FW
Regional retail and hospitality leader Landmark Group has unveiled Landmark Circulife, a state-of-the-art textile recycling facility situated in the Dubai World Central. Designed to convert used fabrics into high-quality recycled fibers for use in new products, the facility marks a significant step toward sustainable practices in the region.
As the first facility of its kind in the UAE, Landmark Circulife aims to lead the way in textile circularity while reinforcing the Group’s commitment to becoming circular and climate-positive by 2050. This groundbreaking initiative positions the UAE as a potential regional and global hub for recycled textile fiber production.
Initially designed to handle 2,000 metric tons of textile waste annually, the facility processes a variety of textiles to create fibers for products ranging from apparel to home furnishing, reducing dependency on virgin materials.
The facility plans to scale operations to process 11,000 metric tons of textile waste annually, addressing approximately 5 per cent of the UAE’s apparel market. The expansion could negate 140,000 metric tons of CO2 emissions, save 107 GWh of energy, conserve 77,000 million liters of water, and achieve a 70 per cent reduction in eutrophication.
The facility was inaugurated by Abdulla bin Touq Al Marri, UAE Minister of Economy and Co-Chair of the UAE Circular Economy Council, who highlighted its critical role in promoting "green growth." The UAE Circular Economy Council also held its quarterly meeting at the site, underscoring its importance.
Landmark Group employs advanced carbon accounting models and has developed a Generative AI-guided app, Fit for Green, to track and reduce its carbon footprint. While building Landmark Circulife required significant investment, the Group has engineered the model to keep costs low, ensuring value for customers while meeting sustainability goals.
In a significant development, garment industry associations in Tiruppur have urged textile and garment organizations across India to recommend their members stop importing goods from Bangladesh.
The associations stressed the importance of the Central Government protecting domestic fabric and garment manufacturers by imposing countervailing or anti-dumping duties on Bangladeshi imports. They pointed out, Bangladeshi manufacturers benefit from government subsidies, while their products enter India duty-free, creating an uneven playing field. The primary objective is to ensure fair competition and safeguard the interests of Indian manufacturers.
The associations also called on the government to introduce interim measures until these duties are implemented. In the meantime, they encouraged India’s textile and garment industry to take a principled stand by voluntarily halting imports from Bangladesh. Another resolution highlighted the need to foster self-reliance within India’s textile sector, urging collective efforts to prioritize domestic production and reduce dependence on foreign imports.
This unified appeal underscores growing concerns about the challenges faced by Indian manufacturers and aims to strengthen the nation’s textile and garment industry.
India’s apparel export sector is navigating a challenging global environment with resilience and innovation. Despite issues like inflation and fluctuating international demand, RMG exports from India grew by 9.8 per cent in November 2024. Cumulative exports for April-November 2024-25 expanded by 11.4 per cent Y-o-Y to $9,853.9 million.
Sudhir Sekhri, Chairman of the Apparel Export Promotion Council (AEPC), attributes this growth to adaptive strategies and government initiatives. India’s apparel sector demonstrates its potential to outpace global competitors with the right investments and reforms, he says.
While some major apparel-exporting nations have faced slowdowns, India’s RMG exports have maintained a strong growth trajectory. This performance is further boostred by factors such as improved product acceptance, evolving consumer trends, and factories focusing on compliance with government-supported measures.
The sector looks forward to the proposed PLI (Production Linked Incentive) 2.0 Scheme, which aims to incentivize investments in garment manufacturing with a lower investment threshold. Sekhri also highlights plans to organize dedicated investment sessions during the Bharat Tex Expo 2025 to attract industry players.
For investments to yield attractive returns, maintaining a competitive exchange rate is critical. The industry also needs to ensure availability of developed land with robust infrastructure, skilled manpower, and seamless connectivity to ports. To achieve this, the government’s PM MITRA (PM Mega Integrated Textile Region and Apparel) Scheme is creating mega textile parks, a flagship initiative to strengthen India’s textile ecosystem.
Reducing production and logistics costs remains essential to enhancing India’s competitiveness. Additionally, attracting new entrants, including start-ups and foreign direct investment (FDI), is pivotal. Focused policies to support these stakeholders will further drive sectoral growth.
With its ability to adapt and innovate, supported by strategic investments and policy reforms, the Indian apparel export sector is poised for sustained growth. As global challenges persist, the sector’s resilience underscores its readiness to solidify India’s position as a leading player in the global apparel market.
A Japanese luxury footwear subsidiary of Asics Corporation, Onitsuka Tiger plans to shift production to India to boost regional growth.
As per Ryoji Shoda, Vice President, Onitsuka Tiger, says demand for high-end clothing and footwear is growing rapidly. Local production will also help the brand increase its value propostion, he adds.
Given its sizable client base, rising prosperity, fashion-conscious youth, and expanding demand for luxury goods, India serves as a crucial market for Onitsuka Tiger, adds Shoda.
As per industry projections, growing at a CAGR of 4.8 per cent from 2023-2028, India’s footwear market will reach 2,225 million pairs by 2028. To capitalize on this growth, the company plans to establish two more stores next year, bringing its total number of outlets in the nation to 11.
Additionally, the company aims to boost exports from India in collaboration with an original equipment manufacturer to establish a new facility to boost production in 9= n the business is looking into potential exports from India and revealed plans to collaborate with an original equipment manufacturer (OEM) partner facility to boost production in India by 2028.
The textile sector in India aims to double its contribution to the national GDP from the current 2.3 per cent to 5 per cent by 2030. The sector aims to improve its supply chain efficiency, integrate automation and digitization, and explore new markets in Africa, Latin America, and Southeast Asia. It will also align its sustainability efforts, including renewable energy adoption with global environmental standards.
With a rich heritage and strategic global positioning, India is poised to become a central player in the international textile supply chain. Textile sector in the country is on a strong growth trajectory, driven by advancements in spinning, denim, and man-made fibers (MMF). With 48 million spindles, India’s spinning segment is projected to grow by 12-14 per cent in FY24. Yarn exports are set to increase by 85-90 per cent, fueled by robust demand. Ranked second globally, the denim industry is expected to grow at a CAGR of 8-9 per cent, while constituting 70 per cent of global fiber consumption, MMF is gaining momentum, driven by demand across apparel, home textiles, and industrial applications.
Combining traditional strengths with modern technologies, India’s textile industry is positioned to drive economic growth, create employment, and lead the global textile landscape, defining its role as a hub for sustainable and innovative textile solutions.
Despite facing issues like energy crises, dollar shortages, supply chain disruptions, labor unrest, and political instability, the garment industry in Bangladesh rebounded strongly in H2, FY24, as it was buoyed by the return of western buyers and recovering global markets.
Apparel-makers in Bangladesh faced a multitude of obstacles throughout the year. Labor unrest stemming from demands for wage hikes and inflationary pressures led to massive disruptions in production. Protests by workers, curfews, and government-imposed internet blackouts during the political transition in mid-year further exacerbated the situation. Key industrial belts in Gazipur, Savar, Ashulia, Zirani, and Zirabo witnessed prolonged shutdowns due to vandalism, fires, and strikes.
Resolution came in September when factory owners, labor leaders, and workers reached an agreement on an 18-point demand. One major outcome was an increase in the annual increment for garment workers from 5 per cent to 9 per cent, effective December 2024. While the resolution allowed many factories to resume operations, the sector saw significant setbacks, such as Beximco Group’s decision to lay off over 40,000 workers from 16 units.
Adding to the turbulence, the Central Bank revised export earnings for fiscal 2023-24 down to $36 billion from the initially overstated $47 billion, as per a report by the Export Promotion Bureau (EPB).
Despite domestic challenges, the global market provided a silver lining. As inflationary pressures eased and the world recovered from pandemic and geopolitical crises, Western buyers returned to Bangladesh, leading to a significant rebound in exports.
During the July-November period, apparel shipments to major markets like the EU and the US increased by 16.25 per cent Y-o-Y to $16.11 billion. The future looks brighter now than it did a few months ago, says MA Jabbar, Managing Director, DBL Group, whose clients include Walmart-George, Puma, Esprit, and G-Star.
Echoeing this optimism, Faruque Hassan, Former President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA), highlighted the resurgence of work orders from international retailers as sales rebounded in key markets.
Emphasising on the need for strategic investments to sustain growth, Jabbar called for the establishment of a dedicated EPB-like institution for the garment sector, He urged greater focus on man-made fiber and sportswear, segments experiencing rising global demand. Hassan also stressed the importance of addressing the persistent power and energy crisis to attract investment and create jobs.
Emphasising on the need for political stability and improved law and order, Rizwan Rahman, Former President, Dhaka Chamber of Commerce and Industry (DCCI), said, it underscored the need for political stability and improved law and order to foster a conducive business environment.
Despite a tumultuous year, 2024 was also a testament to the resilience and adaptability of Bangladesh’s apparel industry. With work orders rebounding and political stability returning, the sector stands poised for growth. However, to maintain its competitive edge and capture a larger share of the global market, the industry needs to address systemic issues such as energy shortages, infrastructure challenges, and labor rights.
The year ended with cautious optimism, as industry stakeholders looked forward to 2025 with a renewed sense of purpose and hope for a brighter future.
The global apparel trade is undergoing a significant transformation, says a recent report by Wazir Advisors. Titled ‘Apparel Trade Scenario in Key Global Markets and India’, the report offers a comprehensive analysis of the changing dynamics in the industry, highlighting key trends in imports, exports, and retail sales.
Imports on the rise
The report reveals that apparel imports in major markets such as the US and the EU have seen a slight increase in 2024 compared to previous year. This growth comes despite a challenging economic environment, marked by inflationary pressures and lower consumer confidence.
Table: Changing imports
|
Region |
2023 imports ($ bn) |
2024 imports ($ bn) |
YoY change |
|
USA |
78.8 |
73.8 |
1% |
|
EU |
86.1 |
67.9 |
-0.30% |
|
UK |
19.9 |
15.4 |
-9% |
|
Japan |
23.7 |
18.9 |
-6% |
Mixed report on exports
On the export side, the report reveals a mixed picture. While major suppliers like China and Vietnam have experienced growth in 2024, Bangladesh and India have seen their exports decline. This decline can be attributed to factors such as increased competition and rising production costs.
Table: Exports mixed results
|
Country |
2023 exports ($ bn) |
2024 exports ($ bn) |
YoY change |
|
China |
152.4 |
138.9 |
0% |
|
Bangladesh |
47.6 |
34.8 |
-9% |
|
India |
14.4 |
14.2 |
8% |
|
Vietnam |
33.4 |
30.6 |
10% |
India's perspective
The report highlights that India's apparel exports have shown a slight increase in 2024, despite the overall decline in exports. This growth can be attributed to the government's initiatives to promote the textile and apparel industry, as well as the increasing demand for Indian-made products in key markets.
The report concludes that the global apparel trade is undergoing a shift, with new suppliers emerging and existing suppliers facing increased competition. The report also highlights the importance of factors such as sustainability and ethical sourcing in the current market. Overall the report provides valuable insights into the changing dynamics of the global apparel trade. The report's findings suggest that the industry is in a state of flux, with both challenges and opportunities for businesses operating in this space.
Retail scenario
The report also gives an insight on the apparel retail market scenario especially in the US. The market is showing mixed signals, says the Wazir Advisors report. While apparel store sales have remained flat, home furnishing sales have seen a significant uptick. E-commerce sales, however, have experienced a slight dip.
Monthly apparel store sales in the US remained relatively flat in 2024 compared to 2023. This indicates a stable but not booming market, with consumers maintaining their spending levels despite economic uncertainties. In contrast, home furnishing stores have seen a significant sales rise. This suggests a shift in consumer spending habits, with more focus on home improvement and comfort.
Online sales of clothing and accessories saw a slight decline in 2024. This comes after several years of strong growth in the e-commerce sector, indicating a potential saturation of the online market.
Table: US retail sales
|
Sales Category |
2023 ($ bn) |
2024 ($ bn) |
YoY change |
|
Apparel Stores (Jan-Nov) |
196.4 |
196.5 |
0% |
|
Home Furnishing Stores (Jan-Nov) |
55.3 |
55.9 |
1% |
|
Online Clothing & Accessories (Q3) |
16.8 |
16.4 |
-2% |
The mixed trends in the US apparel retail market therefore reflect the complex economic conditions prevailing in the country. While stable apparel store sales indicate resilience in consumer spending, the decline in e-commerce sales suggests caution and a potential shift in consumer behavior. The growth in home furnishing sales could be attributed to factors such as increased focus on home improvement and nesting trends.
The rise of dark stores is transforming the e-commerce landscape, and the fashion and apparel sector is no exception. This analysis looks into the participation of this sector in the dark store model, its impact on e-commerce and traditional retail, and the potential for existing small apparel stores to become dark stores.
Fashion's growing presence in dark stores
While groceries remain the dominant category in quick commerce, fashion and apparel is emerging as a significant player. And it’s a growing trend as platforms like Zepto are expanding their dark stores to include apparel alongside electronics, beauty products, and other categories. While precise figures for fashion's share of the quick commerce market are scarce, anecdotal evidence and company statements suggest steady growth. Zepto, for instance, reports "steady growth and gaining momentum" in categories beyond groceries, including fashion.
Impact on e-commerce and small businesses
Dark stores are boosting e-commerce by enabling faster delivery times, a key factor in customer satisfaction and purchase decisions. This is particularly relevant for fashion, where immediacy and impulse purchases are common.
The impact on small apparel stores is twofold. First, dark stores pose a competitive threat by offering greater convenience and speed. Second small stores can potentially leverage the dark store model to expand their reach and compete more effectively.
Indeed, the prospect of converting existing small apparel stores into dark stores has many opportunities for brands. It helps to leverage existing locations for faster delivery in their immediate vicinity. It potentially reduces costs associated with in-store displays and customer service. It integrates offline and online operations, offering customers multiple touchpoints.
However, there are challenges as well as it requires investment in inventory management systems, order fulfilment processes, and delivery networks. Also, many small stores may lack the space for efficient order completion and storage. Moreover competing with established players with extensive networks and resources can be difficult for small stores.
Table: Data and projections
|
Aspect |
Current situation |
Potential impact |
|
Dark Store Growth |
Rapid expansion, with companies like Swiggy aiming to double their dark store area. |
Increased density of dark stores will bring faster delivery times to more customers. |
|
Fashion & Apparel Share |
Growing steadily, driven by demand for quick delivery of apparel and accessories. |
Could become a significant segment within the quick commerce market. |
|
Impact on Small Businesses |
Mixed; competition but also opportunities for collaboration and adaptation. |
Potential for revitalization if small businesses can integrate into the dark store ecosystem. |
Success story
US-based quick commerce platform GoPuff provides a relevant case study. Initially, focused on snacks and convenience items, GoPuff expanded into fashion and apparel through partnerships with brands like Champion, Lacoste, and Psycho Bunny. This move illustrates the potential for quick commerce to cater to fashion consumers' desire for speed and convenience.
However, the integration of fashion & apparel into the dark store model is still in its early stages but holds significant potential. While challenges remain, particularly for small businesses, the opportunities for growth and innovation are undeniable. The future of this sector lies in a hybrid model, where traditional retail coexists with dark stores, offering customers a seamless omnichannel experience.
The proposed PM MITRA Park in Dhar, Madhya Pradesh is likely to not only attract over Rs 10,000 crore investment but also generate employment opportunities for over 1 lakh people, says Giriraj Singh, Union Minister of Textiles,
The textile park aligns with Prime Minister Narendra Modi’s vision to establish India as a self-reliant nation, and a global textile hub, adds Singh. The government aims to establish seven such textile parks across the country, he informs.
Spanning across approximately 1,563 acre in Dhar, the project is being developed by the Madhya Pradesh Industrial Development Corporation (MPIDC).
The Union Government also plans to develop similar PM MITRA Parks in other states like Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh, and Maharashtra.
To be developed with an investment of Rs 4,445, these parks will be operational by 2027-28. The current political crisis in Bangladesh has helped domestic textile companies enhance capacities and boost export growth, avers Singh. In October and November 2024, India's garment exports rose by 35 per cent while textile exports expanded by 11 per cent compared to the corresponding period a year ago, he adds.
Offering a temporary relief to powerloom weavers in Surat, the Union Ministry of Textiles has delayed the imposition of an anti-dumping duty on nylon yarn.
The decision was prompted by a petition filed by nylon spinners Century Enka and Orilon, who sought an anti-dumping duty citing substantial losses caused by the influx of low-cost imported nylon yarn. However, powerloom leaders, including Mayur Golwala, Ashish Gujarati, and Vimal Bekawala, vocally opposed the petition. They challenged the spinners' claims of financial distress and warned that imposing additional duties would harm the weaving sector.
Golwala emphasized, the Ministry of Textiles had previously advised against anti-dumping duties in 2020. He also highlighted the steady growth in domestic nylon yarn production, which has kept pace with imports in recent years.
Emphasisng on the need for high-quality yarn, industry representatives pointed out, many Surat weaving units have invested in high-speed machines with capacities of 300 to 1,200 rpm, requiring superior yarn quality. Domestic spinners currently struggle to meet this demand, forcing weavers to depend on imported yarn to maintain operations.
Outlining the potential consequences of restricting nylon yarn imports, Ashish Gujarati, Former President, Southern Gujarat Chamber of Commerce and Industry (SGCCI), points out, Surat’s textile industry consumes supports approximately 80, 000 weaving machines besides employing 1 lakh workers by consuming 8,000-10,000 tons of nylon FDY yarn monthly. Any import restrictions could lead to machine shutdowns, turning them into scrap and causing widespread unemployment, he warns
Weaver leaders also refuted claims that imported yarn was responsible for the financial distress of companies like Praful Overseas, which recently became a non-performing asset (NPA). They argued, multiple factors contribute to an NPA status and rejected the notion that imported yarn was the sole cause. Instead, they asserted that imposing duties would merely increase profits for spinners at the expense of weavers and the broader textile sector.
The government’s decision to delay the imposition of anti-dumping duties has provided much-needed relief to Surat’s powerloom weavers. Industry leaders view the move as essential for sustaining Surat’s position as a major MMF textile hub, preserving jobs, and ensuring continued growth.
