The strategic integration of Kidly into the Mori ecosystem has enabled the London-based retailer to transcend the saturated infant sleepwear category, specifically targeting the higher-margin ‘big kid’ demographic. As the brand enters its second decade, it is successfully deploying a multi-category daywear and swimwear range designed for children up to age eight. This transition addresses a critical gap in the US retail landscape, where eco-conscious parents increasingly seek ‘investment dressing’ - high-durability garments that withstand the rigors of active childhood while maintaining the softness of infant apparel. By broadening its SKU count beyond bedtime essentials, Mori is effectively extending the customer lifecycle, ensuring that brand loyalty established at birth persists through the early school years.

Wholesale momentum and operational scalability

Financial performance for FY25 underscores a robust expansion trajectory, with a 17 per cent revenue increase to £16.1 million and a substantial 160 per cent rise in EBITDA. This fiscal strength has facilitated a high-profile wholesale offensive, placing Mori and Kidly collections in premier retail institutions such as Nordstrom and Bloomingdale’s. This omnichannel approach provides a necessary hedge against fluctuating digital marketing costs. Industry analysts suggest, by securing these premium shelf spaces, Mori is positioning itself to capture a significant portion of the projected growth in the $40 billion US children’s apparel sector. The launch of specialized daywear represents a concerted effort to scale North American operations, which currently serve as a primary engine for the brand’s global revenue growth.

Established in 2015, Mori specializes in sustainable children’s apparel crafted from signature bamboo and organic cotton blends. With a strong presence in the UK and North America, the brand is expanding into daywear and swimwear. FY25 saw revenues reach £16.1 million, supported by a 160 per cent EBITDA increase and key retail partnerships.

The Apparel Export Promotion Council (AEPC) has initiated a high-level strategic realignment to propel India’s garment exports from a decade-long stagnation of $17 billion toward a projected $40 billion by 2030.

Central to this objective is the aggressive utilization of recently inked Free Trade Agreements (FTAs) that now provide duty-free access to markets representing 60 per cent of the global population. Government leadership, including the Director General of Foreign Trade, emphasizes, while India possesses a massive numerical workforce, the industry must transition from its traditional cotton-heavy dominance toward Man-Made Fibers (MMF) and technical textiles. This shift is essential to capture high-value orders from global retailers like Primark, who are increasingly diversifying supply chains away from competing manufacturing hubs in favor of India’s enhanced vertical integration and policy stability.

Quality compliance and the global ‘Brand India’ mandate

To secure a foothold in rigorous markets such as Europe and Japan, the Ministry of Textiles is mandating a dual focus on ESG (Environmental, Social, and Governance) compliance and superior quality standards. Industry stakeholders noted during recent high-level deliberations in New Delhi that sustainability is no longer an optional attribute but a prerequisite for international trade. The government is facilitating this through the PM MITRA Parks and Samarth 2.0 skilling initiatives, which aim to consolidate the fragmented textile value chain and provide the scale required by global buyers. By addressing bottlenecks in polyester supply chains and upgrading machinery through dedicated schemes, India seeks to establish itself as a transparent, high-speed, and reliable alternative to traditional sourcing destinations.

Incorporated in 1978, AEPC is the official body promoting Indian apparel exports globally. It assists over 8,000 members by exploring new markets, influencing textile policy, and managing trade delegations. Currently focused on hitting a $40 billion export target by 2030, AEPC specializes in bridging the gap between domestic manufacturers and international high-volume buyers.

The immediate impact of the Iran- Isarel-US conflict is being felt in the logistics arteries that connect Bangladesh’s factories with global retail markets. The Strait of Hormuz, one of the world’s most strategic shipping corridors, has effectively become a choke point for international trade. Major carriers, including Mediterranean Shipping Company, have begun suspending bookings through the Gulf region. For Bangladesh’s garment exporters, whose competitiveness relies heavily on rapid turnaround times, the disruption means business loss.

The first consequence is the rerouting of cargo vessels. Ships that previously crossed the Persian Gulf are now diverting around the Cape of Good Hope, adding thousands of kilometers to already complex shipping journeys. The additional distance translates into weeks of delay, disrupting delivery schedules for European and North American buyers who demand fast-fashion turnaround cycles.

A second bottleneck has emerged in the air cargo sector. At Hazrat Shahjalal International Airport in Dhaka, shipments of high-value apparel products have begun piling up following the suspension of cargo flights by several Gulf airlines. Carriers from Qatar, Kuwait, Oman, and the United Arab Emirates have curtailed operations amid security concerns.

By early March, over 1,200 tons of export-ready garments were reportedly stranded at the airport. For an industry built on tight contractual delivery deadlines, even minor delays can trigger costly order cancellations or price renegotiations. The magnitude of the logistics disruption can be understood through the rapid escalation of transportation costs and timelines.

Table: Global logistics & energy impact report

The increase in Brent Crude Oil prices reflects the energy shock unleashed by the conflict. As fuel costs rise, shipping companies pass those increases down the supply chain. Longer routes and rising marine insurance premiums have compounded the pressure.

For garment exporters operating on razor-thin margins, these cost increases are eroding profits almost overnight. The apparel trade, already passing through post-pandemic consumer slowdowns, now faces the prospect of a logistics environment where speed is no longer guaranteed.

Factories facing power shortages

Beyond logistics, the second layer of crisis lies within Bangladesh’s industrial energy system. The country’s garment manufacturing cluster, stretching across Gazipur, Narayanganj, and Chattogram is facing acute pressure as global energy markets tighten.

To conserve fuel, the government has introduced rationing that limit truck fuel allocations and reduce electricity consumption across public institutions. Economists warn such measures risk undermining the industrial ecosystem that sustains the garment sector.

According to Zahid Hussain, former lead economist of the World Bank office in Dhaka, the crisis is comparable to a structural shock. The industrial energy infrastructure supporting Bangladesh’s manufacturing base is under stress. The impact is particularly visible in spinning mills, the most energy-intensive segment of the textile supply chain.

The spinning mill slowdown

Across Bangladesh’s spinning sector, gas pressure has reportedly fallen below five PSI, far beneath the levels required for efficient industrial operation. The result has been an immediate slowdown in production. Industry associations report that yarn output has fallen 30 per cent in several facilities. Some mills have attempted to compensate by shifting to diesel-powered generators, but the rising cost of fuel has increased operating expenses.

Within just 16 days, the cost of producing yarn has risen by almost 12 per cent. The price increase is particularly alarming because it undermines one of Bangladesh’s key competitive advantages: low-cost textile inputs.

If this continues, locally produced yarn could become more expensive than imports from regional competitors such as India and China. Such a shift would weaken domestic supply chains and push garment manufacturers toward imported materials, further straining foreign exchange reserves.

Currency pressure and the remittance lifeline

The third dimension of the crisis lies in the financial system. As geopolitical uncertainty drives investors toward safe-haven currencies, the US dollar has strengthened sharply. For Bangladesh, which relies heavily on imported fuel and industrial inputs, a stronger dollar translates directly into higher import costs.

Economists often illustrate the sensitivity of Bangladesh’s energy bill with a simple calculation. Every $10 increase in oil prices adds approximately $900 million to the country’s annual import expenditure. With oil prices approaching $120 per barrel, Bangladesh faces the prospect of an additional $4 billion in energy costs over the course of a year. For an economy already managing limited foreign currency reserves, the financial burden is significant.

Yet the most critical variable may be the country’s remittance pipeline. Millions of Bangladeshi workers are employed in Middle Eastern economies, and their earnings constitute a major source of forex. Roughly three-quarters of Bangladesh’s migrant workforce is based in the Gulf region. A further escalation of conflict, particularly if it spreads to Saudi Arabia, which hosts a large share of these workers could disrupt remittance flows.

Such a disruption would create a dangerous feedback loop. Without remittance inflows, banks may struggle to supply the dollars needed by garment manufacturers to open Letters of Credit for raw cotton and synthetic fibers. The entire textile supply chain could slow as financial liquidity tightens.

The cost of green production

Bangladesh’s garment industry over the past decade

has emerged as a global leader in environmentally certified textile facilities, boasting one of the highest concentrations of LEED-certified factories in the world. Many manufacturers have also invested heavily in recycled polyester and circular production systems.

However, the current energy crisis threatens to reverse those gains.

Producing recycled fibers is a highly energy-intensive process that involves cleaning, shredding, and reprocessing discarded textiles or plastic waste. With global energy costs soaring, the economics of recycled materials are shifting rapidly.

As per estimates recycled polyester is approximately 35 per cent more expensive than virgin polyester derived directly from petroleum. For international fashion brands already confronting slowing consumer demand, the price differential is proving difficult to justify.

The result is a subtle retreat from sustainability commitments. Some brands are reportedly returning to cheaper synthetic materials, prioritizing short-term cost savings over long-term environmental goals. For Bangladesh, which has positioned itself as a sustainable manufacturing hub, the shift is both a commercial and reputational challenge.

Policy crossroads for the new parliament

The crisis has placed the newly elected parliament in a difficult position. Having campaigned on promises of modernization and economic reform, the government now faces the urgent task of stabilizing the country’s most important export sector.

Analysts at the Centre for Policy Dialogue and the Policy Research Institute of Bangladesh have outlined several emergency strategies that could help reduce the impact. First, establishing dedicated industrial energy corridors that prioritize gas and electricity supply for export-oriented garment factories. By shielding production from power shortages, the government could prevent large-scale order cancellations.

Second focusing on securing emergency import financing. Negotiating credit facilities with the Islamic Development Bank could help Bangladesh finance energy imports without placing additional pressure on dollar reserves.

A third strategy centers on expanding the domestic recycling ecosystem for jhut, the textile waste generated by garment production. Strengthening this circular supply chain could reduce dependence on imported synthetic materials and create a buffer against global oil price volatility.

The garment industry has long functioned as the economic backbone of Bangladesh, employing millions of workers and generating the forex needed to sustain development. Any prolonged disruption to the sector carries far-reaching implications.

For Bangladesh, the challenge is not merely to manage a temporary disruption but to rethink the resilience of the country’s industrial strategy. Diversifying energy sources, strengthening domestic textile inputs, and building financial buffers may prove essential in an era of increasing geopolitical volatility.

The global luxury industry is no longer defined by relentless expansion. The ‘2025 Global Luxury Brandwatch Report’ highlights a sector readjusting in response to geopolitical uncertainty, inflationary pressures, and a more selective consumer base. Despite projections indicating a modest fall in the personal luxury goods market to €358 billion, a 2 per cent decline at current exchange rates, the pace of brand activity suggests an industry that is increasing its fight for consumer attention rather than retreating. Brand activations rose by 21 per cent year-on-year, showcasing that luxury houses are investing in visibility and engagement even in a cautious market.

From broad strokes to surgical focus

The most striking shift in 2025 is what analysts describe as the operational focus on localized initiatives. Global campaigns, once the mainstay of brand storytelling, have ceded prominence to market-specific activations tailored to local tastes, behaviors, and cultural nuances. This change became most pronounced in the second half of the year, when activation intensity accelerated sharply. The brandwatch data illustrates this clearly.

Table: Activation growth performance (2025-26)

The table underlines a dual trend. While overall activations grew 21 per cent across the year, the acceleration in H2 2025, up 46 per cent compared to the same period in 2024 underscores brands’ strategic urgency. Localized activations, in particular, demonstrated explosive growth, rising 65 per cent in the latter half of the year. In contrast, global initiatives saw negligible annual growth, revealing that large-scale global campaigns are no longer the primary lever of engagement. Brands are increasingly betting on precision: tailoring content, partnerships, and experiences to resonate within individual markets.

Emerging regional leaders

Geography has become a defining factor in luxury growth, with momentum shifting away from traditional strongholds toward emerging and revitalized hubs. While China remains the largest single market by activation volume, posting a moderate 16 per cent increase, it is no longer the sole engine of growth.

The Middle East & Africa (MEA) emerged as the standout performer. Brand activations in the region more than doubled, climbing 105 per cent, led by sustained expansion in Gulf countries and accelerated activity in South Africa. North America, a mature market, rebounded significantly, particularly in watches and jewelry, with activations up 102 per cent. Canada contributed meaningfully, highlighting renewed investment in hard luxury. Latin America continued its move ahead as a rising luxury destination, posting robust growth that narrows the gap with mature Asian markets. Meanwhile, Asia-Pacific beyond China saw Japan increase activations by 23 per cent and South Korea by 12 per cent, demonstrating that secondary Asian markets are increasingly critical to regional strategies.

Divergence across segments

The luxury scenario in 2025 was marked by uneven performance across sectors. Perfume and cosmetics emerged as the most dynamic category, driven by retail-based activations that emphasized in-store experiences and consumer education. By contrast, product-linked activations, campaigns tied directly to specific SKUs slowed, suggesting a recalibration of marketing spend toward holistic brand engagement rather than transactional pushes.

Fashion and leather goods, in contrast, experienced the largest decline in activation volume. Given the high operational and geopolitical complexity, brands in this category prioritized recalibration over expansion, focusing on inventory management, pricing discipline, and selective market targeting. Watches and jewelry adhered to market discipline, refining distribution channels and reassessing pricing structures in response to rising production costs and uncertain macro conditions.

Cultural capital becomes currency

A defining trend in 2025 is the expansion of luxury into cultural territories. Brands are increasingly positioning themselves as arbiters of lifestyle, taste, and longevity to strengthen emotional resonance with consumers. In beauty, firms shifted toward longevity-focused positioning, integrating scientific research and preventive health narratives to capture sustained demand, particularly from younger audiences in the US and China.

India has emerged as a strategic hub for global beauty groups, consolidating local capabilities and reinforcing the country’s importance in the global innovation and value chain. Jewelry brands, meanwhile, intensified experiential engagement through music partnerships and immersive events, elevating brand interaction beyond the product itself and embedding lifestyle associations into consumer perception.

Execution outweighs expansion

In 2026 the industry is expecting a gradual resumption of growth, particularly in the latter half of the year. However, the Brandwatch report emphasizes that the next cycle will be defined less by geographic reach and more by execution. In a climate of lower consumer confidence, luxury brands are expected to compete on the basis of precision, cultural leverage, and operational discipline. Expansion alone will no longer suffice; it is the brands that can balance local relevance with global prestige, and craft culturally resonant experiences, that will secure sustainable competitive advantage.