Asian Garment Makers Call for More Help from Brands to Adapt as Europe Calls Time on Fast Fashion

An employee arranges bobbins at a textile plant in Haian county, Jiangsu province, China. REUTERS
An employee arranges bobbins at a textile plant in Haian county, Jiangsu province, China. REUTERS
TT

Asian Garment Makers Call for More Help from Brands to Adapt as Europe Calls Time on Fast Fashion

An employee arranges bobbins at a textile plant in Haian county, Jiangsu province, China. REUTERS
An employee arranges bobbins at a textile plant in Haian county, Jiangsu province, China. REUTERS

Among the biggest seismic shifts set to transform the global textile industry in coming years is the new European Union Strategy for Sustainable and Circular Textiles.

First proposed in May 2022, the framework was formally passed in the European Parliament this June. “It’s a masterplan that describes what it would take to get Europe to become sustainable in textiles,” explains EU parliament member Pernille Weiss, who is a shadow rapporteur of the new strategy.

The framework proposes that by 2030, all companies selling textiles – clothes, mattresses, car upholsteries, and the like – will have to meet certain standards in order to sell their wares to customers in the EU. This includes making sure products are durable, free from hazardous substances, and comprise mainly recyclable fibers. Human rights must also be protected at all stages along the supply chain, and manufacturers will now be responsible for the waste their products generate, with a ban on destroying unsold or returned textiles.

The strategy remains non-binding for now, but the next steps are “to recast and update current directives and regulations so that they echo what we have suggested in the strategy”, in addition to creating new ones, says Weiss. She and her colleagues are currently studying up to eight such legislative acts, including the textile labeling regulation and Waste Framework Directive, with “the first wave of the new lawmaking processes” expected after the EU elections next summer.

The changes will have a resounding impact throughout Asia, whose manufacturers supply more than 70% of the EU’s textiles. “The new strategy is a big deal,” says Sheng Lu, an associate professor of fashion and apparel studies at the University of Delaware in the US “If Asian companies want to sell their products in Europe in the future, they have to comply with many components of the strategy.”

A spokesperson for H&M, one of Europe’s largest fashion retailers, said the company welcomed the EU’s new move. “The way fashion is produced and consumed needs to change, this is an undeniable truth,” they said. “We support efforts that aim at driving progress towards a more sustainable fashion industry.”

The Swedish giant sources from 1,183 tier 1 factories, employing 1.3 million people, most of them women. It says it is working with its 605 product suppliers, located mainly in China and Bangladesh, to enact changes that will bring imports in line with the new strategy.

This includes initiatives such as the Fashion Climate Fund, which supports suppliers in transitioning towards renewable energy, improving efficiency and scaling sustainable practices. The firm also supplies funding, via the Green Fashion Initiative, to factories looking to invest in new technologies and processes to reduce their reliance on fossil fuels. Additionally, it launched the Sustainable Supplier Facility initiative for other brands to co-invest in projects that support apparel suppliers in their decarbonization journey.

“There is a critical need for collaboration between brands buying from Asian manufacturers and the manufacturers themselves,” said H&M.

Still, textile-exporting countries are aware that the clock is ticking. “Sustainability has become the topmost priority for Europe, one of the most important export markets for Indian garments,” says Naren Goenka, chairman of India’s Apparel Export Promotion Council. The country exported $4.8 billion worth of textiles to the EU in the first 10 months of 2022 alone.

“It’s high time for India to gear up – sustainability is no more a choice for us,” he says.

Some firms in the country have already been making strides in this direction. For instance, Chetna Organic, a farming co-op in Yavatmal, west India, has been growing cotton organically without the use of synthetic chemicals or pesticides since 2004. Today, it comprises more than 15,000 farming families.

In Sri Lanka, garment producer Hirdaramani Group has achieved net-zero carbon emissions across its manufacturing division, and is now working towards slashing its water consumption by 50% while upping its use of sustainable raw materials to 80% by 2025.

Singapore-based Ramatex, which manufactures sportswear in factories across Asia for brands such as Nike and Under Armour, has been part of a research program convened by the non-profit Forum for the Future investigating how to produce clothing that doesn’t shed microfibers.

In Taiwan, meanwhile, textile producer Yee Chain is working with its sportswear clients to figure out how to reduce fabric waste in the footwear manufacturing process, which can see up to two million out of the 48 million pairs of shoes it produces annually being destroyed.

“Obviously the production needs to be better,” says Yee Chain’s sustainability manager Martin Su. “There’s a lot of things that can be done in a less polluting way or one that uses less resources and power.”

Unfortunately, these firms are the exception rather than the rule. “There are some glimmers on the horizon, manufacturers who have invested in new technology and are doing well,” says Nicole van der Elst Desai, a Singapore-based textile innovation expert who consults for Forum for the Future. “But I think for the majority, we see that they have not been exposed that much and have been doing business as usual.”

A key roadblock in the path to meeting the new European Union standards is having sufficient knowledge and know-how, she says. “Producers first have to understand how they can contribute proactively to reducing the impact of the industry.”

This includes discerning which raw materials are sustainable and suitable for use, how to source them and set up supply chains; what kind of machinery is needed for processing them into fabrics; how to scale; and, finally, how to dispose of textiles appropriately at their end-of-life. On top of this, producers will have to digitalize certain aspects of their operations, such as improving information capture systems to meet the new supply-chain transparency requirements.

Lu at the University of Delaware says transitioning to a circular business model will require both technical and financial advice, as well as legal support “to interpret the new regulations”, he adds.

And that points to another big challenge – finding the financial wherewithal to do so. According to one 2020 estimate from Fashion for Good and Boston Consulting Group, transforming the $2 trillion industry would require $20 billion to $30 billion of funding every year. A quarter of this is to support raw materials innovation and improvements, a third for overhauling sourcing, processing and manufacturing processes, and 20% for handling textile waste.

There has been some funding on offer from the Green Climate Fund, the United Nations-backed fund aimed at helping developing nations take climate action. Since 2020 It has provided nearly $350 million in loans to help textile and ready-made garment manufacturers in Bangladesh adopt energy-efficient technologies such as solar panels.

Bangladesh’s textile sector also receives funding from the International Finance Corporation’s Advisory Partnership for Cleaner Textile (PaCT) program. Since its initiation 10 years ago, PaCT has introduced innovations that have helped nearly 340 factories cut their annual freshwater consumption and wastewater discharge.

But the Fashion for Good report points out that fashion companies should themselves be developing and commercializing innovation in circular solutions. At the moment research and development for the fashion industry is extremely low, at less than 1% of sales.

“This creates a situation in which players in the supply chain are often asked to bear the risk, costs and effort of innovating, with little guarantee that they will be in a position to capitalize on their investment,” the report said.

One company that has been investing in supporting a more circular textile model in Asia is H&M. In 2016, it partnered with the Hong Kong Research Institute of Textiles and Apparel (HKRITA) to develop the Green Machine, a technology capable of separating cotton and polyester blended textiles, commonly found in many clothing types, at scale without any quality loss – a world first. The award-winning process makes use of heat, water, pressure and a biodegradable “green” chemical for separation, recovering more than 98% of polyester fibers in under two hours.

In 2020, Indonesia’s largest textile manufacturer Kahatex began using the Green Machine, and a year later, Turkey-based ISKO, the world’s biggest denim producer followed suit. “The system is being scaled up in Indonesia and Turkey, with plans for multiple systems in different locations,” says HKRITA chief executive Edwin Keh, who adds that Cambodia is another possible location.

But Keh points out that using recyclable or sustainably sourced materials is much more costly than polyester, the synthetic fiber derived mainly from petroleum that’s found in more than half the world’s textiles. Incorporating sustainable materials into new textiles at scale can drive up costs for Asian manufacturers, which in turn, can decrease their competitive edge.

“Why are people outsourcing in the first place? It’s because they want the cheapest possible product into the EU,” he says.

Keh believes EU retailers might instead turn to nearshoring or onshoring relocating supply chains closer to final markets. “So, places like Turkey or any of the eastern European countries, which are not the cheapest but are EU-esque, will be a lot easier for suppliers to deal with.”

Lu agrees. “Asian suppliers are very good at making cheap products in large quantities. But in the new era where we’re talking about slow fashion, consumers may want fewer products in smaller quantities but using more sustainable materials, which means Asian countries might not be the ideal place to source products anymore.”



Zara Owner Inditex Reports Strong August Trading Amid Heatwaves

A Zara logo is displayed on the facade of a store of the brand, owned by Spanish fashion retailer Inditex in London, Britain, September 2, 2026. (Reuters)
A Zara logo is displayed on the facade of a store of the brand, owned by Spanish fashion retailer Inditex in London, Britain, September 2, 2026. (Reuters)
TT

Zara Owner Inditex Reports Strong August Trading Amid Heatwaves

A Zara logo is displayed on the facade of a store of the brand, owned by Spanish fashion retailer Inditex in London, Britain, September 2, 2026. (Reuters)
A Zara logo is displayed on the facade of a store of the brand, owned by Spanish fashion retailer Inditex in London, Britain, September 2, 2026. (Reuters)

Zara owner Inditex reported a better-than-expected start to its autumn trading on Wednesday, with currency-adjusted sales up 9% in August, even as extreme heat across Europe reshapes shopping behavior in its biggest market.

The fast-fashion giant made €11 billion ($12.8 billion) in sales in its second quarter running May to July, a strong showing in a summer of high energy prices and weak ‌consumer sentiment amid ‌the ongoing Iran war.

"These excellent results ‌highlight ⁠the extraordinary capabilities of ⁠our teams," CEO Oscar Garcia Maceiras said in a statement, adding that it was operating in a "highly complex global environment."

Inditex is flying high: its share price hit a record of €59.1 last month, and the Hong Kong IPO filings of ultra-cheap fashion platform Shein revealed ⁠a sales slowdown, evidence that the competitive pressure ‌on European fast-fashion groups ‌like Zara and H&M is easing.

The Spanish company is expanding ‌its cheapest brand, Lefties, into Britain, with plans to ‌open in Germany next year, as Inditex tries to capture more spending from lower-income shoppers who may have been alienated by Zara's push into higher price points.

Inditex's gross profit grew 8.3% ‌in the first half to €11.6 billion, with a gross margin of 58.7%.

Retailers in ⁠Europe and the US are having to change their sourcing schedules to adapt to hot weather that is stretching into the back-to-school season when stores usually start selling jackets and coats.

Western Europe had its hottest June and July on record, according to European Union scientists, as climate change pushes temperatures up and fuels wildfires across the region.

Inditex has been spending significantly on revamping stores and improving its logistics; RBC analysts estimate its annual capital expenditure is around three times that of its Swedish rival H&M.


Naomi Osaka Exits US Open, but Not Before Displaying One More ‘Swaggy’ Fashion Ensemble

 Naomi Osaka, of Japan, arrives for a match against Elena Rybakina, of Kazakhstan, during the fourth round of the US Open tennis championships, Monday, Sept. 7, 2026, in New York. (AP)
Naomi Osaka, of Japan, arrives for a match against Elena Rybakina, of Kazakhstan, during the fourth round of the US Open tennis championships, Monday, Sept. 7, 2026, in New York. (AP)
TT

Naomi Osaka Exits US Open, but Not Before Displaying One More ‘Swaggy’ Fashion Ensemble

 Naomi Osaka, of Japan, arrives for a match against Elena Rybakina, of Kazakhstan, during the fourth round of the US Open tennis championships, Monday, Sept. 7, 2026, in New York. (AP)
Naomi Osaka, of Japan, arrives for a match against Elena Rybakina, of Kazakhstan, during the fourth round of the US Open tennis championships, Monday, Sept. 7, 2026, in New York. (AP)

Naomi Osaka may not have gone out of the US Open with much of a bang. But she surely went out with a burst — of color, and a bit of swag.

The two-time US Open champion lost a lopsided fourth-round match on Monday to Elena Rybakina. But she continued to make her mark as the undisputed fashion queen on tour.

Osaka, already known for her walk-on fashion reveals at tournaments, has been upping her game at the year's final major with a series of dramatic ensembles — all with a basketball theme, as her sponsor, Nike, honors the New York Knicks' championship win.

For her last look, she arrived on court Monday in a coat of many colors: a fur-trimmed cloak designed by Brooklyn-based label KidSuper.

“I felt really swaggy when I put it on," Osaka said after the match. “I feel like it embodied New York a lot."

For her increasingly dramatic looks the past week or so, Osaka has worked with celebrity stylist Law Roach — also known as Zendaya's stylist — displaying the work of multiple designers.

Monday's eclectic walk-on ensemble from KidSuper, the label of designer Colm Dillane, included not only the lavish coat, but a headband that echoed the blue, red and white NBA logo — only now, displaying a racket-wielding tennis player, not a basketball player.

For her first-round match a week ago, Osaka channeled NBA great Allen Iverson in a long, white tulle skirt and a dramatic gray, hooded robe. When she removed the hood, Osaka's hair was in cornrows under a headband, recalling Iverson's look when was the NBA MVP while playing for the Philadelphia 76ers. Her ensemble was designed by Who Decides War, the New York-based streetwear brand.

For round two, Osaka arrived on court in an ensemble by Thom Browne, with a flowing white jacket embroidered with crossed tennis rackets. Underneath, her tennis skirt's mesh fabric resembled a basketball net.

For the third round, Osaka, a four-time Grand Slam champion, wore the label Monse — an oversized hybrid of a gray suit jacket and hoodie sweatshirt over flowing gray fleece pants, an outfit meant to mesh business wear with sports wear.

After her loss Monday, Osaka was asked if she was disappointed that there may have been other fashion looks she'd been planning to display, had she remained longer.

“I mean, I think there’s always something, you know?” Osaka said. “I feel like that’s a way that I can have fun and sort of just excite myself, also.”

But the 28-year-old — who noted that she’d been hampered during Monday' match by pain in her leg — was philosophical about her loss.

“Maybe I’m just getting older, but I don’t feel sad,” Osaka said. “I think, also, if I reflect on my career and the things that I’ve been able to do, there’s nothing that I regret or there’s nothing that I’m sad about ... If I win another Grand Slam, it’s not going to change my life.”


Lululemon Forecast Cut Hits Shares, Underscores Challenge for Next CEO

FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
TT

Lululemon Forecast Cut Hits Shares, Underscores Challenge for Next CEO

FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo

Shares of Lululemon Athletica fell about 18% in premarket trading on Friday after the sportswear maker cut its full-year forecast for a second time, underscoring the hurdles awaiting incoming CEO Heidi O'Neill.

Lululemon, known for its high-priced stretchy pants and athletic tops, has been grappling with declining sales for several quarters as it seeks to recover from merchandising missteps, an overreliance on promotions and intensifying competition, Reuters reported.

The firm's shares fell ⁠to $100.1 premarket, and ⁠if losses hold, it would wipe out more than $2.5 billion from Lululemon's market value and deepen the stock's year-to-date decline to about 41.5%.

O'Neill, a former Nike executive who takes the helm on September 8, will ⁠be tasked with reviving demand in North America, Lululemon's largest market, and restoring growth.

Revenue in the Americas, the company's largest market, fell 8% in the second quarter, compared with a 1% increase a year earlier, as the firm struggles to reignite demand amid inflationary pressure on consumer spending.

Morgan Stanley said that sales could deteriorate further in the second half, ⁠with ⁠limited visibility on when demand might recover, raising the risk of continued pressure on margins.

Following the results, at least 12 brokerages lowered their price targets on the shares, with Piper Sandler setting the Street-low target of $80, according to data compiled by LSEG.

The company trades at about 11.50 times forward earnings, compared with ​20.76 for Nike ​and 13.41 for Adidas, according to LSEG data.