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Brexit has prompted the UK to seek new trade partnerships globally, and a potential Free Trade Agreement (FTA) with India holds significant implications for the British apparel retail sector. While the primary focus of Brexit's impact has been on trade with the EU, this new dynamic with India could reshape sourcing, pricing, and sales for UK brands.
UK’s current market landscape
The UK apparel retail market is substantial. As per Statista in 2023, revenue was estimated at £64.5 billion, projected to reach nearly £79 billion by 2029. Pre-Brexit, a significant portion of the UK's apparel sourcing was from within the EU and other established manufacturing hubs. Brexit has disrupted these supply chains. However, increased import costs and logistical challenges post-Brexit have put upward pressure on apparel prices in the UK. While the market has grown overall, shifts in consumer behavior and inflationary pressures are influencing sales patterns.
Post-Brexit changes
Brexit has brought about significant changes in the UK apparel retail landscape, affecting trade, supply chains, and consumer behavior.
Trade barriers: The UK's departure from the EU has led to new trade barriers, including customs procedures, tariffs, and increased operational costs. These barriers have particularly impacted small and medium-sized enterprises (SMEs), which comprise a significant portion of the UK fashion industry.
Export challenges: UK exports to the EU, historically the largest export market, have fallen sharply due to increased logistical costs and customs delays. The value of clothing exports from the UK dropped dramatically in 2021 and continued to decline in 2023. SMEs have faced greater challenges due to Brexit, with many struggling to navigate the new trade barriers and increased costs. Some have had to reduce their exports to the EU or focus on the domestic market. Many smaller designers and independent brands have found the paperwork and costs associated with EU trade prohibitive.
Supply chain disruptions: Uncertainties surrounding border procedures, customs checks, and regulatory compliance have disrupted supply chains, leading to delays, shortages, and increased transportation costs for UK brands sourcing materials or products from EU suppliers.
Labor shortages: Brexit has led to an exodus of EU fashion professionals from the UK workforce, creating labor shortages and limiting collaborative opportunities that once fueled innovation.
Shifting consumer behavior: While the overall market has grown, Brexit has contributed to shifts in consumer behavior, with some consumers expressing concerns about the impact on prices and availability of goods.
Despite the challenges, Brexit has also presented some opportunities for the UK apparel retail industry. The focus more on domestic market now as UK brands can capitalize on the growing domestic market by offering unique and high-quality products. In fact, large retailers like Next have been able to absorb some of the increased costs associated with Brexit and have continued to perform well in the market. Exports are more diversified as businesses can explore new export opportunities in non-EU markets to reduce reliance on the EU. The industry can focus more on innovation and sustainability to attract environmentally conscious consumers. And the continued growth of e-commerce provides opportunities for UK brands to reach customers both domestically and internationally. In fact, online marketplaces like ASOS and Boohoo have emerged as important platforms for UK brands to reach EU customers, mitigating some of the challenges associated with direct exports. However, even online retailers face increased logistical complexities.
Potential impact of a UK-India FTA
A UK-India FTA could significantly alter the landscape for British apparel retailers in several ways. It could lead to sourcing revolution. India is a global textile and garment manufacturing powerhouse an FTA could drastically reduce or eliminate tariffs on apparel imports from India, offering UK brands access to a vast and potentially more cost-effective sourcing base. This could lead to lower input costs for UK retailers, potentially leading to more competitive pricing for consumers. India offers an alternative to traditional sourcing hubs, reducing reliance on specific regions and mitigating risks associated with geopolitical instability or supply chain disruptions elsewhere. Moreover, India possesses expertise in various textile crafts and manufacturing processes, potentially offering UK brands access to unique and high-quality products.
Lower sourcing costs from India would enable UK retailers to offer more competitive prices, potentially boosting sales and market share. This could also help mitigate the inflationary pressures currently facing the UK market. Access to competitively priced, high-quality apparel sourced from India could make UK brands more attractive to consumers. This could lead to increased sales both domestically and potentially in export markets. While beneficial for UK brands sourcing from India, an FTA could also increase competition within the UK market from Indian apparel brands directly exporting to the UK.
Challenges and considerations
The specific rules of origin within the FTA will be crucial. They will determine how much of the value addition needs to occur in India for goods to qualify for preferential tariff treatment. Moreover UK brands will need to ensure that their sourcing from India adheres to ethical labor practices and environmental standards. Establishing efficient and reliable supply chains between India and the UK will be essential for realizing the full benefits of the FTA. What’s most important is the final terms of the FTA will determine the extent of the benefits for both sides.
Thus a UK-India FTA has the potential to significantly reshape the British apparel retail scenairo. While challenges exist, the opportunities for sourcing diversification, cost reduction, and sales growth are substantial. UK apparel brands need to proactively assess the potential impact of such an agreement and develop strategies to leverage its benefits while mitigating potential risks. The evolving global trade landscape demands agility and adaptability, and a well-negotiated FTA with India could offer a significant competitive advantage to UK apparel retailers.
N D Mhatre, Director General (Tech) of ITAMMA, emphasized the importance of artificial intelligence in the digital era. Speaking at a recent industry event, he stated that AI should be viewed as an opportunity rather than a challenge, enabling businesses to track product characteristics from production to export. He also highlighted how data-driven marketing strategies are crucial for planning production, product development, and promotional budgets.
ITAMMA and Tata Power Solar forge strategic partnership
Recognizing the role of renewable energy in sustainable growth, ITAMMA and Tata Power Solar signed a Memorandum of Understanding (MoU) to advance solar adoption in India's textile sector. This initiative aligns with India’s ‘Make in India’ and ‘Atma Nirbhar Bharat’ missions. Additionally, ITAMMA signed a Letter of Intent with Gujarat’s i-Hub to support startups and innovation in the textile engineering sector.
Honoring industry stalwarts
Prakash Shah, Chairman of Prashant Group, was felicitated with the ‘Lifetime Achievement Award’ by Chief Guest Roop Rashi, Textile Commissioner, Ministry of Textiles, Government of India. Shah, who started his journey in 1975 with a small team, has built an industrial empire spanning over 110,000 square meters with more than 1,000 employees. His companies Prashant Group, Prasad Group, and PPI Pumps are industry leaders in textile machinery and plastic auxiliary equipment.
Shah’s contributions to the sector have earned him prestigious awards, including the Rajiv Gandhi National Unity Award, AMA-Atlas Dychem Outstanding Entrepreneur of the Year, and Bharat Ke Ratna-Gujarat Se. His textile machinery company, Prashant Gamatex, has also been recognized with the Corp Excel Award for excellence in textile machinery.
Beyond business, Shah is actively involved in philanthropy, supporting schools for underprivileged children and initiatives for tribal upliftment in Gujarat and Bihar. He also works on employment generation for women in rural India through khadi and gramodyog initiatives.
Call for sustainability and digital transformation
Chief Guest Roop Rashi urged the textile industry to prioritize sustainability over profit, emphasizing that environmental concerns are shaping consumer demand and international trade. She encouraged ITAMMA members to submit their challenges and suggestions to her office for solutions.
The industry is responding with innovations to reduce manufacturing waste, cut energy and water consumption, and use recycled fibers. She noted that sustainability and digitization are closely linked, making AI-driven solutions essential for future growth.
Kedar Pandya, Director of SME Programs at the Wadhwani Foundation, presented insights on Generative AI’s role in textile engineering SMEs. He revealed that 75 per cent of organizations using Generative AI report a return on investment, with 86 per cent seeing revenue growth. Successful businesses have transformed AI ideas into production within six months, with revenue gains realized in a year.
Market trends show signs of recovery
J M Balaji, Vice President of Lakshmi Ring Travellers, discussed the current marketing trends in textile machinery. He pointed to early signs of recovery after a challenging 2023, with improved consumer sentiment, increased demand for casual wear, and easing supply chain disruptions.
ITAMMA Vice-President Om Prakash Mantry concluded the event by reiterating the organization’s dedication to cluster development, technological advancements, and skilling initiatives. By partnering with leading agencies and industry experts, ITAMMA aims to equip its members to navigate the challenges of AI-driven transformation.
Manager of retail operations for major surf brands like Billabong, Roxy, Quiksilver, RVCA, Honolua, and Boardriders, Liberated Brands has filed for Chapter 11 bankruptcy protection.
The company operated online and in-person stores through a licensing agreement with Authentic Brands Group, which owns the brands. The agreement ended in December, with Authentic Brands Group transitioning to a new wholesale licensing model. All 122 Liberated Brands stores are conducting closeout sales and will permanently close after liquidation. In January, the company laid off over 360 corporate employees and more than 1,000 retail workers.
According to Liberated Brands volatile global economy, changing consumer spending habits due to rising costs of living and inflation contributed to its bankruptcy. The company expressed hope that many of its employees would find new opportunities with other license holders.
The retail industry continues to face significant challenges. The early 2020s saw widespread store closures due to the COVID-19 pandemic, followed by a surge in shoppers and operational difficulties due to capacity restrictions. Smaller businesses struggled to survive without robust sales, while larger corporations were better positioned to weather the storm.
Rising interest rates have further exacerbated the situation, making borrowing more expensive and hindering retailers' ability to scale and expand. Many have been in survival mode, and numerous businesses have closed.
In 2024, approximately 500,000 businesses filed for bankruptcy, a 14 per cent increase from the previous year. According to Coresight Research, a further 15,000 store closures are expected in 2025, with a focus on Chapter 11 bankruptcy filings, liquidations, and major overhauls for surviving retailers.
With 9,056,990 bales of 170 kg each, Gujarat topped India's cotton production charts for the 2023-24 seasons, according to the Union Government.
Providing the state-wise and district-wide cotton production data (Annexture I&II), Ramnath Thakur, Minister of State for Agriculture and Farmers Welfare, states, Cotton Corporation of India (CCI) procured 3,284,000 bales of cotton under Minimum Support Price (MSP) operations, with 3,180,000 bales sold by January 27, 2025. Due to favorable domestic prices and a lack of price parity in exports, there were no cotton exports. Currently, India has no export restrictions on cotton, and the government does not import cotton. Local traders may import cotton independently, but there is no government mandate to do so or control prices.
The MSP for cotton provides a safety net for farmers, guaranteeing a minimum price for their produce. The Commission for Agricultural Costs and Prices (CACP) recommends the MSP annually, based on a formula of 1.5 times the cost of production (A2+FL), ensuring at least a 50 per cent return over production costs.
To implement the MSP scheme and ensure reasonable prices for cotton farmers, the CCI has established 507 procurement centers in 152 districts across 12 cotton-growing states, including 9 centers in Amravati District and 15 in Yavatmal District, Maharashtra.
Once-popular fast-fashion retailer, Forever 21 may be forced to file for Chapter 11 bankruptcy if it fails to secure a buyer for its profitable leases, according to reports in the Wall Street Journal.
Forever 21's operating company, Catalyst Brands licenses the brand in the US from Authentic Brands Group, which retains ownership of the intellectual property. The brand currently operates over 360 U.S. stores but has struggled since emerging from bankruptcy five years ago. According to a company spokesperson, Catalyst Brands is exploring strategic options for Forever 21 and working towards the best possible outcome.
Formed in January through the merger of Sparc Group (operator of Forever 21, Lucky Brand, Eddie Bauer, Aeropostale, and Brooks Brothers) and JCPenney, Catalyst Brands is at the center of these developments. Authentic Brands Group acquired the Forever 21 brand out of bankruptcy in 2020 and licensed it to Sparc Group.
Earlier this month, Jamie Salter, CEO, Authentic Brands Group discussed the brand's partnership with online giant Shein, noting that while online sales through Shein were ‘good but not great,’ in-store Shein pop-ups within Forever 21 stores had been ‘huge home runs.’ Currently preparing for an IPO, Shein owns a one-third stake in Sparc Group and Authentic Brands Group's joint venture.
Sparc Group also holds a minority share in Shein. The Group typically invests in struggling retailers, often keeping well-known brands within Simon Property Group's malls. The partnership between Shein and Sparc Group aims to leverage their respective strengths to drive innovation, explore new strategies, improve customer experience, and expand market presence.
Founded in 1984 by Korean immigrants, Forever 21 became a popular destination for affordable, trendy clothing. However, declining mall traffic and the shift to online shopping led to slumping sales. Forever 21's aggressive expansion, from 500 stores in 2010 to 800 in 2018 across over 40 countries, ultimately proved unsustainable. The company's strategy of targeting vacant department store spaces backfired as it faced financial difficulties.
Under the aegis of the Ministry of Textiles, The Development Commissioner (Handlooms), has launched India's first textile upcycling festival, ‘Weave the Future,’ at Dilli Haat. Running until February 9, 2025, the festival promotes sustainable fashion and raises awareness about reducing textile waste.
As a lead-up to India Tex 2025, a major global textile trade fair, the festival offers a platform for artisans, designers, and consumers to discuss sustainability, circular fashion, and ethical textile production. The event includes brand interactions, art exhibitions, and hands-on sewing and knitting workshops to encourage sustainable textile practices.
A central feature is a thematic installation divided into three sections: Handmade, Recycled, and Upcycled. The Handmade section displays fabrics made from handspun yarns and natural dyes. The Recycled section showcases textiles repurposed by breaking them down and reconstructing them. The Upcycled section demonstrates the creative reuse of discarded garments, fabric scraps, and surplus materials.
Forty brands committed to eco-conscious craftsmanship are showcased, encouraging wider adoption of responsible practices and raising consumer awareness. The festival emphasizes the 9R principles - Refuse, Reduce, Reuse, Repair, Recycle, Repurpose, Regenerate, Rethink, and Restore - to guide sustainable textile consumption.
The Textile Committee of the Ministry of Textiles has identified several exhibitors as Upcycled Textile Manufacturers, contributing to a structured system for upcycled textile products in India.
Aggressively expanding its quick commerce service, ‘Flipkart Minutes,’ the e-commerce company, Flipkart aims to establish 500-550 dark stores before its ‘Big Billion Days’ sale. The company expects to have around 300 dark stores operational by March, significantly increasing its presence and intensifying competition with Blinkit, Zepto, and Swiggy Instamart.
The Walmart-backed e-commerce giant entered the rapidly growing quick commerce segment around August of last year. It currently operates 120-150 dark stores with this expansion representing a rapid scale-up for the company. By March 2025-end, Flipkart aims to open over 300 dark stores, with the ultimate goal of over 500 stores in preparation for its major annual sale, typically held in October-November
Crucial for quick commerce, dark stores enable platforms to store a wide range of products and fulfill deliveries within 15-20 minutes. Flipkart has reportedly strengthened its market position in Bengaluru and expanded its offerings to include high-value items like electronics, appliances, and smartphones, mirroring recent strategies by Blinkit and Zepto.
Having reached 700 dark stores by December 2024, Swiggy Instamart took over two years to achieve that milestone. Zepto surpassed 900 stores in January, while Blinkit leads the segment with over 1,000 dark stores.
Last month, Flipkart appointed Kabeer Biswas, Co-founder, Dunzo, to lead its quick commerce venture. This move signals Flipkart's commitment to competing against Blinkit, Swiggy Instamart, and Zepto, which are all vying to deliver a wide range of products quickly.
Other quick commerce players are also investing heavily in scaling operations. With its current trajectory, Flipkart is poised to become the fourth-largest player in quick commerce. BigBasket’s BB Now also competes in this space, while Amazon is reportedly testing a 15-minute delivery service in Bengaluru.
According to Bofa Securities, the Indian quick commerce market is projected to grow from $21 billion to $31 billion by FY27, increasing its share of the retail market from 1.7 per cent to 2.4 per cent.
Leading integrated express logistics provider in India, DTDC has entered into the rapid commerce space with the launch of 2-4 hour rapid delivery and same-day delivery services. This expansion leverages DTDC's robust logistics network, advanced technology, and success in domestic e-commerce to enhance last-mile delivery solutions for businesses and consumers.
Building on its next-day delivery expertise, DTDC now offers rapid 2-4 hour deliveries, promising speed and reliability. The company has established its first dark store in Bengaluru, creating a hyperlocal fulfillment ecosystem to improve last-mile delivery efficiency. This initiative will empower D2C brands and social commerce sellers, enabling them to offer rapid delivery services across India.
DTDC plans to expand these rapid delivery options nationwide, further solidifying its role in transforming the logistics and e-commerce landscape. The expansion aims to meet the increasing demand for rapid delivery in today's fast-paced digital world.
Subhasish Chakraborty, Founder and Chairman & Managing Director, DTDC Express, states this launch is a significant milestone for DTDC, strengthening its commitment to growth in the evolving logistics and commerce sectors. He emphasized the goal of meeting the increasing demand in rapid commerce and becoming a key player in shaping the future of delivery services in India.
Abhishek Chakraborty, CEO DTDC Express, adds, they are excited to launch their first dark store in Bengaluru, a key e-commerce hub, to serve the growing needs of emerging brands and businesses. He opines, catering to the evolving demands of the digital marketplace, DTDC will redefine logistics solutions.
Bangladeshi recycled yarn producer, Simco is engaged in an intellectual property dispute with Swiss apparel and shoe brand ON over confusingly similar names. Based in Bhaluka, Simco manufactures yarn under the brand ‘Cyclo,’ supplying it to apparel manufacturers who export garments with Cyclo hangtags to European and American retailers. Simco registered the ‘Cyclo’ trademark in Singapore in 2014.
The Swiss company, ON, registered its apparel brand as ‘Cyclon’ in Switzerland in 2021 and markets its products under this name. Meanwhile, Simco created ‘Cyclo’ in 2014 as Bangladesh's first certified garment waste recycling facility and brand for its recycled fibers and yarns. The ‘Cyclo’ brand is trademarked and registered in over 20 countries, including Bangladesh, the EU, USA, UK, and Japan.
A major player in the performance sportswear industry with an estimated market capitalization exceeding $20 billion, ON launched a recycling program called ‘Cyclon’ around 2021 and subsequently attempted to limit Simco's use of the ‘Cyclo’ brand in key markets.
The similarities in name and the shared focus on circularity and recycling have forced Simco to defend its ‘Cyclo’ trademark across multiple jurisdictions. Simco claims ON has been unresponsive to attempts at amicable resolution, highlighting the power imbalances faced by smaller companies from developing nations.
Founded in Switzerland in 2010, ON produces premium footwear, apparel, and accessories for running, outdoor activities, training, all-day wear, and tennis.
Nilesh Ved, Founder and Chairman of AppCorp Holding and owner of Apparel Group, received the prestigious Lifetime Achievement Award for Pioneering Retail Entrepreneurship at the 2025 RLC Honors in Riyadh, Saudi Arabia, on February 4.
Recognized as one of the retail industry’s most transformative leaders, Ved has played a crucial role in reshaping global retail with his vision for innovation, expansion, and excellence. Under his leadership, Apparel Group has become a dominant force in the industry, setting new benchmarks for success.
The award ceremony, followed by an exclusive dinner attended by 150 top industry figures, celebrated Ved’s impact on retail. His contributions have not only redefined consumer experiences but also set the strategic course for the industry's future.
Upon receiving the honor, Ved expressed his gratitude, stating, “This award is a testament to our journey, driven by passion, resilience, and a commitment to excellence. Retail is about more than commerce it’s about creating meaningful connections that resonate globally. I am deeply humbled and inspired to continue shaping the industry’s future.”
The RLC Honors once again highlighted its mission to recognize trailblazers shaping the retail landscape. Ved’s Lifetime Achievement Award marks a defining moment in his career, cementing his legacy as a visionary leader whose influence continues to inspire the next generation of retail pioneers.
