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Myanmar is set to host the Zhejiang International Trade Exhibition led by China in Yangon this December. The exhibition will showcase 25 Chinese apparel brands and over 100 manufacturers, garnering support from Japanese and South Korean trade associations.
Tadaki Kawae, Advisor to the Japan Garment Manufacturers Association, notes approximately 70 per cent garment factories in Myanmar are owned by international companies. The Japan Garment Manufacturers Association is dedicated to generating 600,000 new jobs in Myanmar.
The Myanmar Garment Manufacturers Association records 330 registered Chinese-owned companies, surpassing the numbers from South Korea (70) and Japan (20). Despite this, global fashion giants like H&M and Zara have already halted their sourcing from Myanmar due to allegations of labor law violations.
The Ministry of Textiles is set to gauge the expansion of circular textile industry by monitoring the trade of products crafted from regenerated fibers. To facilitate the effective management of such product trades, the ministry is in the process of establishing distinct tariff codes, referred to as HSN (harmonised system of nomenclature) codes. These codes aim to assist customs authorities, policymakers, and trade organizations in enhancing their oversight of the trade in these products. Moreover, they play a pivotal role in ensuring adherence to sustainability standards and certifications.
These initiative aligns with the Circular Economy Action Plan of the European Union, introduced in 2020. This plan is designed to tackle sustainability challenges within the textile industry by evaluating both pre- and post-consumer waste generation and pinpointing its sources.
Chandrima Chatterjee, the Secretary General of the Confederation of Indian Textile Industry (CITI), emphasizes this move will provide a distinct identity to the recycling segment. According to the IMARC Group, India's textile recycling market, valued at $308.7 million in 2022, is projected to reach $375 million by 2028. The market is anticipated to grow at CAGR of 3.4 percent from 2023 to 2028.
In a crucial move towards combating forced labor in Xinjiang, National Council of Textile Organizations (NCTO) President and CEO, Kim Glas, has endorsed U.S. Representative Jennifer Wexton's call for intensified isotopic testing of imported products containing cotton sourced from forced labor in China.
Wexton's letter to Department of Homeland Security (DHS) Secretary Alejandro Mayorkas emphasizes the need for bolstering U.S. Customs and Border Protection's (CBP) capability to detect such imports using isotopic testing technology. The appeal follows a Reuters report revealing positive results for Xinjiang forced labor in cotton imports tested by CBP’s current contracted company, albeit with a limited 86 samples at a cost of $1.3 million.
Wexton, a staunch advocate for enforcing the Uyghur Forced Labor Prevention Act (UFLPA), particularly targets Shein, a prominent fast-fashion company currently eyeing a U.S. IPO. The letter proposes scaling up isotopic testing as a strategic tool in UFLPA enforcement, urging DHS to implement a six-month test program.
Wexton seeks a comprehensive report explaining the underutilization of isotopic testing in UFLPA enforcement, reviewing CPB's testing costs, exploring alternative testing providers, and assessing the isotopic expertise within the DHS and CBP workforce. As the U.S. endeavors to eradicate forced labor, Wexton's letter emphasizes the moral and legal imperative for DHS to lead the charge in dismantling such supply chains.
McKinsey’s 2024 ‘State of Fashion’ report points towards significant uncertainty looming over the global fashion industry. Prevailing sluggishness in global economic growth and unabated inflationary pressures signal a challenging landscape. With consumer confidence remaining pessimistic, if not weakened, leaders in the fashion industry are now confronted with the imperative task of pinpointing ‘pockets of value’ and uncovering ‘new performance drivers’.
The trajectory of the fashion industry in 2024 is intricately tied to the collective repercussions of its performance in 2023. A year marked by persistent and escalating challenges, the US and Europe have proven to be slow markets throughout, while China displayed promise in the initial half, only to experience a substantial downturn in the latter part.
Demand fluctuations need resilience
Looking to 2024, the industry braces itself for the impact of the tumultuous demand fluctuations witnessed in recent years. Such times of uncertainty often trigger a ‘bullwhip effect’ in supply chains, wherein minor variations in sales lead to heightened volatility. This, in turn, results in factory underutilization, workforce layoffs, and delayed investments in infrastructure.
Navigating through this intricate web of challenges will require resilience and adaptability from global fashion industry. The identification of innovative strategies to uncover value and the pursuit of novel performance drivers will be paramount in steering the industry through the uncertainties that lie ahead. The interconnected nature of global markets underscores the need for a comprehensive understanding of the multifaceted factors influencing the industry's trajectory.
Luxury to continue leading the sector
In 2024, the luxury segment is poised to retain its position as the primary generator of profits, although the growth outlook has moderated in the range 3 to 5 percent. This marks a notable decline from the robust 5 to 7 per cent growth in the preceding year, signaling a tempering of the post-pandemic optimism that characterized 2022 and 2023.
The US, identified as the globe's preeminent luxury market, is anticipated to exhibit a modest year-on-year growth of 2 to 4 per cent in 2024. This projection represents a slight improvement compared to the 1 per cent growth observed in the first half of 2023. Confidence levels among fashion executives, respondents to the study, reveal a lukewarm growth outlook in the US, Europe, and China. Notably, 51 per cent expressed optimism about promising growth prospects in the Middle East, while 39 and 34 per cent harbor similar sentiments for India and the Asia Pacific region, respectively.
The overarching forecast for the global fashion industry points towards a top-line growth of 2 to 4 per cent in 2024. However, it is acknowledged that economic growth disparages globally, leading to regional variations in the predicted growth rates. While Europe and China are expected to maintain subdued performance, the anticipated upturn in the American economy may act as a catalyst for growth there.
Price increase on the agenda
The State of Fashion 2024 report reveals 69 per cent executives plan price increases (1-5 per cent) to counter ongoing inflation. Interestingly, 198 per cent consider holding ticket prices steady, while 12 per cent anticipate a decrease (1-5 per cent) prioritizing inventory movement over profits. Looking ahead, 71 per cent of executives aim to boost sales in 2024, up from 63 per cent the previous year. The industry's net intent to raise prices is 50 per cent, with 69 per cent of executives planning increases (up from 58 per cent). Success in implementing price hikes is expected through a precise and tailored approach, as outlined in the report.
Sustainable models to become strategic priorities
Sustainability, according to the report, is the green field of opportunity as well as the biggest challenge brands can expect in 2024. Around 21 per cent stated their brands are looking towards a balanced implementation of sustainability through scaled improvements, risk reductions and gaining competitive edge through investing in new-age textiles. However, 12 per cent executives aren’t necessarily feeling the optimism as not only rising regulatory pressures from local governments but also the scale of the task of restricting towards greater sustainability in uncertain times poses huge financial implications. And 12 per cent site sustainability as their identified ticket to success in 2024.
The report also covers a slew of other points that will have a significant impact such as the upcoming economic headwinds, fashion systems, influences and prominent trends.
The Clothing Manufacturers Association of India (CMAI) achieved a historic milestone in the global retail market with the triumphant conclusion of the inaugural ‘Brands of India’ trade show at the Dubai World Trade Centre from November 27 to 29, 2023. This event showcased 350+ top Indian clothing brands, solidifying its position as a beacon of success.
Global Recognition
Attracting over 2800 buyers from 67 countries, the event provided a substantial head start for Indian apparel brands in the dynamic Middle East and North Africa (MENA) region. The impressive buyer turnout predominantly included retailers and importers from key markets like UAE, Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, Yemen, Egypt, Ghana, Ethiopia, Nigeria, and more.
Economic Impact
Anticipating an estimated business worth US$ 350 million over the next three years, Brands of India underscored the robust potential and demand for Indian apparel brands in the international market. Rajesh Masand, President, CMAI, expressed elation, stating, “This pioneering initiative... strengthens the economic ties between India and the MENA region.”
Stellar Success
Jayesh Shah, Chairman of Brands of India, and Vice President of CMAI, proudly acknowledged the stellar success achieved in the introductory edition. He emphasized the emergence and acceptance of Indian apparel brands on a global scale, affirming future focused events to sustain this momentum.
Diverse Showcase
Renowned brands like Oxemberg, Louis Philippe, Allen Solly, BIBA, and others showcased their collections internationally for the first time. The variety on display garnered appreciation from industry leaders, with Mr. Kabir Lumba, CEO, Landmark Retail at Landmark Group, emphasizing the huge potential of Indian apparel in the MENA region.
Strategic Timing
The strategic timing of Brands of India, preceding the significant Eid festival in April, aligns with the Comprehensive Economic Partnership Agreement (CEPA) signed between India and UAE in 2022. UAE, the largest importer of Indian ready-made garments, witnessed imports totalling a staggering US$ 1.21 billion in the fiscal year 2022-23, reaffirming sustained demand for Indian fashion in the region.
Positive Industry Feedback
Buyer groups such as Lulu Group, Landmark Group, and Apparel Group actively participated, highlighting the trade show's strategic importance in fostering strong business ties between India and the MENA region. Industry leaders praised the initiative, with Deepak Seth, Group Chairman of Pearl Global Industries Ltd., acknowledging the enormous potential in the Gulf, Middle East, and Africa.
Future Prospects
Participants, including Prem Ranjan, CEO of Gini & Jony, and Rushank Masand of Rushank Clothiers, expressed optimism about future business development. The exposure gained at Brands of India provided valuable insights for potential expansion into new markets, creating a solid foundation for future growth.
The VIEW Premium Selection Spring.Summer 2025 concluded on a high note, establishing itself as a pivotal event in the fashion industry. Organized by MUNICH FABRIC START Exhibitions GmbH, the textile show featured 250 carefully selected exhibitors, presenting cutting-edge color and material trends, along with the latest technological and sustainable innovations for the upcoming season.
Trend diversity and innovation showcase
The event showcased a diverse range of trends and forecasts for Spring.Summer 2025, with a focus on translating masculine shapes from winter heaviness to summery elegance. The quest for unusual fabrics, 3D prints, and new fibers took center stage, contributing to the creation of captivating collections. Innovative woven materials, inspired by tech and sports aesthetics, garnered positive responses. Discussions also revolved around new fiber blends, including combinations of natural and synthetic fibers, as well as effects with silver and metallic yarns. Quality at attractive prices remained a persistent theme.
Industry recognition and key players
The VIEW received accolades for its quality and attracted prominent visitors from leading brands such as Adidas, Hugo Boss, and The North Face. Sebastian Klinder, Managing Director of MUNICH FABRIC START, emphasized the importance of central platforms and trade shows for the industry, especially in the context of ongoing debates about Germany's role as a fashion trade show location.
Challenges and opportunities in the fashion industry
Karin Schmitz, Business Development Director Peclers Paris, highlighted the fashion industry's current state of upheaval, emphasizing the need for change and direction. She stressed the importance of developing trust and understanding of brand identities, stating that trends alone cannot address the industry's challenges. Instead, inspiration and courage are required to transform impulses into specific solutions.
Looking Ahead to MUNICH FABRIC START 2024
The next major industry event, MUNICH FABRIC START, is scheduled for January 23-25, 2024. The event will showcase around 1,100 collections across eight distinct areas, providing a platform for exhibitors from around the world. Trend forums and sample areas will present the latest innovations, color trends, and materials, offering inspiration and guidance to industry professionals.
Voices from the event
Visitors and exhibitors expressed their enthusiasm for VIEW, citing the importance of early access to new materials and trends. Highlights included reissued fabrics with quiet qualities, a growing interest in glitter and shiny materials, and a continuous demand for sustainable products and solutions.
Conclusion
The VIEW Premium Selection Spring.Summer 2025 successfully concluded with a diverse array of trends and innovations, solidifying its position as a key player in the fashion industry. As the industry grapples with challenges and seeks direction, events like VIEW provide a crucial platform for collaboration, inspiration, and shaping a positive future for brands.
ITMA ASIA + CITME 2023 marked a triumphant success for VDMA member companies, with Germany leading the pack in booked square meters among foreign exhibitors. Despite challenging market conditions, the event surpassed expectations in terms of both visitor numbers and the quality of discussions, as noted by Dr. Janpeter Horn, Chairman of the VDMA Textile Machinery Association. The fair showcased solutions for sustainable textile production, with VDMA members presenting technologies under the banner of "Smart technologies for green textile production."
Notable sentiments were shared by industry leaders, including Dr. Uwe Rondé of Saurer Intelligent Technology AG, who highlighted satisfaction with visitor turnout and discussions on recycling, automation, and digitalization. Benjamin Reiners of Reiners + Fürst expressed exceeding expectations, with a positive spirit prevailing despite the current challenging market. Trützschler, Oerlikon Group, and Lindauer Dornier also reported successful engagements with both Chinese and international visitors.
The VDMA Textile Machinery Association and VDMA China were actively present, offering support on intellectual property rights (IPR). An instance involving a complaint application for patent infringement disputes showcased the effectiveness of their intervention. Dr. Harald Weber, managing director of VDMA Textile Machinery, emphasized Asia, especially China, as crucial markets for VDMA members, with ITMA ASIA + CITME serving as a unique platform to exhibit technologies directly to Asian customers.
Looking ahead, the VDMA member companies anticipate the next edition of the fair in Shanghai in 2024. A hopeful outlook is supported by a VDMA survey indicating potential improvement in the economic situation of the Chinese textile industry in the second half of the year. European textile machinery manufacturers are encouraged to remain a presence in this key market, providing advanced technology to meet Asian customers' evolving challenges.
Fashion for Good, in collaboration with key partners, has unveiled a groundbreaking toolkit, marking a significant stride in India's journey towards a waste-free textile industry. Celebrating the conclusion of the Sorting for Circularity India Project, a conference in New Delhi on December 1 and 2 will spotlight the launch of the "Re-START" textile recovery alliance. This initiative seeks to position India as a pivotal hub for Next-Gen solutions.
The Sorting for Circularity India toolkit, described as a milestone by Katrin Ley, Managing Director of Fashion for Good, presents insights into India's textile waste landscape, identifying potential, roadblocks, and commercial opportunities. The project, initiated in 2021, brought together industry leaders, including adidas, Levi Strauss & Co., and H&M, emphasizing a collaborative approach.
According to Fashion for Good's Wealth in Waste report, 1,720 KTons of 100% cotton post-consumer domestic textile waste in India goes unvalorised annually. With impending legislation on textile waste management, the value of post-consumer waste is expected to rise, necessitating a focus on developing infrastructure for collection, sorting, and pre-processing.
The conference in December aims to share the toolkit's insights, formally announcing the Re-START Alliance, a collaborative effort by Fashion for Good, Laudes Foundation, IDH, and Canopy. The alliance aims to scale the project's findings, establishing a formal textile waste supply chain, robust infrastructure, policy interventions, and industry appetite, with an official launch scheduled for Q1 2024. Nicole Rycroft, Canopy Executive Director, highlights India's potential to become a global leader in low-carbon Next Gen textile production through sustainable practices and global collaboration.
Deloitte foresees global revenues from women's sportswear to exceed $1 billion in 2024. Within this estimate, a substantial surge is expected in revenues from football-related apparel, reaching $555 million out of the projected total of $1.28 billion.
Despite the expansion of women's sportswear market in Europe, more than 50 per cent of the total revenue is anticipated from North America, highlighting the region's significant market presence. Jennifer Haskel, Lead-Insights at Deloitte's Sports Business Group, notes a remarkable and exponential growth in women's sportswear globally, drawing increased attention and investments from stakeholders.
The growing popularity of women's sports is predicted to result in more prominent broadcasting slots during prime time and increased visibility on streaming platforms. While commercial income still constitutes over 50 per cent of the total revenue, this percentage is gradually diminishing due to larger broadcast deals and increased attendances on match days.
The global economic outlook, as projected by the Organization for Economic Cooperation and Development (OECD), looks challenging. Ongoing wars, coupled with rising inflation and high interest rates, are anticipated to lead to a decline in global economic growth from 2.9 per cent this year to 2.7 per cent in 2024.
Two of the world's largest economies, the US and China, are expected to experience stagnation in growth next year, with rates dropping from 2.4 per cent in 2023 to 1.5 per cent. The OECD also foresees a decrease in US inflation rates from 3.9 per cent in the current year to 2.8 per cent in 2024 and further down to 2.2 per cent in 2025.
China's economic growth is projected to slow down from 5.2 per cent in 2023 to 4.7 per cent in 2024. Factors contributing to this decline include China's real estate crisis, rising unemployment, and a slowdown in exports. Consumer consumption in China is expected to decrease due to rising unemployment levels and increased uncertainty, leading to a decline in discretionary purchases.
In the Eurozone, consisting of 20 countries sharing the euro currency, collective growth is predicted to marginally increase to 0.9 per cent in the coming year from 0.6 per cent in the current year. The region's growth will be influenced by factors such as rising energy prices and surging interest rates. These challenges collectively contribute to a complex economic landscape with potential implications for various regions and sectors.
