🌍 Middle East retailers are rattled by the escalating Iran conflict. Businesses are reeling after Iran launched military strikes on several Arab countries over the weekend following the US-Israeli assault on Tehran. Retail activity has been heavily disrupted in both Tehran and Tel Aviv. Israel also launched attacks in Lebanon as Iran-backed Hezbollah bombed Israel in retaliation for the killing of Iranian supreme leader Ali Khamenei. Suburban areas of Beirut were hit harder than major shopping districts in the city centre. In the United Arab Emirates, where malls remained mostly open but stock exchanges were suspended for two days, most incoming missiles and drones were intercepted over Dubai and Abu Dhabi, though debris caused damage in a few notable locations. Beyond Iran — which has suffered the highest casualties — and Lebanon and Israel, a handful of deaths were reported across the Gulf states.
Airlines have cancelled hundreds of flights across regional hubs, with Bahrain, Iraq, Iran, Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, Syria and the UAE among the countries that have closed some airports or parts of their airspace. Duty-free and other travel retail operators “face heavy daily losses while the crisis continues,” according to trade media Moodie Davitt Report. In Dubai, the region’s fashion hub, the conflict is threatening “120 million footfalls into Dubai Mall and tourism into retail and hospitality,” wrote Bloomberg Intelligence analysts in a note, adding that Emirati property developers and mall owners like Emaar are especially “vulnerable.” Tourism is a key driver for other UAE shopping centres too, such as the Majid Al Futtaim-owned Mall of the Emirates. Retailers could take a further hit as some expat residents are expected to leave the city, at least temporarily, once flights resume. Global e-commerce platforms such as Shein and Amazon have warned of longer delivery times to the region.
The crisis has effectively ended the fragile ceasefire that had been in place since June, marking a major escalation in the war between US-backed Israel and Iran, which backs “axis of resistance” groups including Hamas in Gaza, Hezbollah in Lebanon and the Houthis in Yemen. The widening conflict also poses risks to the global economy. A key concern is disruption to logistics chokepoints, including the Strait of Hormuz between Iran and its Gulf neighbours, through which around 20–30 percent of global oil and gas supplies pass. Iran’s security forces have ordered ships not to cross the strait, threatening to drive up energy prices while disrupting trade and supply chains. There are also concerns about the Red Sea route to Egypt’s Suez Canal, which carries at least a quarter of the world’s container traffic. The Iran-backed Houthis, who have previously attacked vessels near the sea’s entry at the Bab-el-Mandeb Strait, could resume attacks, raising the risk of shipping delays and higher freight costs. [Al Jazeera, FT, CNN, BBC, Bloomberg, Moodie Davitt Report]
🌏 US tariffs on some countries will rise to 15% or more, official warns. President Donald Trump will raise the current global tariff to 15 percent “where appropriate” and is seeking “continuity” with nations that struck trade deals, according to US trade representative Jamieson Greer. “Right now, we have the 10 percent tariff. It’ll go up to 15 for some [countries] and then it may go higher for others, and I think it will be in line with the types of tariffs we’ve been seeing,” he said. The move has left US fashion industry leaders and their international suppliers confused, with the Footwear Distributors and Retailers Association (FDRA) president Matt Priest once again describing the trade situation as “unchartered waters.” On Feb. 20, the US Supreme Court overturned the ‘reciprocal’ levies that Trump imposed on most countries using the International Emergency Economic Powers Act (IEEPA). Trump introduced a new global tariff at 10 percent right after the ruling. Greer said he would elaborate on “how that might accommodate other countries” at a later date, something analysts saw as a positive signal for the European Union, UK and others which would face a higher tariff burden under a blanket 15 percent levy than the rate they previously negotiated. [Bloomberg]
🇰🇷 K-fashion accelerates its march into China after hiatus. Fashion brands and retailers from South Korea are expanding into China amid improved bilateral relations between Seoul and Beijing. Until recently, geopolitical tensions between the two countries curbed the growth of Korean brands in the mainland despite their widespread popularity among Chinese consumers. LF, formerly known as LG Fashion, recent opened Space H Shanghai, the first overseas flagship of its brand Hazzys, in Xintiandi. According to Dong-A Ilbo, “LF has operated its China business since forming a partnership in 2007 with Baoxiniao Group, one of China’s three major menswear companies.” Seoul Fashion Week designer brands such as Andersson Bell are also getting in on the action, with Andersson Bell reportedly preparing to open its first China store in Beijing. The move follows a wave of other South Korean brands that entered China last year including Musinsa following its partnership with Anta Sports. [Dong-A Ilbo, Jing Daily, BoF]
🇱🇰 Sri Lankan apparel giant Mas Holdings closes factory in “strategic pivot.” Colombo-based Mas Holdings, one of South Asia’s largest apparel manufacturers, told the Sourcing Journal that it will repurpose its Methliya plant in Sabaragamuwa Province to make the group’s supply chains more vertically integrated. The move, which will affect 2,200 workers, is part of the group’s wider efforts to expand from primarily cut-and-sew production toward knitting, dyeing and finishing. Mas, which operates more than 50 manufacturing facilities, counts clients including Calvin Klein, Victoria’s Secret and Marks & Spencer. The company manufactures from facilities in more than a dozen countries including Kenya, Jordan, China, India, Vietnam, Indonesia and its native Sri Lanka. [Sourcing Journal]
🇨🇳 Three of Xiaohongshu’s top 10 Chinese beauty influencers are now men. Alongside China’s so-called ‘lipstick king’ Li Jiaqi (Austin Li) and Luo Wangyu — whose reputations both seem to have recovered after facing controversies in recent years — another male beauty KOL, Jin Dadi, has entered Xiaohongshu’s top ten. Female influencers Ma Baoer, Annie Yi, Zhang Xiaohui (Theresa Cheung), Nana, Xiao Yi, Wu Qianyu (Karena Ng) and Jing Tian all have larger followings than Jin Dadi’s 1 million, but the list is topped out by male influencers Li at 11 million and Luo at 4 million. With shopping and livestream commerce features that have attracted major fashion and beauty brands, Xiaohongshu is often dubbed “China’s Instagram.” [Jing Daily]
🇮🇳 Indian fashion and lifestyle brand MyDesignation raises $4 million. The Kerala-based brand founded in 2020 by Swaroop Krishnan and Gopika B Raj has raised 40 crore rupees (approximately $4 million) in series A funding in a round led by RPSG Capital Ventures with participation from existing investors Veltis Capital, Multiply Ventures and Dominor Investments. “We are planning to expand cluster-wise so that we have the creative freedom to understand each culture and design products tailored for them, rather than offering generic pan-India designs. Currently, we are present across most of South India and Maharashtra,” Krishnan said. [Economic Times]
🇻🇳 Vietnam’s textile and garment exports to Europe surge 14%. Exports to the European Union market reached $2.36 billion in the first half of 2025, driven mostly by tariff advantages under the EU-Vietnam Free Trade Agreement (EVFTA), along with Vietnamese suppliers’ diversification and integration efforts. Within the EU bloc, the Netherlands and Germany remained the two largest export countries for Vietnamese textile products, together accounting for nearly 49 percent of the EU-bound total during the period. Other large countries, including France, Spain and Italy, recorded double-digit growth too. [Global Textiles]
🇮🇳 India’s ABFRL taps Pranchal Srivastava as international brands unit CBO. Aditya Birla Fashion and Retail Limited has appointed Srivastava to lead the expansion of The Collective, the company’s upmarket multi-brand chain which sells international brands like Ralph Lauren, Fred Perry and Vivienne Westwood in stores across more than a dozen Indian cities. Srivastavato was previously senior vice president in the chairman’s office at parent Aditya Birla Group. [Economic Times]
🇨🇳 UK fashion magazine Hero launches Chinese edition. The London-based publication founded in 2009 by Fabien Kruszelnicki and James West has partnered with local firm Beijing Chaoxi Xinghe Culture Media Co. (BCXCM) to launch the new monthly title. Spearheaded by BCXCM founder Assange Zhou, who also serves as Hero China’s general manager, the magazine will be led by editor-in-chief Liv He with Rain Lu serving as head of fashion. [BoF Inbox]
🇮🇳 India’s Oliva Skin & Hair Clinic names Dhaval Doshi as COO. The Hyderabad-based beauty clinic, which operates locations in 10 Indian cities, has appointed Doshi to oversee marketing, operations, expansion, doctor relations, product portfolio and customer experience. The executive previously held leadership roles at Azorte and Forever 21 India among others. [Economic Times]
🇮🇳 Reebok names Indian athlete Manu Bhaker as brand ambassador. The American activewear brand has signed the Olympic medal-winning sport shooter to endorse a womenswear range. Reebok India’s brand head Arjun Ramamoorthy said the partnership was part of the brand’s wider efforts to “sharpen its focus on training and high-performance sport in India.” [FashionNetwork]
