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From August 7 to 9, 2024, the Istanbul Fashion Connection (IFCO) marked its sixth successful edition at the Istanbul Expo Centre, solidifying Turkiye’s position as a pivotal player in the global fashion industry. With 300 exhibitors spread across four halls, the event drew nearly 18,000 visitors, a 13.9 per cent increase in international attendance compared to the previous year. The event's growing appeal is evident, with 35 per cent of attendees hailing from abroad, underscoring Istanbul's strategic importance as a fashion hub.
The event attracted high-ranking buyers from 121 countries, with Asia and the Middle East leading in representation, followed by Europe, North Africa, and the Americas. The rise in international visitors highlights IFCO’s role in bridging fashion markets across continents. Mustafa Paşahan, Vice President of the Istanbul Apparel Exporters' Association (IHKIB), emphasized IFCO’s rapid ascent in the global fashion calendar, positioning Istanbul as a premier destination for fashion, design, and trade.
Diverse exhibitor showcase
IFCO 2024 showcased a diverse array of fashion sectors across 30,000 square meters of exhibition space. The event featured collections in womenswear, menswear, kidswear, denim, sportswear, evening and wedding wear, lingerie, hosiery, leather, and furs. The designer area, The Core Istanbul, once again captivated attendees with exclusive collections from over 20 established and emerging designers. Among the standout names were ArzuKaprol, MeltemOzbek, and Tuba Ergin, who have already made their mark on the international stage.
ArzuKaprol, a renowned designer, highlighted the significance of IFCO for Turkish design, particularly in fostering new business relationships with buyers from the USA and Russia. She noted the event's success in uniting the international fashion industry, enabling intensive networking and business opportunities.
Retail giants and strategic growth
In the IFCO Brands area, leading market players such as B&G Store, Jakamen, Giotelli, NCS, and 7Camicie showcased their latest collections in meticulously designed stands. These brands, which already have a strong international presence, reported high satisfaction with their participation. CemilKarabel, Vice President of Karabel Group, praised IFCO as an efficient platform for brand presentation, networking, and customer acquisition, particularly in regions like North Africa and the Middle East.
BatuhanKutlu, owner of Gizia, Turkiye's pioneer of the ‘Accessible Luxury’ concept, echoed this sentiment, noting the trade fair's role in connecting Turkish fashion brands with global buyers. Gizia's participation in IFCO resulted in valuable new contacts and expanded customer bases, reinforcing the importance of the event for the industry.
The IFCO B2B Meeting was a highlight of the event, attracting nearly 100 prestigious buyer groups from over 20 countries. Notable participants included major retailers from the USA, UK, UAE, India, and Mexico. These meetings facilitated significant business deals and networking opportunities, further strengthening IFCO's reputation as a critical event for global fashion players.
Trends and innovation at IFCO
This year's IFCO Trend Area, themed ‘Ascension,’ was curated by the Istanbul Moda Academy (İMA), showcasing future-oriented fashion philosophies. The Trend Area explored themes of self-discovery and mindfulness, visualizing concepts such as Zen Revival, Multifaceted, Reclaimed Confession, and Freed. İMA's involvement highlights Turkiye's commitment to nurturing creative talent and innovation in fashion, with international collaborations and educational programs that connect students to global fashion schools and brands.
Turkiye’s fashion industry is increasingly recognized as a global powerhouse, ranking third in clothing and textile exports to the European Union and sixth worldwide. In 2023, the sector achieved exports worth $28.8 billion, with ambitions to reach $40 billion in the near future. Mustafa Gultepe, President of IHKIB and the Turkish Exporters Assembly (TIM), outlined the strategic initiatives aimed at achieving this goal, including digital transformation and sustainable development.
Significant investments, including over €10 million in digital transformation since 2014 and €7 million in sustainable projects in 2021-2022, underscore Turkiye's commitment to maintaining its competitive edge in the global market. The expansion of modern production facilities in eastern Turkiye further aligns with the country's strategic vision.
Looking ahead: IFCO’s continued growth
As IFCO continues to grow, it cements Turkiye's role as a key player in the global fashion industry, bridging East and West. The next edition of IFCO is scheduled for February 5-8, 2025, while Texhibition Istanbul, focusing on fabrics, ingredients, and yarns, will take place from September 11-13, 2024. These events are poised to further enhance Turkiye's influence in the international fashion business.
Testex, a Swissbased independent testing and certification institute and a founding member of Oeko-Tex, has officially joined the International Textile Manufacturers Federation (ITMF). Established in 1846 as the "Seidentrocknungsanstalt Zurich" (Silk Conditioning Institute), Testex is recognized for its expertise in testing, analyzing, and certifying textiles and leather. The company now operates with 40 branches and employs around 400 people globally.
Christian Schindler, Director General of ITMF, expressed his enthusiasm for the new partnership, highlighting the crucial role of testing and certification in the textile value chain. He noted that Testex’s involvement will enhance ITMF’s position as a leading international platform for the industry.
Marc Sidler, Group CMO of Testex, emphasized the benefits of joining ITMF, particularly in gaining access to valuable industry insights through ITMF’s publications, statistics, and events. Sidler believes that this membership will deepen Testex's understanding of global textile dynamics and strengthen its connections with associations and companies worldwide.
This partnership marks a significant step in fostering collaboration across the textile industry, with Testex contributing its vast experience to the global conversation on testing and certification.
Bangladesh's apparel exports to the European Union (EU) declined by 4.98 per cent to €8.72 billion in H1, 2024 as againstexports worth €9.18 billion in the same period of 2023, according to data released by Eurostat, the statistical office of the EU.
Exporters attribute this downturn to global challenges affecting all major exporting nations, including Bangladesh. However, they note, Bangladesh has been particularly hard-hit due to the erosion of its competitive advantages, driven by rising utility costs, an unreliable gas supply, and a recent wage hike.
Bangladesh’s knitwear exports to the EU fell by 8.58 per centduring the Jan-June’24 period while its shipments of woven garments increased marginally by 0.28 per cent to €3.74 billion.
FazlulHoque, Former President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), avers,global challenges are impacting all major apparel-exporting countries.Bangladesh has been affected more severelydue to the erosion of its competitive edge, primarily because of high utility prices, gas shortages, and wage increases.
Instead of making abrupt announcements about shifting or canceling orders, buyers have been gradually redirecting orders to other countries to mitigate business risks, Fazlulpoints out.However, despite these challenges, exports may recover in the coming months if the political situation in the country stabilises, he opines.
EU's total apparel imports from various countries declined by 6.03 per cent to €38.47 billion during Jan-June ‘24 as against €40.94 billion recorded during the same period in 2023. The 4.98 per cent decline in Bangladesh’s apparel exports was slightly better than the global average decline in the EU’s apparel imports.
According to Eurostat, Bangladesh secured the top position for knitwear exports to the 27-nation bloc during January-June 2024. Bangladesh's knitwear exports to the EU reached €4.98 billion, surpassing exports worth €4.51 billion by China.
In terms of woven garments, Bangladesh's exports to the EU totaled €3.74 billion during the H1, 2024, compared to China’s €4.65 billion.
Mohammad Hatem, Executive President, BKMEA, notes, long lead times have been a significant factor causing Bangladesh to fall behind its competitors. Ongoing power and gas crises have hindered manufacturers from operating at full production capacity and have created difficulties in procuring raw materials on time, he explains.
The fashion industry, once steeped in tradition, is undergoing a digital metamorphosis. Fashion tech, the marriage of cutting-edge technology and sartorial creativity, is poised to transform every stage of the apparel lifecycle, from design to sales.
Weaving efficiency across the garment line
Fashion tech empowers designers with new tools from design to trend forecasting.
3D design software: Platforms like CLO3D allow designers to virtually create and simulate garments, reducing physical prototypes and waste.
AI-powered inspiration & trend forecasting: Machine learning algorithms analyze vast datasets to predict trends and suggest design elements, streamlining the creative process. A McKinsey report states AI-powered demand forecasting can reduce overstocks by up to 30 per cent, significantly impacting profit margins. "AI can't replace the human touch in design, but it can be a powerful tool for generating ideas and iterating on concepts," says Sarah Johnson, a fashion designer who uses AI tools in her work.
Sourcing & manufacturing
Fashion tech streamlines sourcing with blockchain technology, which ensures transparency in the supply chain. This empowers consumers to track the origin of materials and labor practices, promoting ethical sourcing. According to a report by Business of Fashion and McKinsey, 63 per cent of global consumers are willing to pay a premium for sustainable products
Blockchain for transparency: Blockchain technology provides a secure and transparent way to track the origin of materials and manufacturing processes, ensuring ethical and sustainable practices. "Blockchain can empower consumers to make informed choices about the clothes they buy," says Michael Lee, CEO of a sustainable fashion brand utilizing blockchain.
On-demand manufacturing: 3D printing and digital knitting technologies enable on-demand production, reducing waste from overproduction and allowing for quicker response to trends.
Marketing & sales
AR (augmented reality) allows customers to virtually try on clothes in their own space, enhancing the shopping experience. Social media marketing and influencer collaborations leverage data to target specific demographics, increasing brand awareness and sales. “Social media has democratized fashion. Now anyone can be a tastemaker and share their style with the world,” says Eva Chen, Director of Fashion Partnerships at Instagram.
Virtual try-on with Augmented Reality (AR): AR apps allow customers to virtually try on clothes in their own space, enhancing the online shopping experience. "AR try-on is a game-changer for online retail, reducing return rates and improving customer satisfaction," says Jessica Park, Founder of an AR fashion startup.
Personalized shopping experiences: AI-powered chatbots and recommendation engines personalize the shopping experience, suggesting products based on past purchases and browsing behavior.
The fashion tech landscape is brimming with innovation across the globe. For example in Europe, London and Berlin are hubs for fashion tech startups, with a focus on sustainability and ethical sourcing. In North America, Silicon Valley giants like Amazon are investing heavily in AR and VR applications for fashion retail. And in Asia, China boasts of a thriving fashion tech ecosystem, with companies pioneering on-demand manufacturing and personalized experiences.
The business models for fashion tech companies vary. For example, Software-as-a-Service (SaaS) which companies like CLO3D offer design software on a subscription basis. Similarly, platforms facilitating on-demand production may charge fees per garment produced. Companies may sell data insights on consumer behavior to fashion brands.
Cost optimization vs. investment
While some fashion tech solutions require upfront investments, the long-term benefits can be substantial. Here's how fashion tech can optimize costs:
Reduce waste: 3D design and on-demand manufacturing minimize waste from physical prototypes and overproduction.
Improve efficiency: Streamlined workflows through AI and automation lead to faster production cycles and lower operational costs.
Enhance customer experience: Personalized marketing and AR try-on can reduce return rates and boost customer satisfaction.
The financial viability of fashion tech platforms depends on several factors. Widespread adoption by fashion brands and consumers is crucial for revenue generation. The ability to scale solutions to cater to a larger customer base is essential for profitability. Also, SaaS models require a robust recurring revenue stream to be sustainable.
As per Market Research Report on Fashion Tech, the global fashion tech market is estimated to reach $1,082.5 billion by 2027, with a Compound Annual Growth Rate (CAGR) of 23.3 per cent. This rapid growth indicates a significant opportunity for fashion tech companies. Similarly, a Grand View Research study says, the global fashion tech market is expected to reach a staggering $2.9 billion by 2025, with a Compound Annual Growth Rate (CAGR) of 22.4 per cent.
As data becomes the new fabric of fashion, AI personalizes experiences, and AR/VR transcends physical limitations, fashion tech promises to redefine how we design, produce, and consume clothing. While challenges like affordability and integration remain, the future of fashion is undoubtedly intertwined with technology.
Rising energy and financial costs may cause cotton production in Pakistan to decline during 2024-25, says a report by the Ministry of National Food Security and Research (MNFS&R). Consequently, this will adversely affect the growth of the textile sector, a crucial driver of the country’s economy, the report adds.
During a meeting of the National Assembly Standing Committee on National Food Security and Research, chaired by MNA Syed Hussain Tariq, MNFS&R officials highlighted, escalating costs would pose significant challenges to the textile sector. The government had set an ambitious target of $25 billion in textile exports for 2023-24, but current projections suggest that achieving this goal may be unlikely.
The committee expressed grave concerns over the ongoing decline in cotton production and the fall in prices within the country. Members called for immediate and effective interventions to stabilise and enhance cotton production. The proposed measures included providing subsidies, improving pest control, and adopting modern farming techniques.
India is poised to become a global e-commerce powerhouse, with the textile, apparel, and fashion sector at the forefront. The government's recent announcement of e-commerce export hubs is a significant step towards realizing this potential.
The e-commerce export landscape
India's current e-commerce exports stand at a modest $5 billion compared to China's dominant $300 billion. However, the potential is immense. A report by GTRI estimates India's e-commerce exports could grow to $350 billion by 2030.
The Indian government has identified e-commerce as a key driver of economic growth and export diversification. The proposed e-commerce export hubs, to be established in a public-private partnership model, will provide a comprehensive ecosystem for exporters, streamlining processes and reducing costs. The global cross-border e-commerce market is booming, projected to reach $2 trillion by 2030. India's vast population, skilled workforce, and rich cultural heritage position it as a prime exporter of textiles, apparel, and fashion products.
The textile, apparel, and fashion sector is particularly promising. With its rich heritage, skilled workforce, and cost-competitive production, India has a strong foundation to build upon. Moreover, the government's focus on initiatives like 'One District One Product' (ODOP) can further enhance the export potential of unique regional products.
The e-commerce export hub initiative
As outlined by Finance Minister, e-commerce export hubs will operate under a PPP model, streamlining trade and export-related services. The goal is to empower MSMEs and artisans to access international markets, as stated by the minister. Commerce Secretary Sunil Barthwal has indicated that a comprehensive regulatory framework for e-commerce exports will be in place by September 2023. This regulatory clarity is crucial for boosting investor confidence and facilitating trade.
These hubs will offer a comprehensive range of services, including warehousing, customs clearance, and export facilitation. The development of e-commerce export hubs is expected to generate employment opportunities in various sectors.
The textile, apparel, and fashion sector
The textile, apparel, and fashion sector is a cornerstone of India's economy, with a strong domestic market and export-oriented manufacturing base. This sector is well-positioned to capitalize on the e-commerce boom.
Strong value proposition: India offers a unique blend of traditional craftsmanship and modern manufacturing capabilities, enabling the production of high-quality, affordable products.
Diverse product range: The sector covers a wide spectrum of products, from ethnic wear to contemporary fashion, catering to diverse global tastes.
Export opportunities: With increasing demand for sustainable and ethically produced fashion, India's emphasis on organic textiles and fair labor practices can be a significant competitive advantage.
While the prospects are bright, challenges such as banking issues and operational costs hinder growth, as highlighted by a GTRI report. Developing secure and efficient payment systems is vital for cross-border transactions. Addressing these issues is essential for realizing the full potential of e-commerce exports. Improving logistics, warehousing, and last-mile delivery infrastructure is crucial for efficient e-commerce operations. Enhancing digital literacy among MSMEs and artisans is essential for effective online market participation. Meanwhile a clear and supportive regulatory environment is vital for boosting investor confidence and facilitating cross-border trade.
On the other hand, e-commerce offers unprecedented opportunities for small businesses and artisans to reach global consumers. By leveraging e-commerce platforms, these players can bypass traditional intermediaries and improve their profit margins.
India's e-commerce export sector is at an inflection point. With the right policies, infrastructure, and support, the country can become a global leader in this domain. The textile, apparel, and fashion industry, with its strong foundation and immense potential, is well-positioned to drive this growth.
Further strengthening Bangladesh’s position as a global leader in sustainable manufacturing, two more factories in the country have been accorded with the LEED certification by the United States Green Building Council (USGBC). This achievement brings the total number of LEED-certified green factories in the country to 226, as per the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Among these latest additions, Ashulia, Dhaka-based Saadatia Sweaters with a score of 91 has been granted Platinum certification while Gazipur-based Executive Greentex received Gold certification with a score of 69. These certifications highlight both the factories' excellence in energy efficiency, water conservation, and waste management.
Bangladesh currently hosts 60 out of the top 100 highest-rated LEED-certified factories globally, showcasing the nation's dedication to green manufacturing and sustainability. Since 2001, the country has been recognised by the USGBC for its commitment to environmental stewardship, with factories receiving Platinum, Gold, or Silver ratings based on their performance in key areas.
Emphasisng the industry’s unwavering focus on sustainability, MohiuddinRubel, Director, BGMEA, notes, Bangladesh's success in green growth represents significant progress toward achieving net-zero emissions. This achievement can be attributed to the industry's effortsalong with the collaborative support from buyers, the government, and development organisations. With continued partnership and dedication, Bangladesh's ready-made garment (RMG) industry is poised to reach new heights of excellence, further establishing itself as a global leader in sustainable and ethical manufacturing, states Rubel. The association aims to build on this momentum and continue creating a more sustainable and environmentally responsible industry, he adds.
Driven by a strong demand from the US and the European markets, India's apparel exports grew by 11.85 per cent in July, as per data compiled by the Confederation of Indian Textile Industry (CITI).
Apparel exports from India to these two regions rose to $1,277.20 million from $1,141.95 million during the month as compared to the corresponding month previous year. However, textile exports dipped marginally to $1,660.36 million from $1,663.06 million the previous year.
Overall, India’s the textile and apparel exports to these two markets grew by4.73 per cent to $2,937.56 million during the month from $2,805.01 million in July 2023.
RakeshMehra, Chairman, CITI, notes, this year has shown promising progress for India's textile and apparel exports, particularly in key markets such as the US, the European Union, and the UK. The growth in these markets contributessignificantlyto the increase in Indian apparel exports.
Highlighting the potential benefits of recent Free Trade Agreements (FTAs) like the India-Australia Economic Cooperation and Trade Agreement (ECTA) and the India-UAE Comprehensive Economic Partnership Agreement (CEPA), Mehra says, these agreements will provide additional momentum to India's exports, helping the industry maintain its position as a key player in the global textile and apparel market.
From Apr-July’24, India's cumulative merchandise exports increased by 4.15 per cent to $144.12 billion from $138.39 billion recorded in the same period last year.
Despite global challenges, including geopolitical tensions in West Asia, India's exports remained resilient, underscoring the country's strong performance in the global market, emphasisesSunil Barthwal, Commerce Secretary.
Zara Women has launched a new collection that offers garments made from 100 per centCircLyocell, a sustainable fabric made out of fibers derived from 50 per cent recycled textile waste.
Designed to highlight clean, minimalist silhouettes, the collection demonstrates the ability of Circ materials to create elevated and timeless designs. It is currently available in the US and other selected markets.
The collection builds on the company’s goal to create a model for the widespread adoption of sustainable materials, says Peter Majernowski, CEO, Circ. This partnership also reinforces the long-term potential of Circ and Inditex to work together to improve product circularity for the fashion industry, he adds.
Circ’s recycling technology offers a groundbreaking solution to the previously challenging task of breaking down polyester and cotton blends (polycotton) to create new garments. It is the only in-market platform that can successfully separate polycotton blended textile waste and recover both cellulosic and synthetic fibers.
The primary challenge now is to scale up this technology to accelerate circularity across the entire fashion industry, which will require broad collaboration and investment, emphasisesMajernowski. Partnerships like the ongoing collaboration between Zara and Circ, which began with an investment from Zara’s parent company, Inditex, in 2023, represent a positive step towards this goal, he adds.
Deckershas sold its footwear brand Sanuk to athleticwear company Lolë Brands, as per a press release shared by the companywith sister publication Fashion Dive.
This acquisition follows Lolë Brands’ purchase of the athleisure brand Époque Évolution last year. Both, Katie Pruitt, Brand Director, Sanuk and Todd Steele, CEO, Lole Brands describe Sanuk as a ‘natural fit’ for Lole Brands which focuses on expanding its business with a portfolio of synergistic, environmentally conscious brands.
Through this partnership Sanuk aims to expand its footprint and customer base in the US. The brand also aims to explore new product categories, they add.
Katie Pruitt, Brand Director –Sanuk, will continue in her new role as the Vice President and General Manager at Lole Brands. She will focus on brand strategy, prioritising direct-to-consumer (DTC) and wholesale customers to drive innovation and growth
In the first quarter of Deckers’ 2025 fiscal year, the net sales of Sanukdeclined by 28.4 per centY-o-Y to $6.9 million.
