FW
As a part of its wider management overhaul to stem losses, Italian fashion retailer, Benetton Group has asked Andrea Incontri, Creative Director to quit from his position in the group.
With this move, the company aims to define a management team to support its new director general in a new phase of rationalisation and relaunch. The clothing group named Claudio Sforza as director general in late May to replace Massimo Renon, who had been publicly criticised by the company's 89-year-old founder Luciano Benetton for what he called a ‘100-million-euro hole; during his four years in charge.
Incontri was hired by Renon in July 2022 to rejuvenate the group's collection. He was previously the artistic director of Italian luxury shoe companyTod's from 2014 to 2019.
Created in 1965 in the northeast of Italy, the ‘United Colors of Benetton; went global in the 1980s with its soft wool sweaters and the shock advertising of photographer OllvieroToscani.
However, the company's sales have stagnated since the early 2000s with its net loss nearly tripling to €230 million in 2023.
Sales of US-based retailer specialising in apparel for big and tall men, Destination XL Group declined by10.9 per cent to $124.8 million in Q2, FY24 from $140 million in Q2 FY23. The company’s store sales fell by 10 per cent while its direct business decreased by 12.8 per cent.
Destination XL Group’s gross margin rate for Q2 FY24, including occupancy costs, also lowered by 48.2 per cent Y-o-Y during the quarter from 50.3 per cent in the same quarter last year. This 210-basis-point decrease in gross margin underscores the impact of reduced sales volume on the company's profitability.
The company’s Selling, general, and administrative (SG&A) expenses rose significantly as a percentage of sales, reaching 43 per cent in Q2 FY24, compared to 33.9 per cent in Q2 FY23. This increase was partly driven by higher marketing costs, which accounted for 8.8 per cent of sales in Q2 FY24, up from 5 per cent in the previous year.
Net income for the second quarter of FY24 declined to $2.4 million from $11.6 million from the same quarter last year. Adjusted EBITDA, a non-GAAP measure, also witnessed a significant drop at $6.5 million for Q2 FY24, compared to $22.9 million in Q2 FY23.
The company’s second-quarter results reflect the challenges of a tough retail apparel market, marked by a decline in foot traffic to its stores and lower conversion rates in direct business, says Harvey Kanter, President and CEO.
During the quarter, customers of the company continued to feel the effects of inflationary pressures and macroeconomic uncertainty on their discretionary spending. However, despite the disappointing sales performance, Destination XL Group maintained a stable merchandise margin, reduced inventory, and upheld a strong balance sheet, he adds.
The inaugural edition of the Genova Jeans Week, to be held from Oct 01-04, 2024 in Genova, Italy, will focus on fashion, sustainability, art, and edutainment.
Conceived by the City of Genoa, this new format of the event will transform it into a vibrant, multi-day celebration featuring workshops, conferences, exhibitions, art installations, and even a jeans-themed party.
Conceived by Manuela Arata, Chairperson, Advisory Board, the new format will expand the scope of the event, extending its duration and incorporating new locations throughout Genoa's historic center, alongside a more extensive lineup of events and partners.
The event will also provide an opportunity to delve into the origins of jeans, its historical connection to our city, and its evolution into a beloved garment embraced by people of all ages, says Deputy Mayor PietroPiciocchi. The event would also serve as a platform for businesses in the fashion and textile supply chain to exchange ideas, while also promoting urban and social revitalization in Genoa, he emphasises.
Featuring over 50 events focused on music, art, fashion, and craftsmanship, Genova Fashion Week will be based on the overarching theme of recycling and reusing textile materials. One of the highlights of this fashion Week will be the JeanLab on Via Pré, where artisans will host workshops on various applications of denim. The Darsena area will serve as the central hub, hosting the Jeans Village.
Additionally, the city will come alive with exhibitions and art installations in various locations, including the PalazzideiRolli, industrial spaces, the University Library’s Art Nouveau halls, and city museums.
The Customs and Monopolies Agency will host discussions with companies and entrepreneurs from the fashion and textile industry, focusing on sustainable, creative, and innovative production processes for denim garments. The agency’s headquarters will also feature the exhibition ‘The Jeans Backstage. Beyond Your Blue Jeans,’ showcasing the intricate work behind denim production, in collaboration with selected companies, start-ups, and young designers.
The Diocesan Museum will present a new Arte Jeans exhibition, featuring contemporary works created with Candiani Denim fabric. Additionally, a window display competition themed ‘Jeans is Forever’ will involve retailers, aiming to raise awareness about responsible consumption and the durability of denim.
The Autumn Fair, a leading seasonal event for Home, Gift, and Fashion retail, kicked off, attracting thousands of buyers eager to discover the latest products for their stores. Spanning four days, the show is crucial for UK independent retailers to refresh their inventory ahead of the festive season. Reports from the first day highlighted an optimistic atmosphere, with substantial order writing and the value of in-person interactions.
Prominent retailers and independent businesses, including Tesco, Poundland, Blue Diamond, and Roys of Wroxham, attended the event. Event Director Soraya Gadelrab expressed excitement about welcoming over 12,000 buyers to explore offerings from 800+ suppliers, noting the positive feedback from attendees.
On the show floor, exhibitors and buyers shared positive experiences. Jason Bensohn of One.World, returning after a pre-Covid hiatus, praised the opportunity to reconnect with old clients and attract new ones. Kerry Singh of Final Touches reported unexpected busyness and early orders. Paul Connett of My Gifts Trade launched new collections at the show, including exclusive European ranges, while Brett Smith of Emotional Rescue highlighted the networking benefits.
In the Moda section, Irene Harvey of Velvet & Cream and James Rowley of Sleek Boutique discovered new suppliers and products, emphasizing the importance of the event for finding unique items.
The Autumn Fair also featured a Merchandising Masterclass led by Debbie Flowerday, focusing on visual display techniques to enhance retail spaces. Attendees like Luke MacFadyen of Fig1 and Paula Hunault of XO-CU Ltd found the session insightful, gaining valuable tips for improving their store presentations.
With 38 per cent of exhibitors new to the show and 30 per cent exclusive, the Autumn Fair offers retailers access to innovative products, helping them stay ahead of trends. The event's unique offerings and new buyer attractions, such as the Ambience Clinic, further enriched the experience, making it a must-attend for the retail community.
The Confederation of Indian Textile Industry (CITI) has launched its first Management Development Program on Environmental, Social, and Governance (MDP-ESG) to address the growing sustainability mandates from global markets like the EU and evolving national regulations. The three-day event, held at the Bombay Textile Research Association (BTRA) in Mumbai, aimed to equip industry managers with essential knowledge for navigating this new landscape.
CITI Secretary General Chandrima Chatterjee and Chairman RakeshMehra led the program, highlighting the need for a holistic approach to sustainability that balances economic growth, social equity, and environmental protection. Mehra emphasized that the future of the textile industry hinges on integrating ESG principles into every aspect of production.This view was supported by Sunil Patwari and Siddhartha Rajagopalan of TEXPROCIL, who discussed industry adaptation to new demands.
The program featured technical sessions on environmental sustainability, human rights, and international standards. Day 1 focused on sustainable water management, chemical compliance, and life cycle assessment, with insights from experts like Bharti Birla of the International Labour Organization (ILO). On Day 2, discussions on Extended Producer Responsibility (EPR) and sustainability governance emphasized the importance of designing products with their entire lifecycle in mind.
The final day centered on the National Guidelines on Responsible Business Conduct (NGRBC) and Business Responsibility and Sustainability Reporting (BRSR). The event concluded with a Certificate Distribution Ceremony, where Textile Commissioner RoopRashi praised CITI’s efforts and called for simplifying ESG compliance processes, especially for MSMEs.
Buoyed by the program's success, CITI is planning a follow-up session in Bangalore, reinforcing its commitment to steering the textile industry towards a sustainable future.
The halt in new orders by western clothing and footwear companies to the violence-hit Bangladesh has significant implications for the Indian textile industry, which supplies raw materials and other inputs to Bangladesh.
According to industry insiders, while India continues to receive more inquiries for clothing, its cotton shipments to Bangladesh are on a decline. M. Rafeeque Ahmed, Chairman, Chennai-based Farida Group, confirms, there are no new orders from Western companies. The workers and the administration are working overtime to complete pending orders. Some items are being sourced from India to fulfill the orders, along with technicians also being hired from India.
Much of Bangladesh's production is concentrated in Chittagong and Dhaka, areas that are relatively distant from the protest sites, highlights Ahmed.Though there were some disruptions in August, western orders are expected to resume soon, he adds citing Bangladesh’s favorable duty climate as a least developed country (LDC).
ChandrimaChatterjee, Secretary General, Confederation of Indian Textile Industry (CITI), notes,Western companies consider India as an alternative sourcing destination. However, its capacity to deliver currently faces qualitative and quantitative mismatches between Indian and Bangladeshi product offerings,she adds.
Although there are inquiries for clothing from India, the reduction in raw material exports to Bangladesh has impacted the Indian textile industry negatively, Chatterjee points out. However, initiatives like the PM Mitra and PLI schemes will continue to strengthen India's textile sector, she affirms.
The fashion industry has always been a mirror reflecting societal shifts, and the battle for style supremacy is now being fought between two distinct generations: Gen Z and Millennials. While they share a passion for clothing, their approaches to fashion, shopping habits, and style preferences couldn’t be more different.
The digital divide
Born between the late 1990s and early 2010s, Gen Zers are the true digital natives. Raised in an era dominated by smartphones and social media, their fashion sense is deeply influenced by online platforms. Gen Z is the driving force behind fast fashion, with a penchant for trendy, affordable pieces. They are heavily influenced by social media influencers, often copying their outfits and purchasing similar items. Despite their love for fast fashion, a growing segment of Gen Z is becoming increasingly conscious of sustainability. They seek out brands with ethical practices and are willing to pay a premium for eco-friendly fashion. They are also is challenging traditional gender norms in fashion. They embrace gender-neutral clothing and experiment with different styles, expressing their individuality through their attire.
Born between the early 1980s and late 1990s, Millennials were the first generation to grow up with the internet. While they are comfortable with technology, their relationship with fashion is different from their younger counterparts. Millennials tend to be more brand-conscious and prioritize quality over quantity. They are willing to invest in classic pieces that can be worn for years to come. Unlike Gen Z, who prefer online shopping, Millennials enjoy the in-store experience. They appreciate the ability to touch and try on clothes before making a purchase. Millennials popularized the athleisure trend, blurring the lines between workout wear and everyday fashion. They are comfortable in casual, yet stylish clothing.
Interestingly, both generations are increasingly conscious of sustainability and ethical fashion, but their approaches differ. Gen Z is more likely to prioritize eco-friendly brands and second-hand shopping. They are also more vocal about demanding transparency from fashion brands. Millennials are also interested in sustainability but are more likely to focus on reducing waste and extending the life of their clothes. They are also more likely to buy from brands with a strong corporate social responsibility track record.
The style gap
However, the differences in fashion preferences between Gen Z and Millennials have created a noticeable style gap. Gen Z is all about bold colors, oversized silhouettes, and experimental fashion, while Millennials lean towards classic, minimalist styles with a focus on comfort. And, there is also a growing overlap between the two generations. Both groups are embracing athleisure, and there is a shared interest in sustainable fashion. Brands are responding to this difference and how.
Zara this fast-fashion brand for example, caters to both Gen Z and Millennials, but its marketing strategies differ for each group. For Gen Z, Zara focuses on social media influencers and limited-edition collections, while for Millennials, the emphasis is on quality materials and timeless designs.
Similarly Adidas the sportswear brand has successfully bridged the gap between the two generations by offering a wide range of products that appeal to both groups. Their collaborations with fashion designers have helped them stay relevant with Gen Z, while their classic styles continue to resonate with Millennials.
At the same time, there are some brands who focus more on one category. Shein this fast-fashion giant has successfully tapped into the Gen Z market with its affordable prices, trendy styles, and strong social media presence. Everlane on the other hand has resonated with Millennials by focusing on transparency, sustainability, and high-quality basics.
As the fashion industry goes through a transformation, driven by evolving preferences of Gen Z and Millennials, there are distinct differences in their shopping habits and style choices, both generations are shaping the future of fashion. As these generations continue to mature, it will be interesting to see how their styles evolve and whether the gap between them will narrow.
The US economy has shown mixed signals in recent months, impacting consumer buying behavior and the apparel industry. Inflation, fluctuating import prices, and shifting consumer priorities have all contributed to a complex market environment. The Consumer Price Index (CPI) for apparel rose by 3.6 per cent year-over-year in July, following a 3 per cent increase in June, according to Cotton Incorporated's analysis. This increase reflects a broader inflationary trend impacting the US economy, potentially affecting consumer buying behavior.
Consumer spending shifts amid economic uncertainty
Despite persistent inflation, consumer spending remains resilient. However, Cotton Inc.'s Market Research Director, Melissa Paschall, notes a shift in priorities: "Consumers are still spending, but they're becoming more discerning about where their dollars go. We're seeing a move towards value-driven purchases and a focus on essential items."
Price volatility in apparel imports
The fluctuating US dollar and ongoing supply chain disruptions have contributed to price volatility in apparel imports. The import price index for apparel increased 3.8 per cent in the second quarter of 2023, highlighting the ongoing challenges faced by the industry.
For example, major retailers like Gap Inc. and American Eagle Outfitters have reported mixed results in recent quarters. While sales remain steady, rising costs are squeezing profit margins. As Gap Inc.'s CEO, Sonia Syngal, stated in a recent earnings call, "We're navigating a challenging environment, balancing strong consumer demand with persistent inflationary pressures."
Key findings
Inflationary pressures: The Consumer Price Index (CPI) has remained high, particularly for apparel imports. This is attributed to factors such as rising transportation costs, supply chain disruptions, and the ongoing impact of global events.
Consumer resilience: Despite inflationary pressures, consumer spending has remained relatively robust. However, there's a notable shift toward value-seeking behavior and a focus on essential purchases.
Apparel imports: The cost of apparel imports has fluctuated, impacting both retailers and consumers. A rise in import prices has led to price increases for certain apparel categories.
Cotton demand: Demand for cotton-based apparel has been mixed. While cotton's natural properties and comfort appeal to consumers, price sensitivity and competition from synthetic fibers remain challenges. Gary Adams, National Cotton Council opines, "Inflation and supply chain disruptions continue to impact the cotton industry. However, strong demand for US cotton remains a positive indicator."
The US economy is navigating a period of uncertainty, with inflation and shifting consumer priorities impacting the apparel industry. While consumer spending has remained resilient, there's a growing emphasis on value and essential purchases. The apparel industry needs to adapt to this evolving landscape by focusing on innovation, sustainability, and providing compelling value propositions to consumers.
The future of the apparel industry is intertwined with the overall health of the US economy. As the economy continues to evolve, the apparel sector will need to remain agile, innovative, and responsive to changing consumer needs and preferences. The role of cotton, with its natural properties and sustainability attributes, remains crucial in providing consumers with comfortable, durable, and eco-friendly apparel choices.
At a meeting of the Steering Committee held on Aug,28, 2024, Rahul Mehta, Chief Mentor, CMAI, emphasised on the significance of the trade show, Bharat Tex 2025, saying, it will showcase the entire textile value chain.
Scheduled from Feb 14-17, 2025, the Bharat Tex 2025 expo has a unique ability to present a holistic view of the textile industry, from fiber to finished garment, all under one roof. It offers international buyers a rare chance to experience the full breadth of India’s textile capabilities, Mehta remarked.
He also highlighted the event’s focus on sustainability stating, it will emphasiseIndia’s advancements in sustainable textiles. With the global demand for eco-friendly products on the rise, India is positioning itself as a leader in sustainable manufacturing, he added.
Besides highlighting India’s prowess in garments and fabrics, Bharat Tex 2024 showcases the country’s extensive capabilities across the entire textile sector. Last year’s edition of the event had significant impact on global trade while this year’s event is also expected to attract a substantial number of buyers, Mehta affirmed.
It will play a crucial role in supporting the government’s ambitious target of achieving $100 billion in textile exports, he added.
Reopening of the Malungushi Textiles Factory, a China-Zambia joint venture in Kabwe, central Zambia commenced recently with the arriving of the first batch of equipment and machinery. The factory is set to resume production after a hiatus of 17 years, creating approximately 500 direct jobs.
Once one of Zambia's largest textile companies, Mulungushi Textiles was originally established as a joint venture between the Zambian defense ministry and China's Qingdao Textiles, with support from the Chinese government. The factory ceased operations in 2007.
The decision to redevelop Mulungushi Textiles was announced during Zambian President HakaindeHichilema's state visit to China in September last year, which focused on establishing a comprehensive strategic cooperative partnership between the two nations.
During the reopening ceremony of the textile unit, ChipokaMulenga, Commerce, Trade, and Industry Minister, Zambia, highlighted, revival of the factory would not only stimulate economic development in the Central Province and surrounding regions but also revitalise the domestic cotton industry.
Historically, Mulungushi's core operations included spinning, ginning, garment manufacturing, weaving, dyeing, and printing cotton materials for the country's defense forces and Zambia Police Service. The company also exported to neighboring countries within the Common Market for East and Southern Africa (COMESA), benefiting from a duty-free facility on imports created by the United States.
