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China-based online marketplace, Shein faces a potential investigation by the European Union over its compliance with consumer protection laws regarding the sale of illegal products.
The European Commission plans to initiate a coordinated action along with national consumer protection regulators against the fast-fashion marketplace. The probe will be led by four EU member states with any fines to be determined by individual national governments.
The Commission is increasingly utilizing the Consumer Protection Cooperation Network, a mechanism designed to unify national authorities against large online platforms suspected of violating consumer protection rules. Temu and Apple faced similar actions last November.
National regulators in individual EU member states can impose fines on companies found to be in violation.
In a separate development, the Commission is unveiling a new strategy to crack down on e-commerce platforms used to ship unsafe products from China and other non-EU countries. This strategy aims to strengthen the EU's role as a global leader in digital regulation.
Shopping malls in Russia are facing a wave of closures due to rising taxes, increased loan costs, and decreased consumer spending. The Central Bank's decision to raise interest rates to a record 21 per cent to combat inflation has significantly impacted businesses across the country, particularly the retail sector.
Creating a bleak outlook for many shopping centers, experts predict further interest rate hikes, Around 200 malls face bankruptcy and may close down in 2025, predicts the Union of Shopping Centers.
Malls are struggling to renegotiate existing loans and secure new ones, impacting profitability and building maintenance, explains Oleg Voitsekhovsky, Managing Director, Russian Council of Shopping Centers (STC). Adding to this financial strain, the tax burden on shopping centers has increased tenfold in recent years due to rising cadastral values, says Pavel Lyulin, Vice President, STC. He anticipates further property tax increases this year.
The economic crisis is affecting other industries as well. Impacted by sanctions and declining exports, coal companies have suffered significant losses. Numerous airlines and IT firms are also reportedly nearing insolvency.
Companies are struggling to access necessary funding, with new loans plummeting. Borrowing on the debt market has also become more difficult due to rising bond yields.
The recent imposition of a 10 per cent tariff on goods imported from China by US’ President Donald Trump has faced widespread criticism both domestically and internationally.
This new tariff adds to existing levies on Chinese imports, further escalating trade tensions. Reiterating his earlier stance, Mao Ning, Foreign Ministry Spokesperson, China, says, there are no winners in trade and tariffs wars and China remains committed to protect its own interests. He Yadong, Spokesperson, Ministry of Commerce, echoes this statement saysing, tariffs harm not just the US and China but also the global economy.
Besides tariffs on China, the US has also imposed a 25 per cent tariff on goods from Mexico and Canada, with a 10 per cent tariff specifically on energy products from Canada. These protectionist measures have raised concerns about their potential impact on global trade and economic stability.
Nike leads the athletic footwear category in the Brand Keys' 2025 Consumer Loyalty Engagement Index (CLEI) that identifies brands excelling in cultivating customer devotion.
The index surveyed over 81,000 consumers aged 16-65, analyzing attitudes toward 1,100 brands across 104 categories, revealing how loyalty predicts purchasing behavior, sales, and market share.
Nike is followed by Adidas and New Balance. Dick's Sporting Goods tops sporting goods retailers, with Academy and Big 5 rounding out the top three. Zappos takes gold in online shoes, with Amazon and a tie between Footlocker and Nike following.
Amazon dominates online retail, followed by Walmart and Etsy. Levi's leads apparel retail, with Zara, Old Navy, and Ralph Lauren also recognized. Macy's takes the top spot for department stores, while Dollar Tree, Dollar General, and Family Dollar lead in discount retail. Costco reigns supreme in price clubs.
Brand Keys emphasizes the increasing impact of loyalty on profitability. They found it costs significantly more to acquire new customers than retain existing ones. A mere 5 per cent loyalty increase can boost lifetime customer profits by up to 86 per cent, and even a 2 per cent increase can equal the savings of a 28 per cent cost reduction program.
Loyal customers are six times more likely to engage with a brand, think of that brand first, and make initial and repeat purchases. This engagement directly correlates with increased market share and stronger financial performance.
Noting the dramatic shift in the loyalty paradigm over the past decade, Robert Passikoff, President, Brand Keys, emphasizes, true loyalty is complex and must be measured, achieved, and leveraged strategically. More than just awareness or satisfaction, it is deeper connection that drives customer behavior and ultimately, business success, he says.
Please note: This press release has been updated, following news that President Trump has reached a deal with Canada to pause penalty tariffs on Canadian imports for 30 days.
The National Council of Textile Organizations (NCTO) has welcomed former President Donald Trump’s decision to pause the planned 25 per cent tariffs on imports from Mexico and Canada for one month. NCTO President and CEO Kim Glas stated that this move allows further negotiations while addressing critical concerns related to migration and fentanyl trafficking. She emphasized the importance of maintaining a stable trade relationship with North American partners.
Mexico is the largest export market for US textile fibers, yarns, and fabrics, while Canada ranks third. Together, they account for over half of US textile exports, amounting to $12.5 billion annually. Glas highlighted that the North American textile and apparel coproduction chain supports 500,000 US jobs and competes with China and other Asian markets.
While NCTO supports the tariff pause, it remains focused on addressing trade challenges with China. Glas welcomed Trump’s recent executive order imposing a 10 per cent penalty tariff on Chinese imports but urged for stronger measures. She called for significantly higher tariffs on finished apparel and textiles from China, emphasizing that penalties on China should never be lower than those on North American trade partners.
NCTO is also pushing for the elimination of the de minimis tariff waiver, which allows importers to bypass duties on billions of dollars worth of goods. Glas argued that this loophole facilitates the entry of illicit and forced-labor goods into the US market. Even if a trade resolution is reached with Mexico and Canada, she insisted that eliminating de minimis remains a priority.
Additionally, NCTO urged the administration to enhance customs enforcement against undervaluation, misclassification, and transshipment of textile goods. Glas called for harsher penalties and increased transparency to deter repeat trade violators. She also stressed the need to penalize countries that enable illegal Chinese imports to enter the US market.
According to NCTO, a robust tariff strategy would strengthen North American manufacturing, curb illegal migration, and generate significant revenue for the US Treasury. In fiscal year 2023, US textile tariff collections totaled $16.3 billion. Glas projected that this figure could double or triple with higher tariffs on China, stricter enforcement, and the elimination of de minimis loopholes.
She emphasized that China remains the dominant exporter of textiles and apparel to the US, accounting for over 26 per cent of total imports in 2023. China also benefits from the de minimis exemption more than any other country, avoiding billions in duties annually. Glas stressed that cracking down on Chinese trade violations would further bolster tariff revenue and restore manufacturing jobs.
The US textile industry has been hit hard by plant closures, losing 26 facilities in the past 18 months. Glas expressed NCTO’s commitment to working with the Trump administration to rebuild domestic manufacturing and strengthen the textile supply chain. She urged policymakers to adopt a trade strategy that prioritizes American jobs, fair competition, and long-term industry stability.
Bangladesh's export earnings from ready-made garment (RMG) sector grew by 12 per cent to $23.55 billion during the July-January period in FY25, as compared to the same period in FY24. As per a report by Export Promotion Bureau (EPB), RMG exports grew by 1.38 per cent, while overall apparel exports increased by 5.7 per cent Y-o-Y to $4.4 billion in January 2025. c Despite this, these figures don't reflect the full picture, warn experts as the industry continues to face price and cost pressures. There is a need for further analysis of market-specific performance and product concentration, emphasizes Mohiuddin Rubel, Former Director, BGMEA. Shrinking global trade and intense price competition makes it mandatory for Bangladesh to address internal challenges like energy security and financial stability, he adds.
In January 2025, knitwear exports by Bangladesh grew by 6.62 per cent while exports of woven garments rose by 4.52 per cent. Home textiles grew by 6.22 per cent to $493.86 million. However, jute and jute goods exports declined by 8.35 per cent to $484.31 million.
Abdullah Hil Rakib, Team Group opines, shifting global trade pattern present the industry with more growth opportunities. However, to capitalize on these the government needs to introduce new policies aligning with the industry’s needs, he emphasizes.
The recently increased US import duties on Chinese goods can serve as an opportunity for Bangladesh with more orders being diverted to the country, says Mohamad Hatem, President, BKMEA. However, rising production costs, utility challenges, and the need for improved law and order to restore buyer confidence, can challenge profit margins for manufacturers, he warns.
S Savita, Handlooms and Textiles Minister, Andhra Pradesh has announced the government’s plans to establish a large-scale handloom park in Mangalagiri, Guntur district. According to her, the park will provide consistent, year-round employment to local weavers who faced several hardships during the previous YSRCP government.
To be located near Auto Nagar in Mangalagiri, the park will spread across 11 acre. It will help the government revitalize the textile industry in Andhra Pradesh and provide financial assistance to weavers in the state, ensuring their livelihoods are secure throughout the year. Over the last seven months, the government has been successful in marketing and selling the weavers products across India, notes Savitha.
The recent article ‘Style: The Death of Pak Fashion?’ highlights the grim situation of the Pakistani fashion industry. The author, a seasoned fashion journalist, laments the decline of creativity and innovation, replaced by a glut of celebrities, uninspired bridal bling, and a focus on commercial viability over artistic expression.
The rise and fall of Pakistani fashion
Pakistani fashion has witnessed a remarkable journey. It first stepped onto the global stage with its intricate hand embroidery and vibrant colors, captivating audiences with its unique blend of traditional craftsmanship and modern silhouettes. Designers like Deepak Perwani and HSY became household names, showcasing their collections at international fashion weeks and dressing global celebrities.
However, the article argues this golden age is fading. The author observes a decline in the quality of fashion shows, with even established designers producing "generic mish-mash." This raises a critical question: What factors have contributed to this perceived decline?
Reasons for the decline
Commercialization: The article highlights the shift towards commercially viable designs, often at the expense of creativity. This is reflected in the dominance of bridal wear, a lucrative segment that often prioritizes opulence over innovation. Data from a 2022 report by Fashion Council Pakistan indicated that bridal wear accounted for 60 per cent of the industry's revenue, highlighting its commercial importance.
Celebrification: The obsession with celebrity endorsements has overshadowed the focus on design. The author criticizes the ‘unabashed celebrification’ where "profits get generated when a popular 'it' celebrity is seen wearing clothes by a design house. Even when the clothes are downright ugly,” this over-reliance on star power can stifle creativity and originality.
Lack of curation: The absence of strong curatorial voices and platforms for showcasing cutting-edge design is another contributing factor. The author points to the decline of fashion weeks and the lack of mentorship for emerging designers.
International popularity endures
Despite these challenges, Pakistani fashion continues to enjoy significant international popularity. Pakistani designers are increasingly gaining recognition on global platforms. For example, Mohsin Naveed Ranjha showcased his collection at Milan Fashion Week 2023, receiving critical acclaim for his modern take on traditional silhouettes. Similarly, brand Khaadi has successfully blended traditional craftsmanship with contemporary designs, creating a global following. Their focus on handloom fabrics and ethical production practices resonates with conscious consumers worldwide.
E-commerce platforms like Etsy and Shopify have opened up new avenues for Pakistani designers to reach international customers. A 2023 study by Statista revealed a 30 per cent increase in online sales of Pakistani fashion products to international markets compared to the previous year. The Pakistani diaspora too plays a crucial role in promoting local fashion abroad. As fashion blogger Aamna Haider Isani notes, "The diaspora acts as a bridge, carrying the trends and aesthetics of Pakistani fashion to their adopted countries, creating a ripple effect that influences global fashion." For example, known for its luxurious and intricately embellished designs, Élan has captured the attention of international celebrities and fashion influencers. Their recent collaboration with Indian couturier Manish Malhotra further solidified their global presence.
The way forward
The challenges facing Pakistani fashion are undeniable. However, the industry's inherent strengths – its rich heritage, skilled artisans, and growing international recognition – provide a strong foundation for a resurgence. To move forward, the industry needs to first reclaim its creative identity. Designers need to prioritize innovation and originality, moving beyond commercially safe choices. As designer Shehla Chatoor points out, "Pakistani fashion needs to rediscover its soul. We need to go back to our roots, to the craftsmanship and artistry that defines us." Also, leveraging digital platforms for showcasing talent and reaching global audiences is crucial. Initiatives like the Digital Fashion Week Karachi are steps in the right direction. And establishing mentorship programs and curatorial platforms can nurture emerging talent and provide guidance.
The future of Pakistani fashion hinges on its ability to adapt, innovate, and reclaim its narrative. While the challenges are real, the potential for growth and global recognition remains immense. By embracing its strengths and addressing its weaknesses, Pakistani fashion can once again soar to new heights.
China’s Xinjiang region synonymous with cotton is deeply entangled in controversy, raising ethical and economic questions that reverberate throughout the global supply chain, including impacting India's cotton trade.
Xinjiang's dominance in Chinese cotton production
Xinjiang accounts for a staggering proportion of China's cotton output. Recent estimates suggest over 80 per cent of China's cotton originates from Xinjiang, with the region producing around 5 million tonnes annually. This dominance is driven by several factors like favorable climate, as Xinjiang's dry climate and ample sunshine create optimal growing conditions for cotton. The Chinese government has heavily invested in Xinjiang's cotton industry, providing subsidies and infrastructure development. And large-scale farms in Xinjiang have readily adopted mechanized harvesting, increasing efficiency and output.
In fact, Xinjiang's cotton production has significantly impacted China's overall cotton industry. First it has help in reducing imports as China, once a major cotton importer, has seen its import dependence decrease due to Xinjiang's production surge. This has direct implications for India, a major cotton exporter. On the other hand exports have grown. China has emerged a significant exporter of cotton yarn and finished textile products, leveraging Xinjiang's cotton. This increased competition affects Indian textile exports. Xinjiang cotton also helps China's massive textile industry, feeding domestic demand for apparel and other goods.
India's perspective
While India is a major cotton producer, the dynamics of Xinjiang's production influence its cotton trade with China. First is that it has resulted in lowering exports to China as China's domestic production increases, reliance on Indian cotton imports diminishes. This is reflected in the declining trend of raw cotton exports from India to China. However, India has seen a rise in cotton yarn exports to China. This suggests that despite Xinjiang's cotton dominance, there is still demand for specific yarn varieties and qualities that India can fulfill. The rise of China as a textile exporter, has been led by Xinjiang cotton and this presents competition for India in the global market.
Table: China’s cotton production, imports
|
Year |
China's cotton production (mn tons) |
Xinjiang's Share (%) |
China's cotton imports (mn tons) |
India's cotton exports to China (mn tons) |
India's cotton yarn exports to China ($ mn) |
|
2021 |
5.9 |
85 |
2 |
0.8 |
550 |
|
2022 |
6 |
87 |
1.8 |
0.6 |
680 |
|
2023 |
6.1 |
90 |
1.5 |
0.5 |
720 |
|
2024 |
6.2 |
94.8 |
1.0 (estimated) |
0.4 (estimated) |
750 (estimated) |
(Source: National Bureau of Statistics of China, USDA Foreign Agricultural Service, Ministry of Commerce and Industry India, Texprocil)
Table: China’s leading cotton trading partners
China's exports: Vietnam, Bangladesh, Pakistan, Turkey
China's imports: United States, Brazil, Australia
India's Exports: Bangladesh, Vietnam, China, Pakistan
Uncertainties, controversies arond Xinjiang cotton
There are several controversies around cotton from the Xinjiang region. Allegations of forced labor in Xinjiang continue to cast a shadow over the region's cotton industry. This impacts the ethical sourcing policies of many companies globally, including those in India. Meanwhile trade disputes and political pressures related to Xinjiang cotton create uncertainty in the global market. This can disrupt established trade flows and impact Indian exporters. The environmental impact of cotton production in Xinjiang, including water usage, is also a growing concern. This raises questions about the long-term viability of such large-scale cotton production.
However, the fact is Xinjiang cotton plays a pivotal role in China's domestic textile industry and holds significant sway in the global cotton market. This has direct and indirect consequences for India's cotton trade, impacting its exports of raw cotton and yarn to China. While India continues to be a significant player in the global cotton market, navigating the complexities arising from Xinjiang's production, including ethical concerns and geopolitical tensions, remains crucial for India's cotton industry.
Portugal’s leading textile trade fair has a new name MOD'Unica replacing Modtissimo after 64 editions. This rebranding underscores its status as the only event exclusively for the Portuguese textile and clothing industry and the oldest of its kind in the Iberian Peninsula.
The name MOD'Unica reflects its unique role in showcasing Portugal’s expertise in textilesmerging tradition, innovation, and sustainability. It honors Modtissimo’s legacy while embracing a future-focused vision.
Bringing together spinning, weaving, knitting, finishing, technical textiles, apparel, and home textiles, MOD'Unica is a hub for integrated solutions. It highlights Portuguese craftsmanship and forward-thinking strategies, with a strong focus on sustainability and social responsibility.
Organized by ATP, Textile and Clothing Association of Portugal, with Spormex Events, the next edition is set for February 26-27 at Exponor. This event will celebrate ‘Made in Portugal,’ offering a platform for industry professionals to connect, innovate, and define the future of textiles.
Join MOD'Unica and experience Portugal’s unique approach to textileswhere tradition meets technology to shape a global benchmark.
