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For Q1, FY25 ending June 2024, net sales of Sutlej Textiles and Industries’ declined by 6.59 per cent Y-o-Y to Rs 658.07 crore as against Rs 704.48 crore recorded in the corresponding quarter last year.
However, despite this decline, the company managed to narrow its quarterly net loss, by 62.61 per cent Y-o-Y to Rs 11.40 crore in June 2024 from Rs 30.49 crore in June 2023.
Additionally, the company's EBITDA increased by 429.14 per cent Y-o-Y to Rs 25.24 crore in June 2024, up from Rs 4.77 crore in the corresponding quarter of the previous year.
On the Q-o-Q basis, the company’s net sales increased marginally from Rs 656.45 crore reported in Q4, FY24. Its net loss narrowed to Rs 25.55 crore
The Indian government has once again postponed the implementation of the Quality Control Order (QCO) on cotton, extending the deadline by another year. According to a recent notification issued by the Ministry of Textiles, the QCO will now be enforced from Aug 27, 2025 onwards. The order was originally scheduled to be implemented in 2023, but was first delayed until 2024, and has now been extended once more.
This extension was advocated by the Cotton Association of India (CAI) alongwith other industry bodies who argued that an immediate implementation of the QCO would prove impractical for the industry
The government has already enforced the QCO on polyester, viscose fiber, and other products. The delay in implementation of the order on cotton is also a result of the concerns raised by Indian ginning industry over the stringent norms set by the Bureau of Indian Standards (BIS) for moisture, trash content, and other quality specifications.
Predominantly comprising of Micro, Small, and Medium Enterprises (MSMEs), the Indian ginning industry faces significant challenges in meeting these standards. The QCO mandates substantial investment in modern machinery, but many of these units operate with basic, outdated equipment and struggle to upgrade their facilities.
The global apparel industry has experienced a year of mixed fortunes in 2024, with various brands and markets displaying a wide range of performances. While some brands have thrived amidst economic headwinds, others have struggled to maintain their footing. Luxury brands continued to shine, fast-fashion giants face headwinds, and emerging markets offer a glimmer of hope amidst economic uncertainties.
Luxury thrives, fast-fashion falters
High-end brands like LVMH, Kering (parent company of Gucci), and Hermès have consistently posted strong growth. LVMH, for instance, saw a 15 per cent increase in revenue in the first half of 2024, with its fashion and leather goods division leading the charge. This is attributed to robust demand from affluent consumers, particularly in China and the Middle East, who remain largely unaffected by economic fluctuations.
Conversely, fast-fashion retailers such as H&M and Zara have seen their profits squeezed due to a confluence of factors. For example, H&M's profits fell 20 per cent in the second quarter of 2024, as the company struggled to pass on higher costs to consumers. Rising production costs, increased competition from online retailers, and changing consumer preferences toward sustainability have all played a role.
Athletic & athleisure brands resilient
Athletic and athleisure brands like Nike and Lululemon continue to perform well, benefitting from the ongoing trend of health and wellness. In fact, brands like Nike and Adidas have sustained their growth momentum, thanks to the continued popularity of athleisure wear and a focus on product innovation and digital engagement. Nike's digital sales grew 30 per cent in the first quarter of 2024, highlighting the importance of e-commerce in the current retail environment. Nike's success in navigating the challenging market is largely attributed to its focus on digital transformation. By investing heavily in e-commerce and direct-to-consumer sales, the company has been able to mitigate the impact of declining foot traffic in physical stores. "Nike's digital strategy has allowed us to stay connected with consumers and drive growth even in a difficult retail environment," explains John Donahoe, CEO of Nike.
Table: Key brand performance metrics (H1 2024)
|
Brand |
Revenue growth (YoY) |
Net income growth (YoY) |
|
LVMH |
15% |
20% |
|
Kering |
12% |
15% |
|
Hermès |
10% |
12% |
|
Nike |
8% |
10% |
|
Lululemon |
7% |
9% |
|
H&M |
3% |
-5% |
|
Zara (Inditex) |
4% |
-3% |
Market performance, regional disparities
The performance across regions have varied, the Chinese market for example has rebounded strongly in 2024, with pent-up demand following the easing of COVID-19 restrictions. This has benefited luxury brands and those with a strong presence in the country. Despite concerns about a slowing economy, demand for high-end goods remains robust.
The US and European market on the other hand has experienced a slowdown in 2024, with consumer spending impacted by inflation and economic uncertainty. This has particularly affected fast fashion brands reliant on price-sensitive shoppers. Even now, inflation and concerns about a potential recession are weighing on consumer sentiment. At the same time, emerging markets like India and Southeast Asia continue to offer growth opportunities for apparel brands, thanks to a growing middle class and increasing disposable incomes.
In India especially, international fast-fashion brands have seen tremendous success in India, capitalizing on the country's young and fashion-conscious population. H&M, Zara, and Uniqlo have all reported double-digit growth in the Indian market. "India is one of our fastest-growing markets, and we see tremendous potential for further expansion," says an H&M spokesperson.
Table: Key market performance metrics (H1 2024)
|
Region |
Market growth (YoY) |
Key dDrivers |
|
China |
10% |
Luxury demand, growing middle class |
|
India |
8% |
Rising disposable incomes, brand consciousness |
|
US |
4% |
Gradual economic recovery |
|
Europe |
3% |
Gradual economic recovery |
The outlook for the remainder of 2024 remains cautiously optimistic. Luxury brands are expected to continue their strong performance, while fast-fashion retailers will likely focus on cost-cutting measures and digital transformation to navigate the challenging environment. Emerging markets like India and Southeast Asia are expected to offer significant growth opportunities, while the US and European markets are likely to witness a gradual recovery.
In a move that has sent ripples through the fashion world and beyond, iconic denim brand Levi's has launched a sweepstakes offering a ‘lifetime supply of jeans’ to one lucky winner. The prize, valued at $21,000, consists of 70, $300 Levi's gift cards, ensuring the recipient can replenish their denim wardrobe for years to come.
The sweepstake
The mechanics are simple: participants entered online, sharing their Levi's love stories and why they deserved this denim dream. The prize: a personalized denim wardrobe, curated annually by Levi's stylists, ensuring winners were always at the forefront of denim fashion. The lucky winner wouldn't just get any jeans; they'd receive the latest styles, washes, and fits, ensuring their denim collection remained fresh and on-trend for life. "This is beyond a sweepstake; it's a legacy," said Levi's CEO, Chip Bergh. "We're not just giving away jeans; we're inviting someone into the Levi's family for life."
For many, the prospect of a lifetime supply of jeans is the ultimate dream. The sweepstakes has also generated buzz on social media, with countless users sharing their excitement and tagging friends. "Can you imagine never having to worry about buying jeans again?" tweeted one enthusiast.
Fashion industry experts have praised Levi's for its innovative approach to customer engagement. "This sweepstakes is a brilliant marketing move," said a retail analyst. "It generates excitement around the brand and reinforces its association with longevity and value." Some experts also see the sweepstakes as a reflection of the enduring appeal of denim. As they explain, jeans are a wardrobe staple that transcends trends. Levi's is tapping into that timeless quality with this promotion.
The fashion industry buzzed with excitement. Competitors watched with a mix of envy and admiration. "It's bold," admitted John Smith, a fashion editor. "But it's pure Levi's, capturing the essence of their brand: timeless, authentic, and undeniably cool." The ‘Lifetime Supply of Jeans’ sweepstake wasn't just a marketing gimmick; it was a celebration of Levi's heritage, a testament to the brand's enduring appeal. It captured the hearts and minds of denim lovers, solidifying Levi's position as the ultimate denim destination. More than just a prize, it was a promise of a lifetime of style, comfort, and the undeniable cool factor that only Levi's can deliver.
The European Union (EU) and Fiji have further solidified their trade relationship through the full implementation of the interim Economic Partnership Agreement (IEPA). This move was announced by ValdisDombrovskis, the European Commission's Executive Vice President, and ManoaKamikamica, Fiji's deputy Prime Minister for trade.
The IEPA, initially signed in 2009, is designed to promote sustainable development and facilitate Fiji’s integration into the global economy. Under the agreement, the EU has already eliminated customs duties and quotas on imports from Fiji. In return, Fiji has now committed to gradually phasing out duties on a select group of imports from EU Member States.
While tariffs will remain on certain imports to protect domestic industries, the agreement is expected to boost trade opportunities and enhance the competitiveness of Fijian products by providing access to cheaper inputs. The IEPA also supports cooperation on trade and investment, particularly through the EU’s 'Global Sourcing' provision, helping Fiji comply with EU market standards and improve its business environment.
This final phase of tariff liberalisation marks a significant step in strengthening and diversifying trade ties between the EU and Fiji.
Traditional denim production consumes enormous amounts of water, especially during the dyeing and aging processes. To address this, Shein partnered with NTX in 2021 to introduce Cool Transfer Printing, an innovative technology that drastically reduces the water footprint in denim manufacturing.
Unlike conventional methods that require multiple washes to achieve the desired look, Cool Transfer Printing digitally simulates these effects instantly, eliminating the need for water-intensive processes. As a result, Shein's suppliers have reduced water usage by 70.5 per cent, a figure verified by Bureau Veritas in October 2023.
This innovation not only conserves water but also enables on-demand production of stylish denim in a variety of colors and designs. The technology allows for direct digital printing with reactive ink, making the creation of intricate patterns more efficient and cost-effective.
By integrating Cool Transfer Printing into its agile supply chain, Shein offers a diverse range of affordable, sustainable denim products. The company remains committed to leveraging technology to create more eco-friendly production methods, bringing it closer to its sustainability goals.
The Indian government has postponed the implementation of the Quality Control Order (QCO) on cotton for another year. Originally set to take effect in 2023 and then delayed to 2024, the QCO will now come into force on August 27, 2025, according to a recent notification from the Ministry of Textiles.
The QCO mandates strict quality standards for cotton, including moisture and trash content, as prescribed by the Bureau of Indian Standards (BIS). However, the country's ginning industry, largely composed of MSMEs, is struggling to meet these requirements. The industry operates with outdated machinery, and modernizing to comply with the QCO would require significant investment, which many small units cannot afford.
While the QCO has already been implemented for polyester, viscose, and other fibres, cotton has been given more leeway due to these challenges. The Cotton Association of India (CAI) and other industry bodies had urged the government to extend the deadline, arguing that a phased approach is more practical given the industry's current limitations.
This extension is seen as a temporary relief for the ginning sector, allowing more time to upgrade facilities and meet the stringent standards that will eventually be enforced.
Twenty-five Vietnamese garment makers showcased their products at this year’s edition of Sourcing at Magic Fashion Trade Show in Las Vegas, US, as per reports by the Vietnam Textile and Apparel Association (VITAS).
Held from Aug 19-21, 2024, the trade show featured a wide range of products made by different materials and in different patterns and designs in 16 pavilions.
The United States is a traditional export market of Vietnamese textiles and garments, accounting for a large turnover. In the first six months of 2024, the United States importedtextiles worth $7.2 billion from Vietnam, making up 7.2 per cent of the US market share, second only to China.
However, the United States importers are tightening regulations on imported products, especially with supply chain control. VITAS has advised garment makers to diversify supply sources of materials from new markets, instead of relying on China that supplies more than 50 per cent of the materials to the Vietnamese garment industry.
Currently, many local garment makers have imported materials from the Republic of Korea, India and Japan, among other markets.
The Government has approved the Strategy for development of Vietnam’s Textiles, Clothing, Leather and Footwear industries to 2030, with a vision to 2035, which emphasises domestic supplies of materials. Businesses are encouraged to promote investment in modern technology in production, thereby gradually solving difficulties and proactively controlling supply sources to reduce dependence.
In just five days, Shanghai will host Yarn Expo Autumn 2024 from August 27 to 29 at the National Exhibition and Convention Center. The event promises to be a hub of activity for exhibitors, visitors, and industry experts, fostering valuable connections and business deals. Over 500 suppliers from 15 countries will gather, with special pavilions and zones showcasing the latest in innovative, eco-friendly, and quality products.
Key highlights include the India Pavilion, which will feature over 40 enterprises, marking the highest exhibitor number in a decade. Organized byCotton Textiles Export Promotion Council(TEXPROCIL), the pavilion will present an array of traditional and eco-friendly cotton products from leading companies such as Indo Industries, Padwa Worldwide, and Niva Organics. The Pakistan Zone will also stand out, with major exhibitors like Abtex International and Masood Textile Mills showcasing their diverse offerings, including fancy yarns, greige, and organic cotton.
In addition to these international zones, the expo will feature domestic product zones, including the Chemical Fibre, Cotton Yarn, and Fancy Yarn Zones. The Chemical Fibre Zone, with nearly 200 companies, will spotlight eco-friendly and functional fibres, while the Cotton Yarn and Fancy Yarn Zones will bring together over 100 exhibitors each, highlighting innovation and green potential in their respective categories.
Beyond the exhibition floor, Yarn Expo will host a series of fringe events aimed at steering industry trends and developments. Key events include the China Fibre Fashion Trends 2024/2025 Display Zone, the Textile Materials Innovation Forum, and various product launches. These events will feature insights from university professors, scholars, and industry leaders, offering attendees a glimpse into the future of yarn and fibre applications.
Running concurrently with Intertextile Shanghai Apparel Fabrics – Autumn Edition, CHIC, and PH Value, Yarn Expo Autumn will bring together multiple sectors under one roof, amplifying business opportunities for all participants. The event is co-organized by Messe Frankfurt (HK) Ltd and the Sub-Council of Textile Industry, CCPIT.
Marking a significant advancement in scalable textile-to-textile recycling, Unifi has introduced two innovative products—white-dyeable filament yarn and ThermaLoop insulation material. Both these products are made from 100 per cent recycled polyester feedstock, excluding additives and colorants, and consist of at least 50 per cent textile waste. Despite their recycled origins, these products achieve virgin-quality standards, demonstrating Unifi’s commitment to sustainability without compromising on performance.
These products were created using Unifi’s Textile Takeback process, which recycles global post-industrial and post-consumer textile waste into next-generation materials. The company is partnering with global brands to reclaim their waste and keep materials in circulation longer, contributing to a more sustainable textile industry.
The new circular Repreve filament yarn is a versatile, white, dyeable, high-performance polyester designed for critical applications across various industries. This circular polyester line also includes black filament yarn and black and white staple fiber, all of which feature FiberPrint tracer technology, ensuring U-Trust certification for authenticity and sustainability.
Available in down-like fiber, fiberball, and padding formats, thermaLoop insulation offers excellent performance, recovery, and thermal efficiency. Engineered with Repreve low melt fiber, the padding's launch in black insulation highlights the diverse types of textile waste that can be repurposed as feedstock.
These products can be seamlessly integrated into existing supply chains, addressing a significant challenge for polyester-reliant industries, particularly fashion brands aiming to create circular apparel in line with sustainability goals. Unifi’s initiative supports the company’s ambitious target to recycle the equivalent of 1.5 billion t-shirts worth of textile waste by 2030.
