At the ET Great India Retail Summit (GIRS) 2026 held in Mumbai, Atul Ruia, Chairman, The Phoenix Mills, unveiled a massive expansion blueprint to increase the company’s retail footprint from 18 million sq ft to 40 million sq ft by 2033. He dismissed the notion of India being a ‘future’ opportunity, asserting, ‘India is the story’ of the present. This roadmap is underpinned by a structural shift in consumer behavior; in January 2026 alone, Phoenix assets recorded a 30 per cent growth in sales growth despite no new floor space additions, highlighting a significant rise in trading densities.

Strategic density and integrated ecosystems

The group is transitioning from standalone shopping centers to massive integrated urban ecosystems. In Bengaluru, Phoenix is expanding its Marketcity footprint into a 6-million-sq-ft destination, aiming to triple revenue densities to Rs 10,000 per sq ft. Meanwhile, a 1.4-million-sq-ft Greenfield project in Thane will blend premium retail with hospitality and office suites. In Mumbai’s Lower Parel, the company is doubling its mall footprint to 2 million sq ft, reinforcing its dominance in the luxury and bridge-to-luxury apparel segments.

Omnichannel realities and sustainability

Addressing the digital-versus-physical debate, Ruia noted, the ‘false binary’ is over, with omnichannel emerging as the definitive winner. Physical stores now serve as the primary anchors for brand trust and high-value apparel transactions, while digital platforms provide the necessary reach. India has less than one square foot of organized retail per capita, Ruia noted, suggesting that the market's challenge is not oversupply, but a shortage of high-quality, experience-led assets. To meet this, the company is integrating climate-conscious infrastructure into all new builds, viewing sustainability as a competitive operational advantage rather than a compliance cost.

The Phoenix Mills is India’s premier retail-led mixed-use developer, transforming historic textile lands into iconic urban landmarks like High Street Phoenix. The company operates across retail, hospitality, commercial, and residential sectors. With a ‘Vision 2033’ target of 40 million sq ft, it focuses on high-consumption Tier-I and Tier-II hubs.

Aditya Birla Lifestyle Brands (ABLBL) signals an aggressive push into India’s burgeoning bridge-to-luxury menswear segment with the appointment of Jaskaran Bir Singh as Business Head for Simon Carter/ Announced in February 2026, the appointment follows Singh’s high-impact tenure at Myntra and the Flipkart Group, where he spearheaded the market entry and scaling of global labels like French Connection and Kenneth Cole. Singh’s return to the Aditya Birla ecosystem - where he previously managed core portfolios at Van Heusen - is designed to integrate digital-first agility with established retail scale.

Strategic premiumization and revenue momentum

The leadership transition aligns with ABLBL’s robust fiscal trajectory. In Q3 FY26, the company reported a 10 per cent revenue increase to Rs 2,343 crore, with its lifestyle division—encompassing flagship brands like Louis Philippe and Van Heusen - contributing Rs 2,002 crore. The shift toward Simon Carter, a brand known for its eclectic British aesthetic, serves a critical ‘premiumization’ goal. As affluent Indian consumers increasingly seek designer-led apparel, ABLBL is leveraging Singh’s expertise in omnichannel strategy to elevate Simon Carter’s presence across 3,300+ group touchpoints.

Operational scaling and market challenges

Under Singh’s mandate, Simon Carter will see a revitalized strategy covering design, product development, and retail operations. The company is navigating a competitive landscape where capital expenditure has surged to support 90 store additions in the last quarter alone. Despite inflationary headwinds affecting the broader apparel sector, ABLBL’s EBITDA margins expanded to 18.4 per cent in late 2025. The primary challenge remains balancing the high-touch service required for a premium brand like Simon Carter with the industrial-scale efficiency of the ABLBL network, an area where Singh’s dual experience in e-commerce and traditional retail will be pivotal.

Demerged from ABFRL in 2025, Aditya Birla Lifestyle Brands manages iconic labels including Louis Philippe, Van Heusen, and Reebok. Operating over 3,300 stores, the company targets the mass-premium and designer segments. ABLBL aims to double its scale by 2030 through rapid omnichannel expansion and high-margin international partnerships.

Scheduled for March 6–9, 2026, at the Codissia Trade Fair Complex, the upcoming 15th edition of SIMA Texfair will focus on cost optimization technology and high-tenacity industrial spares. . The exhibition will serve as the primary procurement engine for spinning, weaving, and processing mills. This year’s event will address the urgent need for mills to reduce operational overheads amid fluctuating raw material costs.

Industrial upgradation and MSME integration

The fair provides a vital link for the 50,000 knitting machines and 30 million spindles concentrated in South India to access world-class accessories and specialized lubricants. With the Union Budget 2026–27 allocating a Rs 10,000 crore SME Growth Fund, Texfair 2026 offers a platform for small-scale manufacturers to showcase indigenous innovations that compete with global benchmarks in precision and price. Identifying the right spares at the right price is the cornerstone of sustainable mill management today, notes Durai Palanisamy, Chairman, SIMA, highlighting the event’s role in bridging the gap between local innovation and industrial scale.

Digital twins and circular spares

A standout trend at this edition is the integration of IIoT-enabled spares and ‘Digital Twin’ simulations, which can reduce unplanned downtime by upto 50 per cent. As India targets a $350 billion textile market by 2030, the demand for high-speed fiber-opening systems and energy-efficient motors has skyrocketed. Exhibitors are also introducing ‘circular spares’—components manufactured from recycled high-performance alloys - to align with the European Union’s stricter ESG mandates for textile exports. This technological shift ensures that even legacy mills can retrofit existing infrastructure to meet modern high-throughput requirements.

SIMA Texfair is a biennial exhibition organized by the Southern India Mills’ Association (SIMA), representing the organized textile industry in South India since 1933. It specializes in showcasing textile machinery, accessories, and spares to 500+ member mills and global buyers. The event facilitates multi-million dollar trade volumes to support India's "Vision 2030" export targets.

India’s textile and apparel sector has entered a high-stakes era of ‘carbon accountability,’ driven by the Securities and Exchange Board of India’s (SEBI) mandatory BRSR Core framework. Under these updated regulations, the top 1,000 listed entities must now provide ‘reasonable assurance’ - a rigorous third-party audit - on nine critical ESG attributes. This regulatory shift coincides with the India-EU Free Trade Agreement (FTA) signed in early 2026, which offers zero-duty access but requires stringent environmental traceability. For the 173 textile units recently brought under the national Greenhouse Gas (GHG) Emissions Intensity Reduction Regime, compliance is no longer a marketing choice but a statutory prerequisite for global trade.

Value chain integration and export readiness

The most significant development for the FY26 is the extension of ESG disclosures to the top 250 listed companies' value chain partners. This mandate forces large apparel exporters to monitor the environmental footprints of their MSME suppliers, who account for over 80 per cent of India’s garment production. Traceability is the new currency for European buyers, stated a representative from the Apparel Export Promotion Council (AEPC). With the Tex-Eco Initiative launched in the 2026-27 Union Budget, the government is incentivizing this transition through credit-linked subsidies for zero-liquid discharge (ZLD) systems and high-efficiency machinery.

Modernization incentives and market access

A notable case study is the Tirupur knitwear cluster, which recently emerged as a global frontrunner by achieving ‘Net-Zero’ status for several key units through collective wind and solar farm investments. These early movers are leveraging their high ESG ratings to secure Sustainability-Linked Loans (SLLs), reducing their cost of capital by 50–75 basis points. Despite short-term EBITDA pressure due to a 10 – 15 per cent increase in compliance-related capital expenditure, the sector is aiming for $100 billion in exports by 2030. By aligning with the EU’s Carbon Border Adjustment Mechanism (CBAM), Indian textiles are effectively positioning themselves as a lower-risk, more transparent alternative to competitors lacking national emission-reduction frameworks.

ESG governance: SEBI BRSR Core

SEBI regulates the BRSR framework to standardize corporate ESG reporting. It targets the top 1,000 listed companies, focusing on energy, water, and social equity. SEBI’s 2026 updates mandate supply-chain transparency to ensure India’s $350 billion textile goal remains environmentally viable.

Ikea US has intensified its domestic growth trajectory, confirming the addition of four new locations to its 2026 roadmap, raising the total stores slated for the year to ten. Disclosed in the company’s February 2026 annual summary, this strategic ramp-up follows a resilient fiscal 2025 where total sales reached $5.3 billion. Despite persistent inflationary pressures, the retailer’s customers increased by 17 per cent to over 25 million members. The 2026 push centers on a high-density ‘omnichannel’ model, diversifying beyond traditional 300,000-sq-ft warehouses to include urban city-center formats and specialized planning studios.

Diversified formats and new market entry

The 2026 cohort introduces several ‘firsts,’ including Ikea Tulsa, marking the brand's official entry into Oklahoma. Los Angeles will debut its first city-center store in Culver City, a smaller-footprint layout tailored for high-traffic urban districts. Other confirmed sites for the 2026 fiscal cycle include Gurnee Mills (Chicago) and Fort Collins (Colorado), joining previously announced projects in Huntsville (Alabama), Phoenix, and the Dallas-Fort Worth region. Rob Olson, Interim CEO notes, this expansion is a part of a broader $2.2 billion investment designed to increase the density of the brand's physical presence while lowering the barrier to entry for furniture design.

Digital synergy and sustainability benchmarks

To counteract the logistical complexities of urban retail, Ikea is leveraging its existing store network as localized fulfillment hubs for online orders, which contributed $1.9 billion to revenue last year. The transition includes a significant sustainability mandate, with zero-emission EV deliveries growing to 49 per cent Y-o-Y. However, the expansion coincides with a portfolio optimization strategy, including the planned closure of the Memphis location in May 2026. By focusing on Plan & Order points and enhanced digital integration, IKEA aims to capture high-growth segments like personalized kitchen planning, which saw over 73,000 remote consultations in the previous fiscal period.

Ikea US is the domestic arm of the global home furnishings leader, operating 54 retail locations and a growing network of Plan & Order points. The company focuses on affordable, sustainable home solutions across major metropolitan markets. With a ‘Vision 2028’ plan, Ikea is modernizing its fulfillment through automation and urban-centric store formats.

In a move that fundamentally reshapes the circular fashion landscape, eBay has entered into a definitive agreement to acquire the social-first fashion marketplace, Depop from Etsy for $1.2 billion in cash. Announced on February 19, 2026, this transaction signals a major consolidation in the global secondhand apparel sector, which is projected to reach $53.7 billion by the end of this year. By absorbing Depop, eBay is making a high-stakes play for Generation Z, a demographic that currently constitutes nearly 90 per cent of Depop’s 7 million active buyers.

Strategic recalibration for recommerce growth

The deal reflects a significant shift in the competitive dynamics of apparel resale. While Etsy is offloading the platform at a 25 per cent discount from its 2021 acquisition price of $1.62 billion to focus on its core ‘handmade’ marketplace, eBay is integrating Depop to serve as a high-growth engine. Depop recorded $1 billion in gross merchandise sales (GMS) in 2025, fueled by a remarkable 60 per cent Y-o-Y growth in the US. Jamie Iannone, CEO, eBay notes, the acquisition will advance the company's ‘Focus Categories,’ particularly fashion, which already generates over $10 billion in annual GMS for the e-commerce giant.

Scaling social commerce through infrastructure

eBay plans to leverage its industrial-scale logistics and financial services to professionalize Depop’s community-driven model. Key updates will include the integration of eBay’s Authenticity Guarantee and cross-listing opportunities, allowing Depop’s 3 million active sellers to reach eBay’s much larger global audience. Despite the corporate transition, Depop is expected to remain a standalone brand headquartered in London. This deal allows us to benefit from eBay’s operational capabilities while maintaining our social-forward culture, states Peter Semple, CEO, Depop.

Navigating market headwinds and circular regulation

The acquisition comes as the apparel industry faces rising pressure from circularity mandates, such as California’s Responsible Textile Recovery Act. Industry analysts suggest, eBay’s infrastructure will help Depop navigate the high processing costs of single-SKU logistics - a common bottleneck in resale. With the global resale market growing three times faster than new clothing retail, the closing of this deal in Q2 2026 positions eBay to lead the transition toward a more sustainable, digital-first textile economy.

eBay Inc is a global commerce leader that connects millions of buyers and sellers in more than 190 markets. The company focuses on high-value categories like luxury, sneakers, and apparel, aiming to grow its $50 billion recommerce GMV by 10 per cent annually. Founded in 1995, eBay remains a pioneer in the C2C marketplace, now prioritizing AI-driven tools to capture the evolving Gen Z fashion segment.

In a strategic bid to shift the state’s industrial core toward high-value manufacturing, the Tamil Nadu Interim Budget 2026–27 has earmarked Rs 1,943 crore for the Handlooms and Textiles Department. Presented in February 2026, this fiscal roadmap prioritizes the ‘sports and performance’ segment, signaling an exit from traditional low-margin spinning. The Tiruppur Exporters’ Association (TEA) has hailed the move as a critical intervention to secure the region’s dominance in the global athleisure market, currently projected to expand at a 14.5 per cent CAGR through 2030.

Institutionalizing performance standards

A cornerstone of the budget is the Rs 6 crore allocation for an Advanced Quality Testing Laboratory at the South India Textile Research Association (SITRA) in Coimbatore. This facility is engineered to de-risk the export of medical and sports-grade fabrics by providing indigenous certification, bypassing the need for expensive overseas testing. For the $145 billion Indian textile industry, where Tamil Nadu holds a one-third share, this infrastructure is essential for competing against regional rivals like Vietnam. This laboratory is a game-changer for Tiruppur’s technical garment units, states KM Subramanian, President, TEA, noting, localized testing will accelerate speed-to-market for high-performance apparel.

Energy security and export resilience

The budget also introduces an Rs 18,091 crore Integrated Renewable Energy Policy, aimed at slashing the ‘power-per-garment’ cost for the state’s 3,200 knitwear units. This energy security is paired with a favorable trade climate following the US-India tariff rollback to 18 per cent in early February. By integrating captive renewable power, manufacturers are insulating themselves against the volatility of the global cotton trade. As the PM MITRA Park in Virudhunagar nears its September 2026 completion, the state is positioning its textile clusters to transition into ‘intelligent factories’ capable of sustaining the double-digit export growth required for Tamil Nadu’s $1 trillion GDP objective by 2031.

The Tiruppur Exporters’ Association is the premier body representing India’s ‘Knittown,’ accounting for 55 per cent of the country’s cotton knitwear exports. Serving over 3,200 manufacturers, TEA’s 2026 vision focuses on doubling annual exports to Rs 30,000 crore by leveraging the India-US trade framework. Originally established in 1990, the association now drives industry-wide modernization through sustainable energy adoption and large-scale worker housing initiatives.

Moving beyond the era of ephemeral marketing, Lacoste has inaugurated its first permanent Café Lacoste in the heart of Paris on Avenue Franklin D. Roosevelt. Launched in February 2026, the 100-sq-m gourmet destination marks a strategic shift for the ‘Crocodile,’ transitioning from seasonal pop-ups to a dedicated ‘living space’ designed to drive multi-sensory brand engagement and long-term retail loyalty.

Monetizing the ‘Art de Vivre’

Developed in collaboration with the Giraudi Group, the 65-seat venue translates Lacoste’s tennis heritage into a physical environment featuring deep green, off-white, and terracotta tones. The initiative is a direct response to the ‘experience economy,’ where 74 per cent of consumers now signal a willingness to pay a premium for brands that offer fully integrated lifestyle narratives.

Curated by Chef Thierry Paludetto, the menu features signature ‘Iconic Polo’ desserts and a revival of ‘Le Chose’ - a cocktail originally invented by René Lacoste in 1967. By merging culinary excellence with exclusive retail drops, Lacoste is tapping into the global café market, currently growing at a 6.2 per cent CAGR, to expand margins amidst low single-digit growth in traditional apparel segments.

Hybrid commerce and data capture

The Paris flagship café functions as a hybrid commerce hub, integrating a concept store that sells exclusive Lacoste-branded French porcelain and dedicated textile capsules. This ‘Perceptive Retail’ model allows the brand to capture high-intent consumer data outside the traditional fitting room. We are extending our universe into shared spaces that reflect our cultural heritage, states Éric Vallat, CEO, Lacoste. This strategy mirrors the success of Ralph’s Coffee and Café Kitsuné, providing a buffer against 2026’s macroeconomic volatility. By embedding the brand into the ‘daily urban rhythm’ of consumers, Lacoste aims to convert foot traffic into a traceable community, utilizing the venue as a physical touchpoint for its Durable Elegance sustainability and loyalty programs.

Lacoste is a global French lifestyle brand specializing in premium sportswear and accessories. Following a successful 2025 pilot in Monaco, the brand is expanding into permanent hospitality to enhance its ‘Art de Vivre’ positioning. Targeting key markets in Europe and North America, Lacoste aims to leverage these hybrid spaces to drive omnichannel growth and maintain its status as a leading cultural icon in the $440 billion global luxury goods market.

The February 2026 edition of Première Vision Paris has concluded with a decisive shift toward ‘localized industrialism,’ marking a departure from the generic globalized sourcing models of the past decade. Hosting approximately 1,000 international exhibitors at Paris Nord Villepinte, the summit focused on three specific ‘Territories of Savoir-Faire’ - France, Portugal, and Japan - to illustrate how regional craftsmanship can meet the stringent traceability requirements of the upcoming EU Digital Product Passport (DPP).

Engineering high-value supply chains

For the €1 trillion global textile ecosystem, the 2026 show emphasized ‘specification-driven’ aesthetics. Portugal emerged as a strategic hub for integrated production, while Japan showcased biotechnological breakthroughs in regenerative natural fibers. These innovations are critical as the industry faces a 3 per cent yield decline in traditional cotton belts, forcing a transition toward climate-adaptive materials. Craftsmanship is no longer a legacy concept; it is a measurable performance metric, noted Florence Rousson, President, Première Vision Management Board. This sentiment is backed by market data forecasting a 14 per cent growth in demand for high-integrity ornamental surfaces over the next 12 months.

Navigating the 2026 compliance landscape

The retail sector is currently navigating a ‘compliance cliff,’ as the EU's ban on destroying unsold textiles takes full effect for large enterprises in 2026. This regulatory pressure has accelerated the adoption of low-impact dyeing and circular design frameworks, which were central to the show’s ‘Smart Creation’ area. With consumer demand for sustainable apparel now exceeding 70 per cent, exhibitors demonstrated that high-performance fibers—such as bio-based hemp and recycled polyester - can reduce per-garment carbon intensity by up to 30 per cent. This shift provides a necessary hedge against the low single-digit growth projected for the global fashion industry in the 2026 fiscal year.

Première Vision is the world’s leading trade exhibition for fashion professionals, specializing in fabrics, yarns, leather, and manufacturing. With bi-annual editions in Paris attracting 34,000+ visitors, the organization facilitates billions in international trade. Its 2026 strategy emphasizes the ‘Open’ theme, integrating predictive AI and sustainable innovation to drive long-term economic resilience across 120 nations.

The signing of the Bangladesh-Japan Economic Partnership Agreement (EPA) on February 6, 2026, marks a transformative moment for South Asia’s textile and apparel corridor. While India has operated under a similar bilateral framework since 2011, Bangladesh’s latest deal is being widely recognized as a more agile and commercially intelligent architecture. Unlike previous pacts, this agreement is designed not merely to preserve Bangladesh’s export base as it approaches graduation from Least Developed Country (LDC) status. Instead, it positions Dhaka to aggressively capture market share from China, aiming to become Japan’s leading high-volume apparel sourcing partner.

Redefining Rules of Origin

The critical differentiator between India and Bangladesh lies in Rules of Origin (RoO). India’s 2011 Comprehensive Economic Partnership Agreement (CEPA) with Japan has largely underperformed in apparel due to its double-stage transformation requirement both the fabric and garment must be domestically produced for duty-free eligibility. This restriction has historically constrained India’s ability to compete effectively in Japan’s high-volume apparel market.

Bangladesh’s 2026 EPA, by contrast, introduces a Single-Stage Transformation rule. This enables Bangladeshi factories to import high-quality yarns or synthetic fabrics from global leaders including Japan, China, and Korea and still qualify for duty-free exports after local garment production. This effectively eliminates the fabric bottleneck that has hindered India, providing Dhaka with a significant competitive advantage.

India vs Bangladesh in the Japanese market

Despite India’s vertically integrated textile ecosystem, spanning cotton cultivation to finished garment, the country has failed to convert this advantage into Japanese market dominance. Bangladesh, though more reliant on imported raw materials, has captured nearly four times the export value of India in this corridor.

Table: Apparel & textile exports to Japan (2025-26)

The figures reveal Bangladesh’s rapid growth despite lower domestic fiber production. While India relies heavily on cotton, Bangladesh’s shift to man-made fibers (MMF) and the flexibility of importing high-performance fabrics gives it a clear edge in the Japanese premium and technical apparel segments. The projected inflow of Japanese FDI underscores Tokyo’s confidence in Bangladesh’s ecosystem.

Capturing the China Plus One opportunity

Bangladesh’s timing is propitious. Japanese retailers such as Fast Retailing (Uniqlo) and Adastria are actively diversifying away from China in search of alternative sourcing partners. China’s share of Japan’s apparel imports fell from 55 per cent to 46 per cent in 2025, while Bangladesh recorded 17.2 per cent year-on-year growth in Q1 2025 alone.

One important factor in this momentum is the Bangladesh Specialized Economic Zone (BSEZ) in Araihazar, which provides a Japan-standard ecosystem. Unlike India’s fragmented textile clusters, BSEZ hosts Japanese companies such as Sumitomo Corporation and NICCA Chemical, offering cutting-edge dyes, machinery, and compliance frameworks aligned with Tokyo’s stringent quality benchmarks.

High-tech synthetics at Araihazar

A Dhaka-based apparel manufacturer recently partnered with NICCA Chemical to establish a high-speed production line for technical outerwear within BSEZ. Previously, importing Japanese-developed synthetic waterproof fabrics would have incurred a 10 per cent duty upon re-export to Japan. Under the new EPA, this circular supply chain is entirely duty-free.

This policy change has lowered landed costs for Japanese retailers by 12 per cent, making Bangladesh more price-competitive than Vietnam in the premium synthetic segment. Analysts see this as a potential blueprint for scaling high-value exports in other functional wear categories.

From volume to value

The textile and apparel sector remains Bangladesh’s economic backbone, contributing over 80 per cent of total export earnings and approximately 10 per cent of GDP. Today, the country is the world’s second-largest apparel exporter, but its strategy is shifting from sheer volume to value-led growth, emphasizing man-made fibers, functional garments, and premium segments. Environmental compliance and automation are central to this evolution. With over 200 LEED-certified factories, the highest concentration globally Bangladesh is attracting international retailers seeking sustainable, high-tech production. By 2035, the industry aims to reach $100 billion in annual exports, leveraging vertical integration, automation, and aggressive market diversification.

A new regional hierarchy in apparel trade

Bangladesh’s 2026 EPA with Japan illustrates the power of trade architecture over raw resource endowment. By combining single-stage flexibility, specialized zones, high-tech partnerships, and sustainability, Dhaka is emerging as a formidable competitor in East Asia’s apparel market. For India, the lesson is clear: supply chain control alone is insufficient. Future competitiveness will depend on regulatory flexibility, strategic zone development, and alignment with buyer requirements a framework Bangladesh has now perfected.