FW
From Rs 1,081 crore in 2013-14, the sales of Khadi fabrics expanded by staggering 500 per cent to reach Rs 6,496 crore in 2023-24.
In the previous fiscal year, 2022-23, the sales of Khadi fabric had amounted to Rs 5,943 crore. As per the Khadi and Village Industries Commission, (KVIC), this growth was fueled by extensive promotional initiatives that have significantly expanded Khadi's global reach, from the US and UK to Europe and Dubai.
The Indian government has launched several initiatives to establish Khadi as a global brand and boost its exports. A few of these include the registration of the Khadi trademark in five countries—Germany, the UK, Australia, Russia, and China—and efforts to prevent the misuse of the Khadi brand name internationally. Additionally, the Centre of Excellence for Khadi (CoEK) has collaborated with various Khadi institutions to develop new clothing lines featuring vibrant colors and modern silhouettes.
Employment in Khadi and village industries has also increased from 1.3 crore in FY 2013-14 to 1.87 crore in FY 2023-24 As per KVIC, sales under its supervision increased to Rs 1.5 lakh crore in the FY 2023-24, compared to ₹1.3 lakh crore the previous year. As a statutory entity under the Ministry of Micro, Small, and Medium Enterprises, the commission is tasked with promoting Khadi fabric and providing employment opportunities for rural artisans.
India’s textile and apparel (T&A) exports grew by 4.73 per cent Y-o-Y to $2.94 billion in July 2024as against $2.81 billion in July 2023, as per figures by the Confederation of Indian Textile Industry (CITI).
Apparel exports from India grew by 11.85 per cent Y-o-Y to $1.28 billion during the month as against $1.14 billion in July 2023. This growth could be attributed to the rising demand for Indian apparel in prominent markets such as the US, the EU and the UK, says RakeshMehra, Chairman, CITI.
Meanwhile, India’s textile exports remained steady in July 2024 to $1.66 billion compared to July 2023. CITI remains optimistic about the future growth of the T&A industry in India. The free trade agreements (FTAs) being negotiated by the government will provide additional momentum to these exports, adds Mehra.
Anticipating growth, the industry is strategically positioning itself to capitalise on these opportunities, ensuring India remains a key player in the global textiles and apparel market.
Hyosung will introduce innovative sustainable textile solutions and fresh designs across its value chain at the world’s largest professional fabrics and accessories exhibition, China International Textile Fabrics and Accessories (CITFA) A/W Expo.
To be held in Shanghai from Aug 27-29, 2024, the expo serves as a comprehensive platform for showcasing new products, technologies, trends, and concepts in the textile industry, fostering healthy and sustainable development through collaboration.
Hyosung will participate in this exhibition along with 27 domestic and international partners. It will occupy a large 828 sqm booth to showcase its multi-functional and eco-friendly yarns including regen spandex and regen Bio Spandex, says Scott Park, Hyosung Marketing Director, China.
Hyosung's RCS-certified, 100 per cent recycled regen Spandex is produced from reclaimed waste generated during Hyosung’s manufacturing process. On the other hand, Regen Bio Spandexis made from renewable resources instead of petroleum-based materials, helping to reduce carbon footprint and reliance on non-renewable resources. Hyosung offers three bio-based Spandex yarns with varying amounts of renewable content: regen BIO, regen BIO+, and regen BIO Max.
Additionally, Hyosung will highlight its popular Creora Fresh Spandex, which will now be produced domestically in China. Creora Fresh Spandex is known for its odour-neutralising functionality and high elasticity. Utilising a chemical neutralisation method, Creora Fresh efficiently and permanently neutralises odor components like ammonia, acetic acid, and isovaleric acid, ensuring lasting freshness and comfort.
Hyosung’s Fashion Design Center (FDC) team will also present the latest trends for the Spring/Summer 2026 season, incorporating consumer needs into product design and development. The presentation will feature three major textile trends across different apparel categories: sports/outdoor, lingerie, and home leisure.
Zara was compelled to withdraw a controversial children’s T-shirt from sale after it sparked outrage among parents on TikTok, with many criticising it as being sexually suggestive, according to The New York Post.
Featuring a picture of a strawberry with captions like, ’The Perfect Snack’ and ‘Take a bite,’ the white crew-neck shirt invited backlash from mothers who found the messaging inappropriate.
Laura Wilson, a 32-year-old mother of two from London, criticised the message on the T-shirt as being ‘completely unnecessary and inappropriate. Despite Zara apologizing for the message and removing the shirt from their inventory, Wilson continued to criticise it, voicing concern over how individuals with harmful intentions might interpret the design.
This incident underscores the challenges fashion brands face in navigating controversial content. Zara has encountered similar backlash in the past, notably in December, when an ad campaign featuring mannequins wrapped in white sheets drew criticism for its perceived resemblance to scenes of carnage in the Gaza Strip.
The US textile industry mourns the passing of Congressman Bill Pascrell (D-NJ), a staunch advocate for American manufacturing and the domestic textile supply chain. National Council of Textile Organizations (NCTO) President and CEO Kim Glas expressed deep sorrow, highlighting Pascrell's unwavering commitment to confronting unfair trade practices and supporting US manufacturers.
Pascrell, who served as co-chair of the House Textile Caucus since 2013 alongside Rep. Patrick McHenry (R-NC), was instrumental in advancing key legislation. Notably, he championed the Import Security and Fairness Act, which aimed to exclude Chinese imports from de minimis treatment. His efforts also included co-sponsoring a bill to strengthen the American PPE supply chain by expanding the Berry Amendment to encompass nearly all federal PPE purchases.
Pascrell's dedication to onshoring and nearshoring textile production, as well as safeguarding the US Central America Free Trade Agreement (CAFTA-DR), underscored his commitment to bolstering the domestic manufacturing sector. His contributions extended beyond textiles, benefiting American manufacturers and workers nationwide.
Kim Glas praised Pascrell as a "manufacturing warrior" whose legacy will be deeply missed by the industry and all who knew him. The NCTO extends heartfelt condolences to the Pascrell family and his staff.
Gen Z, the generation born between the mid-1990s and early 2010s, is rapidly emerging as a key driver of the fashion industry. Their spending patterns, shaped by digital fluency, social consciousness, and an evolving sense of identity, are influencing fashion brands across the globe. These digital natives preferences driven by factors such as sustainability, social consciousness, and instant gratification, are forcing brands to rethink their strategies. And understanding these patterns, and their nuances across different fashion segments and regions, is crucial for brands aiming to thrive in this new era.
Digital natives spending patterns
One major trait among Gen Z consumers is they are mindful of their spending and seeks value beyond price tags. They are drawn to brands that align with their values, whether it's sustainability, ethical practices, or social responsibility. Social media and e-commerce play a significant role in their shopping journeys. Gen Z relies heavily on online reviews, influencer recommendations, and seamless digital experiences. They value authenticity, sustainability, and inclusivity, often prioritizing these factors over traditional brand loyalty. Gen Z values individuality and self-expression through their fashion choices. They gravitate towards brands that offer customization and unique designs.
At the same time they are also impulsive spenders who look for experiential consumption. A recent survey by Zhaopin, an online recruitment platform, in China revealed that nearly half 49.1 per cent of Gen Z consumers have increased their spending to "live in the moment." This trend towards experiential consumption is further evidenced by the fact that 39.7 per cent spend to relieve stress and 31.9 per cent increase spending as their income rises. However, the same survey also unveiled a contrasting trend. Almost three-quarters (74.2 per cent) of respondents who reduced their spending cited prioritizing value for money as the primary reason. This suggests a cautious and considered approach to consumption among a significant portion of Gen Z.
While fast fashion remains popular due to its affordability and trendiness, Gen Z is also embracing premium and luxury brands, often for special occasions or investment pieces. This reflects a desire for quality, longevity, and self-expression. Their spending patterns exhibit regional variations. While American Gen Zers tend to prioritize comfort and individuality, European counterparts are more inclined toward classic styles and sustainability. In Asia, particularly in emerging markets, Gen Z is driving a boom in luxury consumption.
In fact, the rise of athleisure, driven by a focus on health and wellness, is a prominent trend across all regions. Denim remains a staple, but Gen Z is seeking more sustainable and innovative options. Casual wear, reflecting Gen Z's laid-back lifestyle, is also gaining traction.
Table: Gen Z fashion spending patterns
|
Factor |
Impact |
|
Market segment |
|
|
Luxury |
Increased interest, particularly for investment pieces and special occasions |
|
Premium |
Growing demand for quality and unique styles |
|
Fast Fashion |
Remains popular due to affordability and trendiness |
|
Region |
|
|
USA |
Focus on comfort, individuality, and athleisure |
|
Europe |
Preference for classic styles, sustainability, and premium brands |
|
Asia |
Rising luxury consumption, particularly in emerging markets |
|
Fashion Sector |
|
|
Menswear |
Growing interest in streetwear, athleisure, and self-expression |
|
Womenswear |
Diverse trends, including athleisure, vintage, and sustainable fashion |
|
Kidswear |
Increased demand for comfortable, stylish, and sustainable options |
|
Product Sector |
|
|
Athleisure |
Significant growth driven by health and wellness trends |
|
Denim |
Continues to be popular, with a focus on sustainability and innovation |
|
Casualwear |
Increasing demand, reflecting Gen Z's laid-back lifestyle |
|
Classicwear |
Steady interest, often for special occasions or investment pieces |
Understanding a complex cohort
The conflicting consumption patterns present a complex challenge for luxury brands. While they can capitalize on Gen Z's desire for instant gratification and status symbols, they must also demonstrate value and sustainability to appeal to the more rational segment. A study by McKinsey survey supports this duality, highlighting Gen Z's focus on health-conscious lifestyles and social interaction. This suggests that luxury brands should not only offer products that provide immediate pleasure but also align with consumers' long-term aspirations for well-being and personal growth. Trade analysts point out, Gen Z is the most diverse and socially conscious generation yet. They expect brands to reflect their values and contribute to a better world.
And to pander to their demands brands have reworked their strategies. Nike for example, successfully caters to Gen Z's desire for athleisure and personalization through its customizable sneakers and focus on sustainability. Similarly Everlane appeals to Gen Z's value-driven consumption with its transparent pricing and focus on ethical practices. And Gucci engages Gen Z through its playful and irreverent marketing campaigns and collaborations with influencers.
Gen Z's spending patterns are transforming the fashion industry, forcing brands to adapt and evolve. By understanding their values, preferences, and digital habits, brands can create meaningful connections and build lasting relationships with this influential generation.
The once-booming fashion and apparel sector is experiencing a noticeable slowdown, with growth figures slipping and consumption patterns changing dramatically. While the industry seemed impervious to economic fluctuations, recent statistics highlight a sector grappling with a new reality.
Numbers speak volumes
The data reveals a some hard ground realities:
• Global fashion industry growth: The global fashion market was valued at $1.5 trillion in 2022 and expected to grow at a CAGR of 4.75 per cent from 2023 to 2028. However, recent reports suggest that growth is likely to fall below this projection.
• Slowing sales: Major fashion retailers especially fast fashion brands have reported declining or stagnant sales in recent quarters. For instance, H&M, a leading fast-fashion giant, saw its net sales decrease by 6 per cent in the second quarter of 2023. As a stakeholder points out they are seeing a distinct change in how people shop. It's no longer about quantity; it's about quality and conscious choices.
• Waning consumer confidence: Consumer confidence has dipped in several key markets. Concerns about inflation and economic uncertainty have prompted many shoppers to tighten their belts and prioritize essential purchases. In fact, various surveys suggest an increasing inclination towards mindful consumption. A significant portion of consumers express a desire to purchase fewer, but higher quality items, suggesting a shift in values.
Segments facing maximum impact
While the slowdown is affecting the entire fashion industry, certain segments are facing the maximum impact:
• Value segment: The value segment, which caters to price-conscious consumers, is experiencing significant decline. As shoppers cut back on discretionary spending, they are less likely to indulge in impulse purchases of low-cost fashion items. The focus is shifting towards value brands that offer quality and sustainability.
• Fast-Fashion: Fast-fashion retailers are also struggling as consumers become increasingly aware of the environmental and social costs associated with this business model.
• Premium: This segment, positioned between luxury and value, is feeling the pinch most acutely. With consumers becoming more discerning and price-sensitive, the appeal of premium brands is waning.
• Luxury: While traditionally resilient, the luxury segment is not immune to change. Though still experiencing growth, it's at a more moderate pace than before. This can be attributed to factors such as economic uncertainty and a growing awareness of sustainability concerns.
The slowdown in the fashion and apparel sector has no easy solutions. However, brands that can adapt to the changing consumer landscape are likely to be the ones that thrive in the long run. Moving ahead there will be more focus on value and sustainability as consumers are increasingly looking for brands that offer a good balance of price and quality. Additionally, sustainability is becoming a key consideration for many shoppers. Moreover, the pandemic has accelerated the shift to online shopping. Brands need to have a strong digital presence to reach consumers where they are. And since consumers are looking for personalized experiences, brands that can offer tailored recommendations and services are likely to stand out from competition.
Exports of polyester products increased by 197,000 tons Y-o-Y to 1.047 million tons in July’24. However, these declined by 67,000 tons on a M-o-M basis. As per the latest customs data by the CCF Group, from Jan-July’24, total exports of polyester products increased by 802,000 tons Y-o-Y to 7.185 million tons. This reflects a relatively strong performance in polyester exports for the year, although some disparities are evident.
Analysing the data in more detail, exports of all polyester products except filament yarn exhibited year-on-year growth in July, continuing the trend seen in June. However, on a month-on-month basis, most products experienced a decline compared to June.
On a cumulative basis polyester exports rose to 802,000 tons Y-o-Y during Jan-July’24, surpassing the increase seen during the same period last year.
In June and July, exports of both filament yarn and staple fiber experienced significant month-on-month declines. Exports of filament yarn were particularly affected by BIS regulations, and a higher base from the same period last year led to continued negative year-on-year growth. Staple fiber fared slightly better, though it followed a similar
This decline in filament yarn and staple fiber exports during June and July could be attributed to two potential factors: domestic producers of filament yarn and staple fiber may have adjusted their strategies, gradually adopting a price-support approach, which complicated export negotiations; alternatively, a decrease in overseas demand may have led to a corresponding reduction in raw material procurement.
The appointment of Muhammad Yunus as the interim leader of Bangladesh has brought a glimmer of hope to the domestic apparel sector grappling with a series of challenges. With a staggering $46.99 billion in export value at stake in 2023, and the world's second-largest garment exporter, Bangladesh's apparel industry faces a pivotal moment with billions of dollars in business and thousands of jobs hanging in the balance.
Business at stake, billions on the line
The Bangladesh apparel industry generates an estimated $46.13 billion in annual export revenue. Disruptions to production and supply chains could jeopardize a significant portion of this income. Major brands like H&M, Zara, and Gap, who heavily rely on Bangladeshi manufacturing, are closely monitoring the situation.
Table: Bangladesh exports
|
Year |
Export Value (in billion $) |
|
2021 |
35.81 |
|
2022 |
42.61 |
|
2023 |
46.99 |
The disruption in the supply chain has left many current orders in limbo. According to a survey by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), nearly 30 per cent of orders are facing delays, with some buyers even cancelling their orders altogether. This has put immense pressure on manufacturers who are struggling to meet their commitments.
The critical Christmas season too is fast approaching, and buyers are scrambling to ensure timely deliveries. Many have already begun diversifying their sourcing strategies to mitigate risks. Countries like Vietnam, India, and Cambodia have emerged as major beneficiaries of this shift. For example, Swedish fast-fashion giant H&M, which sources a significant portion of its products from Bangladesh, has reportedly diversified its supply chain to mitigate risks. "We are constantly evaluating our sourcing strategy to ensure a resilient and sustainable supply chain," said a H&M spokesperson.
The search for Bangladesh+1
The current situation has accelerated the trend of Bangladesh+1’ sourcing. Buyers are increasingly seeking to diversify their supply chains beyond Bangladesh to minimize risks associated with political instability and labor unrest. This trend poses a long-term challenge for Bangladesh, which needs to address its structural issues to remain competitive.
Table: Major beneficiaries the uncertainty
|
Country |
Estimated increase in apparel exports (2023) |
|
Vietnam |
15% |
|
India |
10% |
|
Cambodia |
8% |
However, Muhammad Yunus' leadership is being seen by many as a positive development. As Faruque Hassan, President of BGMEA says, "We are confident that under Mr. Yunus's leadership, the industry will overcome its current challenges and emerge stronger." His promises of stability and initiatives aimed at improving worker conditions and strengthening supply chains have been welcomed by buyers.
Emily Chen, Chief Sourcing Officer, Gap Inc. opines, "We are cautiously optimistic about Muhammad Yunus' leadership. His commitment to improving labor standards and ensuring a stable business environment is encouraging. We will continue to monitor the situation closely and work with our partners in Bangladesh to navigate these challenging times." The new government has also taken several initiatives to boost the industry, including providing financial incentives to exporters and improving infrastructure. However, the effectiveness of these measures remains to be seen.
The Bangladesh apparel industry is at a crossroads. While Yunus' appointment and the government's initiatives offer a glimmer of hope, the industry faces significant challenges in the short and long term. The ability of the industry to adapt to the changing global landscape will determine its future success.
The Lenzing Group, a key player in the regenerated cellulose fiber industry, is set for a leadership change. Rohit Aggarwal will take over as CEO on September 1, 2024, following the departure of Stephan Sielaff, who will step down at the end of August by mutual agreement with the Supervisory Board.
Aggarwal brings decades of experience in the textile and chemical industries, with a deep understanding of global markets and strategic development. His extensive experience in Europe, the USA, and Asia positions him well to lead Lenzing through its next phase of growth. Aggarwal is recognized for his expertise in the textile, non-woven, and fiber markets, aligning closely with Lenzing's core business.
Cord Prinzhorn, Chairman of Lenzing’s Supervisory Board, praised Sielaff for his contributions during a challenging period and expressed confidence in Aggarwal’s ability to steer the company forward. Sielaff reflected on his tenure, highlighting the significant improvements made under his leadership.
Aggarwal acknowledged the challenges ahead, emphasizing the importance of continued efforts to drive Lenzing's turnaround and maintain its position as a leader in sustainable textiles. He expressed gratitude for Sielaff’s smooth transition and looks forward to working closely with the Lenzing team to achieve future success.
