The company said the work examined wages and gathered worker feedback across 208 of its largest supplier facilities in Guangzhou, China. Researchers reviewed 7,317 wage samples covering 2,441 workers and collected survey responses from 9,981 workers on their pay and workplace experiences.

According to Shein, 95.3% of surveyed workers were earning at or above the hourly living wage benchmark for Guangzhou, using calculations provided by WRAP-accredited monitoring company CTI. But the worker surveys also revealed a more mixed perception of financial security: only 60.9% said they felt their wages were sufficient for living expenses, while 26.7% said they were not, and 12.4% were unsure. Shein said the difference between wage benchmarks and worker sentiment may be influenced by “personal needs and aspirations” as well as income levels.

In response to the findings, Shein said it is working with WRAP and the Ethical Supply Chain Program (ESCP) on a pilot to provide third-party workers access to an independently operated support hotline at a selected number of facilities. “Since launching in March 2026, the hotline has provided workers with access to legal, psychological, and HR support, offering them professional and efficient support for real-life challenges they face at their workplaces and at home,” Shein explained.

Separately, Shein said it has joined the fifth annual Cascale Better Buying Partnership Ship Index (BBPI), which gathers supplier views on brands’ purchasing practices. A total of 72 Shein suppliers completed the survey, producing an overall score of +64 on a -100 to +100 scale, compared with a benchmark score of +61. Shein also said 90.3% of participating suppliers ranked it as a preferred business partner.

However, the BBPI responses also highlighted areas suppliers want Shein to address. Chief among them was the call for stable order volumes, with suppliers pointing to demand swings linked to rapid product changes—such as styles being removed from sale—as well as softer off-peak periods. Suppliers said variability makes it harder to forecast labour needs, maintain efficient production schedules and avoid cost spikes.

Suppliers also reported additional stress from a more difficult global trade environment, citing rising costs and tighter cash flow as competition intensifies. They urged closer communication from Shein around short-term demand shifts and longer-term strategic changes, arguing that clearer signals would reduce disruption and uncertainty across the supplier base.

Shein said the results of the BBPI survey have been shared internally to guide improvements. “Findings from the BBPI survey were shared with Shein’s senior leadership and relevant business teams to inform ongoing efforts to strengthen purchasing practices and supplier engagement.”

Energy represents a significant, often unseen, input cost across these industries. From the initial stages of fiber production, through dyeing and finishing processes, to global logistics, escalating oil prices directly translate into elevated operational expenses. Synthetic fibers, including polyester, nylon, and acrylic, are particularly vulnerable. Polyester, which constitutes over 50 percent of worldwide fiber production according to Textile Exchange, is derived from petrochemicals. Consequently, as oil prices climb, so does the cost of these essential materials, placing added pressure on manufacturers already operating with slim profit margins.

Simultaneously, transportation expenses are poised for a sharp increase. Ocean freight, air cargo, and last-mile delivery services are all heavily reliant on fuel. A prolonged period of elevated oil prices could erode the relative stability observed in shipping rates over the past year, especially for lengthy routes connecting Asia with Europe and the United States.

Margin Pressure for Brands and Retailers

For brands, the central challenge involves either absorbing these escalating costs or passing them on to consumers. Following several seasons of price adjustments driven by inflation, consumer willingness to bear further increases is limited. Retailers, particularly those in the mid-market segment, may find themselves caught between rising input costs and a customer base that is highly sensitive to pricing. While luxury brands possess greater resilience, they are not entirely immune. Increased production and logistics expenses can diminish profit margins or necessitate alterations in sourcing strategies.

The timing of this surge is particularly sensitive. The industry is already grappling with softened demand in key markets and an ongoing recalibration of inventory levels after the volatility experienced in the post-pandemic era.

Supply Chain Disruption Risks

Beyond the direct impact on pricing, the prevailing geopolitical situation introduces a secondary layer of risk: the potential for supply chain disruption. The Strait of Hormuz is a crucial conduit, handling approximately one-fifth of global oil supply. Any extended closure or period of instability could affect not only energy markets but also broader shipping routes and associated insurance costs. Reports indicate that traders are actively factoring in the possibility of prolonged disruption as diplomatic efforts falter and the prospect of military escalation remains a consideration. For fashion companies that depend on just-in-time production models and meticulously coordinated global supply chains, even minor delays can have disproportionately large consequences for delivery schedules and the timely release of seasonal collections.

Acceleration of Material Transition?

Paradoxically, sustained high oil prices might serve as an impetus for change within the industry. As the cost of fossil-based inputs rises, alternative materials, recycled fibers, bio-based textiles, and regenerative inputs could become more economically attractive. However, the scalability of these alternatives remains a significant constraint, and many are not yet cost-competitive at commercial volumes. Nevertheless, the current environment underscores a broader industry imperative: reducing reliance on virgin petrochemical materials is evolving from an environmental necessity into a clear economic one.

Strategic Recalibration Underway

In the immediate term, brands and manufacturers are likely to focus on reassessing their sourcing strategies, potentially favoring regional production. There will also be an increased emphasis on inventory management to mitigate the impact of cost volatility, and efforts to lock in fabric and production costs where feasible. Looking further ahead, the industry may witness renewed investment in supply chain resilience and material innovation.

Analysts suggest that further escalation of tensions remains plausible, with oil markets continuing to react accordingly. As long as uncertainty persists regarding the Strait of Hormuz and relations between the US and Iran, price volatility is anticipated to continue. For the fashion industry, this situation serves as a clear reminder that energy is no longer a background operational cost; it has become a strategic variable, one that will significantly influence pricing, sourcing, and material choices in the coming seasons.

This dynamic illustrates the complexity of the modern textile value chain, where manufacturing leadership in garments does not necessarily translate into control of the entire production network. While Vietnam is gaining ground in the final stage of apparel assembly, China still dominates the upstream supply of fabrics, yarns, and textile inputs that sustain production across Asia.

A Changing Map of Apparel Manufacturing

The shift in apparel production toward Vietnam reflects broader changes in global sourcing strategies. For decades, China was the unrivaled powerhouse of clothing exports. However, rising labor costs, evolving trade policies, and geopolitical tensions have encouraged international brands to diversify their supply chains.

As a result, Vietnam has steadily expanded its role as a garment manufacturing hub. Trade data shows that the country has overtaken China as the largest supplier of apparel to the United States, marking a symbolic shift in the global fashion supply landscape.

Several factors have contributed to this rise. Vietnam offers a combination of relatively competitive labor costs, political stability, and extensive trade agreements that grant preferential market access. With numerous free trade agreements covering major markets such as Europe and Asia-Pacific economies, the country has become an attractive destination for global fashion brands seeking to diversify their sourcing networks.

Moreover, many multinational companies have expanded their manufacturing presence in Vietnam to mitigate risks associated with concentrating production in a single country.

China’s Enduring Grip on Textile Inputs

Despite Vietnam’s growing role in garment assembly, the backbone of the textile supply chain still runs through China. The country remains the dominant producer of essential textile materials including yarn, fabrics, and other intermediate inputs required for garment production.

This imbalance highlights a structural characteristic of the apparel industry: clothing manufacturing represents the final step of a much larger industrial ecosystem. Before a garment is stitched, it must pass through multiple stages—fiber production, spinning, weaving, dyeing, and finishing.

China maintains an overwhelming advantage in many of these upstream processes. Its vast manufacturing infrastructure, advanced textile mills, and integrated supply networks allow it to supply fabrics and other materials at a scale that few competitors can match.

As a result, even when clothing is assembled in Vietnam, a substantial portion of the raw materials originates from Chinese suppliers. In many cases, Vietnamese factories import fabrics and other textile inputs from China before converting them into finished garments for export.

This reality underscores the ongoing relevance of the Vietnam garment exports vs China textile supply chain dynamic.

The Rise of a Multi-Layered Sourcing Model

Global sourcing patterns are increasingly evolving into a layered structure rather than a single-country manufacturing base. Instead of relying entirely on one production hub, fashion companies are spreading operations across multiple regions.

Under this emerging model, garment assembly often takes place in countries such as Vietnam, Bangladesh, or Cambodia, where labor costs remain competitive. Meanwhile, upstream textile production—including fiber processing and fabric manufacturing—remains concentrated in China due to its highly developed industrial ecosystem.

In addition, some companies are exploring near-shoring options, moving portions of production closer to consumer markets to shorten supply chains and reduce logistical risks.

This diversification strategy reflects lessons learned from recent disruptions, including trade tensions, pandemic-related bottlenecks, and geopolitical uncertainty.

Why China Still Holds the Advantage

China’s continued dominance in the textile supply chain stems from decades of industrial development. The country has built one of the world’s most sophisticated textile ecosystems, integrating raw material processing, chemical production, advanced machinery, and large-scale manufacturing facilities.

Such vertical integration enables Chinese suppliers to deliver fabrics and textile components efficiently and at competitive prices. Even as garment production shifts elsewhere, many manufacturers continue to depend on China for critical inputs.

Another factor reinforcing China’s position is the scale of its domestic textile industry. With an extensive network of suppliers and specialized factories, Chinese producers can respond quickly to changing fashion trends and large-volume orders.

These advantages make it difficult for other countries to replicate China’s role in the supply chain, even if they expand garment manufacturing capacity.

Vietnam’s Strategic Opportunity

Vietnam’s apparel sector has nonetheless benefited from the global shift toward supply chain diversification. The country’s export growth reflects not only competitive labor costs but also strategic investments in manufacturing infrastructure and logistics.

The Vietnamese government and industry leaders are increasingly focused on moving beyond simple garment assembly. Efforts are underway to strengthen domestic textile production, particularly in areas such as spinning, weaving, and fabric processing.

If successful, these initiatives could reduce dependence on imported materials and enable Vietnam to capture greater value within the global textile chain.

However, building a fully integrated textile ecosystem is a complex and capital-intensive undertaking. Developing dyeing facilities, textile mills, and chemical processing infrastructure requires significant investment and environmental compliance measures.

For now, Vietnam remains primarily a downstream manufacturing hub within the broader Asian supply network.

Implications for the Global Fashion Industry

The coexistence of Vietnam’s garment manufacturing strength and China’s upstream dominance illustrates how interconnected the global textile industry has become.

Fashion brands and retailers increasingly rely on supply chains that span multiple countries. A typical garment sold in Western markets may involve fibers produced in one region, fabrics woven in another, and final assembly completed elsewhere.

Understanding the relationship between Vietnam garment exports vs China textile supply chain is therefore crucial for companies navigating global sourcing strategies.

While Vietnam’s rise marks a notable shift in apparel manufacturing geography, it does not signal the decline of China’s textile sector. Instead, it highlights the emergence of a more distributed production model in which different countries specialize in different stages of the value chain.

The Future of Asian Textile Supply Chains

Looking ahead, the balance between garment production and textile inputs is likely to evolve further. Countries like Vietnam may gradually expand their domestic textile capabilities, while China continues to innovate and maintain leadership in upstream manufacturing.

At the same time, global brands will continue to reassess sourcing strategies in response to trade policies, cost pressures, and sustainability requirements.

For now, however, the structure of the industry remains clear. Vietnam may have captured the spotlight in apparel exports, but China still plays the central role in powering the textile supply chain that supports the global fashion economy.

The textile industry operates through a deeply interconnected global supply chain, and it relies heavily on energy, petrochemicals and international shipping networks. Any disruption affecting these elements tends to ripple across the entire value chain—from fibre producers and textile mills to garment manufacturers and retailers. A conflict in the Middle East, one of the world’s most critical energy hubs, could therefore trigger widespread cost pressures throughout the industry.

Oil Prices: A Key Driver of Textile Costs

One of the most immediate consequences of geopolitical conflict in the Middle East is volatility in crude oil prices. The region accounts for a large share of global oil production, and even the possibility of supply disruptions can lead to sharp price increases in energy markets.

This matters greatly for the textile sector because many synthetic fibres originate from petrochemical derivatives linked to crude oil. Materials such as polyester, nylon and acrylic are produced using feedstocks like purified terephthalic acid (PTA), monoethylene glycol (MEG) and other petroleum-based chemicals.

If oil prices surge, the cost of these petrochemical inputs inevitably rises as well. Fibre producers then pass these increases along the supply chain, leading to higher prices for yarns, fabrics and ultimately finished garments. Given that polyester alone represents the majority of global fibre consumption, a spike in oil prices could significantly affect textile production costs across multiple regions.

Energy-Intensive Manufacturing Processes

Textile production is also highly dependent on energy. Every stage of the manufacturing process—from spinning and weaving to dyeing and finishing—requires substantial amounts of electricity, steam and fuel.

In countries where energy costs already represent a major portion of manufacturing expenses, a sudden increase in fuel prices can place considerable pressure on textile mills. If oil and natural gas prices climb as a result of conflict in the Middle East, mills may face rising operating costs that are difficult to absorb.

For many manufacturers, particularly those operating on thin margins, even a moderate increase in energy prices can reduce profitability. This is why the US-Iran war impact on textile production costs is expected to extend far beyond raw material prices and influence the entire production process.

Shipping Routes and Logistics Risks

Another area where geopolitical tensions could create disruptions is global logistics. International trade relies on a network of maritime routes, several of which pass through strategically sensitive areas in the Middle East.

One such route is the Strait of Hormuz, a narrow waterway that serves as a critical passage for global oil shipments and commercial cargo. Any conflict or military escalation in the region could threaten the safety of shipping traffic, forcing carriers to take alternative routes or increase security measures.

When risks increase in major maritime corridors, shipping companies typically respond by raising freight rates and insurance premiums. Higher logistics costs would directly affect textile exporters and importers, particularly those transporting raw materials or finished goods across continents.

In addition, delays caused by rerouted vessels or port disruptions could further strain supply chains. Textile manufacturers often operate on tight production schedules, and any interruption in the flow of materials may slow output and increase operational costs.

Market Uncertainty and Financial Volatility

Beyond physical supply chain disruptions, geopolitical conflicts also tend to create instability in financial markets. Currency fluctuations, shifting investor sentiment and volatility in commodity markets can complicate business planning for textile companies.

Manufacturers that rely on imported raw materials may face exchange rate pressures if their domestic currencies weaken against the US dollar. At the same time, uncertain market conditions often lead companies to postpone expansion plans or capital investments.

Investors typically become more cautious during periods of geopolitical tension, which can reduce funding availability for industrial projects. As a result, growth initiatives within the textile sector may slow down if global economic uncertainty intensifies.

Potential Impact on Consumer Demand

Higher production costs do not exist in isolation; they ultimately affect retail prices and consumer demand. If manufacturers pass on rising costs to brands and retailers, clothing prices may increase in key markets.

However, apparel is largely considered a discretionary purchase. When inflation rises or economic uncertainty grows, consumers tend to limit spending on non-essential goods. This can lead to reduced demand for clothing and textile products.

For garment exporters in major manufacturing hubs such as India, Bangladesh, Vietnam and China, weaker retail demand could translate into smaller order volumes from international brands. Mills may therefore face a challenging environment where both costs rise and demand becomes less predictable.

Margin Pressures Across the Value Chain

The combination of higher input costs, increased energy expenses and uncertain demand could squeeze profit margins throughout the textile value chain. Fibre producers, spinners, fabric mills and garment manufacturers may all experience financial strain if production costs climb sharply.

Large global brands might be able to negotiate prices or diversify sourcing strategies, but smaller manufacturers could struggle to manage the additional financial burden. In regions where the textile industry is a major employer, prolonged cost pressures could have broader economic implications.

Possible Structural Changes in the Industry

If geopolitical tensions persist, the industry may begin to adapt in several ways. Rising synthetic fibre costs could encourage manufacturers to explore alternative materials or increase the use of natural fibres. Some brands may also accelerate efforts to adopt recycled polyester and other sustainable materials to reduce dependence on petroleum-based inputs.

Supply chain diversification could also become a priority. Companies may seek to spread production across multiple regions in order to reduce exposure to geopolitical risks. Similarly, nearshoring strategies—where brands move manufacturing closer to consumer markets—may gain renewed attention.

Technological innovation and efficiency improvements could play a role as well. Manufacturers may invest in energy-efficient machinery or renewable energy sources to mitigate the impact of rising fuel costs.

Global Implications for the Textile Industry

Although the conflict would be concentrated in a specific region, its consequences would likely be global. The textile industry relies heavily on interconnected supply networks that span continents. When one critical component of that system is disrupted—such as energy supply or maritime trade routes—the effects are felt worldwide.

From fibre production to garment retail, every segment of the industry could face higher operating costs if geopolitical tensions escalate. This is why analysts are closely monitoring developments in the Middle East and assessing the potential US Iran war impact on textile production costs.

Conclusion

The possibility of a military confrontation between the United States and Iran introduces significant uncertainty for global industries, including textiles and apparel. Rising oil prices, higher energy expenses, disrupted shipping routes and market volatility could collectively increase production costs by as much as 10–15 percent.

While the exact outcome depends on how geopolitical events unfold, the textile industry is already aware of the risks associated with such instability. Companies across the value chain are likely to monitor developments carefully and adjust their sourcing, production and investment strategies accordingly.

In an industry where margins are often tight and supply chains stretch across multiple regions, even temporary disruptions can have lasting consequences. The evolving geopolitical landscape therefore remains a critical factor shaping the future of global textile manufacturing.

The recommendation follows analysis of a survey conducted with garment manufacturers and reviewed by academics from the University of Nottingham and the University of Leicester in partnership with trade justice charity Transform Trade. The research highlights recurring issues such as late payments, last-minute revisions to confirmed orders without compensation, and price cuts imposed after contracts are agreed. Manufacturers told the researchers these practices transfer financial risk away from brands and onto suppliers impacts that are then felt most sharply on factory floors.

The survey results suggest the problems are widespread. Order cancellations were reported by 31% of respondents. A further 78% said brands did not cover the costs of late-stage changes to confirmed orders. Around 75% reported that pricing was not adjusted when minimum wages increased. In addition, 67% experienced reductions in order volumes without corresponding changes to unit costs, while 44% said they faced repeated requests to extend payment terms. Ten per cent reported payments arriving more than three months after the agreed deadline.

Manufacturers linked these commercial pressures directly to workforce outcomes. Seventy-three per cent said workers were pushed into overtime to handle sudden order spikes. Fifty-eight per cent reported reduced hours following cancellations, and 29% said jobs had been terminated as a result of volatility.

Confidence in formal routes to resolve disputes was low. Only 22% considered the legal system a realistic option for redress, and none viewed government or multi-stakeholder initiatives as effective. Respondents cited cost and legal complexity, saying it was often financially impossible to challenge brands.

Dr Sabina Lawreniuk of the University of Nottingham’s School of Geography said, “Our research shows that current brand purchasing practices directly impact workers, resulting in precarious and insecure work across UK factories. Voluntary codes have proven insufficient. If we are serious about protecting workers and supporting a sustainable UK fashion industry, we need a Garment Trading Adjudicator to enforce fair practices across the sector.”

She added that the findings point to a need to rebalance relationships between brands and UK manufacturers to support domestic production, sustainable business models, investment and stronger employment outcomes. Professor Nikolaus Hammer of the University of Leicester also emphasised the importance of rebalancing these relationships to support long-term UK manufacturing.

The researchers and Transform Trade argue that a sector regulator modelled on the Groceries Code Adjudicator could set clearer expectations, curb abusive practices and create accountability across fashion supply chains. They say a Garment Trading Adjudicator would provide enforcement power that voluntary commitments have failed to deliver.

MAS Holdings is moving to shut down one of its Sri Lankan production facilities, a decision that affects 2,200 workers and signals a strategic shift away from a business model dominated by cut-and-sew. The company says it is repositioning capacity toward upstream capabilities—knitting, dyeing and finishing—to build a more vertically integrated supply chain and reduce exposure to global economic volatility. The move marks a significant step in the MAS Holdings Sri Lanka factory closure, with the company planning to convert the site rather than abandon it.

The factory involved is MAS’ Methliya plant in Thulhiriya, in Sri Lanka’s Sabaragamuwa Province. MAS, which operates 53 manufacturing facilities across 17 countries and supplies brands including Calvin Klein, Victoria’s Secret, Marks & Spencer and Patagonia, said it intends to repurpose Methliya to expand fabric manufacturing. The company argues that the plant’s location within MAS Park—Sri Lanka’s first privately owned apparel-intensive free trade zone—makes it especially suitable for upstream production because wet-processing infrastructure is already in place.

“This transition is part of MAS’ ongoing efforts to optimize operations and ensure long-term stability, in line with evolving business needs and market conditions,” a spokesperson said. “Production capacity from Methliya will be reallocated to other MAS facilities in Sri Lanka.”

MAS said every employee at Methliya has been offered transfer opportunities to other facilities in Sri Lanka or to overseas sites within its global network. Those who decline transfers and choose to resign will receive above-minimum compensation and full settlement of outstanding dues, including annual bonuses, the company added.

While MAS rejected reports suggesting the shutdown is a precursor to additional closures aimed at shifting more supply chain activity to India, labour rights groups say the disruption highlights the vulnerability workers face when large suppliers restructure. Abiramy Sivalogananthan, regional coordinator for South Asia at the Asia Floor Wage Alliance, said: “When a major supplier to the world’s richest and most powerful brands shuts down, it is workers who pay the price—losing their jobs, their wages and their dignity. Sri Lankan garment workers built this industry with their labor, yet they are treated as disposable when profits shift.”

The broader context is Sri Lanka’s heavy reliance on apparel manufacturing. The industry accounts for 44% of the country’s total exports and roughly 33% of manufacturing employment. Despite a difficult global demand environment, the Joint Apparel Association Forum (JAAF) said exports increased 5.4% year on year in the first 11 months of 2025 to nearly $4.6bn.

“Particularly encouraging is our 13 percent growth in the European Union market, which demonstrates the success of our strategic focus on strengthening relationships with EU buyers and meeting their increasingly stringent sustainability and compliance requirements,” JAAF said in a statement. “Similarly, our continued growth in the U.S. market, despite tighter margins, shows that Sri Lankan manufacturers remain competitive on quality, delivery and ethical manufacturing standards.”

Trade-policy uncertainty has also shaped the operating environment. Prior differences in regional US tariff rates—18% in India, 19% in Bangladesh and Pakistan, and 20% in Sri Lanka—have been temporarily neutralised after the Supreme Court struck down the White House’s “reciprocal” levies issued under an emergency powers act. For now, countries face a temporary 10% tariff—potentially rising to 15%—under Section 122, which allows short-term import duties to address “fundamental international payments problems.”

Sri Lanka’s apparel exports are forecast to reach $5.5bn this year, supported by enhanced duty-free access to the UK under the Developing Countries Trading Scheme introduced this year.

For MAS, the company says execution remains central as it reorganises its footprint following the MAS Holdings Sri Lanka factory closure.

For now, MAS Holdings says maintaining operational stability and delivering customer orders reliably remain “key priorities.”

“This process is being carried out in compliance with Sri Lankan labor laws and regulatory requirements, with the necessary approvals and employee engagement processes in place,” the spokesperson said of the Methliya plant’s closure. “MAS remains confident in the strength and agility of its operating model across a global network.”

Gross profit increased 5% to $900.3m from $856.3m, and gross margin improved by 60 basis points to a record 42.5%, compared with 41.9% a year earlier. However, EBIT excluding non-core items declined to $174.2m from $184.1m. Net income for the year totalled $93.7m, slightly below FY24’s $94.6m, with diluted EPS of $3.21 versus $3.29.

Delta Galil, which supplies major global brands and retailers including Nike, Victoria’s Secret, Lululemon, Skims and Walmart, said its results underscore the strength of its platform and execution. CEO Isaac Dabah said: “I am proud of our performance throughout 2025, which reflects the strength and commitment of our team, the resilience of our balance sheet, our culture of continuous improvement, and the power of our global platform. Together, these fundamentals give us confidence that we are well positioned for another year of profitable growth.”

Fourth quarter: record revenue, higher margins, softer earnings

In the final quarter of the year, the company again set a revenue record, with sales rising 2% to $611.1m from $599.2m in the prior-year period. Gross profit grew 5% to $263.2m from $250.1m, and gross margin expanded to 43.1%, up 140 basis points year on year.

Delta Galil attributed the stronger margin performance mainly to a higher share of direct-to-consumer sales, better factory efficiencies and favourable exchange rates, partly offset by the drag from US tariffs. Even so, fourth-quarter EBIT excluding non-core items fell to $59.3m from $64.7m, while net income excluding non-core items declined 13% to $35.5m from $41.0m.

Reported net income in Q4 2025 was $28.0m, equivalent to diluted EPS of $0.93, compared with $29.5m and $1.00 in the prior-year quarter.

“Our fourth quarter capped an outstanding year of execution in what has been a challenging retail environment. We successfully navigated the impact of US tariffs, expanded programs with key global customers, and delivered record sales driven by organic growth across most of our channels, geographies, and product lines. At the same time, we continued to make strategic investments in our factories and distribution centres to improve efficiencies, which enhanced our operations, brands and capabilities,” Isaac Dabah added.

2026 guidance

Looking ahead, the company is forecasting higher revenue and earnings in fiscal 2026. Delta Galil expects sales between $2.29bn and $2.33bn, with EBIT projected at $204m to $212m and EBITDA at $324m to $332m. Net income is guided to $116m–$123m, implying diluted EPS of $4.00–$4.23. The outlook follows Delta Galil FY25 record sales and signals management’s expectation that growth and efficiency initiatives will carry into the new year.

The company describes the initiative as a combined model of compliance oversight and hands-on operational help, intended to push suppliers toward stronger production practices and improved workplace standards—not simply to pass audits, but to operate better day to day.

On the factory side, Shein reports that more than 200 supplier sites have been renovated, covering roughly 518,000 square metres in total and affecting about 33,600 workers. The refurbishments follow a “model factory” template that emphasises more efficient floor layouts, smoother material movement, and production spaces designed to be flexible as product types and volumes shift.

Training and technical support are delivered through Shein’s Centre of Innovation for Garment Manufacturing, a 58,450-square-metre research, development and learning hub. In 2025 alone, the centre hosted around 300 technical and vocational sessions attended by more than 13,000 participants, focusing on operational execution, quality management, and newer garment manufacturing technologies.

Shein also says the centre continues to develop productivity tools for supplier use, adding 10 new tools in 2025 and bringing the total introduced to more than 180. One example cited is a sewing attachment built to move beads away from the needle path during stitching, helping reduce damage and improve throughput on embellished products.

Alongside operational projects, the Supplier Community Empowerment Programme includes worker-focused assistance. Shein says its hardship scheme distributed more than $800,000 in 2025 to 816 families, with more than 37,000 workers accessing the application system. The company also reports that 30 childcare centres were operating across supplier communities by the end of 2025, serving over 1,000 children to help working parents balance care responsibilities while remaining close to their workplaces.

A cornerstone of the show’s international outreach strategy is its exclusive Buyer Club program, designed specifically for qualified importers, distributors, agents, and retailers with decision-making authority and confirmed purchasing budgets. The program aims to facilitate efficient sourcing and high-level networking through curated business making and tailored engagement activities, which ensure meaningful connections between supply and demand and create measurable value for participants. Approved Buyer Club members enjoy a range of exclusive hospitality benefits. Flooring professionals interested in joining the Buyer Club can submit their application at:
https://www.domotexasiachinafloor.com/Buyer-Club.html

Through this program, in 2025, the organizers hosted over 180 selected buyers from 25 countries, along with 10 delegations organized in collaboration with Chinese and international associations, media partners, and key industry stakeholders. The buyers participated in nearly 400 targeted business matching meetings, generating substantial new business opportunities across worldwide markets.

The world stage for flooring innovations

The upcoming edition of DOMOTEX asia/CHINAFLOOR is set to further strengthen its position as the leading global platform for the carpet and flooring industry, not only in terms of scale and trading opportunities, but also as a key showcase for innovation, product launches, and high-level industry networking.

The exhibition will welcome around 1,500 exhibitors and attract over 80,000 professional from more than 120 countries. Spanning over 200,000 square meters across seven dedicated halls, the show will present the full spectrum of the flooring industry, offering comprehensive sourcing opportunities under one roof.

Hard flooring – including wood, laminate, bamboo, resilient flooring, and outdoor decking –  will occupy four halls, while FLOORTECH Asia will spotlight cutting-edge technologies in raw materials, production machinery, and installation solutions.

Confirmed international brands exhibiting in these sectors include Coretec, Craft Floor, Daejin, Kronospan, KTE, Swiss Krono, ter Hürne, Välinge, UNY Group, Unilin Technologies, i4F, Adesiv, AICA, Azumi, Bona, Debal Coating, and Stauf, among many others. China’s leading manufacturers and technology innovators will also take center stage, including BBL, Power Dekor, Novalis, Dajulong, Elegant, Halead, Jinka, Kingdom, Zhengyoung, Dilong, Intco, Sanyi, and many more.

Mr. Jiang Bao, General Manager of New Material Department at Power Dekor, one of China’s leading flooring manufacturers, said: “Power Dekor will make a grand appearance at DOMOTEX asia 2026, bringing along our overseas exclusive brand under the group, POWER SPACE. We will showcase a comprehensive range of eight major product categories, including Homogeneous PVC Flooring, Composite PVC Flooring, SPC flooring, LVT flooring, wall panels, wood flooring, sports vinyl flooring, and sports wooden flooring. DOMOTEX Asia/CHINAFLOOR provides us with an excellent opportunity for in-depth communication with numerous overseas buyers.”

Carpet & Carpet Tech spanning two dedicated halls, will cover the entire carpet supply chain and present a comprehensive range of all types of carpets, both machine and hand made. The exhibition will feature a strong lineup of confirmed carpet brands, including Abrishami Carpet, Almas, Elite, Dongsheng, Haima, Hong Casa, Jey Key Rugs, Mahesh Exports, Mortazavi, Nirmal, Paulig, Ragolle, Ruixin, Standard Carpets, Solomon Carpets, Xingyue Carpet. On the technology side, leading machinery and component specialists such as Card-Monroe Corp, Freudenberg, Groz-Beckert, Lingda, Michishita, Vandewiele, Wuding among many, will showcase the latest advancements in carpet production technology.

Mr. Song Zhang, General Manager at Overseas Business Division of China’s leading carpet manufacturer Haima, stated: “Haima Carpet will bring to DOMOTEX asia its new nylon raw filament Axminster carpet. This is a specially designed product we’ve introduced for floor decorations in commercial spaces. We warmly invite buyers from all over the world to attend DOMOTEX asia/CHINAFLOOR 2026.”

With global supply chains evolving and Asia maintaining its position as a key production and consumption hub, the 2026 edition of DOMOTEX asia/CHINAFLOOR is expected to further strengthen its role as a strategic meeting point for international trade in the carpet and flooring sectors.