FW
Valued at $764.4 billion in 2024, the global e-commerce apparel market is projected to reach $1.2 trillion by 2030, growing at a compound annual growth rate (CAGR) of 7.8 per cent. As per a report by ResearchAndMarkets.com, this growth will be fueled by several key factors, including shifting consumer habits, technological advancements, and adaptive business models.
Titled, ‘E-Commerce Apparel-Global Strategic Report,’ the analysis says, consumers are increasingly turning to online shopping for its convenience, speed, and vast selection. The rise of smartphones and mobile apps has made shopping anytime, anywhere, a reality. Improved internet access and secure online payment systems have further broadened the reach of e-commerce, particularly in developing markets where online shopping is becoming increasingly popular.
Combined with the affordability and ease of online shopping, the rising demand for fast fashion is a major market driver of this growth. E-commerce platforms can quickly adapt to trends, offering new collections, discounts, and flash sales, which encourages frequent purchases. The ability to access international brands online expands consumer choice, creating a global apparel marketplace. This preference for online shopping, especially among younger, tech-savvy generations, is expected to continue driving market expansion.
Technological innovations are constantly enhancing the online shopping experience. Features like AI-powered recommendations, augmented reality (AR) virtual try-ons, and streamlined checkout processes improve customer satisfaction. Data analytics help businesses optimize their supply chains and better meet consumer demand. These technological advancements ensure that e-commerce apparel brands remain competitive, contributing to the overall market growth.
Within the market, women's apparel segment is projected to grow at a CAGR of 7.7 per cent to $827.8 billion by 2030. Meanwhile, the men's apparel segment is poised to grow at a CAGR of 8.5 per cent over the forecast period.
Popular clothing retailer, H&M is introducing a new clause in its returns policy. Starting February 3, 2025, the brand will charge a $2.95 fee for return of items ordered online. This fee will be deducted from the customer's refund.
Previously, H&M loyalty members did not have to pay any return fees. However, from now, all of the brand’s customers, including loyalty members, will have to pay these new fees.
There are a few exceptions to this new though. Customers returning faulty items or items returned in H&M stores will not be charged this fee. Additionally, if customers return an item within 14 days of receiving it, they will be exempted from the return fee.
H&M says, customers can return any or all items in their order within 28 days of receiving it. If a customer chooses to return an item, H&M will refund the order value and the cost of delivery, but will deduct a return fee of $2.95. If a customer chooses to keep some items and only return part of their order, the delivery cost will not be refunded and H&M will still deduct a return fee of $2.95.
The brand will use same payment method used by the customers while placing the order to refund them. If a customer does not receive their refund within 14 days, they can contact the H&M Customer Service. For any returns made after 28 days, H&M will refund the customer via an e-Merchandise Card.
According to H&M, The new fee will help the brand offset the cost of processing returns.
French luxury goods company, Kering has sold its ‘The Mall Luxury Outlets’ business in Italy to a US real estate company, Simon Property Group.
Owner of Gucci and other luxury brands, Kering will gain approximately $365 million from the sale. The global economic slowdown in luxury spending has impacted Kering more than its competitors with the company registering declines in both sales and profits.
Earlier this month, Kering also sold a majority stake in three properties in Paris to Ardian, a French private equity firm. That deal generated net proceeds of around €837 million ($861 million).
‘The Mall’ operates two luxury outlet centers in Italy, one near Florence and the other in Sanremo. Kering described the outlet business as ‘non-core’ as it aims to reduce its involvement in outlet retail. However, Kering's brands will continue to have a presence in both Italian locations after the sale.
The American Apparel & Footwear Association (AAFA) has strongly criticized President Donald Trump’s decision to impose tariffs on all US imports from Mexico, Canada, and China, warning of severe economic fallout.
"These widespread tariffs will inject massive costs into our inflation-weary economy and risk a damaging tit-for-tat trade war," said AAFA President and CEO Steve Lamar. He stressed that the US should strengthen ties with free trade partners instead of undermining critical agreements.
Nate Herman, AAFA’s senior vice president of policy, echoed the concerns, emphasizing that businesses need tariff relief, not additional costs. "At a time of high inflation, this is a step in the wrong direction. We need to renew expiring trade preference programs and strengthen our free trade agreement with Central America to address key economic and migration challenges," he stated.
The AAFA urges the administration to pursue policies that bolster supply chains and competitiveness rather than increasing burdens on US manufacturers, farmers, and consumers.
The Istanbul Fashion Connection (IFCO) will return for its seventh edition from February 5-8, 2025, at the Istanbul Expo Center. This event, now Europe’s largest fashion fair, is set to attract over 30,000 visitors, including key international players from the fashion industry. Spanning 35,000 square meters across 8 halls, IFCO will feature over 500 exhibitors, presenting the latest trends and innovations in apparel, footwear, and accessories.
According to IHKIB Vice President Mustafa Paşahan, Turkey’s fashion industry plays a vital role in its economy, contributing to exports and job creation. As the sixth-largest global supplier and third-largest to the EU, Turkey’s fashion sector continues to expand, with its brands available in over 100 countries. IFCO serves as a platform for these brands to showcase their creativity and excellence to a global audience.
The exhibition will feature diverse segments, including womenswear, menswear, kids fashion, denim, and sustainable innovations. Notable areas include The Core Istanbul, which will host 25 leading designers such as Meltem Ozbekand Tuba Ergin, and The Fashionist area, with fashion shows and displays of high-quality evening wear. A dedicated space for Turkish lingerie and hosiery will spotlight the country’s export success in these industries.
The event also emphasizes sustainable fashion, aligning with the EU’s eco-design initiative. Visitors can explore cutting-edge sustainable designs and participate in curated matchmaking sessions to forge valuable business connections. IFCO’s extensive seminar and workshop programs will offer insights into current fashion trends, social media’s impact, and the future of fashion marketing.
With an expected 30,000 visitors, IFCO 2025 will set new standards for creativity, networking, and innovation, making it an unmissable event for fashion professionals worldwide.
The Confederation of Indian Textile Industry (CITI) has welcomed the Union Budget 2025-26, highlighting a 57.7 per cent increase in textile sector allocation. A key driver is the enhanced Rs 1,148 crore funding under the Production Linked Incentive (PLI) scheme.
CITI Chairman Rakesh Mehra praised the launch of the Mission for Cotton Productivity, addressing a long-pending industry demand. The initiative aims to improve cotton farming efficiency and boost extra-long staple cotton production, reducing import dependency while enhancing sustainability.
The budget's focus on technology and competitiveness is evident in revised tariff structures for knitted fabrics, customs duty exemptions for shuttleless looms in technical textiles, and an Export Promotion Mission. These steps support the sector’s goal of reaching a $350 billion market size by 2030.
MSMEs, contributing over 45 per cent of India's exports, benefit from improved credit access. However, CITI continues to advocate for a hybrid support model combining capital subsidies with performance-based incentives.
The new tax regime is expected to boost consumer spending, driving demand for textiles. CITI also anticipates greater flexibility in import-related compliance and Quality Control Orders (QCOs), streamlining the supply chain and enhancing industry growth.
The Union Budget 2025-26 has made significant strides toward boosting the global competitiveness of India’s textile industry, a sector that employs 110 million people, predominantly in rural areas. The government’s vision aims to grow the textile industry from $162 billion to $350 billion and increase exports from $35 billion to $100 billion by 2030.
The Southern India Mills Association (SIMA), representing the textile value chain in South India, welcomed the budget’s focus on addressing structural issues to enhance competitiveness. One key initiative is the Rs600 crore allocation for improving cotton productivity and sustainability. This will focus on promoting high-yielding seeds, enhancing agronomy practices, and branding Indian cotton, aligning with the Prime Minister’s 5F Vision (Farm to Fibre to Factory to Fashion to Foreign). Cotton remains the backbone of the textile industry, accounting for around 80 per cent of exports. However, India’s production of extra-long staple (ELS) cotton has declined, and the industry has been forced to import a significant portion of its ELS needs. The budget’s emphasis on improving domestic ELS cotton production aims to boost exports and reduce reliance on imports.
SIMA Chairman also highlighted that the Ministry of Agriculture and Ministry of Textiles are working on a Special Project covering 15,000 hectares of land across leading cotton-producing states, focusing on high-density planting and improving ELS cotton productivity. Pilot projects have shown potential to increase productivity by 30-50 per cent. Furthermore, the Cotton Textile Export Promotion Council (TEXPROCIL), in collaboration with other employer organizations, launched ‘Kasturi Cotton Bharat,’ a branding initiative for high-quality Indian cotton.
Additionally, the budget’s revision of MSME turnover limits will benefit the predominantly small-scale textile industry, providing easier access to fiscal and non-fiscal support. Measures to curb cheaper imports, such as the 20 per cent import duty on knitted fabrics, will also encourage domestic production. The extension of customs duty exemptions on key machinery like shuttleless looms, knitting, and garmenting equipment will further support growth.
SIMA also praised the government's Export Promotion Mission, which will improve access to export credit, cross-border factoring, and assistance with non-tariff measures such as sustainability certifications. These steps will support the MSME sector, enhance infrastructure, and bolster skill development initiatives, significantly strengthening India’s textile industry on the global stage.
Reacting to the Union Budget 2025, AEPC Chairman Sudhir Sekhri called it inclusive, forward-looking, and a strong push for export-led growth and job creation in the textile sector. He highlighted key measures supporting MSMEs, innovation, and competitiveness.
The budget promotes the ‘Make in India, Make for the World’ vision with MSME financing ease, skilling programs, and support for start-ups. It extends concessional duty on textile machinery imports until 2027 and fully exempts two shuttle-less loom types from import duties to boost advanced textile production.
A five-year cotton productivity mission will help farmers grow extra-long staple cotton with scientific support, ensuring a steady supply for India’s textile industry. Credit guarantee cover for micro enterprises doubles to Rs 10 crore, unlocking Rs1.5 lakh crore in financing. MSME investment and turnover limits will also increase for better access to capital.
The government will launch an Export Promotion Mission with MSMEs to tackle non-tariff barriers. Five National Centres of Excellence for skilling will equip youth with expertise for global manufacturing.
AEPC Secretary General Mithileshwar Thakur said initiatives like BharatTradeNet for digital export processes will drive investment and export growth, reinforcing India’s competitive edge.
The Union Budget 2025-26 has delivered a mixed bag of outcomes for the textile, apparel, and retail sectors, with some initiatives receiving enthusiastic applause while others await further clarification. A clear theme resonating throughout the budget is the government's emphasis on bolstering domestic manufacturing, particularly within the MSME sector, and enhancing cotton productivity.
Textiles: A focus on cotton and domestic production
The textile industry has received a significant boost with the announcement of a five-year "Cotton Productivity Mission." As Prabhu Dhamodharan, Convenor of the Indian Texpreneurs Federation (ITF), Coimbatore, points out, this mission is "a vital initiative to improve cotton yield in India" from the current 450-500 kg per hectare to a targeted 1,000 kg per hectare. This "time-bound mission, driven by advanced technology and scientific support," aims to not only boost farmer income but also, crucially, ensure "raw material security for the Indian textile and apparel sector." This sentiment is echoed by Sanjay Jain, Group Chief Executive Officer of PDS Ltd., who is "pleased with the inclusion of enhancing Extra Long Staple (ELS) Cotton Productivity" in the mission. He believes this will "foster production of superior quality raw material for the textile industry, strengthen India’s traditional textile sector, boost exports, and reduce dependency on imports." The government's commitment to cotton is further underscored by the increased budget allocation for the sector, as noted by sources, rising "steeply from FY 24-25 revised figures of Rs 3342 crores to Rs 5252 crores." This increase, primarily directed towards ATUF & PLI, signifies faster flow of incentive funds to the industry.
Another significant move impacting the textile sector is the revision of customs duty on knitted fabrics. The duty has been revised from "10 percent/20 percent to “20 per cent or Rs115 per kg, whichever is higher” on nine varieties of knitted fabrics," as stated in the budget announcement. This measure, long demanded by the Indian textile industry, aims to control the influx of cheaper imports, particularly from China. Ashok Singhal, a Ludhiana-based textile yarn trader, believes that "at the moment about 70 to 80 percent of HSN codes of knitting fabric imports will be covered for minimum duty of Rs115 per kg. This will restrict import to a great extent.” Sanjay K Jain, Chairman ICC Textiles Committee & Managing Director, TT Ltd, explains that this is "an effort from the government to block evasion of customs duty on knitted fabric by making it 20 per cent or Minimum Import duty on all HS codes.” He further adds that this move is a "PLUS for the local MMF based industry." The Polyester Textile Apparel Association (formerly known as PTA) also highlighted this change, noting that the BCD rate on knitted fabrics under nine tariff lines has been revised to "20 per cent or Rs115 per kg, whichever is higher."
Adding to the positive momentum, the budget also includes the addition of "shuttle-less looms to the import duty exemption list of Technical Textiles Machinery," as mentioned in the budget. This move, also noted by PTAA, is expected to further boost domestic manufacturing and promote the growth of technical textiles, including agro-textiles, medical textiles, and geo-textiles.
Apparel: Riding the MSME wave
The apparel sector, heavily reliant on MSMEs, is poised to benefit from the budget's focus on this segment. Santosh Katariya, President of the Clothing Manufacturers Association of India (CMAI), sees "a huge benefit for the Industry from two angles." He highlights the "measures proposed for MSMEs, especially the Micro Sector," including the increase in various upper limits, as a significant boost. He also believes that the "measures to improve competitiveness of the Export Sector, Domestic Manufacturing Capacities, and Ease of Doing Business will all help give an impetus to Manufacturing." The PTAA also emphasized the enhanced investment and turnover limits for MSMEs, stating that these will be "enhanced to 2.5 and 2 times respectively" to help them achieve higher efficiencies. The enhancements to the credit guarantee cover for MSMEs, including increased credit limits and reduced guarantee fees, will further support the growth of apparel businesses. The introduction of customized credit cards for MSMEs through the Udyam Portal, with a limit of Rs 5 lakh, is another welcome move. The PTA also noted the improved access to credit for MSMEs, including increased credit guarantee cover for micro and small enterprises and startups.
Retail: Consumption is key
For the retail sector, the budget's emphasis on consumption is a positive sign. Katariya notes that the "lowering of Income Tax at various levels will hopefully provide a huge increase in disposable income, increasing consumption." He also points to the "various changes in the TDS and TCS limits" as contributing to increased consumption.
Dhamodharan of ITF believes that the "revisions in income tax slabs and exemptions are a positive step to boost consumption and economic growth." He adds that "these measures, along with potential RBI rate cuts, will strengthen spending power and drive demand further." The increased disposable income resulting from tax relief measures is expected to translate into higher spending on apparel and other retail goods.
The PTAA highlighted several other key budget announcements, including the extension of the time limit for the end-use of imported inputs and the extension of the export period for handicrafts, both aimed at providing greater flexibility to businesses.
Challenges and the road ahead
While the budget has been largely welcomed by the industry, some challenges remain. Katariya expresses a concern about potential increases in GST rates, particularly in the textile and apparel sector, which could negate the positive impacts of the budget. The industry also awaits further clarity on the implementation of the proposed measures to fully assess their impact.
Overall, the Union Budget 2025-26 presents a promising outlook for the textile, apparel, and retail sectors. The focus on cotton productivity, MSME support, and enhanced domestic manufacturing capacity, coupled with measures to boost consumption, are expected to drive growth and innovation in these crucial sectors.
A Sakthivel, Chairman of AMHSSC (Apparel Made-ups & Home Textiles Sector Skill Council), has wholeheartedly welcomed the Union Budget for 2025-26, praising its visionary and growth-oriented approach. He expressed his gratitude to the Hon'ble Prime Minister and the Hon'ble Finance Minister for their progressive and impactful budget, which he believes will pave the way for a stronger and more prosperous India.
Sakthivel highlighted that the budget is designed to accelerate growth, promote inclusive development, invigorate private sector investment, uplift household sentiment, and enhance the spending power of India's rising middle class. These measures are expected to drive rapid economic progress and secure a brighter future for the nation.
Key announcements for the industry include the launch of the ‘Mission for Cotton Productivity,’ a 5-year initiative aimed at improving cotton farming sustainability and productivity. This mission will support farmers with advanced science and technology and promote extra-long staple cotton varieties, ensuring a steady supply for India's traditional textile sector.
In support of MSMEs, the government has revised the classification criteria, increasing investment limits from Rs1 crore to Rs2.5 crore and turnover limits from Rs 5 crore to Rs10 crore, helping these enterprises achieve higher efficiencies and better access to capital. This change will empower MSMEs to grow, innovate, and generate employment opportunities for the youth.
The budget also introduces enhancements in credit availability, particularly for Micro and Small Enterprises (MSEs) and Startups. The credit guarantee cover will increase from Rs 5 crore to Rs10 crore for MSEs, leading to an additional credit flow of Rs1.5 lakh crore over the next 5 years. For Startups, the guarantee cover will rise from Rs10 crore to Rs20 crore, with the guarantee fee moderated to 1 per cent for loans in 27 focus sectors.
Additionally, five National Centres of Excellence for skilling will be established to equip the youth with skills for global manufacturing, boosting India’s potential as a key player in global trade.
For international trade, the government plans to set up an Export Promotion Mission and a unified digital platform, ‘BharatTradeNet,’ to streamline export documentation and financing solutions, boosting the growth of India’s exports.
The budget also includes significant tax relief for middle-class citizens, with no income tax payable up to an income of Rs12 lakh, which will support increased consumption, savings, and investment.
This Union Budget marks a strong commitment to inclusive growth, ensuring that farmers, MSMEs, and the broader manufacturing sector benefit from transformative reforms.
