FW
A wave of imported apparel is causing growing anxiety among India’s domestic clothing manufacturers. Industry leaders and trade associations are sounding the alarm as foreign-made garments, particularly from China, Vietnam, Bangladesh, and Sri Lanka, increasingly capture the Indian market.
Rising apparel imports a concern
Data from the Indian Texpreneurs Federation (ITF) reveals. India imported $1.08 billion worth of clothing between April and November 2024. Projections indicate this figure could reach $1.58 billion by the end of the 2024-2025 fiscal year.
Table: India's apparel imports ($ mn)
|
Year |
Value |
|
2021-2022 |
850 |
|
2022-2023 |
920 |
|
2023-2024 |
1,010 |
|
2024-2025 (projected) |
1,580 |
Source: Indian Texpreneurs Federation (ITF)
"This trend is deeply concerning," says Prabhu Dhamodharan, convenor of the ITF. "Our domestic manufacturers have the capacity and the expertise to meet the demands of the Indian consumer. These imports are not only impacting our industry's growth but also hindering job creation."
Table: Categorywise imports
Category Value ($million) Cotton Clothing 513 Synthetic Clothing 375 Knitted Clothing 420 Woven Clothing 529 Total 1,080
There are several reasons for the growth of imported apparels. Pricing is a major reason. Foreign manufacturers, particularly those in China and Bangladesh, often offer lower prices due to cheaper labor costs and economies of scale. International brands often bring a wider variety of styles and faster adaptation to global fashion trends, which can be appealing to Indian consumers. Another important factor is some consumers perceive imported clothing, especially from certain brands, as being of superior quality.
Share of imports by country
Preliminary estimates from the ITF suggest China leads in import share followed by Vietnam and Bangladesh.
Table: Imports by country (April-Nov 2024)
|
Category |
Value ($million) |
|
Cotton Clothing |
513 |
|
Synthetic Clothing |
375 |
|
Knitted Clothing |
420 |
|
Woven Clothing |
529 |
|
Total |
1,080 |
The influx of imported apparel poses several challenges for Indian manufacturers. It leads to loss of market share. Domestic companies face higher competition, leading to potential job losses and factory closures. Also uncertainty in the market may discourage investment in new technology and expansion, hindering the industry's long-term growth. And to compete with cheaper imports, domestic manufacturers may be forced to lower their prices, impacting profits.
Industry leaders stress the need for collaborative action to address this challenge. Dhamodharan emphasizes the importance of stronger partnerships between domestic manufacturers and retailers. "Indian manufacturers have a robust manufacturing base and can efficiently align with retailer expectations," he says. "By working together, we can create strong supply chains that reduce our reliance on imports and boost domestic manufacturing." Experts suggest several policy measures to support the domestic apparel industry. One way is by increasing import duties as higher tariffs on imported clothing could make them less price-competitive. Promote ‘Made in India’ campaigns and encourage consumer patriotism and highlight the quality of Indian-made apparel. Streamline regulations, reducing bureaucratic hurdles and creating a more conducive environment for domestic manufacturing are the other ways to intervene. Invest in skill development and enhance the skills of the Indian workforce to improve productivity and competitiveness.
In fact, the Indian footwear industry offers a compelling example of how government initiatives and industry collaboration can effectively curb imports and boost domestic production. Through focused efforts like the ‘Make in India’ campaign and the Footwear Design and Development Institute (FDDI), the industry has significantly reduced its reliance on imports and strengthened its global competitiveness.
The moot point is that rising apparel imports are a challenge for India’s domestic clothing industry. Addressing this issue requires a multi-pronged approach, including policy interventions, industry collaboration, and a renewed focus on promoting the quality and value of Indian-made garments. By taking decisive action, India can ensure the continued growth and success of its vibrant apparel manufacturing sector.
Adidas today unveiled its preliminary financial results for Q4 and the full year of 2024, showcasing impressive growth. In the fourth quarter, currency-neutral revenues increased 19 per cent, while euro-denominated revenues rose 24 per cent to €5,965 million, compared to €4,812 million in 2023.
Excluding Yeezy sales, currency-neutral growth remained robust at 18 per cent. The gross margin climbed by 5.2 percentage points to 49.8 per cent, and the company achieved an operating profit of €57 million, a significant turnaround from the €377 million operating loss in Q4 2023.
For the full year 2024, currency-neutral revenues increased by 12 per cent, with euro-denominated revenues growing 11 per cent to €23,683 million, up from €21,427 million in 2023. Excluding Yeezy sales, currency-neutral revenues rose 13 per cent. The gross margin improved by 3.3 percentage points to 50.8 per cent, and operating profit exceeded €1.3 billion, compared to €268 million in 2023.
CEO Bjorn Gulden expressed optimism, highlighting the brand's double-digit growth and rising consumer demand across Lifestyle and Performance segments. "While we’re not yet at our long-term target, our achievements in 2024 exceeded expectations. We’re confident about increasing market share and further improving profitability amid macroeconomic challenges," he stated.
Adidas plans to sustain its momentum, aiming for double-digit growth in 2025 and progressing towards its 10 per cent margin goal. The company will release its final 2024 financials and 2025 guidance on March 5, 2025.
Skechers in launching its maiden performance wear store at West Edmonton Mall in Canada.
Designed to provide an immersive shopping experience to consumers, the new store spans 7,500 sq ft and features half-size pickleball and basketball courts to enable Sketchers to test their latest innovations in real time. The store houses the brand’s widest collection of performance footwear, apparel, and accessories, It features the latest state-of-the-art digital LED screens.
Michael Greenberg, President, Skechers, says, the store offers the brand’s customers the complete experience including its largest-ever performance footwear offerings, apparel and accessories, and specialists and educators advise on its diverse sports technologies.
Currently, Skechers is present across over 5,300 retail locations globally alongwith an extensive online store at skechers.com. The brand also has partnerships with department stores and footwear retailers worldwide.
Reliance Industries (RIL) received strong global interest in its sustainable polyester technology, Recron® at Heimtextil 2025, held in Frankfurt, Germany.
As per RIL, the event proved to be a milestone for Recron® Innovations, with widespread acclaim from textile companies, winter product manufacturers, and end users. The company presented its HEXaREL™ Fiberfill and Ecotherm™ innovations blending sustainability, high performance, and cost efficiency at the event.
HEXaREL™ Fiberfill is a versatile polyester fiber designed as a filler for sleeping bags, adventure sports gear, thermal jackets, and extreme-cold outerwear. Ecotherm™ is a sustainable fabric offering thermal insulation for throws, rugs, knitwear, and winter apparel.
The positive response garnered by these innovations at Heimtextil 2025 underscores the growing demand for high-performance and eco-friendly fibers. Reliance Industries remains committed to delivering cutting-edge solutions that redefine global textile standards.
Creating stiff competition for local spinners due to higher production costs driven by a gas crisis, Bangladesh’s yarn imports increased by 39.16 per cent to 680.43 million kg in 2024 against 488.96 million kg in 2023, as per Bangladesh Textile Mills Association (BTMA) data. The cost of these imports also increased to $2.27 billion in 2024, from $1.75 billion the previous year. Imports of woven fabrics grew by 20.02 per cent to 588.85 million kg during the year while knitted fabric imports rose by 38.35 per cent to 439.07 million kg.
Local spinners face mounting challenges, including high production costs, insufficient gas supply, and reduced government incentives, leading them to lose yarn orders even from domestic readymade garment (RMG) exporters. RMG exporters, under pressure to meet tight deadlines, often source cheaper imported yarn despite a price difference.
Fazlul Hoque, Former President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) notes, yarn imports, particularly from India, increased due to lower prices. On average, the price difference between local and imported combed yarn has reached 40 cents per kg. Apparel makers with longer lead times and storage capacity often favor imports.
Faruque Hassan, President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA), emphasizes, there is a need for finer count yarn for value-added garments as local spinners struggle to produce these competitively. The reluctance on part of local mills to supply yarn above 40 or 42 counts is further driving demand for imports, he adds.
Khorshed Alam, Chairman, Little Star Spinning Mills, claims, Indian yarn exporters benefit from government incentives and access to raw cotton, allowing them to sell at competitive rates. In contrast, Bangladeshi mills face high utility costs, poor gas supply, and rising bank interest rates, limiting production capacity and increasing costs.
Local mills currently meet 80 per cent of knitwear and 35-40 per cent of woven fabric demand. Despite these challenges, Bangladesh’s earnings from RMG exports increased to $38.48 billion from $35.88 billion in 2023. However, local textile mills emphasize the need for policy support to maintain competitiveness in global markets.
Despite disruptions caused by the Russia-Ukraine conflict and economic slowdowns in Western markets, knitwear exports from Tiruppur rose to Rs 34, 350 crore in FY2022-23. The growth was mainly driven by the rising demand for knitwear garments from across the globe. This demand caused the textile sector in Tiruppur to remain resilient in spite of challenges like demonetization, GST implementation, and the COVID-19 pandemic.
Kumar Duraisamy, Joint Secretary, Tiruppur Exporters’ Association reveals, exports from the city surpassed Rs 30,000 crore by December 2024, with monthly growth rates ranging from 15-18 per cent compared to the previous year.
This growth is being driven by evolving global trade dynamics. Shifts in US-China trade relations and political unrest in Bangladesh have opened new opportunities for Indian exporters. Additionally, Bangladesh’s free trade agreement with the European Union, set to expire in 2027, has positioned India as a viable alternative for international buyers.
India’s ongoing free trade agreement negotiations with the UK further boost optimism. Major international brands are increasingly turning to Indian manufacturers, offering significant growth potential for businesses of all sizes in Tiruppur.
A. Sakthivel, Vice-Chairman, Apparel Export Promotion Council (AEPC), highlights, India’s RMG exports grew by 15.2 per cent Y-o-Y in December 2024, with total exports for the April-December period growing by 13.2 per cent to Rs 94,936 crore. As per industry projections, knitwear exports from the city are likely to surpass Rs 40,000 crore in the current fiscal year.
Yet, government support remains crucial to maximize these growth opportunites, emphasizes MP Muthurathinam, President, Tiruppur Exporters and Manufacturers Association. He urges for eliminating cotton import taxes, expanding free trade agreements, and reducing bank interest rates to enhance competitiveness.
Currently, India ranks sixth in global garment exports with a 3.9 per cent market share, compared to Bangladesh’s 12 per cent and China’s 36 per cent. With strategic policy measures in the upcoming budget, industry stakeholders believe India’s apparel sector could achieve unprecedented growth and strengthen its global market presence.
Innovation and sustainability dominate discussions
The latest edition of Premiere Vision New York, a key event for fashion and creative professionals, wrapped up with outstanding results. Held over two days, the event attracted 1,856 visitors from the fashion, textile, design, and creative industries, reaffirming its status as a critical hub for the North American market.
A highlight of this year’s event was the robust Talk program, where experts and industry leaders shared valuable insights on pivotal topics such as innovation, sustainability, and emerging trends.
These discussions captivated a highly engaged audience, underscoring the importance of staying ahead in a rapidly evolving industry. Presentations showcased cutting-edge materials, eco-friendly practices, and transformative design solutions, offering attendees a comprehensive view of the future of fashion.
Dynamic networking and business opportunities thrive
Premiere Vision New York proved to be more than a knowledge-sharing platform it was a bustling space for networking and business development. Exhibitors and visitors reported significant achievements, with numerous collaborations initiated during the event. The quality of connections and the vibrant atmosphere highlighted the event's effectiveness in fostering meaningful relationships and driving business growth.
Thierry Langlais, Show Manager of Premiere Vision New York, expressed satisfaction with the event’s accomplishments: "Our diverse offerings attracted a broader visitor profile, creating opportunities for productive connections and substantial business growth."
Florence Rousson, President of the Premiere Vision Management Board, echoed this sentiment, stating: "In today’s complex market, it’s encouraging to welcome qualified buyers ready to source and find inspiration for SS26. This edition reaffirms the enduring relevance and value of Premiere Vision New York."
As the event concluded, the Premiere Vision team extends heartfelt gratitude to all exhibitors, visitors, and speakers for their invaluable contributions. With its focus on innovation, sustainability, and collaboration, the event continues to serve as a vital touchpoint for industry leaders and creatives alike.
The next edition promises to deliver even more innovative solutions and trends, ensuring that innovation and creativity remain at the heart of the global fashion industry.
Danish womenswear brand Ganni has solidified its commitment to sustainability through a new offtake agreement with Ambercycle, securing access to cycora regenerated polyester. This strategic move will see Ganni replacing over 20 per cent of its annual virgin and recycled polyester use with cycora, a circular alternative made from end-of-life textiles.
Since partnering in 2021, Ganni and Ambercycle have collaborated to integrate cycora into collections, starting with a 30 per centcycora jersey in November 2023 and a 70 per centcycora variant soon after. These early successes, including standout pieces in Ganni’s Paris Fashion Week collection, demonstrated the material’s quality and scalability.
Developed by Los Angeles-based Ambercycle, cycora offers an innovative solution for the fashion industry’s sustainability challenges. By converting textile waste into virgin-grade polyester, it reduces landfill dependency and minimizes virgin resource extraction while meeting high-performance standards.
NicolajReffstrup, Ganni’s founder, emphasized the brand’s dedication to reducing its environmental impact. “Agreements like this are crucial for scaling innovative materials and cutting the fashion industry’s carbon footprint. Supporting innovators like Ambercycle helps us transition to better material choices while driving long-term collaboration.”
For Ganni, this agreement aligns with its goal to halve its carbon footprint by 2027 and source 10 per cent of materials from "Fabrics of the Future" by 2025. Ambercycle’s CEO, Shay Sethi, highlighted the partnership’s broader impact, saying, “Collaboration with forward-thinking brands like Ganni is key to transforming the fashion system.”
As the industry pushes to meet ambitious sustainability targets, Ganni’s commitment exemplifies how bold action can bridge the gap between circular material innovation and global adoption.
Archroma, a global leader in sustainable specialty chemicals, has joined the BioCircular Materials Alliance to accelerate the fashion industry's shift towards circular business models. Founded by biomaterials pioneer Spiber Inc, the Alliance unites fashion brands, manufacturers, and suppliers with a shared goal of promoting bio-based textile materials and chemical treatments.
A key milestone for the Alliance is the development of the Materials BioCircularity Database, designed to help brands and mills assess the impact of their fiber, dye, and finishing chemical choices on recyclability.
With its Planet Conscious+ vision, Archroma is committed to driving sustainability beyond conventional practices. This vision aligns seamlessly with the Alliance's focus on creating a circular ecosystem.
Archroma’s sustainable innovations aim to deliver enhanced value to brands, mills, and consumers by improving product safety, durability, and recyclability. The company strives to enable the production of apparel and textiles that are more sustainable and efficient.
In addition to Archroma, other notable members, including Stella McCartney, Marzotto Wool Manufacturing Srl, Fashion for Good, and 13 other organizations, have joined the Alliance. Archroma is one of only two dyes and chemical suppliers within this collective, reinforcing its role in advancing sustainable solutions for the fashion industry.
Isko is set to showcase its latest fabric innovations and commitment to sustainability at Bluezone, demonstrating its ongoing dedication to blending comfort, performance, and contemporary design. The brand’s SS26 collection features innovative technologies and a strong focus on circularity, ensuring high-performance denim that meets the industry’s increasing demand for eco-friendly practices.
At the heart of the collection is Isko Comfort2, a pioneering fabric that combines the softness and elasticity of knit fabrics with the durability and strength of woven denim. This innovative weave, featuring stretch in both the warp and weft, delivers exceptional comfort and movement while maintaining the strength required for everyday wear. Alongside Isko Comfort2, visitors will explore other advanced technologies like Isko Blue Skin and Isko Reform for 360 degree stretch and the perfect fit across various weights.
The collection also highlights Isko’s commitment to eco-conscious practices, featuring Isko Multitouch technology, which offers diverse textures and 3D effects without the use of harsh chemicals, as well as Isko Iconic finishes that enhance denim’s texture, contrast, and shine using environmentally responsible coatings and resin-wash effects. Additionally, Isko’s new Corduroy collection blends soft comfort with durability, making it ideal for long-term wear.
In line with its sustainability goals, Isko integrates RE&UP’s Next-Gen recycled materials into the SS26 collection, ensuring high-quality denim with minimal environmental impact. Marco Lucietti, Director of Strategic Projects at Isko, emphasizes the importance of connecting with industry leaders at Bluezone to drive forward a more sustainable and innovative denim future.
Isko will also engage in the Denim Innovation Speed Talk and Denim Masterclasses, where experts will discuss the future of denim, sustainability, and technological advancements shaping the industry.
