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The fate of Guanyun County, a rural community that has become a hub for China's online lingerie trade, hangs in the balance as the US considers eliminating a key tariff exemption. Dubbed ‘Victoria's Secret Town’, Guanyun's rapid growth has been due to the de minimis rule, which allows packages valued under $800 to enter the US duty-free. This rule has been a boon for Chinese e-commerce giants like Shein and Temu, which rely heavily on small-scale producers like Midnight Charm Garment Co.
Midnight Charm, specializing in what owner Lei Congrui calls ‘erotic clothing’, exemplifies the reliance on this trade. With 70 per cent of his revenue derived from US sales, Lei, like many others in Guanyun, faces an uncertain future. De minimis curbs and higher tariffs will have a relatively large impact on us, Congrui admits.
Impact of potential de minimis changes
The potential impact of the US eliminating the de minimis rule extends far beyond Guanyun. Nomura, a financial services group, estimates the following consequences.
Table: De minimis impact
|
Metric |
Impact |
|
China's Exports Benefiting from De Minimis in 2024 |
$240 billion |
|
Percentage of China's Overseas Sales Impacted |
7% |
|
Contribution to China's GDP |
1.30% |
|
Reduction in Export Growth if US Eliminates Rule |
1.3 percentage points |
|
Reduction in GDP Growth if US Eliminates Rule |
0.2 percentage points |
Source: Nomura
These figures paint a stark picture for China's export-oriented economy, particularly for industries like apparel that rely heavily on the de minimis exemption. Nomura's chief China economist, Ting Lu, warns that ‘blue-collar workers from those small factories of unbranded, low value-added and labour-intensive products will be most affected.
Government investment and overcapacity concerns
Guanyun's local government has invested heavily in the lingerie industry, pouring 22 billion yuan ($3 billion) into the WeMet Industrial Park, also known as ‘Victoria's Secret Town’. However, the park remains largely vacant, raising concerns about overinvestment and the potential for a sharp downturn. This situation mirrors a broader trend in China, where local governments often invest heavily in specific industries, leading to excess manufacturing capacity and deflationary pressures. Majid Ghorbani, an associate professor at the China Europe International Business School, criticizes this approach, stating that local governments "only think as far as they can see," ignoring the potential consequences for the national economy.
Therefore, as the US and other countries consider changes to the de minimis rule, businesses in Guanyun and across China are exploring alternative strategies. Some are considering establishing warehouses in the US to bypass the tariffs, while others are looking to diversify into new markets.
The future of Guanyun's ‘erotic clothing’ industry, and China's broader e-commerce sector, hinges on the decisions made in Washington and other global capitals. The stakes are high, with millions of jobs and billions of dollars in trade hanging in the balance.
This year, Paris Fashion Week opened with a menswear show by Pharrell Williams that consolidated Louis Vuitton’s position as the leading name in luxury streetwear.
Created in collaboration with Japanese streetwear designer Nigo, the collection was inspired by the past as it gazed into the future through the telescope of history. The collection revisited early 2000s aesthetics with wide-leg and low-rise silhouettes in both denim and tailored pieces. The designers reimagined the streetwear staple Camo patterns in abstract and pixelated designs.
The collection featured monograms on everything, from beanies to boots. Having first popularized bold, logo-heavy designs with his brand A Bathing Ape (BAPE) in 1993, Nigo revisited this concept by featuring cut-out facial silhouettes of himself and Williams on bags. He also paid homage to Louis Vuitton’s Parisian heritage with bags emblazoned with ‘Pont Neuf’ and ‘Since 1854.’
Blending streetwear with dandyism, the fashion show featured everything from varsity jackets to sharply tailored suits. Models walked the mauve-colored runway set in a massive mirrored structure built in front of the Louvre pyramid. They were surrounded by 24 vitrines displaying a mix of eclectic items, including sneakers, T-shirts, a boombox, and a gold Blackberry phone.
Some pieces were inspired by Williams and Nigo’s personal collections, while others came from previous Louis Vuitton shows, creating a visual archive of their influences and inspiration for this collaboration.
Nigo previously worked with Louis Vuitton under the late Virgil Abloh, who served as the brand’s menswear artistic director. In 2020, they collaborated on a capsule collection, with Abloh praising Nigo as an ‘engineer’ who bridged the gap between ‘high and low’ fashion. The partnership between the two reflects LVMH’s dedication to the burgeoning streetwear market, projected to reach $637 billion by 2032.
With production continuing to outpace demand, the global cotton industry is set to encounter significant challenges in 2025. This year, growth will align with last year’s pace, project economists. Oil prices continue to trend lower, and cotton futures indicate price stability for the year ahead, as per the Centre for Advanced Studies on Applied Economics (CEPEA).
Brazil emerged as the world’s top cotton exporter in 2023-24, with shipments reaching 2.77 million tons to surpass the United States, which exported 2.37 million tons. China played a critical role in Brazil’s record exports, importing 924.7 thousand tons of cotton.
In 2024-25, cotton prices in Brazil are expected to decline due to high ending stocks, limited global demand, and slow global economic growth. However, the depreciation of the Brazilian real against the US dollar could improve export competitiveness, potentially helping to stabilize prices.
As per Conab projections, Brazil’s area under cotton cultivation is expected to rise by 3 per cent to 2 million hectare in 2024/25. The country’s cotton productivity is expected to decrease by 3.1 per cent to 1,845 kg per hectare. Its total cotton production for the 2024/25 season is forecasted to decline by 0.2 per cent to 3.695 million tons.
On the global front, cotton supply in 2024-25 is forecasted to rise by 3.9 per cent, as per USDA data. World cotton consumption is expected to rise by 1.3 per cent during the same period, totaling 25.211 million tons.
The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has urged the National Board of Revenue (NBR) to allow the import of raw materials without letters of credit (LCs) or on a free-of-cost (FOC) basis. Signed by Mohammad Hatem, Chairman, BKMEA, the letter was recently submitted to the NBR chairman.
In the letter, BKMEA emphasized that export-oriented non-bonded ready-made garment (RMG) companies typically procure yarn, fabric, and accessories locally through back-to-back LCs. Meanwhile, bonded factories source raw materials both locally and internationally using the same mechanism.
BKMEA highlighted that under current policies by Bangladesh Bank, there has been a gradual increase in raw materials imported from abroad rather than procured domestically. As part of this trend, the share of FOC imports has also risen alongside back-to-back LCs. For such exports, the added value remains at 100 per cent, ensuring that all foreign exchange earnings benefit the country.
The letter noted that this system benefits exporters, eliminating the need for bank limits or security mortgages to process back-to-back LCs. The buyers bear the cost of raw materials, shielding exporters from potential risks such as order cancellations, air shipment charges, or discounts.
However, BKMEA argued that regulations from the Ministry of Commerce and the NBR have created unnecessary barriers, negatively impacting the export sector and causing losses for exporters.
The letter further cited two restrictive Statutory Regulatory Orders (SROs). One allows companies to import raw materials and accessories without LCs for only six months under buyer agreements. Another limits enterprises receiving over 80 per cent of raw materials free of charge from foreign buyers to a six-month revolving import period.
These conditions are harming export growth and causing exporters to lose foreign buyers, emphasized BKMEA. The organization urged policymakers to remove these restrictions to maintain export momentum and support the larger interests of the country’s RMG industry.
Vardhaman Textile’s consolidated net profit increased by 31.44 per cent to Rs 210.61 in Q3, FY25. The company’s revenues from operations grew by 5.81 per cent to Rs 2,465.30 during the quarter as against Q3, FY24.
Revenue from textiles rose by 5.03 per cent Y-o-Y to Rs 2,403.94 crore while revenues from the acrylic fiber division increased by 32.14 per cent to Rs 81.78 crore.
Vardhaman Textiles also registered a 28.85 per cent Y-o-Y rise in profit before tax (PBT) to Rs 272.54 crore during the quarter. The company’s expenses increased by 3.09 per cent to Rs 2,272.16 as compared with Rs 2204.08 crore in Q3 FY24.
Total yarn production by the company declined by 0.03 per cent to 65,827 metric tons in Q3 FY25 as compared with 65,849 metric tons in Q3 FY24. Total sales rose by 4.96 per cent Y-o-Y to 66,175 metric tons in Q3 FY24.
Total sales of Grey Fabric by the company contracted by 2.4 per cent to 529 metric tons in Q3 FY25 as against 542 metric tons in Q3 FY24. Its production declined by 3.33 per cent Y-o-Y to 523 metric tons in Q3 FY25.
In Q3, FY25, Vardhaman Textiles produced 0.91 per cent more or 443 metric tons of processed fabric as compared with 439 metric tons in Q3 FY24. Its total sales increased by 1.62 per cent to 439 metric tons in Q3 FY25 as against 432 metric tons in Q3 FY24.
One of the leading textile groups in India, Vardhaman Textiles operations across the yarn, fabric, sewing threads, fiber, special alloys and garment sectors.
Cone Denim has partnered with Guatemalan designer Juan Carlos Gordillo and sustainable finishing company Jeanologia to launch an innovative denim collection at Kingpins New York.
The collection showcases sustainable designs and creative expression in a range of unique denim garments, blending artisanal craftsmanship with modern technology.
It features Cone Denim’s biodegradable fabrics, made with 100 per cent cotton, recycled cotton, and Tencel. These materials provide a lightweight, fluid foundation for Gordillo’s custom designs, which are hand-painted with abstract forms to create one-of-a-kind pieces. The brand blends traditional craftsmanship with modern technology to achieve a compelling design collaboration, says Pierette Scavuzzo, Design Director, Cone Denim.
The garments were finalized by Jeanologia at its Miami hub, using laser and ozone treatments to bring Gordillo’s vision to life. Their designs feature fine, hand-drawn lines and laser-cut patterns inspired by classic whiskers in weathered denim, adding a handcrafted aesthetic to the collection.
The garments embody a narrative of ethics, artistry, and transformation, emphasizes Gordillo. Each piece tells a story of raw, evocative beauty and functional elegance with the collection reconfirming the belief that quality, ethics, and sustainability are inseparable.
Known for his expertise in sustainable denim design, Gordillo earlier showcased his collections at the Vienna Fashion Week and Berlin Fashion Week. In 2023, he launched ReNacer, a collection that incorporated upcycled denim fabrics alongside innovative materials like Black Dry Denim from Tejidos Royo. Earlier, in 2019, he collaborated with Lenzing, Tejidos Royo, Officina39, and Tonello to launch Planet Rehab, a collection highlighting the denim industry’s commitment to reducing environmental impact.
The new collection reflects the growing demand for eco-friendly fashion, blending artistry and sustainability to create versatile pieces designed for everyday life. By combining Gordillo’s craftsmanship with Cone Denim’s sustainable fabrics and Jeanologia’s advanced finishing technology, the collection sets a benchmark for ethical and innovative denim design.
From $16.7 billion in FY24, Pakistan’s textile exports are likely to increase to $18–19 billion in FY25, as per projections by analysts.
Figures from Topline Pakistan Research indicate, Pakistan’s textile exports increased by 6 per cent Y-o-Y and 1 per cent M-o-M to $1.5 billion in December 2024.
Representing the fifth consecutive month of YoY growth, this growth was largely driven by the value-added segment, especially readymade garments, which reported 20 per cent Y-o-Y and 9 per cent M-o-M rise in exports to $357 million. Exports in other segments, including silk, and synthetic textiles, increased by 22 per cent Y-o-Y and 28 per cent M-o-M to $38 million—the highest in 2.5 years.
Value-added segment continued to outperform, with exports rising by 12 per cent Y-o-Y and 1 per cent M-o-M. Knitwear, bedwear, and towels exports grew by 7 per cent Y-o-Y, 13 per cent Y-o-Y and 1 per cent Y-o-Y to $391 million, $256 million, and $88 million respectively. However, exports of basic textiles declined by 16 per cent Y-o-Y and 2 per cent M-o-M to $215 million in December, with cotton yarn exports contracting by 34 per cent Y-o-Y and 22 per cent M-o-M to $63 million.
In H1, FY25, Pakistan registered a 10 per cent Y-o-Y growth in textile exports to $9 billion. Exports of basic textiles declined while shipments in the value-added segment grew by 17 per cent Y-o-Y, driven by a 22 per cent Y-o-Y increase in RMG exports.
This recovery in Pakistan’s textile exports is been attributed to several factors, including an improved cotton crop, shifting orders from Bangladesh due to internal conflicts, and tariffs imposed on China.
All Pakistan Textile Mills Association (APTMA) is urging the Federal Board of Revenue (FBR) to support the sector’s growth by restoring zero-rating or equalizing GST on inputs, expediting refunds, digitizing processes, and shortening audit periods to enhance liquidity and competitiveness.
The Northern India Textile Mills Association (NITMA) has raised alarm over under-invoiced imports of synthetic knitted fabrics, which it says are severely damaging the domestic textile industry. Today, NITMA President Sidharth Khanna made a heartfelt appeal to Prime Minister Narendra Modi, urging intervention to halt the illegal imports and misdeclaration of HS codes under Chapter 60 at Indian ports.
According to NITMA, certain importers are bypassing regulations by declaring synthetic knitted fabrics at prices as low as $1 per kilogram, while the actual global price ranges between $4–6 per kilogram. This malpractice has not only undermined domestic manufacturers but also resulted in over Rs10,000 crore in tax losses.
Although the government recently extended the Minimum Import Price (MIP) of $3.50 per kilogram on 13 synthetic fabric HSN codes until March 2025, imports have continued to rise. Data shows synthetic fabric imports surged from 89 million kilograms in Q1 2024 to 130 million kilograms in Q3 2024, as importers shifted to non-MIP HS codes.
Khanna commended the Ministry of Textiles and the Ministry of Commerce & Industry for their efforts but emphasized that current measures have proven inadequate. He pointed out the alarming involvement of logistics companies in importing these under-invoiced fabrics, predominantly from Nandiambakkam SEZ in Chennai.
To safeguard the textile industry, NITMA has called for a comprehensive investigation into these practices. It also urged the government to enforce stricter regulations and penalize violators to restore fair competition and trust in the market.
“Our industry cannot endure the financial and operational strain caused by such unscrupulous activities. Immediate action is imperative,” Khanna stressed.
Spanx LLC has unveiled a new groundbreaking denim collection that combines cutting-edge technology with unparalleled comfort and fit. Known as Spanxsculpt Redefine, this innovative range features Lycra FitSense denim technology, an advanced fabric with integrated, targeted sculpting zones for tummy control, thigh shaping, and butt-lifting.
The Spanxsculpt Redefine collection utilizes Lycra FitSense technology, integrating the sculpting zones directly into the fabric fibers. A Lycra fiber core is wrapped in a temperature-responsive fiber and encased in a cotton sheath to maintain denim’s timeless look and feel. Through an innovative heat-activation process, targeted sculpting zones are permanently ‘locked’ into the fabric at key areas like the tummy, thighs, and butt. These zones provide shaping benefits without the need for extra boning, paneling, or hardware, ensuring a sleek and comfortable fit.
The Spanxsculpt Redefine collection includes two flattering styles: flare and slim straight, available in two versatile washes. Both styles feature a functional five-pocket design, zip fly, button closure, and numeric sizing (0–26), marking Spanx’s first denim offering with fully functional sizing and traditional denim details. Spanx plans to expand the collection throughout the year with new styles, fits, and washes to meet customer demand.
Spanxsculpt Redefine is part of the Spanxeffect framework, which includes products designed to smooth, shape, and sculpt at varying levels of compression. With this framework, Spanx has introduced a new way for customers to identify and shop for the specific results they desire across its range of apparel, activewear, and intimates.
The Spanxsculpt Redefine denim collection transforms an iconic wardrobe staple into a must-have for women seeking premium sculpting and comfort in their everyday style. Cricket Whitton, CEO, Spanx, describes this collection as a game-changer in sculpting and comfort, offering women a new level of functionality in denim.
Sustainable fashion brand Nobody’s Child has entered the growing resale market in partnership with Reskinned with the tagline, ‘Loved once, loved again.’
Aligned with its belief that ‘beautiful fashion shouldn’t cost the Earth,’ the brand designs pieces that can be ‘loved, worn, and cherished for years.’ Its collaboration with Reskinned will help ensure these pre-loved styles find new homes through resale or repurposing. Any items that are no longer wearable will be responsibly recycled to prevent them from ending up in landfills, according to the retailer.
As an added incentive, customers participating in the program will receive a voucher worth up to $30 to use at Nobody’s Child.
Instrumental in helping brands execute their circular fashion strategies, Reskinned has, in recent years partnered with major fashion brands like Dune London, River Island, Seasalt, and Joules. Nobody’s Child also collaborated with repair specialist Sojo last year to mark World Earth Day, reinforcing its dedication to sustainability. The initiative reflects the brand’s ongoing commitment to building a more circular future for its products.
