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Preface: Intertwined Pains and New Growth

In 2026, the global footwear and apparel industry is undergoing profound structural changes. Faced with escalating geopolitical risks, sluggish Western consumer sentiment amid sustained inflation, and the mandatory compliance of EU Digital Product Passport (DPP) regulations, traditional industry operation models have gradually lost effectiveness.

The entire sector is witnessing comprehensive strategic adjustments, including strategic reversals of retail giants, category restructuring of cross-border e-commerce, end-to-end supply chain penetration via AI big data, and the prevalence of “relaxed and emotional dressing” pursued by Generation Z. Channel transformation, full-link AI empowerment, green compliance, and emotional consumption have become the four core competitive pillars of the global footwear and apparel industry, driving the industry to abandon extensive development and embrace refined, intelligent, and sustainable evolution.

1. Business Model Transition: The Decline of DTC and the Return of Omnichannel

Over the past decade, the DTC (Direct-to-Consumer) model has been regarded as the optimal solution for the footwear and apparel industry, enabling brands to eliminate middlemen and directly capture user data through official websites and social media. However, by 2026, exhausted traffic dividends and surging Customer Acquisition Costs (CAC) have severely squeezed the profit margins of pure DTC brands, triggering a rational industry-wide return to omnichannel layout.

Nike’s operational performance fully illustrates the drawbacks of radical DTC strategies. The brand achieved a flat annual revenue of $46.4 billion, with its core NIKE Direct business tumbling 7% in Q4 and digital sales plummeting 12%. In contrast, the previously marginalized wholesale channel rebounded strongly with a 4% year-on-year growth, reaching $6.6 billion in revenue. In previous years, Nike aggressively cut offline retailers to promote pure DTC operations, resulting in declining market exposure and shelf share. To reverse the downturn, Nike has revised its strategy, re-cooperating with traditional retailers such as Foot Locker and adopting a new omnichannel model that integrates online digital reach and offline multi-terminal coverage.

While major brands suffered from DTC overcapacity, emerging brands represented by Hoka and On seized market share by cooperating steadily with offline retailers. Meanwhile, Chinese cross-border champion Miramall has built a diversified brand matrix covering Dream Pairs, Bruno Marc and NORTIV 8, realizing full-category coverage in Amazon, TikTok Shop and North American offline retail networks and greatly enhancing operational risk resistance.

2. Supply Chain Restructuring: Flexible Production and Geographic Shifts

Global inflation and shrinking consumption have made retailers extremely cautious about procurement budgets. Frequent order freezes and small-batch, short-cycle orders have become mainstream, forcing upstream manufacturers to balance low pricing with flexible production capabilities. The global footwear and apparel supply chain presents a dual evolution of geographic transfer and model upgrading.

To hedge geopolitical risks, global leading brands have fully implemented the “China + 1” supply chain strategy. Southeast Asian countries including Vietnam, India, Indonesia and Bangladesh have undertaken increasing basic production capacity. Nevertheless, this is not a simple factory relocation, but a technology and capital spillover from China’s mature textile and apparel industry. Most large overseas factories rely on Chinese management teams and raw material support, forming a complementary industrial pattern with China as the core of R&D and high-end manufacturing and Southeast Asia as the base of mass production. Chinese cross-border enterprises have further upgraded their business models, evolving into data-driven, full-category multinational groups with strong market adaptability.

3. Technological and Material Innovation: AI Empowerment and Sustainable Mass Production

In 2026, artificial intelligence and sustainable development have transformed from marketing gimmicks into mandatory compliance standards and core productivity tools. The global sustainable fashion market has reached $12.44 billion, with a CAGR of 10.65% projected to reach $27.96 billion by 2034. Natural and bio-based fabrics dominate future R&D trends, accounting for 39.6% of material research preferences.

The industry has upgraded from traditional RPET recycled materials to full textile-to-textile closed-loop recycling. Brands including Adidas and Target are accelerating the mass production of bio-based sole materials and plant-based leather alternatives such as mushroom mycelium leather. In terms of digital transformation, leading enterprises have deployed customized intelligent ERP systems to reshape the traditional 6-9 month pre-order model. Generative AI creates trend-leading 3D designs by capturing global social media and e-commerce data. The intelligent supply chain realizes small-batch trial production and automatic order supplementation based on real-time conversion data. AI-driven global inventory allocation achieves omnichannel inventory integration, raising corporate comprehensive profit margins by more than 15%.

4. Consumption Aesthetic Upgrade: From Functional Wear to Emotional Value Wear

Dominated by Generation Z and millennial consumers, market aesthetics have shifted from single functionalism to scenario-integrated emotional consumption. The popular “relaxed style” follows the core logic: quiet luxury aesthetics + blurred scenario boundaries + substitution effect on professional sports shoes.

Moccasin shoes, Birkenstock shoes and clogs have become mainstream hits, thanks to their soft structure and high comfort that fit urban casual and quiet luxury styles, blurring the boundary between home wear and social wear. Additionally, outdoor shell jackets have completed de-professionalization iteration. With low-saturation mountain color schemes and fashionable tailored silhouettes, they have evolved into all-scenario urban costumes suitable for commuting, camping and social activities, meeting consumers’ demand for multi-scene wearable apparel.

5. VFM & VTG 2026: Core Strategic Platform for Industrial Transformation

As Southeast Asia’s most influential twin industrial exhibitions, the 2026 Vietnam International Footwear Machinery & Material Exhibition (VFM) and Vietnam International Textile & Garment Industry Exhibition (VTG) will be held from October 14 to 17 at Saigon Exhibition & Convention Center (SECC). Open from 9:00 to 17:00 daily (closing at 15:00 on the final day), the exhibitions allow entry exclusively via pre-registered exclusive QR codes, with visitors under 16 prohibited.

Serving as a core hub for the “China + 1” industrial shift, the exhibitions provide full industrial chain supporting resources to help enterprises build flexible overseas supply bases. The green textile zone focuses on GOTS and GRS certified sustainable materials, solving global compliance challenges. Advanced intelligent equipment including AI 3D sampling machines and automated production lines accelerates small-batch and fast-response manufacturing upgrading. Meanwhile, the exhibitions display cutting-edge materials for relaxed-style footwear and urban outdoor apparel, perfectly matching the latest consumption trends. For global enterprises, VFM & VTG 2026 is not only a trading platform, but a strategic base to realize omnichannel layout, green compliance and intelligent transformation, serving as the optimal channel for global localized layout and dealer expansion.

Hi my Friends

You are cordially invited to attend VTG 2026 & VFM 2026 held in Ho Chi Minh City at SECC on Oct. 14-17,2026.

About VTG 2026 | Vietnam International Textile & Garment Industry Exhibition

Nearly 20-year Southeast Asia flagship platform focusing on Textile 4.0~5.0 integrated intelligent manufacturing solutions.

1) Display: Intelligent knitting machines, digital spinning & weaving machines, non-woven equipment, 3D body scanning system, factory ERP system.

2) Solve challenges: Labor shortage, cost increase, small-batch quick order requirements.

Pre-register for VTG: https://www.chanchao.com.tw/en/entryApply.asp?id=FTXTHCM2026

About VFM 2026 | Vietnam International Shoe Machinery & Footwear Materials Exhibition

Connecting over 70% Vietnam shoe factories and multinational footwear OEM systems.

1) Display: AI auto cutting machine, automatic shoe forming lines, supercritical foaming equipment, eco lightweight soles, water-based non-toxic adhesives. On-site live demo of fully automatic & green low-carbon footwear production technology.

Pre-register for VFM : https://www.chanchao.com.tw/en/entryApply.asp?id=FVNFLM2026

Should you need an official invitation letter for your Vietnam visa application, we can provide the document issued by the show organizer. Please send us a clear passport photo of your passport details, so we can prepare the official exhibition invitation letter for you. Thank you.

Visit two exhibitions in one trip to meet top machinery and material suppliers. Complete pre-registration in advance for convenient entry.

Visitor Guide: https://www.gismaexpo.com/en/GISMA-Guangzhou-Industry-News.html

Site:https://www.gismaexpo.com/landing-page/2026-VFM-Vietnam-Intelligent-Footwear-Machinery-Shoe-Material-Exhibition-and-2026-Vietnam-Textile-Garment-Expo.html

See you in SECC of Ho chi minh

Best regards,

Ms Wendy

Email:wendy@gsma2017.com

Whatsapp / Wechat :+86 137 2997 5028