FW
Lower carry-forward stocks and a potential reduction in output due to decreased cotton acreage are likely to boost India’s cotton imports during the 2024-25 crop year spanning Oct 24-Sep’25.
Traders are also likely to benefit by the lower global prices by reducing imports between November and March, says Atul Ganatra, President, Cotton Association of India (CAI). According to him, India’s cotton imports may rise to 3.5 million bales during the year.
In the 2023-24 season, India had imported 1.64 million bales of cotton by Aug’24-end, reflecting concerns about the expected drop in domestic crop production as sowing declined by 1.2-1.3 million hectare.
There are no carry-forward stocks from the 2023-24 season although farmers continue to hold 3 million bales of kapas or unprocessed cotton, notes Ganatra. Reduced harvest areas will to lead to a 7 per cent decline in India’s cotton production to 24 million bales of 480 pounds each during 2024-25 season as against 25.8 million bales recorded last year, adds Ganatra.
According to the August balance sheet of CAI, by Sep’24-end India’s closing stocks had declined to 2.332 million bales from 2.89 million bales recorded in the previous year. The industry has already contracted shipments of 700,000 to 1 million bales for the Nov’24-Mar’25 period,, adds Ganatra. With an 11 per cent customs duty, the landed cost of Brazilian 28 mm cotton for delivery in Dec’24 stands at Rs 64,880 per candy, while Australian 29 mm cotton costs Rs 69,120. West African 28.7 mm cotton, which incurs a 5.5 per cent duty, is priced at Rs 63,480 for Mar’25 shipment and Apri-May delivery.
Ganatra says, it’s too early to predict the size of the 2024-25 crop due to damage from recent rains, particularly in Maharashtra and Gujarat, where the crop has been delayed by about a month. Ramanuj Das Boob, Vice President, All India Cotton Brokers Association, adds, the industry witnessed a contraction of approximately 1 million bales when ICE futures traded at 66-67 cents per pound. However, ICE futures have since risen to 72-73 cents per pound.
According to Boob, further imports will depend on how Indian cotton prices react with the arrival of new crop, In Raichur, Karnataka, daily arrivals range between 3,000-5,000 bales, with prices ranging from Rs 7,000 to Rs 7,700 per quintal. While in Adoni, Telangana, prices range from Rs 7,000 to Rs 7,400 per quintal, though high moisture content of around 10 per cent slows purchases. The minimum support price for medium staple cotton is Rs 7,121 per quintal, while for long staple is priced at Rs 7,521. Despite the lower acreage, expectations for the crop remain optimistic, although the industry expects arrivals in Gujarat, Maharashtra, and Madhya Pradesh to be delayed.
Held from Oct 04-09, 2024, the Moscow Fashion Week showcased over 80 captivating collections by designers from around the globe. Brands from India, China, South Africa, Indonesia, Costa Rica, Brazil, the UAE, and Russia presented their collections at the event that provided a dynamic platform for both established and emerging designers.
Known for its rich display of diverse cultural influences and current trends, Moscow Fashion Week opened with a showcase by the Indian brand Nitin Bal Chauhan. The brand presented its collection at the fashion week in partnership with the Fashion Design Council of India.
Celebrated as one of the most vibrant labels in Indian fashion, Nitin Bal Chauhan is known for launching collections across the Middle East, Canada, Indonesia, and Nepal markets. It previously showcased at its offerings at prestigious events such as London Fashion Week, Tokyo, and the Tranoi Fair in Paris.
Nitin Bal Chauhan, Creative Director, says, an ideal platform, the Moscow Fashion Week helps the brand connect with the Russian market.
This year, Moscow Fashion Week also showcased collections by Russian designers like HakaMa and N 6 by Alsu M. The event followed the BRICS+ Fashion Summit, which gathered experts from over 100 countries and featured a business program, exhibitions, and educational sessions led by industry leaders, including India's Sunil Sethi, Chairman of the Fashion Design Council of India.
Piyush Goyal, Minister of Commerce & Industry, Government of India, opened the first Centre of Excellence (COE) by the Apparel, Made-ups & Home Furnishing Sector Skill Council (AMHSSC) at Kandivali in Mumbai.
Created with the cooperation of ITEES Singapore, the COE incorporates global standards into India’s skilling ecosystem. Contrary to the earlier centers established separately by AMHSSC, this COE aims to offer courses created in partnership with ITEES Singapore, a global leader in technical education. Its goal is to align India’s clothing training programs with the finest international standards, hence raising industry productivity and quality.
The COE will offer specialised courses like ‘Luxury Fashion Consultant,’ ‘Fashion Retail Merchandising,’ and ‘Sourcing Specialist,’ to meet the changing demands of the RMG industry in India.
For aspiring young, nano, and small business owners who want to start their own fashion companies, the COE also offers a course on Fashion Entrepreneurship.
Till date, AMHSSC had trained over 22 lakh people nationwide, and aims to continue building a skilled workforce to lead the industry forward with innovation and excellence, states Dr Sakhtivel, Chairman.
At the World Cotton Day 2024 celebrations, co-hosted by the Ministry of Textiles, Confederation of Indian Textile Industries (CITI), Cotton Corporation of India (CCI) and other leading industry organisations signed MoUs with Sunil Patwari, Chairman, The Cotton Textiles Export Promotion Council (TEXPROCIL) to help elevate Kasturi Cotton Bharat, India’s premium cotton brand, across the cotton value chain—from sustainable farming to textile manufacturing and brand adoption.
One of the most pivotal MoUs signed during the occasion was between Rakesh Mehra, Chairman, CITI and TEXPROCIL to promote awareness and enhance the quality of Indian cotton, ensuring farmers benefit from the Kasturi Cotton mark. Through this MoU, CITI plans to optimise cotton production across hectare under the CITI-CDRA Sustainability Program.
Jyoti Kapoor, Country Director – India, Better Cotton Initiative also signed an MoU to support sustainably sourced cotton, reinforcing one of the key pillars of the Kasturi Cotton initiative.
Kinner Lakhani, Chief Operating Officer, CottonConnect, also teamed up with TEXPROCIL to help farmers align their cultivation with Kasturi Cotton's quality standards, fostering responsible growth practices and enhancing farmer livelihoods.
Dr Pradeep Kumar Agarwal, Trident Group also signed an MoU to utilise over 500,000 bales of Kasturi Cotton over the next two cotton seasons, while Vardhman Group pledged to process 21,000 bales during the upcoming season.
Furthermore, Rahul Mehta, Chief Mentor, Clothing Manufacturers Association of India (CMAI), signed an MoU to promote the brand among its members, amplifying Kasturi Cotton’s presence across fashion and apparel platforms. The Brands and Sourcing Leaders Association (BSL) also plans to sign an MoU to enhance the global marketing and branding of Kasturi Cotton, using its expertise to integrate the cotton into contemporary fashion designs.
Being held from Oct 08-16, 2024, the Shanghai Fashion Week features a dynamic mix of international and local designers. The event kicked off with leading Chinese model and designer Lu Yan presenting her brand, Comme Moi, with a collection inspired by contemporary artist James Turrell, renowned for his dramatic use of light and color.
The 12-day event will feature iconic British brand Vivienne Westwood on Oct 17, staying true to its rebellious punk roots and environmental mission through the Vivienne Westwood Foundation. Joining the lineup is London-based label KNWLS, making its China debut with a KNWLS X ENG Pop-up launch at ENG Concept Store, focusing on the future of feminist fashion.
On Oct 19, luxury Italian brand Moncler will close the fashion week with its immersive Moncler Genius event, a showcase of collaboration across fashion, art, and design. A trendsetter since 2018, Moncler Genius believes in pushing creative boundaries, and continues its journey in Shanghai this year.
Designer Angel Chen will collaborate with beverage brand Change to blend traditional Chinese craftsmanship with modern aesthetics. Other notable names like Staffonly, Xiaoli, Judyhua along with emerging designers such as Ya Yi and Hanqing Ding also will present their collections during the fashion week.
Rockbund contemporary art museum will host Labelhood, featuring 16 young Chinese brands, including newcomers Rè Shuǐ, ili node, and Hengdi Wang, injecting fresh energy into the fashion scene. Glam at New Bund 31 will spotlight modern Chinese garments and international couture, with brands like Shicongjin and Amusée Moi debuting their latest creations.
Visa will launch the Visa Creator Program, supporting local talent, while Mercedes-Benz collaborates on the Stronger Than Me event at the Museum of Art Pudong, featuring Lu Yan’s Comme Moi and a special G-Class project by designer Chen Peng.
Surpassing Boohoo in Britain’s retail market for the first time, Shein reported annual revenues of £1.55 billion over the past year. Known for its low-cost clothing shipped directly from China, the Chinese fast fashion label recorded a 38 per cent increase in UK sales in the 12 months leading up to Dec 2023.
According to the accounts for Shein Distribution UK, the brand's British subsidiary, the retailer’s revenues rose to £1.55 billion during 2023, compared to £1.12 billion over the previous 16-month period. This marks a significant moment for the UK fashion industry, as Shein's annual sales have now overtaken Boohoo, and the company is rapidly closing in on Asos.
In Boohoo's most recent full-year report, the company posted UK revenues of £922 million, reflecting a 16 per cent decline from the previous year. Meanwhile, Asos reported domestic sales of £1.55 billion for the same period.
Kate Calvert, Analyst, Investec notes, driving away sales from competitors like Boohoo and Asos, Shein's growth has undoubtedly impacted other online retailers. However, the fast fashion giant's rapid growth has sparked criticism from some of Britain’s leading retailers, who have raised concerns about Shein’s tax practices.
The controversy revolves around Shein shipping items directly to customers from China, which rivals argue allows the company to pay significantly lower customs duties. However, defending its practices, Shein cites its ‘on-demand business model and flexible supply chain’ as the reason for its affordable prices, which in turn has fueled its growth.
Shein's pre-tax profit also increased to £24 million during the period, doubling from £12 million in the previous period, show its latest accounts. The company’s tax bill rose to £5.7 million from £2.34 million the year prior. In comparison, Asos received a £73 million tax credit for its last financial year, while Boohoo paid £19 million in taxes.
Focusing on heritage, Burberry has launched a new campaign focusing on the durability of the brand’s garments.
Entitled ‘It’s Always Burberry Weather,’ a slogan taken from the Burberry archive, the campaign features seven key styles including, the trench, the Harrington, the quilt, the puffer, the parka, the aviator and the duffle.
The brand’s first since the appointment of Joshua Shulman, as the new CEO, the campaign focuses on heritage and humor as a part of its future strategy. It has been shot across London and the British countryside by Alasdair McLellan.
Comprising a series of drole and charming vignettes and portraits, the campaign plays on a familiar British iconography and outdoor activity but unexpectedly and with a sense of humor. It features Academy Award- winning actor Olivia Colman in a forest green quilt jacket with plaid lining, standing among a group of sheep and before a foam green Range Rover.
With attired in a juniper green plaid purffer, Barry Koeghan, Brand Ambassador and BAFTA Award-winning Actor, plays on his sensitively gritty character by peeping warily over his forearm.
Daniel Lee, Chief Creative Officer, Burberry, says, the campaign highlights the brand’s commitment to protection, functionality, and the outdoors, drawing inspiration from Burberry's archives. It features two of England's rising football stars, Cole Palmer and Eberechi Eze, in playful fishing scenes. Palmer dons a brown duffle coat with a B shield toggle, while Eze sports a windcheater Harrington.
The cast also includes model Cara Delevingne, posing in front of Big Ben in a suede aviator jacket, actor Zhang Jingyi in a classic Burberry spy-trench, and BRIT Award-winner Simz in a short beige Harrington jacket.
This all-encompassing campaign will be promoted through cinema ads, global pop-ups, window displays, and in-store activations, underscoring Burberry’s heritage while reinvigorating its contemporary appeal.
For the third consecutive year, the Japanese parent company of Uniqlo, Fast Retailing is poised to surpass its own forecasts for annual profits as the brand’s expansion in the Western markets and recovery in China business continues to drive growth.
As per the estimates of 15 analysts compiled in a study by LSEG, the company’s operating profit grew by 24 per cent to 478.3 billion yen during the 12 months ending Aug ’24. This slightly exceeds Fast Retailing's earlier forecast of 475 billion yen, which it raised in July after strong second-half performance.
Moving forward, key factors like the success of its fall and winter collections in Japan, as well as efforts to revitalise its business in China are likely to help drive the company’s profits. The company’s investors are likely to shift focus on strategies in Greater China to reverse earnings declines caused by weak consumer sentiment and intensified competition, says Mark Chadwick, an independent analyst.
With over 900 stores in China, Fast Retailing is considered a prominent name in China’s retail sector. While COVID-19 restrictions hampered the company's performance in the country for years, it currently struggles with a sluggish economy affecting consumer confidence. In July, Pan Ning, CEO- Greater China, acknowledged, market’s maturity led the company to scale back new store openings and adopt a ‘scrap and build’ approach to underperforming locations.
During the pandemic, when China’s sales were hit by lockdowns, Fast Retailing shifted its focus to expanding in North America and Europe. The company recorded strong sales and profits in both regions in the first nine months of fiscal 2024. Tadashi Yanai, Founder, believes, in the post-COVID world, consumers’ are increasingly opting for value over luxury, a trend that aligns with Uniqlo’s brand proposition.
China has long been the world's textile and apparel manufacturing powerhouse, but recent years have seen notable shifts in its domestic and global trade dynamics. Evolving consumer demands, supply chain disruptions, and rising manufacturing costs have all played a role in reshaping the industry.
A shifting trade landscape
Despite fluctuations, China's textile and apparel exports has shown resilience, remaining a significant contributor to the global market. Imports on the other hand have steadily increased, reflecting a growing domestic demand for higher-value and specialized products. In the global market while still dominant, China's share has gradually decreased, suggesting a diversifying global supply chain.
Table: China’s textile trade and market share
Metric 2019 2020 2021 2022 2023 Exports ($ bn) 282 291 330 340 325 Imports ($ bn) 45 40 48 55 50 Global Market Share (%) 38 39 37 35 33
In the export front, the US remains a significant market for Chinese textiles and apparel, despite trade tensions. Other key export destinations include Japan, Vietnam, Germany, and Bangladesh. China imports textiles and apparel primarily from Vietnam, the US, Japan, Italy, and Australia. It may be noted that trade disputes, particularly with the US, have impacted China's textile and apparel exports. Tariffs and trade barriers have prompted some companies to diversify their sourcing and production locations. The textile and apparel industry is characterized by complex global value chains. China's role in these chains is evolving, with some production shifting to other countries while China increasingly focuses on higher-value activities like design and research & development.
At the same time growing awareness of environmental and social issues in the fashion industry is driving demand for sustainable and ethical products. Chinese manufacturers are responding by adopting more sustainable practices and certifications. The domestic market too has seen its share of changes. China's economic growth has led to significant increases in wages, eroding its cost advantage in labor-intensive manufacturing. This has pushed some production towards lower-cost countries in Southeast Asia and Africa.
Meanwhile, a burgeoning middle class with increasing disposable income has pushed up domestic demand for higher-quality and more diverse apparel. This has encouraged Chinese manufacturers to upgrade their production capabilities and focus on domestic consumption.
Moreover China is actively investing in automation and advanced manufacturing technologies to enhance productivity and competitiveness. This shift towards "smart manufacturing" is transforming the industry and mitigating the impact of rising labor costs.
Looking ahead
China's textile and apparel industry is undergoing a period of significant change. While it continues to be a major player in global trade, its role is evolving. China is moving towards higher-value activities, focusing on innovation, technology, and domestic consumption. The coming years will likely see further shifts in global value chains, increased competition from other production hubs, and a greater emphasis on sustainability. The ability of Chinese companies to adapt to these changes will determine their future success in the dynamic global textile and apparel landscape.
India's polyester industry is at a crossroads. Even while domestic production of essential raw materials like Monoethylene Glycol (MEG) is increasing, there is significant reliance on imports. This dependence has now sparked a trade dispute, with Reliance Industries Limited (RIL), a domestic production giant, leading the charge against alleged dumping practices by exporters from Kuwait, Saudi Arabia, and Singapore.
A delicate balance
The polyester industry is heavily reliant on MEG and Purified Terephthalic Acid (PTA). As detailed in "India's Polyester Raw Material Landscape: A Tightrope Walk Between Domestic Products and Imports," domestic production, though growing, struggles to meet the surging demand. This gap necessitates substantial imports, creating a complex interplay of domestic and international forces.
The allegation of unfair pricing
Reliance Industries, through the Chemicals and Petrochemicals Association of India (CPMA), has filed an anti-dumping petition with the Directorate General of Trade Remedies (DGTR). The CPMA contends that MEG originating from Kuwait, Saudi Arabia, and Singapore is being sold in India at prices significantly below those in their domestic markets, causing ‘material injury’ to Indian producers. This claim hinges on the price disparity between domestically produced and imported MEG. Statistics show imported MEG is priced lower than its domestic counterpart, potentially undercutting Indian producers and impacting their profitability.
Meanwhile, the DGTR has initiated an anti-dumping investigation covering the period from April 2023 to March 2024. The investigation will scrutinize trade data, production costs, and pricing practices to determine whether dumping has indeed occurred. If the DGTR's findings support the CPMA's claims, anti-dumping duties could be imposed on MEG imports from the implicated countries.
Balancing industry interests
The outcome of this investigation holds significant implications for various stakeholders:
Domestic producers: Anti-dumping duties could offer a lifeline to domestic MEG producers like Reliance, potentially levelling the playing field and safeguarding their market share.
Downstream industries: Increased import costs due to duties could squeeze margins for downstream industries reliant on MEG, such as textile manufacturers. This could, in turn, affect their global competitiveness.
Consumers: Ultimately, higher production costs could translate to increased prices for end consumers of polyester-based products.
This anti-dumping investigation reflects the intricate dynamics of international trade. While free trade is generally encouraged, safeguards exist to protect domestic industries from unfair pricing practices. The DGTR's investigation will need to carefully weigh the evidence and potential consequences before reaching a decision.
Indeed, India’s polyester industry faces challenges as it walks the tight rope between cost-effective raw materials and protection of domestic producers. The DGTR's investigation into alleged MEG dumping is a crucial step in navigating this complexity. Its findings will significantly impact the future of the industry and its various stakeholders.
