including textile, leather, and agriculture, while Pakistan exports textile and leather products, and food items. She encouraged Pakistani businesses to participate in major Italian and European trade fairs to explore new markets.
A leading cybersecurity and cloud computing company focused on securing and enhancing online business, Akamai Technologies, Inc has launched a new T-shirt design as part of Uniqlo's charitable T-shirt initiative, the Peace For All collection, Following the overwhelming success of their previous collaboration within the Peace For All project, UNIQLO was inspired to partner with Akamai once again to create a brand-new design.
The design of the new T-shirt pays homage to the early days of the internet, a period in which Akamai played a pivotal role in shaping the online world we know today. The T-shirt features a light tan color, reminiscent of the ‘beige box’ plastic casings of early internet computers. A heart graphic on the front symbolizes the positive impact the internet has had globally. The back of the shirt showcases actual code, a reference to Linux, the open-source language that underpins much of the internet. This shared language connects Akamai with leading global brands and their users as they collectively strive for a more secure and interconnected world.
Kim Salem-Jackson, Executive Vice President and Chief Marketing Officer, Akamai, says, the company’s mission to power and protect life online drives it to contribute to a safer, more connected world Through this project, the company shares a message of peace, expressed through the universal medium of fashion.
