FW
In the quiet warehouses of northern France, bales of discarded jeans, shirts, and dresses pile higher each week. For French recyclers like Le Relais, the financial strain is becoming unbearable: they say they need €304 per tonne to break-even but receive just €156. That €148 deficit has pushed some operations to the brink of insolvency.
Across the globe, in India’s historic textile hubs of Panipat, Tiruppur, Ludhiana the sound of spinning machines and sorting tables has never stopped. Here, labor costs are a fraction of Europe’s, the recycling know-how is decades old, and the domestic market for recycled fibers is growing fast. Could this be where Europe sends its unwanted textiles for a second life?
The cost advantage
For labor-intensive tasks like manual sorting, India’s lower wages present an undeniable economic lure. In Europe, sorting can cost €100 per tonne in labor alone; in India, the same job might cost just €10-€20 per tonne. Here’s an illustrative cost comparison based on Le Relais’s figures and hypothetical outsourcing scenarios.
Table: Illustrative per tonne cost comparison based on Le Relais's stated needs
|
Cost component (hypothetical breakdown) |
Europe (current) |
India (outsourced scenario) |
Potential savings (per tonne) |
|
Collection & Initial Sorting (Europe) |
€50 |
€50 |
€0 |
|
Manual Sorting (Labor-Intensive) |
€100 |
€15 (due to lower wages) |
€85 |
|
Mechanical Processing (Labor/Energy) |
€50 |
€25 (lower labor/some energy) |
€25 |
|
Logistics (Europe to India) |
N/A |
€30-€60 (shipping waste) |
-€30 to -€60 (added cost) |
|
Logistics (India to Europe - Recycled) |
N/A |
€20-€40 (shipping recycled) |
-€20 to -€40 (added cost) |
|
Overheads/Admin (Proportional) |
€54 |
€20 (lower administrative) |
€34 |
|
Total Estimated Cost per Tonne |
€304 (Le Relais's needed) |
€140 - €170 |
€134 - €164 (potential saving) |
|
Current Revenue (Le Relais) |
€156 |
€156 |
|
|
Deficit (Le Relais) |
€148 |
Profit of €(approx) 0-16 |
Even with extra shipping costs, the savings are potentially large enough to turn deficits into slim profits.
Why India fits the bill
There several reasons that works in favour of India. First is it’s a textile powerhouse. In fact India’s textile industry is one of the largest in the world, with integrated supply chains for cotton, polyester, and blends. Recycled fibers could easily be blended into yarn production without reinventing the wheel.
Also, there is a built-in market for secondhand as India has long embraced secondhand and repurposed clothing, meaning some collected textiles could be sold directly for reuse, increasing value capture. What works for India als is the existence of strong mechanical recycling base. From cotton shoddy yarn in Panipat to wool recycling in Ludhiana, India’s mechanical recycling facilities are extensive, keeping capital costs lower than Europe’s when scaling up operations.
Panipat’s inherent issues
However, despite the attractive numbers, this is no silver bullet. Shipping bulky textile waste halfway around the world adds a major carbon cost. A 20 ft container (8-10 tonnes) from Europe to India could cost €150 to €300 per tonne in freight alone, eroding savings and undermining the “local circularity” principle central to Europe’s Extended Producer Responsibility (EPR) schemes.
Then there are the regulatory hurdles as India allows imports of “mutilated rags” for recycling but restricts whole used garments unless processed in special zones. European waste exporters would need to meet Indian import rules precisely.
Quality control is another bug bear. Fast fashion’s low-quality fabrics don’t magically become better in India many still end up downcycled or landfilled. Ensuring that outsourced sorting meets European manufacturers’ recycling requirements would require strict protocols and auditing.
Moreover, lower wages can mean exploitative conditions and without rigorous oversight, the move risks becoming another case of developed nations offloading both environmental and social costs onto developing countries.
A possible hybrid approach
Experts suggest a two-track system.
• Keep high-tech automated sorting and advanced chemical recycling in Europe to preserve innovation and ensure local circularity.
• Outsource certain low-value, labor-intensive sorting and mechanical recycling to India, but under binding environmental and labor standards.
This approach could relieve short-term financial pressures while supporting India’s growing circular economy sector.
Thus outsourcing to India could help Europe close its recycling cost gap but only if done with airtight safeguards, transparent quality controls, and a shared commitment to ethical labor and environmental responsibility. If Europe sees India merely as a cheap processing site, the move risks becoming a repeat of the textile waste dumping scandals in Africa. If, instead, the relationship is built on partnership and shared value creation, it could form the backbone of a truly global circular textile economy. The choice is clear: treat outsourcing as a lifeline to prop up a failing system, or as an opportunity to build a more equitable, connected recycling network that spans Paris to Panipat without leaving a trail of waste behind.
The Hong Kong Trade Development Council (HKTDC) will host the 10th edition Asia’s premier fashion gala – Centrestage in partnership with the Cultural and Creative Industries Development Agency (CCIDA) from September 3-6, 2025, at the Hong Kong Convention and Exhibition Centre (HKCEC).
Its largest event yet, this year Centrestage will feature 260 brands from 24 countries and regions, with over 40 events, including 30 fashion shows, a new record for the showcase.
Sophia Chong, Deputy Executive Director, HKTDC, highlights, the event is a global meeting point for designers and brands. This year, it will feature acclaimed couturier Guo Pei, who will present her first solo couture show in Hong Kong, cementing the city's status as a cultural and fashion hub.
This year's Centerstage also features an impressive lineup of international brands, with pavilions from the United Kingdom, Czech Republic, Japan, and Thailand. The UK is participating for the first time as the ‘Partner Country,’ showcasing a variety of unique British designs.
Globally renowned fashion maestro Jimmy Choo will attend in person and highlight his visionary initiative, the Jimmy Choo Academy. The Czechia pavilion will present personalized fashion labels incorporating art-glass designs, while the Japan pavilion will showcase the creative force of its new generation of designers. The Thailand pavilion is returning on an unprecedented scale, bringing more than 40 brands to the show to express the rich diversity of Southeast Asian style.
A grand opening with Guo Pei
The prestigious opening event, Centrestage Elites, will be held on September 1 at M+ in the West Kowloon Cultural District. Acclaimed couturier Guo Pei will present her first solo couture show in Hong Kong, featuring 30 one-of-a-kind creations from her ‘Gilternity: An Everlasting Radiance’ collection. Inspired by the dazzling, fleeting moment of molten gold, the collection blends traditional craftsmanship with modern art. In a nod to both tradition and innovation, Guo has invited students from Hong Kong Polytechnic University (PolyU) to collaborate on the show’s opening piece.
Showcasing Hong Kong's creative talent
On September 3, Fashion Hong Kong Runway Show will be held under the theme ‘A Decade in Design: What is Seen? What is Felt?’ It will showcase the innovative collections of four Hong Kong designer brands - Angus Tsui, Arty:Active, IP Axis Industrialstudio, and selfFab. These collections will merge visual impact and emotional narrative to highlight the unique creativity of Hong Kong fashion.
The fair will be organized into six distinctive thematic zones. The new Accessories Zone will feature fashion jewelry and handbags, while the Athleisure Zone will champion sportswear. The Craftsmanship Zone will showcase traditional skills, and the Contemporary Zone will unveil avant-garde creations. The Urban Zone will spotlight youth-driven trends, including Louis Cheung's Petrolhead label. Finally, the Circular Fashion Zone will promote sustainable style, headlined by the 15th Redress Design Award Final.
Nurturing new talent
The grand finale of Centrestage 2025 on September 6, will be the Hong Kong Young Fashion Designers’ Contest (YDC), dedicated to discovering and nurturing new local talent. This year, designer Charles Jeffrey of the London label Charles Jeffrey Loverboy will serve as a guest judge, joining a panel of industry professionals to select winners from 10 finalists. YDC alumni brands Jesse Lee and gnastiy.com will also showcase their new collections.
Additionally, Centrestage will be staged in parallel with the HKTDC Hong Kong Watch & Clock Fair and Salon de TIME, with visitors able to view products from some 400 watch and fashion brands at the same venue.
US cotton export sales saw a strong start to the new marketing year, MY25-26, which began on August 1. For the week ending August 7, net sales of Upland cotton increased to 242,000 running bales (RB), with each bale weighing 500 pounds (226.8 kg) from the 109,300 RB sold the previous week.
According to the US Department of Agriculture (USDA), the primary buyers of Upland cotton were Vietnam (119,200 RB), Bangladesh (40,200 RB), Türkiye (20,700 RB), Pakistan (15,600 RB), and Mexico (14,100 RB). A small reduction of 300 RB was noted for Thailand. For the next MY26-27, net sales of 1,100 RB were made to Japan.
Export shipments for the week totaled 142,600 RB, with the largest volumes sent to Vietnam (34,800 RB), Pakistan (26,200 RB), Türkiye (19,300 RB), Mexico (9,300 RB), and Bangladesh (9,000 RB). Looking back at the previous marketing year, 2024-25, accumulated shipments amounted to 11,191,200 RB, marking a 1 per cent increase over the preceding year.
Sales of Pima cotton also increased to 2,100 RB for MY 2025-26. The main buyers included India (2,400 RB), Türkiye (300 RB), South Korea (300 RB), Bangladesh (300 RB), and Guatemala (100 RB). Reductions for China (1,300 RB) offset some of these sales.
Pima cotton export shipments for the week were 12,000 RB, primarily to Pakistan (2,700 RB), Vietnam (2,500 RB), India (2,300 RB), Costa Rica (900 RB), and Egypt (900 RB). Accumulated Pima cotton shipments for the last marketing year were 435,000 RB, a 35% increase from the previous year.
Due to ongoing labor unrest, apparel manufacturers in Ashulia, Bangladesh, have indefinitely shut down their factories. This decision came after six days of continuous worker protests and was made at an emergency meeting of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Shafiul Islam Mohiuddin, President, BGMEA announced the closure under section 13(1) of the existing labor law, citing security concerns for both individuals and the industry. He stated, factories will not reopen until ‘foolproof security and a pro-industry atmosphere are ensured’ and demanded punishment for those responsible for the violence. Mohiuddin also warned, production could be suspended nationwide if the situation does not improve.
Despite a BGMEA warning to end the violence, protests continued and spread to other industrial zones, with tens of thousands of workers blocking highways and engaging in vandalism in the Ashulia and Kanchpur areas. Clashes between protesters and police injured nearly 100 people, including officers and journalists. According to police, the chaos began when workers demanded a wage hike to cope with rising living costs.
Trade unions have criticized the BGMEA's decision, fearing it will further incite the workers. They have urged manufacturers to reconsider the shutdown for the sake of the country's main export sector, which accounts for nearly 80 per cent of its total export earnings. Union leaders plan to visit the area to de-escalate the situation and find a solution.
Currently, a garment worker earns between 3,000 and 5,500 Bangladeshi Taka per month, and workers are demanding a raise of 1,500 to 2,000 Taka. The industry, which produces clothing for major global retailers like Walmart, H&M, and Tesco, previously faced similar violent protests in 2010, which led to an 80 per cent increase in the minimum wage.
Dubai-based company Sumwon Studios has acquired a Dutch luxury lifestyle brand known for its football-inspired apparel and accessories, Balr. This acquisition comes after Balr. filed for bankruptcy in July 2025.
This acquisition enables Sumwon Studios to save the Balr. brand from collapse, allowing it to relaunch with new international ambitions. Balr. will now be part of Sumwon Studios' growing portfolio of brands, which also includes the UK fashion retailer Missguided.
Founded in 2023, Sumwon Studios has close ties to fast-fashion giant Shein and plans to leverage the e-commerce company’s production system to quickly respond to trends and reposition the Balr. brand globally.
Founded in 2013 by former football player Demy de Zeeuw and two internet entrepreneurs, Blar. had been struggling financially, reporting losses of over €1.7 million in 2023 and €1.3 million in 2022. The company cited rising costs, declining sales, and debt from the COVID-19 pandemic as reasons for its bankruptcy.
Nitin Passi, Founder and CEO, Sumwon Studios, states, Balr. has a unique, authentic DNA that can't be copied. He plans to pursue new partnerships and reposition the brand with a focus on its unique place in the world of sports and lifestyle.
Leading Indian textile company, Gimatex has become the first country in the world to launch a WhatsApp-based real-time order tracking system. Developed by its in-house tech team, this innovative system is designed to provide customers with constant updates on their orders from placement to delivery.
The new system was created to solve a persistent industry challenge: the lack of transparency and frequent communication delays between companies and their customers. According to Gimatex, the initiative aims to reduce wait times, improve customer satisfaction, and create a more transparent supply chain. The company's focus on integrating technology to enhance business processes is evident in the in-house development of the application.
Gimatex hopes this new tracking system will give it a competitive edge by keeping customers ‘always in the loop’ with real-time updates and notifications on their mobile devices. The company plans to roll out the service to all its customers in phases, believing that digital solutions are crucial for its future growth and continued market leadership.
Key features of this Gimatex WhatsApp Tracking System include real-time updates to customers on their order status, including dispatch and estimated delivery times, elimination in manual inquiries, cutting down on communication bottlenecks and improving efficiency, order tracking facility at every stage of the supply chain, thus building trust and confidence in the company.
In the most significant reform since its rollout, India's Goods and Services Tax (GST) is set for a major overhaul, dubbed ‘GST 2.0.’ The new blueprint proposes to eliminate the current 12 per cent and 28 per cent tax slabs, aiming to simplify the system and reduce disputes. This plan will first be reviewed by state finance ministers before being presented to the GST Council.
Under the new proposal, the 5 per cent slab will remain for essential goods. Most items currently at 12 per cent are expected to be moved to the nil or 5 per cent bracket. This means items like jams, fruit juices, medicines, and stationery will likely see tax relief. Goods currently in the 28 per cent category - such as air conditioners, dishwashers, and cement - will shift to an 18 per cent slab. Sin and luxury goods, including tobacco and aerated drinks, will be subject to a special levy of up to 40 per cent.
Officials stated, products consumed by the middle class, like refrigerators and high-end TVs, will stay at 18 per cent. Special rates on items like diamonds and jewelry will continue to support those specific industries. The restructuring comes ahead of the March deadline when the compensation cess to states is set to expire.
This change is expected to make the tax structure less complex, improve compliance, and resolve long-standing disputes over product classifications. While the 18 per cent slab currently generates 65 per cent of GST revenue, the new structure aims to balance revenue without placing a heavier burden on consumers. The weighted average GST rate, currently 11.6 per cent, may even fall further.
Apparel Group and Aldo have teamed up to launch a limited-edition Artist Series collection across the Gulf Cooperation Council (GCC). Available in select stores, this exclusive collection features 16 unique pieces created in collaboration with four international artists.
Offering sneakers, handbags, and graphic tees, the collection merges art with fashion. The artists featured in this collection include Timothy Goodman, known for his typographic style that explores themes of human connection, digital artist Hyperthalamuscorp whose vibrant 3D work reflects personal growth, Dubai-based multi-disciplinary artist Dina Sami who celebrates her heritage with symbols like the palm tree and Montreal-based street artist Whatisadam who blends Canadian references with comic-inspired visuals.
Neeraj Teckchandani, CEO, Apparel Group, notes, this series is a testament to the group’s commitment to offering customers more than just fashion; it's about bringing culture, art, and individuality into every retail experience.
Daianara Grullon Amalfitano, Chief Brand and Product Officer, Aldo, states, the collaboration celebrates global artistry and personal expression and continues the brand's long-standing tradition of supporting the arts.
As per the August 2025 ‘Cotton This Month’ report by the International Cotton Advisory Committee (ICAC), global cotton production is projected to outpace consumption for the 2025-26 season. The report, which includes data and projections, highlights the dominance of India, China, Brazil, and Bangladesh in the upcoming season. Global production is estimated at 25.9 million tonnes, slightly exceeding the projected consumption of 25.6 million tonnes, with trade holding steady at 9.7 million tonnes.
Cotton season 2025-26 projections
The projections reveal a dynamic, interconnected global market where traditional powerhouses consolidate their dominance and emerging trade shifts reshape the landscape. India is expected to maintain its long-standing role as the global leader in cotton acreage. With 38 per cent of the world’s total area under cotton cultivation, the country continues to rely heavily on its vast agricultural land base, underscoring its strategic commitment to the cotton economy—even as productivity remains a focal challenge in comparison to other major producers.
Meanwhile, China is expected to retain its dual distinction: as both the world’s largest cotton producer and most voracious consumer. The country is projected to account for 24 per cent of global cotton output, but more strikingly, it will consume 8.2 million tonnes, 32 per cent of the world’s total usage. This reflects the enduring strength of China’s textile manufacturing sector, which, despite growing competition and environmental pressures, remains a global engine of cotton demand.
On the trade front, Bangladesh is forecast to emerge as the leading cotton importer for the season. Responsible for 19 per cent of all global imports, the country’s thriving ready-made garment (RMG) sector continues to drive its massive raw cotton needs—most of which must be met from abroad due to negligible domestic cultivation.
At the same time, Brazil is expected to rise to the top of the export charts. The South American agricultural giant is set to ship out 32 per cent of the world’s cotton exports, a testament to its increasingly efficient production systems and aggressive expansion into global markets.
Finally, the ICAC Secretariat’s price forecast for 2025-26 indicates a wide trading band, reflecting market uncertainties and potential volatility. Prices are expected to range from 57 to 94 cents per pound, with a midpoint forecast of 73 cents. This spread suggests sensitivity to factors such as global demand fluctuations, weather events, and trade policy changes. Together, these projections set the stage for a season shaped by both stability in leadership and evolving dynamics in trade—signaling another chapter in the complex, ever-changing story of global cotton.
Table: Global cotton leaders 2025-26
|
Category |
Projected leader |
Global percentage/vVolume |
|
Area |
India |
38% |
|
Production |
China |
24% |
|
Consumption |
China |
32% (8.2 million tonnes) |
|
Importers |
Bangladesh |
19% |
|
Exporters |
Brazil |
32% |
Leading cotton lint producers in 2024-25 estimate vs. 2025-26 projection
Based on the ICAC data, a slight shift in market share is projected among the top cotton producers. While China and India remain the top two, India is expected to increase its share, while China's share is projected to decrease slightly. The positions of other key producers like Brazil, the US, and Pakistan are expected to remain stable.
Table: Year wise comparison of cotton lint producers
|
Country |
Estimate 2024-25 |
Projection 2025-26 |
|
China |
25% |
24% |
|
India |
20% |
21% |
|
Brazil |
15% |
14% |
|
US |
12% |
12% |
|
Pakistan |
5% |
5% |
|
Others |
23% |
24% |
The Gujarat government has issued new guidelines for industrial incentives under the Gujarat Textile Policy 2024, extending benefits to textile units located in GIDC-notified areas within cities. This decision follows a request from the Southern Gujarat Chamber of Commerce and Industry (SGCCI).
The guidelines were announced by Balvantsinh Rajput, Industries Minister at the Valsad district collector's office. They include textile units in GIDC-notified urban areas now being eligible for government incentive schemes as per Ashok Jirawala, Vice President, SGCCI. The guidelines also include composite units that handle the entire process from spinning to fabric production, a move expected to significantly boost the state's textile industry.
The policy will also recognize groups of at least 20 women as a Self-Help Group (SHG) for self-employment initiatives. Each member will be eligible for a monthly benefit of up to Rs 5,000.
Nikhil Madrasi, President, SGCCI noted, the policy aims to boost investment in the textile sector, promote women's empowerment, and create new job opportunities in both rural and urban areas.
