FW
The Pakistan Government has set an ambitious target of increasing its textile exports from the current $30 billion to $100 billion over the next five years.
To help achieve this, Imran Mehmood, Central Chairman of the All Pakistan Bed-sheets & Upholstery Manufacturers Association (APBUMA), urged the government to implement immediate measures to support the sector’s growth.
Textile exporters in Pakistan also achieved a significant milestone at the world’s largest textile trade fair in Frankfurt, Germany, Heimtextil as they secured export orders worth $3 billion.
Mehmood hailed this achievement as a major boost for Pakistan's textile sector. He emphasized on the critical role of Heimtextil for Faisalabad's year-round textile operations, highlighting its importance in securing vital orders.
The operating rate of direct-spun PSF plants in China is expected to plummet by around 20 per cent this week, falling below 70 per cent. This significant decline follows production cuts and suspensions at polyester yarn mills in key provinces like Fujian, Jiangsu, Zhejiang, and Hebei.
Furthermore, reduced operations at sewing thread companies in Hubei have exacerbated the situation, pushing polyester yarn operating rates to their lowest point this year.
Production estimates in China have been slashed by approximately 2.6 million tons. While PSF futures prices have declined, PSF plants are not facing major inventory issues, and prices remain relatively stable.
However, sluggish downstream demand and the uncertainty surrounding the upcoming Spring Festival holiday have prompted a cautious approach among market participants.
Imports of textiles and apparel into the US declined 6.6 per cent month-on-month in November 2024, totaling 9.99 billion square meter equivalents (SME), according to the Department of Commerce’s Office of Textiles and Apparel (OTEXA). Despite the monthly dip, imports rose 43.3 per cent year-on-year, with India emerging as a key growth driver.
Textile imports reached 8.06 billion SME in November, down 1.9 per cent from October but up 51.3 per cent annually. Apparel imports dropped 23.1 per cent from the previous month to 1.93 billion SME but climbed 17.5 per cent compared to the prior year.
For the first 11 months of 2024, cumulative textile and apparel imports rose 13.9 per cent year-on-year to 97.5 billion SME. Textile imports surged 16.9 per cent to 73.8 billion SME, while apparel imports increased 5.3 per cent to 23.7 billion SME. Over the 12 months ending November 2024, imports grew 13.8 per cent to 104.4 billion SME, driven by a 17.2 per cent rise in textiles and a 4.4 per cent uptick in apparel.
India led the annual growth, with imports soaring 137.7 per cent year-on-year to 1.69 billion SME in November. Egypt recorded an extraordinary 589.6 per cent increase, reaching 1.11 billion SME. China remained the largest supplier at 3.06 billion SME, though its imports fell 13.3 per cent monthly. Other notable performances included Malaysia (+20.1 per cent monthly) and the Czech Republic (+49.4 per cent monthly).
While imports from Vietnam and Turkey faced declines, India’s robust performance underscores its growing significance in the global textile supply chain.
A major textile hub in India, Sircilla has received a 4.24-crore meter cloth order for the Indira Mahila Sakti sari project. This government initiative aims to provide free saris to women in self-help groups while supporting local weavers.
Conferred by Ashok Rao, General Manager, TESCO, the order signifies the government’s renewed support for the local textile industry. Sircilla has previously similar orders for school uniforms.
Divided into phases, the project will complete weaving of the cloth until April 30 after which it will be transported to Hyderabad for printing, dyeing, and finishing. The saris are expected to be ready for distribution by June or July.
A key factor in the success of this project is the establishment of a new yarn bank in Vemulawada. This Rs 50-crore facility ensures a consistent supply of yarn for weavers, streamlining production and eliminating reliance on external traders.
Vital for the local economy, Sircilla's textile industry employs thousands directly and indirectly. Consistent orders from the government provide year-round employment to these weavers producing a significant portion of saris distributed to women's groups.
This 4.24 crore meter order is expected to provide Sircilla weavers with work for the next eight months, offering much-needed stability to the industry. Adepu Bhaskar, President, ircilla Polyester Association, says, signaling a positive future for Sircilla’s textile industry, the order will help stabilize the industry and prevent further worker suicides.
The Indian textile and apparel industry is approaching the Union Budget2025-26 with a mix of anticipation and urgency. After navigating a challenging 2024 marked by supply chain disruptions, rising raw material costs, and subdued demand, the sector is looking to the government for crucial policy interventions. With the global landscape shifting due to factors like the Bangladesh crisis and the ‘China plus one’ strategy, the Indian textile industry sees a significant opportunity to increase its global market share. However, realizing this potential hinges on the upcoming Budget addressing key concerns.
Major demands and expectations
Several industry bodies, including the Clothing Manufacturers Association of India (CMAI), the Apparel Export Promotion Council (AEPC), and the Confederation of Indian Textile Industry (CITI), have presented their recommendations to the Finance Ministry. These can be broadly categorized as follows:
1: Boosting domestic manufacturing and MSME support
MSMEs form the backbone of the Indian textile industry, contributing significantly to employment, especially for women and marginalized communities. The industry is urging the government to:
• Extend the Production Linked Incentive (PLI) scheme to all garment categories: Currently, the PLI scheme primarily focuses on synthetic products. Extending it to all garment categories would incentivize investment and boost production across the sector. As Santosh Kataria, President of CMAI, stated, "While the existing PLI scheme for textiles has made some progress, its focus has been predominantly on synthetic products… To maximise the sector’s potential, it is critical to extend the PLI scheme to encompass all categories of garments."
• Provide interest subvention benefits for the domestic garment sector: The high working capital requirements of the garment sector, especially for MSMEs, necessitate financial support. A reduced interest rate, similar to the Priority Sector Lending (PSL) rate for agriculture, has been proposed.
• Recognize MSMEs as secured creditors in NCLT cases: This would provide them with better financial security and improve payment recovery during insolvency proceedings.
• Simplify compliance procedures and provide tax incentives: This would ease the burden on MSMEs and encourage growth. Harsh Somaiya, Co-founder of The Bear House, highlighted the need for "a reduction in GST rates on job work activities like stitching and embroidery" to alleviate cost pressures.
• Incentivize domestic manufacturing: Give subsidies on raw materials and machinery, along with tax breaks for MSMEs and start-ups, this would encourage local production and reduce reliance on imports.
2. Rationalization of GST rates
The complex GST structure is seen as a hindrance to growth. The industry has called for:
• Rationalization of GST rates across the value chain: A uniform GST rate across all apparel categories, as suggested by Dilip Kapur, President of the Leather Goods and Accessories Manufacturers and Exporters Association of India, would simplify the tax structure and reduce compliance burdens.
• Reduction of GST on man-made fibers (MMF) to align with natural fibers like cotton: This would promote MMF adoption and improve competitiveness.
• Retaining current GST slabs: This should be done for products priced at Rs 1,000 and above to support the apparel and lifestyle retail segment.
3. Promoting exports
With global retailers seeking alternative sourcing destinations, India has a significant opportunity to boost its textile exports. The industry is requesting:
• A sector-specific PLI scheme to boost manufacturing and exports: This would help Indian brands compete with established international players.
• A thorough review of the FTA with Bangladesh: The CMAI has recommended this to ensure a level playing field for domestic manufacturers.
• Removal of Section 43B(H) of the IT Act: This provision, requiring payments to MSMEs within 45 days, has created cash flow problems for exporters.
• Simplification of import procedures for trims and embellishments under IGCR: This would streamline the import process and reduce costs.
• Exemption of customs duty on imports of garmenting machinery: This would enhance the sector's efficiency and competitiveness.
• Increasing the e-commerce export consignment cap and extending the export realization period: This would facilitate smoother access to international markets
• Extending the RoSCTL benefits for home textile exporters: Increasing the RoSCTL rate and extending it to the entire value chain would further boost exports.
• Special export subsidies on logistics: This would offset increased freight costs.
4. Address raw material availability and pricing
High domestic raw material prices compared to international markets pose a significant challenge. The industry is advocating for:
• Ensuring the availability of raw materials at international competitive prices, potentially through the removal of Basic Customs Duty (BCD) on all cotton varieties.
• Government intervention through the Cotton Corporation of India (CCI) to ensure cotton availability at international prices when domestic prices are higher, with government subsidies to compensate any losses.
• Removal of the Quality Control Order (QCO) on Man-Made Fibres (MMF) and yarn to facilitate a free flow of raw materials at competitive prices.
5. Other recommendations
Focus on skill development and technology upgradation; expediting the National Retail Policy's implementation; Incentivizing sustainable practices through tax benefits for brands adopting eco-friendly production processes.
The fashion industry in Europe, the Middle East, and Africa (EMEA) is experiencing a digital boom, reveals BigCommerce's ‘2024 Global E-commerce Report: Fashion and Apparel’. The report, based on customer data, paints a picture of a thriving online market with significant growth potential.
The report highlights a thriving global fashion e-commerce landscape. Gross Merchandise Value (GMV) has increased 10.7 per cent year-over-year, driven by a 7.2 per cent rise in order volume. The average order value (AOV) has also seen a healthy increase of 3.23 per cent. However, in the EMEA region, the figures are even more impressive
EMEA leads the charge
EMEA is experiencing a staggering 25.3 per cent growth in GMV compared to the same period last year. This surge is fueled by a remarkable 41.3 per cent increase in total orders. Interestingly, the average order value in EMEA has dipped slightly by 11.1 per cent. This could be attributed to factors like increased promotional activity or a shift towards more frequent, smaller purchases.
Experts believe several factors are contributing to EMEA's e-commerce fashion boom. Increased mobile penetration, improved internet infrastructure, and a growing appetite for online shopping are all playing a role. Additionally, the region boasts a diverse population with a wide range of fashion preferences, which online retailers are well-positioned to cater to.
Why the EMEA boom?
While the report doesn't delve into specific reasons for the EMEA growth, experts suggest a combination of factors could be at play:
Increased smartphone penetration: EMEA consumers are increasingly comfortable shopping online using their mobile devices.
Growing internet access: Improved internet infrastructure in many developing countries within the region is facilitating online shopping.
Shifting consumer preferences: A growing number of EMEA consumers are embracing the convenience and variety offered by online retailers.
The EMEA region is a hotbed for fashion e-commerce growth,say analysts. The report highlights the tremendous potential for brands to reach new customers and expand their reach through online channels.
BigCommerce's report underscores the immense potential of the EMEA fashion e-commerce market. With a strong foundation of growth already established, the future looks bright for brands that can capitalize on this digital wave. By offering a seamless online shopping experience, catering to local preferences, and embracing innovative technologies, fashion businesses in the EMEA region can solidify their place in this burgeoning market.
A new report by Barclays sheds light on several significant changes occurring within the global luxury market. The report, which analyzes data from various sources, including consumer surveys and market trends, indicates the luxury market is expected to experience moderate growth in coming years compared to previous periods.
Growth slowdown in China
The report notes luxury goods sales in China, a major market for luxury brands, have slowed in recent months. This is due to weak economic outlook and a shift in consumer preferences. Barclays predicts a 1% decline in luxury spending by Chinese consumers in 2025. In contrast, India's luxury market is expected to experience significant growth in the coming years. Barclays forecasts an annual expansion of 15 to 25 per cent in India's luxury market over the next seven years, driven by a growing middle class and increasing disposable incomes. However, the report cautions that India will remain a relatively small player in the global luxury market for the foreseeable future.
With China slowing, the US is expected to be the primary driver of luxury market growth in 2025. Barclays predicts a 6 per cent increase in luxury spending by US consumers, due to higher consumer confidence and a potential economic boost from President-elect Trump's policies. Since the US elections, consumer confidence seems to have improved on the back of a better wealth effect," said Carole Madjo, co-author of the Barclays report. The report notes that Americans already account for approximately 25 per cent of global luxury goods revenue. The report highlights the success of British luxury brands like Me+Em and Kurt Geiger in the US market. Me+Em recently opened its fourth US store in Dallas and plans further expansion, while Kurt Geiger has seen North America become its largest and fastest-growing market. Barclays notes that LVMH Moët Hennessy Louis Vuitton is experiencing a rebound in the US market, with its Fashion & Leather Goods division showing quarter-over-quarter improvement. This could signal a broader return to growth for the luxury sector in the US
Table: Luxury market projected growth
|
Region |
Projected annual growth rate |
|
China |
-1% |
|
India |
15-25% |
|
US |
6% |
|
Global |
7% |
The report also states consumers are increasingly concerned about the sustainability of luxury products. The report highlights that brands that can demonstrate their commitment to sustainability are likely to be rewarded by consumers.
The report highlights several case studies of luxury brands that have successfully adapted to changing market conditions. For example, one brand has partnered with local artisans in India to create unique products that appeal to the country's growing middle class. Another brand has launched a line of sustainable products made from recycled materials.
Overall, the findings suggest a significant shift in the global luxury landscape, with the US taking centre stage as China's growth slows. Luxury brands need to be more agile and responsive to changing consumer preferences in order to succeed, particularly in light of the economic and geopolitical uncertainties highlighted in the report. The report also highlights the growing importance of sustainability in the luxury market and the potential impact of political developments, such as President-elect Trump's policies, on the sector.
Offering a glimmer of hope for the turnaround plan of Joshua Schulman, CEO, iconic British fashion house, Burberry reported a lower-than-expected sales decline in Q3, FY25.
The brand’s sales declined by 4 per cent during the quarter ended December 2024 as against the 12 per cent decline predicted by analysts. While sales in Asia and Europe declined, Americas registered a 4 per cent rise in sales, mirroring a broader luxury spending surge in the US
Having joined Burberry in July after the exit of Michael Kors, Schulman has been implementing a ‘course correction’ strategy to revive the brand. This includes streamlining stores and refocusing on core product categories.
While challenges remain, analysts are cautiously optimistic about the strategy. As per RBC analysts, the strategy has had a positive impact on inventory clearance, and renewed focus on core products.
The results come amid a broader luxury market rebound. Richemont, Owner, Cartier, recently reported record-high quarterly sales.
Burberry's efforts to clear out inventory through substantial discounts have helped boost sales and manage stock levels effectively, says Mamta Valechha, Consumer Discretionary Analyst.
This positive news follows a period of underperformance for Burberry, marked by declining sales and several leadership changes. Schulman's turnaround plan, though in its early stages, has instilled renewed investor confidence.
Fabric innovation takes centerstage
The Munich Fabric Start, one of Europe’s leading fabric trade shows, concluded successfully January 22, 2025,in Munich. Together with its companion events - The Source, Bluezone, and Keyhousethe exhibition gathered key decision-makers, industry experts, and designers. Over two days, 625 international exhibitors showcased approximately 1,200 collections, presenting innovative fabrics and trims for Spring/Summer 2026.
Sebastian Klinder, Managing Director of Munich Fabric Start, expressed optimism despite a challenging market environment. “We received positive feedback from visitors and exhibitors. Our show-in-show concepts are fostering meaningful collaborations and driving innovation.” Creative Director Frank Junker highlighted themes like Florescence, which inspired creativity and exploration of AI's impact on fashion. Florescence encapsulated five sub-trendsBetterverse, Unorthodox, Inventing Paradise, Fragile, and Lasting that blended classic beauty with forward-thinking designs.
The market’s cautious yet curious mood was evident in buyers' focus on safe yet decorative choices. Trends favored linen blends, modern floral prints, and light, flowing fabrics in muted shades. Decorative elements like embroidery and shimmering effects gained traction, signaling a shift towards more expressive textiles.
Bluezonehighlights denim's evolution
At Bluezone, held in the Zenith Area, 70 international denim mills showcased the next generation of denim and sportswear. Under the theme ‘The Core,’ exhibitors focused on trends such as Deconstruct & Reconstruct and Green Minimalists. Sustainability and technological innovation were key talking points, with collaborations like Isko x Bluesign and Evlox x Lamosa drawing attention.
Trend researcher TilmannWrobel emphasized the importance of creating ‘Lovemarks’ to evoke emotional connections. Workshops led by MohsinSajid of Endrime demonstrated how to combine craftsmanship and cutting-edge technology. Additionally, David Shah’s keynote, ‘Quantum Fashion,’ explored the balance between innovation and nostalgia, urging the industry to consider exnovationre thinking past designsover continuous acceleration.
Keyhousedrives sustainability conversations
Integrated with Bluezone, Keyhouse served as a hub for sustainable innovation. The event brought together major fashion brands and startups to explore scalable solutions for textile-to-textile recycling and eco-friendly materials. Visitors engaged in discussions about efficient, emotion-driven technologies, emphasizing the synergy between functionality and sustainability.
Curator Simon Angel praised the collaboration between Bluezone and Keyhouse, calling it a ‘perfect match.’ With over 50 talks and panels featuring trend forecasters and industry experts, the event explored pivotal topics such as sustainability, circularity, and material efficiency. The show concluded with a 4 per cent increase in visitors compared to the previous edition, attracting representatives from brands like adidas, Hugo Boss, Prada, and s.Oliver.
The Munique Night networking event capped the first day, offering attendees an opportunity to connect over music and refreshments. With its focus on innovation, collaboration, and sustainability, Munich Fabric Start reinforced its status as a vital platform for shaping the future of fashion.
Perspectives from Visitors and Exhibitors Visitors at Munich Fabric Start highlighted the event as a key platform for discovering new fabrics and trends. Andrea Sefl from Atelier Gardeur emphasized their focus on innovative denims and prints for basic items. Michael Seiter of Holy Fashion Group noted the trade show's importance for staying ahead in fashion, with a strong exhibitor base. Designer Anna Weber from Luisa Cerano appreciated Bluezone’s trend areas for showcasing the latest denim treatments and styles. Annette Schrewe of Betty Barclay mentioned being impressed by new decorative elements like embroidery, while Birgit Kastner from Marc O'Polo looked for sustainable blends and quality fabrics for Spring/Summer '26.
Exhibitors also praised the event for fostering innovation and sustainability. Helene Smits from Looper Textile Co. highlighted their focus on textile-to-textile recycling, pushing for the fashion industry to embrace a circular approach. Simone Bellucci of Bellucci showcased new shiny laminees and cotton-linen mixes, catering to demand for stretch fabrics in the German market. Marc Puigderrajols Bassols of Tejidos Rebes emphasized the importance of offering organic and recycled qualities. Sarah Jankowsky from Valupa focused on sustainable materials, showcasing durable and compostable accessories. The overall sentiment was one of collaboration, innovation, and a shift toward sustainability across the fashion industry.
Uzbekistan-based Global Textile Group plans to establish a significant textile hub in Kazakhstan. The company aims to launch five facilities in the Maktaaral district of the Turkestan region, including a logistics center, a cotton processing plant, a textile factory, dyeing and spinning workshops, and garment factories.
The cotton processing plant will have an annual capacity of 13,800 tons, supplying both the Kazakh market and European exports. The textile factory is slated to begin operations in 2027.
This ambitious project is expected to create over 2,000 permanent jobs and has an estimated total cost of 21 billion tenge ($39.61 million), according to Kazakh media reports.
Muzaffar Razakov, CEO, Global Textile Group, and Nuralkhan Kusherov, Governor, Turkestan region, recently discussed the project's development.
In preparation for this venture, the company introduced 'Namangan-77' cotton seeds last year, cultivating them across 3,200 hectare. Additionally, they have completed construction of a cotton reception center with an annual capacity of 10,000 tons.
