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Apparel 28/01/26

Brocade Diplomacy: How ‘Indian Handlooms’ captured the global luxury narrative

28 January 2026, Mumbai

The 77th Republic Day parade at Kartavya Path transcended its traditional role as a display of national heritage, evolving into a high-stakes showcase for India’s premium textile sector. European Commission President Ursula von der Leyen, usually defined by her rigid European "power suits," made a significant aesthetic shift that has sent ripples through the global fashion industry. Her choice of a maroon and gold Benarasi silk brocade bandhgala jacket was not merely a cultural nod; it was a strategic validation of Indian handlooms on a global stage where "quiet luxury" and "provenance" are the new market currencies.

Structured Heritage: The rise of Indo-European Fusion

The ensemble, a collaboration between the Fashion Design Council of India (FDCI) and designer Rajesh Pratap Singh, highlighted a growing commercial trend: the integration of centuries-old artisanal techniques with contemporary, structured silhouettes. Singh, known for his architectural precision, utilized a hand-loomed GI-tagged Benarasi silk, proving that traditional textiles are ready for high-fashion scrutiny. Industry experts suggest this "fusion" category is one of the fastest-growing segments in the $15 billion Indian luxury market, projected to grow at a CAGR of 10% through 2026. This aesthetic transition signals to global buyers that Indian crafts can be decoupled from purely "ethnic" contexts and marketed as versatile luxury staples.

Scaling the Artisanal: From Varanasi to Milan

The visibility of this Benarasi jacket coincides with a major shift in how the global North views Indian craftsmanship. Traditionally the "back-office" for European luxury houses, Indian designers are now reclaiming the narrative. With the global handloom market expected to surge to $16.62 billion by 2032, the spotlight on the Benaras cluster—which supports over 100,000 active weavers, is crucial. Retailers in Paris and Milan are increasingly looking for "meaningful consumption" triggers, where the story of the maker is as valuable as the thread itself. The use of metallic zari and silk-satin weaves in the President’s attire serves as a masterclass in how to present heritage as a globally relevant, premium product.

The sustainability edge in premium retail

As the fashion industry faces stringent new traceability and ESG (Environmental, Social, and Governance) norms, handlooms offer a unique competitive advantage. Unlike mass-produced synthetics, hand-woven silk is a low-carbon, biodegradable alternative that aligns with the "slow fashion" movement. For European retailers, Indian handloom clusters represent a "ready-to-wear" solution for ethical sourcing. Designers like Abraham & Thakore and Anamika Khanna, who also dressed the EU chief during her visit in Bandhani and Resham embroidery respectively, are at the forefront of this shift, turning decentralized artisanal hubs into highly responsive, sustainable supply chains for the international elite.

The Benaras transformation

Once relegated to traditional bridal wear, the Varanasi (Benaras) silk cluster has undergone a commercial revolution. By standardizing quality through Geographical Indication (GI) tags and collaborating with contemporary designers like Rajesh Pratap Singh, the cluster has moved into the "prestige prêt" category. This transition allows weavers to command higher price points in international markets, shifting from commodity-based pricing to value-based luxury.

The Indian premium handloom landscape

The Indian handloom sector is the second-largest employer in the rural economy after agriculture, involving over 4.5 million artisans. Specializing in high-value categories like Benarasi, Kanchipuram, and Muga silk, the industry is a cornerstone of India’s $44 billion textile export engine. Current growth plans focus on "Farm-to-Fashion" integration through Mega Textile Parks, aiming to double handloom exports by 2030 through digital traceability and global designer collaborations.

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Apparel 28/01/26

Brocade Diplomacy: How ‘Indian Handlooms’ captured the global luxury narrative

RLL reports 5% Y-o-Y rise in income to Rs 1,883 crore

28 January 2026, Mumbai

The Indian apparel sector is navigating a polarized landscape where resilient internal consumption is currently offsetting significant global trade disruptions. Raymond Lifestyle (RLL) exemplified this trend in its Q3 FY26 results, reporting a 5 per cent Y-o-Y increase in total income to Rs 1,883 crore. While consolidated net profit faced a 33 per cent decline to Rs 42.86 crore - largely attributed to aggressive US tariff hikes impacting the garmenting export segment - the company's domestic ‘Branded Textile’ division increased by 11 per cent to Rs 951 crore. This growth was propelled by an exceptionally strong wedding and festive season, confirming that high-value ethnic and formal wear remains a primary defensive category for Indian retailers.

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Retail optimization and margin discipline

To counter export-led margin pressure, RLL is executing a disciplined rationalization of its physical footprint. The company’s retail network now stands at 1,675 stores, following the closure of nine underperforming outlets this quarter to prioritize high-throughput locations. Despite a deliberate increase in marketing expenditure to boost brand equity, the firm achieved an EBITDA of Rs 271 crore, representing a 23 per cent jump. The management is increasingly moving towards the UK-India Free Trade Agreement as a critical lever to diversify its international order book, reducing its 17 per cent revenue exposure to the volatile US garmenting market.

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Resilience through operational efficiency

The broader sector impact of RLL's performance suggests a ‘quality-over-volume’ transition. By improving its product mix and leveraging operational efficiencies, the company expanded its EBITDA margin to 14.4 per cent from 12.3 per cent a year ago. Our resilience is anchored in domestic categories, while we proactively mitigate global headwinds through strategic sourcing and trade initiatives, noted Gautam Hari Singhania, Executive Chairman. This focus on domestic ‘mass affluent’ consumers is a recurring theme as Indian brands increasingly look inward for sustainable growth.

Raymond Lifestyle is India’s premier integrated manufacturer of worsted suiting and high-value shirting, dominating the formalwear and luxury textile markets. Historically established as a vertically integrated suiting facility, it now targets Tier-I and Tier-II expansion. RLL aims for double-digit revenue growth by 2027 through omnichannel integration and sustainable manufacturing.

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Apparel 28/01/26

RLL reports 5% Y-o-Y rise in income to Rs 1,883 crore

Popees Baby Care inaugurates 104th store in Chenna

28 January 2026, Mumbai

In a strategic move to capture a larger share of India’s $5.51 billion baby care market, Popees Baby Care has inaugurated its 104th store at Grand Square Mall, Chennai. This launch signifies the brand’s first Exclusive Brand Outlet (EBO) in the Tamil Nadu capital, marking a critical transition from regional distribution to direct-to-consumer flagship retail in high-growth metropolitan hubs. The inauguration, attended by mall leadership and prominent parenting influencers, underscores a broader industry shift where organized retail is projected to grow at a CAGR of over 11 per cent through 2031, driven by a rising demand for specialized infant safety standards.

Fabric innovation and safety protocols

The Chennai flagship serves as a showcase for the brand’s premiumization strategy, specifically its ‘Bamboo Essentials’ line. By utilizing eco-friendly, hypoallergenic bamboo fabrics, the company is addressing the heightened consumer sensitivity toward skin-safe materials - a segment expected to outpace conventional apparel. To maintain a competitive edge against both domestic and international entrants, the brand has institutionalized a rigorous 28-point quality checkpoint system. This focus on ‘clinical-grade’ safety serves as a defensive moat in a fragmented market where urban parents increasingly associate brand certification with authenticity and infant health.

Ambitious roadmap for domestic and global dominance

With an operational revenue of approximately Rs 123 crore for the previous fiscal year, the company is executing an aggressive expansion blueprint that targets 1,000 stores within the next four years. Beyond its domestic stronghold, the group is pursuing an international omnichannel strategy, with recent entries into the UAE market via Sharjah and Abu Dhabi. While the sector faces headwinds from rising raw material costs and intense competition from digitally-native brands, the group’s integrated manufacturing model - producing 500,000 garments monthly—provides the logistical agility required to scale rapidly across Tier-I and Tier-II geographies.

Founded in 2003, Popees Baby Care is a specialized manufacturer and retailer of infant apparel and maternity products. Operating three manufacturing facilities, the brand dominates the South Indian market with a focus on newborns to six-year-olds. With a current valuation supported by a 14 per cent Y-o-Y revenue growth, the group is aggressively pivoting toward a 1,000-store national network and GCC expansion to solidify its status as a global leader in the sustainable baby care segment.

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Apparel 28/01/26

Popees Baby Care inaugurates 104th store in Chenna

Arvind Fashions shifts a leaner operational structure with a new CEO for Flying Machine

24 January 2026, Mumbai

Arvind Fashions (AFL) has shifted to leaner operational structure by initiating a strategic leadership realignment. The brand has appointed Amitabh Suri as the new Chief Executive Officer of Flying Machine. Effective immediately, Suri assumes this role in addition to his current mandate as CEO, US Polo Assn (USPA) in India.

This consolidation under a single executive follows the vacancy left by Nidhi Raj, who led the homegrown denim label until February 2025.

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Synergizing denim heritage and casualwear dominance

The dual leadership model arrives as AFL aims to leverage the operational excellence of USPA - which recently surpassed the Rs 2,000 crore revenue milestone - to revitalize Flying Machine’s youth-centric portfolio. Under Suri’s prior stewardship, USPA evolved into India’s premier casualwear label, now contributing roughly 15 per cent to its global sales. The mandate for Flying Machine involves scaling its footprint within the millennial and Gen Z demographics, capitalizing on the brand's heritage as India’s first domestic denim label while integrating the omnichannel efficiencies that Suri successfully implemented across regional and international markets.

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Strategic buyouts and market volatility

The appointment coincides with AFL’s recent acquisition of the remaining 31.25 per cent stake in the Flying Machine brand from Flipkart for Rs 135 crore, making it a wholly owned subsidiary. This corporate maneuver allows for unrestricted strategic autonomy at a time when the Indian denim market, valued at approximately $1.14 billion in 2025, is projected to grow at a CAGR of 8.2 per cent. Industry analysts suggest, the unified leadership will facilitate sharper focus on ‘premiumization’ and direct-to-consumer (DTC) channels, which saw a 50 per cent growth in online B2C sales in the second quarter of fiscal 2026.

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Transitioning to sustainable growth

Beyond immediate volume gains, the unified leadership is tasked with navigating the shift toward eco-friendly textiles and performance-driven denim. As retailers prioritize ‘low-carbon’ sourcing and sustainable fabric blends, AFL is positioning Flying Machine to align with global standards.

Consolidating leadership across marquee brands allows for a singular, cohesive strategy in a fragmented market, noted a senior industry analyst. This approach aims to protect operating margins against fluctuating input costs while securing long-term shareholder value in a competitive retail landscape.

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Arvind Fashions is India's leading casualwear and denim powerhouse, managing a diverse portfolio that includes iconic international labels like Tommy Hilfiger and Calvin Klein alongside indigenous brands. With a target of achieving a Rs 3,000 crore revenue mark for its marquee brands by 2030, the company is aggressively expanding its 400-plus exclusive outlet network. Historically rooted in textile manufacturing, AFL has transformed into a retail-first organization, maintaining a robust consolidated revenue growth of 11 per cent as of late 2025.

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Apparel 24/01/26

GMLL activates five-cluster distribution strategy in Tamil Nadu

28 January 2026, Mumbai

Garment Mantra Lifestyle (GMLL) has officially operationalized its primary domestic expansion phase by appointing five authorized distributors across high-demand clusters in Tamil Nadu. Targeting a structured reach within Chennai, Trichy, Madurai, Dindigul, and Tirunelveli, the initiative facilitates immediate inventory access for retail partners across 19 districts. This cluster-based model is designed to optimize supply chain velocity while mitigating the logistical overhead typically associated with traditional wholesale frameworks.

Scalable infrastructure and market penetration

The move coincides with a robust fiscal trajectory for the Tirupur-based manufacturer, which recently reported a record Rs 100 crore in export sales for the current financial year. By transitioning to an asset-light distribution architecture, the company aims to capitalize on Tamil Nadu’s consistent demand for organized apparel without heavy capital expenditure. Management confirmed that a second phase is already underway to secure near-complete state coverage, including the Coimbatore and Salem belts, by the close of the current fiscal period.

Strategic resilience amidst sector shifts The domestic push serves as a strategic counterweight to international volatility. While GMLL has successfully penetrated Gulf and Middle Eastern markets, the localized Tamil Nadu network provides a stable revenue stream insulated from global trade fluctuations. Our objective is to bridge the gap between manufacturing excellence and retail availability, stated Prem Aggarwal, Managing Director. Despite industry-wide inflationary pressures, the company’s recent Q2 results showed a 288 per cent Y-o-Y rise in net profit, providing the necessary liquidity to fund this aggressive regional rollout.

A specialized manufacturer of knitted fabrics and garments, Garment Mantra operates a portfolio including brands like Hylex and Monk. With its primary manufacturing hub in Tirupur, the company is aggressively pursuing an export-led growth strategy while scaling its domestic wholesale presence through asset-light distribution models. Recently achieving its highest-ever export milestone, GMLL is focused on stabilizing long-term margins through high-volume retail penetration.

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Apparel 28/01/26

GMLL activates five-cluster distribution strategy in Tamil Nadu

India-EU FTA and the hidden half of the deal, Europe’s fabrics enter India duty-free

28 January 2026, Mumbai

Much of the public conversation around the India-EU Free Trade Agreement (FTA) has focused on exports: factories running longer shifts, order books swelling, and Indian garments finding wider shelf space across Europe. Yet beneath this export-led narrative, a quieter structural transformation is unfolding one that could prove just as consequential for India’s fashion future.

For the first time in decades, the agreement dismantles India’s long-standing tariff barriers on premium European fashion fabrics. While the spotlight remains fixed on Made in India labels reaching Paris and Milan, the more strategic shift lies in the reverse flow: Sourced from Italy and Woven in France materials entering India at zero duty. This change directly feeds India’s ambition to evolve from a volume-driven apparel supplier into a fully integrated global fashion hub.

The tariff wall that shaped an industry

Before the FTA, India’s fabric import ecosystem was defined by a sharp paradox. The country is one of the world’s largest producers of cotton and blended textiles, yet it has always relied on Europe for high-count woollens, couture-grade lace, advanced silk blends, and specialized finishing techniques. These imports, however, came at a cost.

Duties ranging from 10 to over 20 per cent made European fabrics more expensive than domestic alternatives or materials sourced from Southeast Asia. As a result, Italian, French, and Belgian textiles were largely confined to a narrow universe of couture designers, luxury tailors, and appointment-only importers in Tier-I metros. The tariff reset introduced by the FTA fundamentally alters this equation.

Table: Fabric import duties before and after the FTA

Category	Pre-FTA duty (FY25)	Post-FTA duty (2026)	Primary EU sources
Luxury Fashion Fabrics	10- 20%	0%	Italy, France, Spain
Premium Lace & Embroidery	10-20%	0%	France, Belgium
High-Count Woollen Fabrics	10%	0%	Italy, Germany
Specialized Silk Blends	20% + surcharge	Phased to 0%	Italy

Luxury materials move from vaults to showrooms

One of the most immediate ripple effects of duty-free European fabrics is unfolding within India’s organized fabric retail sector. What was once a closed, elite market is steadily opening up to a broader but still premium consumer base. Until now, Italian linens or French silks were typically sourced through bespoke channels catering to a tiny slice of India’s ultra-affluent. With the FTA in place, organized fabric retailers are preparing to stock these materials at price points aligned with India’s rapidly expanding affluent class, projected to grow from around 60 million consumers in 2023 to nearly 100 million by 2027.

Industry estimates suggest that premium retail prices for imported shirting and suiting fabrics could fall by 12-15 per cent. This narrowing gap between premium domestic and entry-level European fabrics is expected to change purchasing behaviour, particularly among aspirational urban professionals and wedding shoppers. The effect, in industry terms, is a gradual democratization of luxury where access expands without diluting exclusivity.

A dual advantage for Indian garment makers

For India’s garment manufacturing ecosystem, the FTA delivers a two-pronged benefit that strengthens both domestic positioning and export competitiveness. On the home front, premium Indian brands now have the freedom to experiment at a level previously constrained by cost. Labels such as FabIndia’s premium lines or Anokhi can blend zero-duty French lace with Indian Chanderi, or pair Italian wool with indigenous tailoring traditions. The result is a new category of Indo-Western luxury that would have been commercially unviable under the old tariff regime.

In export markets, the implications are even more strategic. Manufacturers in clusters like Tiruppur, Noida, and Ludhiana are no longer locked into mid-grade input materials. Access to European fabrics at zero duty allows Indian exporters to compete directly in higher-value segments traditionally dominated by Vietnam or Turkey.

A recent example from Noida-based Vogue Exports illustrates this shift. By replacing Chinese synthetic blends with Italian luxury cottons for a European client’s premium spring collection, the company saved roughly 12 per cent in fabric duties. That saving translated into a four-percentage-point improvement in margins enough to undercut Vietnamese competitors while still enhancing perceived quality.

Domestic fabric giants face a quality reckoning

The influx of duty-free European textiles inevitably raises questions about India’s own fabric champions. Companies such as Raymond and Grasim are not being displaced but they are being challenged. Rather than triggering a price war, the FTA is accelerating an upgradation cycle across the domestic fabric industry.

Table: Impact on Indian domestic fabric brands

Brand impact	Strategy post-FTA
Raymond Ltd	Shifting focus to superfine counts (Super 250s) to compete with Italian woolens; expanding retail presence in the EU to leverage zero-duty exports.
Grasim (Aditya Birla)	Investing in sustainable Green Fabrics to meet EU environmental standards, balancing the import of high-end European pulp/fibers.

Preferred partners and the quiet exclusion of others

The India-EU FTA also redraws the competitive map by creating a clear hierarchy among sourcing nations. European suppliers now enjoy a preferred status that non-FTA countries struggle to match. Fabrics from China and Japan continue to attract peak customs duties of 10-20 per cent, instantly making high-end Japanese silks or specialty blends more expensive than Italian equivalents of comparable quality. Turkey, despite its customs union with the EU, faces a more complex route into India compared to the streamlined FTA pathway. Trade analysts estimate that this realignment could divert up to $2.7 billion in fabric sourcing away from non-FTA countries over the next few years.

Europe’s fabric giants eye a deeper India play

Perhaps the most telling indicator of the FTA’s long-term impact lies in the recalibration of Europe’s heritage fabric houses. These companies are not consumer brands in the traditional sense, but ingredient brands names that signal quality to designers, tailors, and discerning buyers.

Table:

European Brand	Primary segment	Pre-FTA India strategy	Post-FTA projection (2026-28)
Loro Piana	Ultra-Luxury Wool/Cashmere	Niche, Tier-1 cities only	Expansion to Tier-2; 20% price reduction for bespoke clients.
Albini Group	Premium Shirtings	B2B Supply to major brands	Launch of Direct-to-Tailor digital platforms in India.
Dormeuil	Luxury Suiting	Exclusive distribution	35% increase in seasonal collection availability in India.
Vitale Barberis	Heritage Suiting	High-end wholesale	Potential "Finishing Partnership" with Indian mills.

The silent squeeze on non-EU luxury suppliers

As European brands gain price and access advantages, non-EU luxury fabric makers are facing a quiet but significant squeeze. Japanese silk specialists and British suiting houses like Kyoto Silks or Scaba now find themselves 15-20 per cent more expensive purely due to tariff differentials. The likely outcomes are stark: absorb the cost and accept margin erosion, or gradually cede market share. In this sense, the FTA is not merely enabling trade it is actively reshaping competitive survival.

A new hybrid takes shape

What emerges from this realignment is a distinctly new fashion archetype. An Indian sherwani cut from Italian wool; a bandhgala finished with French lace; a bespoke suit that blends European fiber science with Indian craftsmanship and is sold to a global customer. This Euro-Indian hybrid represents the next stage of India’s fashion evolution.

From trade deal to quality transfer

Ultimately, the import story of the India-EU FTA is not about undermining Indian weavers or mills. It is about upgrading the ecosystem. By opening the door to the world’s finest fabrics, India is effectively importing know-how, benchmarks, and aspiration. As EU fabric exports to India are projected to double by 2032, growth will be driven not by commodities but by heritage-rich, high-value materials. In that sense, the FTA is less a commercial agreement and more a catalyst quietly supplying the threads from which the next generation of Indian fashion leaders will be woven.

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Apparel 28/01/26

India-EU FTA and the hidden half of the deal, Europe’s fabrics enter India duty-free

Apparel industry eyes larger share of global market with new self-defined benchmarks

24 January 2026, Mumbai

Apparel industry is aggressively positioning itself to capture a larger share of the global market, despite a shifting regulatory landscape in the European Union. During the recent inauguration of the 74th India International Garment Fair (IIGF) at Yashobhoomi, New Delhi, Giriraj Singh, Union Minister for Textiles highlighted India’s strategic shift toward indigenous standards such as IndiaSize and VisionNxt. This move toward self-defined benchmarks aims to decouple the domestic manufacturing ecosystem from foreign standards, fostering a unique ‘Made in India’ identity for global retailers.

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Navigating the EU-GSP withdrawal challenge

A critical development for the sector is the European Union’s suspension of Generalised Scheme of Preferences (GSP) benefits for Indian textiles and garments, effective January 1, 2026. This transition raises import duties for many apparel lines from 9.6 per cent to the standard 12 per cent Most Favored Nation (MFN) rate. While this graduation reflects India's maturity as an exporter, it creates a temporary margin squeeze. Industry leaders remain optimistic, however, as negotiations for the India-EU Free Trade Agreement (FTA) are slated for conclusion by late January 2026. The FTA is expected to eventually neutralize these tariff hikes and potentially double export volumes to the bloc within three years.

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Scaling output through verticalization and leadership

On the corporate front, sector titan Arvind Limited is reinforcing its expansionist agenda with the appointment of Rajarshi Ghosh as CEO-Denim Business. Tasked with driving ‘ownership-driven outcomes,’ Ghosh takes the helm as the company reports a 70 per cent Y-o-Y growth in net profit for Q2 FY26. Arvind’s verticalization strategy - integrating fabric production with high-volume garmenting - saw output reach 10.7 million pieces last quarter. This operational efficiency is paired with a heavy investment in Zero Liquid Discharge (ZLD) technology, catering to the ‘clean denim’ demands of marquee international brands like Levi’s and Gap Inc.

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Towards a $40 billion export milestone

Despite global headwinds, cumulative Ready-Made Garment (RMG) exports for April–December 2025–26 reached $11.58 billion, a 2.4 per cent increase.

To sustain this momentum toward the $40 billion apparel export target by 2030, the Apparel Export Promotion Council (AEPC) has urged the government to introduce a Focus Market Scheme for the US and enhance interest subvention rates to 5 per cent.

These measures are viewed as vital for MSMEs to maintain price competitiveness against duty-free rivals like Bangladesh and Vietnam.

Arvind Limited is a vertically integrated textile-to-retail conglomerate and India’s largest denim exporter. Serving global giants like Levi’s and Gap, the firm operates an ecosystem from fiber to finished apparel.

With a current revenue target of Rs 10,000 crore, Arvind is prioritizing renewable energy and green technology to lead the premium "clean denim" market.

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Apparel 24/01/26

India records highest five-year growth during 2026 Republic Day sales

28 January 2026, Mumbai

India’s retail landscape achieved a landmark performance during the 2026 Republic Day sales, recording its strongest growth trajectory in five years. This rise was underpinned by the strategic implementation of GST 2.0, which rationalized tax slabs for mass-market apparel and footwear priced up to Rs 2,500 from 12 per cent to 5 per cent. Industry analysts note, this fiscal realignment, effective since late 2025, significantly enhanced price flexibility for domestic manufacturers. The reduction in tax outflow has allowed them to accelerate inventory turnover while passing direct cost benefits to the consumer, stated a senior executive from a leading national fashion chain. Data indicates, combined with recent income tax concessions, these measures have expanded the middle-class discretionary pool, resulting in a 34 per cent Y-o-Y increase in e-commerce order volumes.

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Wedding season synergies drive apparel dominance

The convergence of the national holiday with an intensive winter wedding calendar - projected to generate a turnover of Rs 6.5 lakh crore - has shifted the retail focus toward high-value ethnic and occasion wear. Unlike previous years driven by deep discounting, the 2026 sales cycle reflects a clear trend toward premiumization. Bridal wear and premium ethnic segments reported a 2X growth in demand, as consumers prioritized superior fabrics and intricate craftsmanship over entry-level products.

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Operational challenges amidst value-chain realignment

Despite the robust sales figures, the sector faces structural pressures. While the sub-Rs 2,500 segment benefited from GST cuts, premium apparel priced above this threshold saw taxes rise to 18 per cent, straining margins in the bridge-to-luxury category. Furthermore, the industry is navigating a transition toward sustainable manufacturing and direct-to-consumer (D2C) efficiency. A brief case study of Raymond Lifestyle illustrates this adaptation; the firm immediately repriced two-thirds of its portfolio to align with the 5 per cent GST slab, successfully capturing the volume revival in branded formalwear.

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Retailers are now integrating AI-driven logistics to manage the ‘morning rush; shopping window, which has replaced late-night impulse buying as the primary peak for consumer activity.

Currently valued at approximately $222 billion, the Indian textile and apparel market is projected to reach $646 billion by 2033. Dominating in ethnic wear and mid-market formal segments, major players are now expanding into Tier II hubs. Historically a fragmented market, the sector is consolidating through organized retail and GST-led formalization, targeting a 12 per cent CAGR driven by rising urban aspirations and a robust domestic wedding economy.

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Apparel 28/01/26

Aditya Birla Group targets North Delhi for strategic ‘OWND!’ Gen-Z hub

24 January 2026, Mumbai

Aditya Birla Fashion and Retail Limited (ABFRL) has announced the upcoming launch of its first ‘OWND!’ flagship in North India. Located at the Haiderpur Badli Metro Station in North West Delhi, the 8,500 sq. ft. ground-floor destination marks a significant northward expansion for the youth-centric label. This move aligns with a broader industry shift toward ‘Transit Retail,’ where high-traffic transport hubs are being repurposed into premium commercial zones to capture the daily commute of India’s 380 million-strong youth cohort.

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Capturing high-velocity trend demand

The Haiderpur launch is part of ABFRL’s aggressive roadmap to scale OWND! to 100 stores by FY26-end, with a long-term target of 400 outlets. By focusing on a ‘Hyper-Value’ segment where the majority of inventory sits below the Rs 999 price point, the brand is successfully challenging the 120-day traditional fashion cycle. This ‘Trend-First’ model has already driven a 24 per cent CAGR in the value fashion segment over the past year. The young consumer is reshaping the landscape with undeniable momentum; our strategy is a bold move to forge deep brand love through speed and relevance, states Sangeeta Tanwani, CEO, Pantaloons and OWND!.

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Engineering modern retail moats

The project, facilitated by Rahuul Kakkar-led Space Acquires, highlights a growing trend of transforming vacant urban infrastructure into high-performance retail assets.

As the Indian apparel market is projected to grow by 10.5 per cent in 2026, ABFRL is leveraging its vertically integrated supply chain to maintain 5-8 per cent EBITDA margins - a challenge for pure-play digital competitors.

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The Haiderpur store serves as a case study in ‘Vertical Mastery,’ combining ground-floor visibility with a localized inventory strategy designed to serve the high-density residential clusters of North West Delhi, effectively bridging the gap between digital discovery and physical fulfillment.

Launched in 2025 by ABFRL, OWND! is a movement-led fashion brand specializing in bold, contemporary apparel for the ‘generation in motion.’ With 55+ stores already operational, the brand targets a 3-5 year expansion to 400 outlets. Backed by Aditya Birla Group’s multi-crore retail infrastructure, it maintains a market-leading 10,000+ styles across street, work, and weekend wear.

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Apparel 24/01/26

Aditya Birla Group targets North Delhi for strategic ‘OWND!’ Gen-Z hub

Rajashri Ghosh to expand Arvind Limited’s denim fabric division

24 January 2026, Mumbai

Rajashri Ghosh, the newly appointed CEO-Denim Business, Arvind Limited has been tasked with expanding the company’s high-margin denim fabric division which recently registered a 16 per cent rise in volumes to 15.2 million meters.

The world’s leading vertically integrated denim manufacturer, Arvind Limited reported a 70 per cent Y-o-Y growth in net profit to Rs 107 crore during Q2 FY26. . As global retailers shift toward agile, data-driven sourcing, Arvind is prioritizing ‘ownership-driven outcomes’ to maintain its competitive edge. The company’s verticalization strategy- integrating fabric production with garmenting - delivered a record 10.7 million pieces in the last quarter, reflecting a 17 per cent increase in output. Punit Lalbhai, Vice Chairman, noted, Ghosh’s execution capabilities will prove crucial as the firm navigates a volatile trade environment marked by a Rs 25–30 crore quarterly EBITDA impact from US tariffs.

Sustainability as a commercial lever

Under the new leadership, Arvind is doubling down on its ‘Sustainable-In-Sustainable-Out’ principle. The firm is currently investing Rs 400–450 crore in capital expenditure, a significant portion of which is dedicated to green technology. By sourcing 60 per cent of its energy from renewables and implementing Zero Liquid Discharge (ZLD) at its Ahmedabad mills, Arvind is positioning itself to meet the stringent ESG requirements of European and American marquee brands. This shift is essential as the Indian denim market is projected to reach $9.15 billion by 2026, driven by a rising domestic preference for eco-friendly, premium ‘clean denim.’

A global textile pioneer and India’s largest denim exporter, Arvind Limited operates an integrated ecosystem from fiber to retail. The company holds a 20 per cent share of the Indian denim market, with a strong focus on high-value, sustainable fabrics for international giants like Gap Inc. and Levi’s. Historically known for inventing ‘Khadi Denim,’ Arvind is now targeting a consolidated revenue goal of Rs 10,000 crore, supported by record quarterly garmenting volumes and expanded renewable energy PPA agreements.

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Apparel 24/01/26

Rajashri Ghosh to expand Arvind Limited’s denim fabric division

82th NGF ends on a positive note with robust recovery anticipating 2026 Spring-Summer season

28 January 2026, Mumbai

The conclusion of the 82nd National Garment Fair (NGF) in Mumbai has provided a definitive benchmark for India’s textile and apparel sector, signaling a robust recovery for the 2026 Spring-Summer season. Spanning 7 lakh sq ft, the event recorded an unprecedented 24,000 trade visitors, a metric that reinforces the domestic market’s role as the primary engine of the industry. Industry projections now estimate apparel revenues to grow by 10.5 per cent in FY26, buoyed by a $140 billion domestic contribution within a wider $176 billion textile ecosystem.

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Strategic shifts in consumer behavior and B2B integration

A critical takeaway from this edition is the rapid transition toward premiumization and Gen Z-centric demand. Unlike previous cycles focused on high-volume, low-margin commodities, manufacturers are now prioritizing quality-led products and innovation. The fair featured over 1,085 brands, highlighting a trend where Tier II and Tier III retailers are increasingly seeking ‘full-look’ inventory rather than standalone pieces. The impressive business traction and healthy order volumes recorded reflect inherent market confidence, stated Santosh Katariya, President, Clothing Manufacturers Association of India (CMAI). To facilitate this high-velocity sourcing, the association integrated digital tools, including a sophisticated stall-locator feature, to reduce search costs for modern e-commerce decision-makers.

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Navigating cost pressures and policy realignment

While demand remains high, the sector is currently recalibrating its supply chain to mitigate fluctuating raw material costs. Government representatives at the fair emphasized that domestic textile consumption is expanding at a 7-8 per cent annual rate, yet manufacturers face the challenge of maintaining price sensitivity for a ‘quality-obsessed’ middle class. A brief analysis of Butterfly (Indore), a long-standing participant, demonstrates this shift; the brand has successfully scaled by aligning its spring collections with regional preferences while leveraging NGF’s B2B network to bypass traditional wholesale bottlenecks.

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As India moves toward a developed economy, the sector is increasingly focused on phygital integration and sustainable manufacturing to satisfy both regulatory mandates and evolving urban aspirations.

An apex body representing the Indian apparel industry for over five decades, CMAI boasts membership of over 20,000 manufacturers and retailers. The association facilitates national and international trade. Its primary focus involves policy advocacy, trend forecasting, and organizing the biannual National Garment Fair. CMAI aims to propel the market toward a $646 billion valuation by 2033 through organized retail formalization and digital transformation.

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Apparel 28/01/26

Reebok penetrates northeast frontier with strategic Aizawl flagship

24 January 2026, Mumbai

Reebok has officially inaugurated its latest retail destination in Aizawl, Mizoram. This launch is a pivotal component of Aditya Birla Lifestyle Brands’ (ABLBL) aggressive North East expansion, targeting the region’s high-growth athletic wear demographic.

The move aligns with a broader national roadmap to open 100 new stores annually, aiming to nearly triple the brand's physical footprint by 2027 to capture the rising demand for premium performance gear in non-metro urban clusters.

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Bridging cultural passion with commercial footprint

The Aizawl expansion follows Reebok’s high-stakes 2025 partnership with NorthEast United FC (NEUFC), marking a strategic return to the region’s dominant sporting culture.

By positioning physical hubs in Mizoram and across the "Seven Sister" states, Reebok is leveraging a ‘community-first’ retail model. This approach serves a dual purpose: securing market leadership in the $11 billion athletic footwear segment and utilizing the region's loyal football fanbase to drive adoption of its high-performance Floatride and Nano franchises.

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Optimizing the ‘phygital’ athlete journey

Under the management of ABLBL, Reebok is shifting toward a vertically integrated, tech-enabled retail experience. The new store serves as a physical touchpoint for a brand that saw a 20 per cent growth increase in its emerging business segments in late 2025.

By combining on-ground flagship visibility with an omnichannel network reaching 19,000 pin codes, the company is successfully navigating the logistical challenges of high-altitude retail.

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Analysts project that as health-conscious spending rises, brands that successfully integrate localized marketing—like the NEUFC sponsorship—with global product standards will dominate the premium athleisure category in 2026.

An American-inspired pioneer in sporting goods, Reebok is operated in India by Aditya Birla Lifestyle Brands. Specializing in high-performance footwear and sustainable apparel, the brand is scaling toward a ₹2,000 crore revenue target. Since transitioning to ABLBL management in 2022, Reebok has focused on hyper-local expansion and strategic sport-led community engagement.

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Apparel 24/01/26

Phygital, Premium, and Global: Dubai’s role in shaping Indian Fashion

23 January 2026, Mumbai

For Indian fashion and apparel companies seeking to transition from domestic champions to global contenders, Dubai has emerged as the most consequential overseas market.

It is not the largest apparel market by volume, nor the easiest by cost. Instead, it is the most revealing. Dubai compresses global consumer diversity, premium retail infrastructure, tourism-driven demand, and digital maturity into a single ecosystem—making it an unforgiving but invaluable testing ground.

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Retail contributes close to 20 per cent of Dubai’s GDP, and fashion sits at the heart of that contribution.

Apparel is not a supporting category in the emirate; it is a primary engine of footfall, dwell time, and discretionary spending.

For Indian brands, Dubai represents the first market where product, pricing, storytelling, and execution are judged against global, not domestic benchmarks.

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Where Indian demand meets global expectations

Dubai’s relevance for Indian fashion brands begins with consumer overlap. Indians remain one of the largest tourist cohorts visiting the UAE, alongside a substantial resident Indian diaspora. Apparel shopping particularly in jewellery-linked fashion, ethnic occasion wear, premium casuals, and fast fashion accounts for a significant share of Indian tourist spend. In effect, Dubai functions as an offshore fashion marketplace for Indian consumers, but one that operates under international retail standards.

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Table: Market segmentation strategy for Indian apparel brands

Consumer segment Apparel preference Implication for Indian brands Indian Tourists Occasion wear, jewellery-linked fashion, premium casuals Opportunity to premiumise Indian aesthetics and focus on high-margin luxury segments. Indian Diaspora Everyday ethnic, workwear, festive apparel Demand for consistency and sizing accuracy; focus on reliable fit and cross-seasonal availability. Middle Eastern Consumers Luxury, modest fashion, craftsmanship Push toward fabric quality and superior finishing to meet high craftsmanship standards. Western Tourists Fast fashion, resort wear, global trends Forces trend responsiveness and design agility to compete with global fast-fashion cycles.

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Unlike India, where brands can target a relatively homogenous price band or cultural cohort, Dubai forces Indian apparel companies to design for multiple consumer psychologies simultaneously. This makes the city an early stress test for global scalability.

Brands must balance the high-finishing requirements of the Middle Eastern market with the fast-paced design cycles demanded by Western tourists. For the diaspora market, the primary hurdle isn't just style, but the technical precision of sizing.

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Mall infrastructure as a global fashion arena

Dubai’s fashion ecosystem is anchored by some of the world’s most influential retail real estate. Malls such as Dubai Mall and Mall of the Emirates operate less like shopping centres and more like global fashion exhibitions. Indian brands in these spaces compete directly with European luxury houses, American fast-fashion chains, and East Asian contemporary labels.

The AED 5 billion expansion of Mall of the Emirates, announced by Majid Al Futtaim, signals continued confidence in physical fashion retail, provided it delivers experience, curation, and narrative depth. For Indian brands, presence in these malls acts as both opportunity and audit. Visual merchandising, store design, fit consistency, and service standards are instantly benchmarked against global leaders.

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Table: What Dubai malls test for Indian apparel brands

Retail dimension Dubai benchmark Impact on Indian brands Store Design Experience-led, high CAPEX (sensory-driven, phygital integration). Forces an upgrade from purely functional or storage-heavy layouts to immersive, high-design environments. Visual Merchandising Global luxury standards (curated storytelling, thematic window displays). Improves storytelling discipline, requiring brands to communicate a lifestyle rather than just displaying stock. Product Quality International compliance norms (high fabric durability, finish precision). Raises sourcing and Quality Control (QC) thresholds to meet global export and luxury standards. Brand Positioning Narrative-driven (emotional connection, status, and exclusivity). Moves brands beyond price-led appeal toward value-based and aspirational positioning. In India, scale can sometimes mask inconsistency. In Dubai, inconsistency is immediately exposed. Brands that survive do so because they professionalise not because they discount. To compete in the Dubai market, which is increasingly dominated by Gen Z-focused experiential retail and super-regional mall culture, Indian brands are shifting their core focus.

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From volume to value: Instead of pushing high-volume inventory, brands are focusing on the ‘Hero Product’ strategy.

Quality compliance: With stricter regulatory codes in the Middle East regarding materials and labeling, Indian brands are forced to industrialize their boutique craftsmanship.

From ethnic to global, brand repositioning in the UAE Dubai has played a decisive role in reshaping how Indian fashion brands see themselves. Labels such as Tanishq, Malabar Gold, Fabindia, Manyavar, and Forest Essentials have used the UAE market to reposition from ethnic or value-led players into globally legible brands. The UAE consumer does not reject Indian aesthetics but demands refinement. Fabric choice, colour palettes, tailoring, and finish must align with international expectations while retaining cultural authenticity. This balance is difficult to achieve and makes Dubai an effective brand filter.

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Dubai as India’s preview market

Dubai’s fashion retail is deeply omnichannel. Consumers discover collections online, trial in-store, complete purchases via mobile, and expect near-instant delivery. The UAE’s fashion e-commerce market is growing rapidly and is projected to form a significant share of total apparel sales by mid-decade. For Indian fashion companies, Dubai offers a preview of India’s near future.

Table: Omnichannel fashion capabilities tested in Dubai

Capability Status in Dubai Readiness gap for Indian brands Real-time Inventory Standard expectation: Unified view across all touchpoints is a prerequisite for entry. Partial adoption: Many Indian brands still face lag between warehouse and storefront data. Phygital Shopping Mature: Magic mirrors, AR try-ons, and "endless aisle" kiosks are common. Still emerging: Mostly restricted to flagship stores; lacking widespread regional scale. Personalisation Data-driven: Hyper-targeted AI recommendations based on high-loyalty app data. Often manual: Reliance on store associates' memory or basic CRM rather than predictive AI. Last-mile Delivery Same/Next-day: Non-negotiable standard for the luxury and urban consumer. Improving but uneven: High efficiency in Tier-1 metros, but lacks the consistent speed of the UAE.

Indian brands operating in Dubai are effectively beta-testing systems, ERP integration, demand forecasting, and customer analytics that will soon be mandatory at home as Indian fashion consumption premiumises.

The gap isn't just about technology but the integration of that technology into the daily consumer journey. In Dubai, a customer expects their online loyalty points to be visible to the store associate the moment they walk in a level of phygital synergy that is still being refined in the Indian domestic market.

Inventory synchronization: Closing this gap is the first step toward profitable scaling in the GCC region.

AI personalization: Moving from ‘Dear’ emails to predictive style suggestions is the next frontier for Indian ethnic wear brands.

Dubai as a gateway for Indian apparel exports

Beyond brand retail, Dubai plays a critical role in India’s apparel export strategy. The emirate acts as a regional distribution hub for the Middle East and North Africa, particularly for womenswear, occasion wear, jewellery-linked fashion, and sustainable textiles. Success in Dubai retail often determines whether Indian apparel can scale across the GCC. Buyers, distributors, and mall operators treat Dubai performance as proof of global readiness.

Table: Why Dubai is a filter market for Indian apparel

Factor Dubai Advantage Export Implication Regulatory Clarity Predictable: Harmonized standards and transparent customs procedures. Low entry friction: Reduces the "hidden costs" of compliance and legal uncertainty. Logistics World-class: Access to Jebel Ali Port and the Bharat Mart ecosystem. Faster replenishment cycles: Enables "just-in-time" inventory for fast-fashion trends. Consumer Diversity High: A melting pot of 200+ nationalities and a massive Indian diaspora. Global validation: Success in Dubai acts as a proof-of-concept for Western and African markets. Trade Frameworks CEPA-supported: Zero-duty access for 90% of Indian exports (by value). Long-term investment: Encourages brands to set up permanent regional HQs and warehouses.

Dubai does not reward low-cost manufacturing alone. It rewards design capability, consistency, and compliance forcing Indian suppliers to move up the value chain.

The CEPA effect on competitiveness

Since the implementation of CEPA, Indian apparel exporters have gained a 5 per cent price advantage over global competitors who are still subject to standard import duties.

This margin is often the difference between a brand being premium-priced and market-competitive in high-end malls like Dubai Mall or Mall of the Emirates.

Insight for 2026

Trademark protection: Unlike India’s ‘First-to-Use’ system, the UAE operates on a ‘First-to-File’ basis. Brands entering the market must secure their intellectual property (IP) registrations before shipping the first container to avoid trademark squatting.

Logistics hubbing: With the expansion of Bharat Mart, small-to-medium Indian brands can now store inventory locally in Dubai, reducing delivery times to GCC neighbors from weeks to under 48 hours.

Thus Dubai’s importance to Indian fashion is not about volume growth. It is about validation. A fashion brand that succeeds in Dubai has proven its ability to compete on quality, experience, and narrative not just price.

As Indian fashion seeks global relevance, Dubai has become the mirror in which that ambition is tested refined, corrected, and, for the best-prepared brands, confirmed.

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Apparel 23/01/26