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The UK retail landscape witnessed a stark divergence in performance during the critical 2025 Christmas window, as market-leading agility clashed with structural headwinds. Next PLC emerged as the definitive victor, reporting a 10.6 per cent growth in full-price sales for the nine weeks ending December 27. Exceeding internal forecasts by £51 million, this performance was propelled by a 38.3 per cent leap in international online revenue and improved stock availability following prior-year supply chain disruptions. In contrast, Primark struggled against weak consumer sentiment in Continental Europe, seeing like-for-like sales retreat 2.7 per cent across its global estate.
Value and volume: The supermarket fashion hedge
While fashion-forward retailers like Next capitalized on ‘investment dressing,’ grocery giants successfully leveraged their ‘one-stop-shop’ appeal. Tesco’s F&F clothing brand recorded a robust 4.4 per cent sales increase during the six-week festive peak, benefiting from a 23-basis-point gain in overall UK market share. Similarly, Sainsbury’s Tu Clothing outperformed the broader market by 10 percentage points in volume, driven by record-breaking sales of seasonal nightwear. This ‘supermarket growth’ highlights a consumer shift toward affordable indulgence and convenience, contrasting sharply with Marks & Spencer, where clothing and home sales dipped 2.5 per cent as the brand continued to navigate the recovery phase of a disruptive cyber-attack from earlier in the year.
Strategic outlook: Profitability amidst volatility
As the sector enters 2026, the focus has shifted from top-line growth to margin protection. Next has raised its pre-tax profit guidance for the fifth time this year to £1.15 billion, reflecting strong cash generation. Conversely, Primark owner ABF warned of adjusted operating profits falling below last year’s levels due to increased markdowns required to clear excess inventory. The industry now faces a ‘normalization’ period; while Next forecasts continued 4.5 per cent growth through 2027, the broader market remains cautious, balancing the benefits of high-speed digital fabrication against rising employment costs and fragile consumer confidence.
Next is a FTSE 100 omnichannel retailer specializing in clothing, footwear, and home products. Operating over 500 stores and a dominant online platform, it serves key markets in the UK and Europe. With a 2026 profit outlook of £1.15 billion, Next remains a benchmark for retail resilience and logistical excellence since its 1982 rebranding.
In a world increasingly shaped by digital design, virtual sampling and AI-powered trend forecasting engines, the most reliable measure of textile quality remains defiantly analog: the human sense of touch. The ability of an experienced textile professional to interpret a fabric’s hand its tactile personality is a skill that combines intuition and technical literacy in equal measure. It is a form of lived intelligence, built through years of repeated contact with fibers, finishes and fabrics. And despite relentless technological advancement, it continues to elude even the most sophisticated machines.
Turning subjective feeling into measurable data
For decades, textile scientists have attempted to decode the sensory world of touch through standardized instruments that could quantify what experts feel instinctively. The most respected of these efforts is the Kawabata Evaluation System for Fabrics (KES-FB), developed in Japan. This suite of four instruments measures the low-stress mechanical and surface properties of fabrics precisely the parameters that map to human tactile sensations. Below is a simplified representation of how KES-FB translates physical metrics into sensory meaning:
Table: KES-FB measurable properties and corresponding human sensations
|
KES-FB instrument |
Property measured |
Metric unit |
Related hHand sensation |
|
Tensile-Shear Tester |
Shear Stiffness (G) |
gf/cm ⋅ deg |
Drape, Pliability, Stiffness |
|
Tensile Resilience (RT) |
% |
Recovery from stretch |
|
|
Bending Tester |
Bending Rigidity (B) |
gf$\cdotcm^2$/cm |
Stiffness, Crispness |
|
Compression Tester |
Compressibility (EMC) |
% |
Softness, Fullness, Thickness |
|
Compressional Resilience (RC) |
% |
Resilience/Springiness |
|
|
Surface Tester |
Coefficient of Friction (MIU) |
0 to 1 |
Smoothness, Stickiness, Drag |
|
Geometric Roughness (SMD) |
μm |
Roughness, Scratchiness |
Source: Adapted from KES-FB System documentation and textile research.
By feeding these measurements into regression models shaped by decades of expert panel evaluations, the system generates a Total Hand Value (THV) and Primary Hand Values (PHV), such as Koshi (stiffness), Numeri (smoothness), and Fukurami (fullness). What emerges is a kind of tactile fingerprint, a standardized expression of what the human hand instinctively understands. But as precise as these instruments are, they can only complement, not replace, the expert’s interpretive intelligence. Because hand is not only about mechanics; it is about context.
Why expertise still outperforms instruments
Numerous studies comparing the judgments of Textile Experts (TEs) and Non-Expert Participants (NEPs) show a clear gulf in tactile perception. While both groups agree on broad sensations such as whether something is generally soft or rough the similarities end there. Experts consistently identify subtle differences in roughness, hardness or stickiness that non-experts either miss or interpret differently. In some tested swatches, such as a particular woven sample labeled W3CH, the gap between expert and non-expert perception was striking. What drives this difference is not merely exposure but frequency and familiarity: individuals who work daily with textiles develop heightened sensitivity to minute variations in fiber alignment, surface finish, mechanical recovery and weave behavior.
This ability to contextualize touch knowing how a fabric will age, how it will drape after repeated washing, how its finish will respond to humidity, is what machines cannot yet replicate. The data may describe the what, but only the expert can interpret the why and what next.
The multi-sensory judgment only a human can make
The classic observation that natural silk is “cool and smooth but never slippery; quiet and lightweight yet surprisingly durable” illustrates how experts synthesize multiple forms of sensory data instantaneously. Silk’s coolness comes from its thermal diffusivity. Its smoothness without slipperiness reflects a specific range of surface friction (MIU). Its silence and fluidity speak to its low bending rigidity. Its durability, meanwhile, comes from tensile strength and resilience (RT).
To a luxury textile consultant, these attributes form a holistic narrative not just identifying what the fabric is, but predicting how it will behave in a garment worn repeatedly, cleaned regularly and expected to retain its elegance over time. No instrument can yet replicate this predictive intuition.
The rise of AI and its current limits
AI has rapidly advanced into nearly every corner of the textile industry. Predictive modeling tools can now estimate fabric hand and performance before a single prototype is woven. Computer vision models detect micro-defects and simulate drape for digital sampling. Experimental haptic interfaces attempt to recreate texture on touchscreens.
Table: The role of AI in fabric hand evaluation
|
AI application area |
Function |
Impact on quality control |
|
Predictive Modeling |
Machine Learning algorithms trained on KES-FB and subjective panel data. |
Predicts fabric hand and performance from raw fiber/weave parameters before physical production, drastically reducing prototyping time. |
|
Computer Vision |
Deep learning models analyzing fabric images for surface defects, texture, and drape simulation. |
Enhances remote quality control and virtual sampling for e-commerce, attempting to simulate tactile feel visually. |
|
Haptic Simulation |
Development of haptic devices to replicate texture on-screen. |
Attempts to bridge the touchless gap in online shopping, though current technology still has a significant gap compared to actual handling. |
AI brings speed, scale and consistency. It can analyse thousands of permutations instantly, optimize material mixes for a target hand profile and ensure sustainable sourcing data is embedded from the start. But AI is not emotional. It does not respond to colour, nuance or the poetic quality of a garment. An AI model can predict friction; it cannot call a fabric buttery. It cannot fall in love with the way a silk crepe moves in low light. And these emotional responses however unscientific still shape the decisions of designers, buyers and consumers.
Where human touch and machine intelligence converge
The most successful textile houses of the future will not choose between human touch and machine measurement; they will merge them. AI will handle diagnostics, optimization and rapid iteration. Human experts will provide calibration, interpretation and emotional intelligence. The master’s hand will remain the final authority grounding machine predictions in the lived, tactile reality of fabric. In an industry increasingly saturated by visual excess and digital gloss, this combination of precision and intuition will define which textiles stand out, endure and ultimately succeed.
The global high-end fashion market is entering a transformative phase, with projections indicating a rise to $450 billion by 2031, supported by a consistent 5.5 per cent CAGR. As of early 2026, the industry has successfully navigated the ‘post-elevation’ era, where traditional exclusivity is being augmented by hyper-personalization. While the United States remains a resilient stronghold for luxury spend, the Asia-Pacific region has emerged as the primary growth engine. This shift is powered by a mobile-first middle class and a burgeoning ‘prosumer’ base in markets like India and China, where high-end fashion is increasingly viewed as a lifestyle investment rather than a discretionary purchase.
The rise of AI-driven scarcity and craftsmanship
To maintain a robust 19 per cent EBIT margin amidst rising operational costs, leading fashion houses are integrating Generative AI for demand forecasting and supply chain orchestration. Unlike the mass-market use of automation, luxury brands like LVMH and Prada are leveraging technology to protect scarcity - ensuring artisanal supply perfectly meets demand while reducing inventory waste by up to 20 per cent. This ‘smart craftsmanship’ is further supported by the industry-wide adoption of Digital Product Passports (DPP), which provide blockchain-verified provenance. These tools allow brands to justify premium price points by offering transparent, traceable accounts of craftsmanship and sustainability to a skeptical, value-conscious Gen Z audience.
Navigating geopolitical headwinds and resale growth
Despite the optimistic valuation, 2026 presents significant structural challenges, including tightening ESG regulations and a complex global tariff landscape. Analysts from McKinsey note that nearly 46 per cent of fashion executives anticipate ‘challenging’ conditions due to trade disputes. Consequently, many brands are diversifying into the luxury resale market, which is currently growing three times faster than firsthand retail. By launching in-house ‘pre-loved’ programs, heritage brands are effectively capturing secondary market value, building long-term loyalty, and insulating themselves against the volatility of the primary production cycle.
Global Luxury Insights is a market intelligence initiative providing data-driven analysis of the high-end apparel and retail sectors. Focused on major hubs in Europe, North America, and Asia-Pacific, it assists stakeholders in navigating digital transformation and ESG compliance. Since its inception, the platform has guided strategic alliances for top-tier fashion houses, focusing on sustainable growth and long-term financial resilience.
The National Institute of Fashion Technology (NIFT) has inaugurated its 40-year milestone by positioning itself as the primary architect for India’s next-generation apparel economy. At the Mumbai curtain raiser for the NIFT International Conference 2026, industry leaders highlighted a critical transition: the Indian technical textile market is projected to grow from $29 billion in 2024 to $45 billion by the end of 2026. This 10 per cent annual growth rate is compelling a radical overhaul in fashion pedagogy, moving from purely aesthetic design to high-value, functional material science.
Scaling sustainable and digital frontier
As the industry faces a 2026 global mandate to eliminate unsold textile waste, NIFT is integrating zero-waste methodologies and AI-driven digital fabrication into its core research. Strategic shifts now focus on ‘Modular Design’ and ‘Smart Textiles’ - fabrics embedded with sensors for medical and automotive use. Recent data indicates, AI-native platforms are improving production efficiency by 10 per cent in hubs like Tiruppur, while sustainable exports have grown by 10 per cent Y-o-Y. NIFT is now a global knowledge hub, bridging traditional craft with the digital luxury ecosystem, notes Prof Dr Ajit Khare, Director, NIFT Mumbai.
Equity-driven innovation models
Themed ‘Designing Inclusive Futures,’ the 2026 conference addresses the burgeoning demand for ‘Equity in Design.’ With Gen Z consumers now representing a major spending block that prioritizes ethical sourcing, NIFT’s focus has expanded to include ‘Digital Product Passports’ and ‘Circular Business Models.’ By leveraging its 18-campus network, the institute is facilitating a $213 billion textile market projected by 2034, ensuring that the next generation of Indian designers is equipped to handle both high-tech manufacturing and the preservation of indigenous craft clusters through a commercially viable, research-led lens.
Established in 1986 in collaboration with FIT New York, NIFT is India’s premier statutory institute for fashion education. Operating 18 campuses nationwide, it provides professional human resources across design, technology, and management. Its 2026 growth plan emphasizes AI integration and sustainable technical textiles to bolster India’s ‘5F’ textile vision.
The European textile sector is undergoing a structural shift as decentralized production models challenge traditional retail. With the global circular fashion market projected to reach $15.78 billion by 2032, spearheaded by Fashion Revolution Germany, the Make-a-Thek initiative has emerged as a critical driver for localized sustainability. By converting public libraries into modular makerspaces, the project addresses the 12 kg of clothing discarded annually per person in the EU, offering a high-tech alternative to the linear ‘take-make-waste’ model.
Scaling distributed micro-manufacturing
Industry data indicates, textile production currently accounts for 20 per cent of global water pollution, a figure that Make-a-Thek aims to mitigate by fostering a prosumer economy. Unlike industrial recycling, which often degrades fiber quality, these library-based hubs utilize 3D printing and laser cutting to extend garment lifecycles through precise repair and upcycling. Analysts note, increasing garment wear-time by just 100 per cent could reduce industry greenhouse gas emissions by 44 per cent, positioning these community hubs as essential infrastructure for achieving the EU’s 2030 climate targets.
Navigating the digital transition
A significant challenge for the apparel sector remains the integration of heritage craftsmanship with digital traceability. Make-a-Thek’s deployment of Open Educational Resources (OERs) serves as a scalable case study for the New European Bauhaus framework, which prioritizes inclusive green transitions. By merging traditional techniques with modern software, the initiative provides a blueprint for brands to comply with upcoming Digital Product Passport (DPP) regulations, ensuring that the next generation of apparel is designed for disassembly and long-term circularity.
Fashion Revolution Germany is a non-profit industry advocate dedicated to transparency and sustainability within the global apparel supply chain. Operating primarily in the European market, the organization focuses on educating consumers and consulting with manufacturers to implement circular production strategies. Their growth strategy emphasizes community-led innovation and the preservation of heritage crafts through digital modernization.
As the global automotive wrap market accelerates toward a $25 billion valuation by the end of 2026, FESPA is restructuring its flagship event to capture surging demand for high-performance technical fabrics and personalized apparel. In a strategic consolidation, the organization announced that WrapFest 2026 will vacate its standalone UK venue to join a massive six-show co-location at the Fira Barcelona from May 19–22, 2026. This repositioMening introduces a dedicated textile event, building on FESPA’s legacy in digital garment printing to spotlight next-generation finishes, eco-friendly substrates, and modular apparel production.
The move leverages a 21 per cent CAGR in the automotive film sector, where over 60 per cent of growth is now driven by individual personalization and branding - trends rapidly spilling over into the textile and interior decor segments. By integrating WrapFest and the new Textile platform, FESPA 2026 provides a consolidated stage for the 2,000 sq m exhibition space, allowing professionals to explore cross-vertical revenue streams such as architectural interiors and high-tenacity apparel wraps. Duncan MacOwan, Head-Marketing and Events, FESPA, stated, the Barcelona transition offers the global community a ‘far more international platform’ to connect wrap installers with the broader specialty print and fabric supply chains, effectively future-proofing businesses against regional market volatility.
Founded in 1962, FESPA is a global federation of national associations for the screen, digital, and textile printing industries. It operates flagship events across Europe, Asia, and Eurasia, focusing on knowledge-sharing and reinvesting profits into the print community.
With a ‘FESPA Future’ strategy, the organization is diversifying into corrugated packaging and high-end textiles. Its events consistently attract over 20,000 visitors, driving multimillion-euro investments in sustainable, automated printing technologies across the global textile and signage sectors.
Delivering a commanding start to FY26, Fast Retailing Co reported a 14.8 per cent growth in consolidated revenue to a record ¥1.028 trillion ($6.58 billion) in Q1, FY26. This milestone marks the first time the Japanese retail giant has breached the trillion-yen mark in a single quarter, propelled by a vigorous 31 per cent jump in business profit to ¥205.6 billion. The results signal a robust recovery in Greater China, where revenue and profit both returned to double-digit growth paths, alongside exceptional demand in North America and Europe. Despite escalating global trade complexities and US tariff pressures, the group successfully expanded its gross margin by 0.7 percentage points, driven by disciplined discounting and the absorption of costs through enhanced operational productivity.
Aggressive global footprint and inventory agility
The group's ‘LifeWear’ philosophy continues to gain significant traction, particularly in Western markets where Uniqlo International revenue climbed 20.3 per cent. In the United States, North American revenue rose by 30 per cent, supported by a strategic roadmap that includes 11 new store openings scheduled for spring and summer 2026 across major hubs like Chicago and San Francisco. This expansion is complemented by a sophisticated inventory management system that allowed the brand to transition seamlessly between seasons. By optimizing the organization of inter-season business, Fast Retailing enabled Fall staples and year-round basics to drive high-margin sales even during unseasonably warm periods in Japan and China.
Revised FY2026 guidance and market resilience
Boosted by this stronger-than-expected performance, Fast Retailing has upwardly revised its full-year guidance for the period ending August 2026. The company now anticipates consolidated revenue of ¥3.8 trillion and a business profit of ¥650 billion, reflecting a 17.9 per cent annual increase. While youth-centric brand GU saw profit jump 20 per cent despite a lack of trend-driven momentum, the group’s Global Brands segment, including Theory, faced headwinds from sluggish US demand. Nevertheless, Takeshi Okazaki, CFO emphasized, the company remains on a fifth consecutive year of record profit trajectory, raising the annual dividend forecast to ¥540 per share as a testament to its healthy cash flow and market dominance.
Fast Retailing is a leading Japanese retail holding company that operates Uniqlo, GU, and Theory. It commands a dominant position in Asia and is rapidly scaling flagship stores in Europe and North America. Projecting ¥3.8 trillion in FY2026 sales, the group aims to become the world’s largest apparel retailer, building on a history that began with a single store in 1984.
The UK retail sector is entering 2026 under significant strain after a ‘Dismal December’ saw discretionary spending hit its lowest point in over a year. According to the latest BDO High Street Sales Tracker, total like-for-like sales across the ‘Golden Quarter’ failed to recover, with December marking a 1.4 per cent decline in total retail sales - the worst monthly performance since November 2024. Fashion, traditionally a festive driver, bore the brunt of this slowdown, experiencing a 2.3 per cent decline in like-for-like sales. This contraction occurred despite a strong comparative base of 8.8 per cent growth in the previous year, highlighting a sharp erosion in consumer appetite for non-essential apparel.
Strategic stock risks in an inflationary landscape
A primary concern for the industry is the accumulation of unsold seasonal stock. With in-store fashion sales down 0.2 per cent and non-store (online) sales highly volatile - plummeting 9.41 per cent in the second week of December - retailers face a ‘margin trap.’ Sophie Michael, Head of Retail and Wholesale,BDO, warned, retailers who discount too aggressively to clear shelves risk ‘destroying their already squeezed margins,’ especially as operational costs like the national minimum wage are set to rise. Data from the British Retail Consortium (BRC) further validates this pressure, reporting a 2.9 per cent Y-o-Y decline in total UK footfall for December.
Consumer prioritization and the 2026 outlook
The ‘spending squeeze’ is being driven by a fundamental shift in household priorities. Persistent food inflation and high living costs led shoppers to prioritize ‘festive experiences and food’ over clothing and gifts. A recent KPMG study indicates, only 13 per cent of consumers intend to increase discretionary spending in 2026, with most prioritizing travel or home essentials. For fashion brands, Q1, FY26 will be a test of inventory agility and value communication, as ‘selective spending’ replaces the broad festive splurging of previous cycles.
UK retail benchmarking initiative- the BDO High Street Sales Tracker (HSST) is a leading weekly performance index monitoring discretionary spending across fashion, lifestyle, and homeware. It tracks data from retailers nationwide, providing real-time insights into consumer behavior. Amid a ‘K-shaped’ 2026 recovery, BDO assists firms in navigating stock management and margin protection after the worst December sales since 2024.
As the global textile market approaches a projected $1 trillion valuation by 2030, the sector is witnessing a decisive shift toward specialized contract environments. Leading this transformation, Messe Frankfurt has announced a landmark partnership with Strive Exhibitions to co-locate Hospitality Interiors Europe (HINT) alongside Heimtextil 2027. This alliance integrates high-end design concepts with technical textile innovation, addressing a hospitality segment currently expanding at a 6.18 per cent CAGR. By 2027, the collaboration will provide a dedicated hall for decision-makers across resorts, wellness, and care facilities, effectively merging material science with experiential architecture.
Synergy in high-end design systems
The partnership moves beyond traditional trade frameworks by creating a curated ecosystem for the luxury contract business. In an era where 84 per cent of hospitality leaders identify textiles as primary drivers of guest satisfaction, the co-location offers architects and developers direct access to performance-driven fabrics and circular materials. Olaf Schmidt, Vice President Textiles & Textile Technologies, Messe Frankfurt, emphasizes, this shared space for innovation will unlock new value streams. For the global textile industry, which is increasingly navigating the EU’s Carbon Border Adjustment Mechanism (CBAM), this platform serves as a vital proving ground for sustainable and smart textile integration.
The 2026 engagement roadmap
A strategic precursor to the full 2027 launch, Heimtextil 2026, to be held from January 13–16, 2026 will feature an exclusive HINT Lounge in Hall 3.1. This early-access hub is designed to facilitate networking between manufacturers and designers before the official parallel staging. Toby Walters, CEO, Strive Exhibitions, notes, HINT will become the global meeting place for a community spanning hotels to extended stay markets. With Messe Frankfurt reporting record socio-economic impacts of €3.7 billion annually, this expansion into high-growth hospitality niches is set to redefine the competitive landscape of the international textile trade.
As the world’s largest trade fair organizer with its own grounds, Messe Frankfurt operates over 50 textile fairs worldwide. Its flagship brand, Heimtextil, serves key markets in Europe, Asia, and the Americas, driving the ‘Texpertise’ global network.
The group maintains a robust profitable course, projecting sales over €766 million for the current fiscal year. Strategically, it is focusing on AI-driven design and circular economy frameworks to sustain its 800-year legacy of connecting global markets.
In a decisive move to consolidate its position within the $126 billion global intimate apparel sector, the newly established Crown Brands Group has completed the acquisition of Hanky Panky. Executed in partnership with Rafar Group - the parent entity of Gelmart International - the transaction marks the first ‘anchor asset’ for Crown’s heritage-focused investment vehicle. Backed by G72 Holdings, the family office of Raymond Gindi, Co-founder, Century 21 Stores, the group intends to leverage Hanky Panky’s immense brand equity, which currently sees one ‘Signature Lace Thong’ sold every 10 seconds globally, to spearhead a diversified consumer goods portfolio.
Operational synergy and category diversification
The alliance introduces a sophisticated dual-management structure designed to scale the brand's footprint while preserving its 48-year design legacy. Rafar Group will function as the core operating partner, utilizing over seven decades of manufacturing expertise to oversee product development, distribution, and e-commerce. Meanwhile, Crown Brands will steer global licensing and brand strategy. This operational transition occurs as the lower innerwear segment is projected to grow at a 7.8 per cent CAGR through 2030, driven by a sharp consumer shift toward technical comfort and body-positive sizing. To capture this momentum, the partners plan to aggressively expand Hanky Panky’s physical presence beyond its current 2,500 wholesale points, including the launch of standalone flagship stores in major US metropolitan hubs.
Heritage preservation in an evolving market
Despite the change in ownership, the brand's foundational ‘DNA’ remains a priority. Gale Epstein and Lida Orzeck, Co-founders will transition to the Board of Directors, ensuring continuity in the brand's commitment to ‘made in the USA’ quality and sustainable lace production. This strategic retention is critical as the industry faces increasing competition from digitally native entrants and fluctuating raw material costs. Raymond Dayan, CEO, Crown Brands Group, emphasized, the deal sets a rigorous standard for future acquisitions, combining ‘operational excellence with authentic heritage’ to navigate the structural rewiring of the global luxury intimates market.
Legacy intimate apparel specialist Hanky Panky is a premium New York-based intimate apparel brand famous for inventing the ‘World’s Most Comfortable Thong.’ Distributing across 70 countries through high-end retailers like Nordstrom, the brand is now targeting a $100 million+ revenue milestone through aggressive store openings and global licensing under Crown Brands Group ownership.
