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In May 2024, Karl Mayer launched its Energy Efficiency Solution (EES) for warp knitting machines, aiming to enhance sustainability and reduce costs. By July, customers had shared positive initial feedback. To ensure ease of use, Karl Mayer translated the manual into six languages and created a tutorial on their Academy online platform.
The EES provides detailed guidance on setup, display options, and analyzing energy consumption and carbon dioxide emissions. Recent updates include a timer function and full integration into the Customer Portal for streamlined access alongside other tools like the Dashboard and CoreLite.
Karl Mayer collaborated with Rokona, a German warp knitting specialist, on this project. Rokona's commitment to sustainability, reinforced by their ISO 14001 certification, made them an ideal partner. Stefan Passauer, Production Manager at Rokona, highlighted the importance of verifiable environmental contributions and praised the EES for meeting customer demands for documented carbon dioxide reduction data.
Rokona was involved from the beginning, providing input and testing the system on several machines. Passauer noted that the EES operates reliably, offering valuable insights into energy consumption and cost comparisons. He appreciated the new standby mode feature, which automates energy-saving during production breaks, a significant improvement over the previous manual process.
Future enhancements suggested by Rokona include optimizing display features and linking article data with operating data for better integration.
New Delhi faces a complex challenge as it prepares to renegotiate its free trade agreement (FTA) with the Association of Southeast Asian Nations (ASEAN). While the bloc offers immense economic potential, concerns over cheap imports, particularly from China, are putting pressure on the Indian government.
Cheap imports a worry
The Asean-India Trade in Goods Agreement, signed in 2009, has seen bilateral trade soar to $122.67 billion last financial year. While the pact aimed for deeper economic integration, concerns have emerged about a trade imbalance favoring Asean and the potential for China to exploit the agreement as a backdoor for duty-free exports to India. The textile, apparel, and fashion sector has been particularly vocal about the challenges posed by cheap imports. Domestic manufacturers argue that the FTA has eroded their competitiveness, leading to job losses and factory closures.
Economists and industry experts are divided on the best course of action. While some advocate for increasing import duties to protect domestic industries, others warn against such measures, fearing potential retaliation from ASEAN countries and damage to India's image as a trade-friendly nation. "The FTA has provided a back door for China to route duty-free supplies into the Indian market, eroding the competitiveness of local companies," warns Biswajit Dhar, a professor at the Council for Social Development.
Balancing act
The Indian government finds itself in a quandary. On one hand, there's a compelling case for protecting domestic industries. On the other, raising import duties could sour relations with Asean, a crucial geopolitical partner. Experts suggest a nuanced approach. Strategic tariff adjustments within the FTA framework, such as increasing duties on specific items like mobile phone and automobile parts, could be considered. This flexibility, enshrined in the agreement, allows for annual reviews of "highly sensitive lists" and "exclusion lists." However, any such move could invite retaliation from Asean countries. Moreover, it could reinforce India's image as a protectionist nation, deterring foreign investment.
Need to tread carefully
While the overall trade figures are available, granular data on the textile, apparel, and fashion sector's performance under the FTA is limited. This hampers policymakers' ability to make informed decisions. Therefore, India must tread carefully. A comprehensive assessment of the FTA's impact on various sectors, including a detailed analysis of the textile, apparel, and fashion industry, is essential. Engaging in constructive dialogue with Asean partners to address specific concerns can help build trust and find mutually beneficial solutions.
Ultimately, India's success in balancing its economic interests with strategic priorities will determine the outcome of the FTA review. A well-calibrated approach that protects domestic industries without alienating Asean is crucial for India's economic growth and geopolitical standing.
Massive support by compassionate consumers from across the world, urging it to go fur-free, has encouraged Max Mara Fashion Group to officially announce a fur-free policy.
The company’s announcement follows a global campaign launched by the Fur Free Alliance, a coalition of over 50 animal protection organisations, including Humane Society International. The campaign, held during fashion weeks in February 2024 in New York City, London, Milan, and Paris, urged the Italian fashion giant to adopt a fur-free policy.
Operator of over 2,500 stores in 105 countries, Max Mara Fashion Group previously sold items such as mink gloves, fox fur cuffs, and raccoon dog key chains. By going fur-free, the brand joins other major fashion houses that have already taken this ethical step, including Dolce &Gabbana, Saint Laurent, Valentino, Prada, Gucci, Versace, Alexander McQueen, Balenciaga, and Armani.
JohVinding, Chairman, Fur Free Alliance, says, Max Mara was one of the last global fashion brands that still sold fur. But now, they have now joined a growing list of fur-free brands that want nothing to do with the animal cruelty associated with the fur trade.”
Tens of millions of animals suffer and die each year in the global fur trade, with the majority being reared in barren battery cages on fur farms. Fur farming has been banned in 21 European countries, including Austria, Belgium, Croatia, Czech Republic, Estonia, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Slovakia, Slovenia, Bosnia and Herzegovina, Guernsey, Norway, United Kingdom, North Macedonia, and Serbia. Strict regulations have effectively ended fur farming in Switzerland and Germany, and measures in Denmark, Sweden, and Hungary have ended the farming of certain species.
DurakTekstil is gearing up toshowcase its technical threads focusing on security and efficiency solutionsatTechnotextil 2024.
As a leading producer of industrial sewing and embroidery threads, DurakTekstil will present its innovative and environmentally friendly products at the event, which will be held from Sep03–05 at Crocus Expo in Moscow.
YiğitDurak, Director-Marketing, DurakTekstil, highlights, Technotextilis a growing platform for the technical textiles and work safety industries. The event has immense potential for the Russian market and for regions such as Eastern Europe, the Baltics, the Caucasus, and Central Asia, he adds.
At the event, DurakTekstilwill also host motivational talks on valuable applications. Visitors can closely inspect and obtain detailed technical information about a variety of threads, including flame-retardant aramid and highly cut-resistant knitting threads, tailored for the work safety industry.
DurakTekstil will display a rich range of products with various functional features at the event. Notable amongst these include SilverPro, a high-conductivity sewing and embroidery thread, and natural sewing thread that repels insects.
Other products to be showcased include Bug-Safe sewing thread, invisible infrared laser beam-resistant sewing thread, Polystrong IR Teflon alloy, extremely heat-resistant sewing thread Teflofil, water-soluble sewing thread Polystrong Laser-Safe Melt hydromelt, and flame-retardant and cut-resistant threads, both para- and meta-aramid.
In addition to these, visitors can explore UV-protected threads, water-repellent items, anti-static threads that discharge static energy, and anti-bacterial sewing threads. The duma bottom thread by DurakTekstil requires three times as much thread as other bobbin threads of the same size, resulting in a 15 per centincrease in production.
Noting that technical threads are increasingly prominent in their product assortment, Durakemphasises on the company’s strong production and marketing foundations, boosted by strategic investments. Their newly reorganised R&D division is working on several promising initiatives, launching numerous firsts for sustainable products and technical threads.
Durak notes, technical textile items currently constitute 20 per cent of the comapany’ssales, with a goal to increase this percentage in the short and medium term through successful initiatives and innovative products.
Described as the worst since Bangladesh's independence in 1971, the current political turmoil in Bangladesh threatens to disrupt supply chains and production schedules for Indian textile companies operating in the neighboring country, says ChandrimaChatterjee, Secretary General, CITI. The country's impressive growth in the textile sector has strengthened trade flows across the subcontinent, she adds.
The domestic textile industry fears, disruptions in Bangladesh could lead to delays and shortages, forcing Indian companies to seek alternative manufacturing solutions. As a result, there is a noticeable shift toward other manufacturing hubs, with Tirruppur, a major Indian textile center, potentially benefiting from this realignment.
Amid widespread anti-government protests, Bangladesh is experiencing severe unrest, with Prime Minister Sheikh Hasina stepping down. Army Chief General Waqar-uz-Zaman has announced the formation of an interim government to take over duties.
Pointing out the broader implications for global supply chains, Chatterjee warns, major international brands that rely on Bangladesh for sourcing may face delays and reduced product availability, further impacting inventory levels and sales worldwide.
Pakistani entrepreneurs investing in Bangladesh's textile sector have expressed increased concerns about the recent turmoil and unrest in the country, fearing instability similar to that in Pakistan. The prospect of martial law in Bangladesh heightens these concerns, potentially jeopardising the stability that attracted these investors in the first place.
In recent years, several Pakistani textile entrepreneurs relocated their operations to Bangladesh. The move was motivated by lower production costs, preferential trade agreements, and superior infrastructure. The world's second-largest apparel exporter after China, Bangladesh has been steadily gaining market share as Western sanctions have hit Chinese exports. Many Pakistani firms, particularly in home textiles and readymade garments, have capitalised on Bangladesh's strategic advantages, reducing production costs by nearly 50 per cent.
Among the notable companies that set up operations in Bangladesh includeSoorty Enterprises, which invested $35 million in a garment factory employing around 6,000 Bangladeshis, and Interloop. Other significant names include Pak Denim, Crescent Textile Mills, Gul Ahmed Textile Mills, Kohinoor Textile Mills, Al-Karam Textile Mills, Nishat Mills (part of the Nishat Group), Artistic Milliners, and Masood Textile Mills.
These companies benefited from Bangladesh's lower labor costs and favorable trade agreements with the European Union and the United States, which offer better market access and lower tariffs compared to Pakistan. Despite Pakistan being granted GSP+ status by the EU in 2013, Bangladesh's economic incentives made it a more attractive destination for Pakistani firms seeking to maximise profits.
However, Muhammad Jawed Balwani, Chairman, Pakistan Apparel Forum, notes, while prominent companies like Soorty and Interloopcontinue to operate successfully in Bangladesh, the political climate under former Prime Minister Sheikh Hasina was not always welcoming, as her policies were seen as pro-India. The new military government would be more favorable toward Pakistani investors, he hopes.
Rising production costs and stagnant textile exports are making survival difficult for the power loom industry in Karachi, Pakistan. The past two and half years have been particularly challenging for the sector as economic activities in the country slowed down. The introduction of heavy taxation measures in the budget for the current financial year has further worsened the situation. Threatening to further weaken the sector, these measures could potentially lead to the closure of small and medium-sized businesses, warn experts.
Expressing his disappointment over the government’s lack of commitment to economic and industrial development TabbasumHussain, Secretary General, Power Looms Association in Karachi, says, the power loom industry plays a critical role in generating revenue and creating employment opportunities. Shutting down these looms would not only deprive the government of a valuable revenue stream but also result in massive job losses, he warns.
Hussain urges Prime Minister Shehbaz Sharif, Finance Minister Muhammad Aurangzeb, and Commerce Minister Jam Kamal to reconsider the taxes, electricity, and gas rates. It is essential to reduce these costs is essential to keep the sector operational. The government should also revise the taxation policy to ensure smooth functioning of these power looms to prevent further economic decline, he emphasises.
After re-launching the brand, ’Pony’ in the footwear category in 2023, the Iconix Brand Group plans to re-introduce the brand in the apparel segment with a target of reaching $500 million in sales in the near future.
Founded over 50 years ago in New York City by Roberto Muller, with support from Horst Dassler, Chairman, Adidas, Pony soon became a popular footwear brand among athletes across various sports. At its peak, Pony's sales reached around $800 million. Iconix acquired the North American rights for the brand in 2015 for $37 million and expanded to the rest of the world, excluding mainland China, in 2022.
Iconix recently signed Reason Clothing, a company known for its strong connections with specialty stores, as a licensee for the relaunch with a major apparel push planned for next year.
To complement Pony’s footwear, Robert Galvin, CEO, Iconix Brand Group, aims to introduce ‘hip apparel’range. Currently, the brand’s offerings comprise 70 per cent menswear and 30 per cent womenswear. However, it plans to expand its womenswear range with plans to venture in India also.
Pony will continue to leverage high-profile collaborations, such as partnerships with Star Wars, Mexican comedian Ricardo Perez, fashion designer Mauro Garfias, and events like the hip-hop festival Summer Jam and New York City's Hot 97. The brand has also been involved in community projects, such as reopening a skatepark in Luque, Paraguay.
Pony’s apparel is available at major retailers like Selfridges, Liberty, and Urban Outfitters abroad. In the US, the brand aims to expand through sports specialty stores and larger retailers like Macy’s. Iconix is also exploring six to eight potential acquisitions to further expand its portfolio, with its most recent purchase being the British streetwear label Hoodrich.
The fashion industry, like many others, grappled with significant price fluctuations due to COVID-19. Many key factors have impacted these shifts. From rising raw material costs to inflationary pressures and change in consumer demand the reasons are many.
Factors driving prices fluctuations
Several factors are responsible for price fluctuations. One major factor is supply chain snags. Pre-pandemic, globalization led to a steady decline in apparel prices. However, COVID-induced disruptions like factory shutdowns and port congestion caused a sharp rise in production and transportation costs. These increased production costs translated to higher prices for consumers. Meanwhile, the cost of cotton, a key raw material, has seen fluctuations due to various factors, impacting garment pricing.
With lockdowns and a focus on comfort wear and work-from-home culture, demand for formal attire dipped, and that of loungewear and activewear went up. This shift in preferences impacted brands and they adjusted production accordingly, impacting prices in different categories. Inflationary pressure is another issue. Rising costs of everything from cotton to labor contributed to overall price increases across the industry.
Impact of price change
Frequent price changes affected retail sales across the board. Luxury brands initially saw a dip in sales as travel and events were curtailed. However, some saw an increase due to ‘trading down’ by high-income consumers unwilling to stomach massive price hikes. And some luxury labels even responded by lowering prices.
This premium segment saw price increases to maintain an image of quality while managing rising manufacturing costs. Strong product assortments with unique offerings held the key to customer loyalty and price acceptance. For example, Abercrombie & Fitch's recent success exemplifies this strategy. Many brands focused on offering unique propositions to justify price increases. The value segment faced the biggest challenge. Value-conscious consumers were most reactive to price hikes, opting for cheaper alternatives or delaying purchases. Retailers like Gap needed to rely heavily on appealing product lines to justify price adjustments.
To deal with price fluctuations, brands and retailers are adopting various strategies. Many retailers are adopting a two-tiered approach – offering discounts on generic items while charging a premium for anything unique or with special features (e.g., sustainable materials, innovative design). Levi's exemplifies this by slashing prices on slow-moving styles while marking up trendier fits.
They are also creating exciting new trends in apparel encourages consumers to refresh their wardrobes, even at slightly higher price points. Abercrombie & Fitch's success with on-trend dresses is a prime example. And brands are emphasizing unique attributes like sustainable materials, circularity, or innovative features to justify price increases and build customer loyalty.
What lies ahead?
Volatility: Analysts predict continued volatility. While some relief came from lower logistical costs, rising fuel prices and geopolitical tensions may push costs up again.
Brands may resist cuts: Even with stagnant sales, some brands may be hesitant to lower prices. They might view the spending slowdown as a shift towards experiences (dining out, travel) rather than a reflection on clothing costs.
Consumer pain threshold: With rising debt and delinquencies across all age groups, consumers' patience for price hikes might be wearing thin. The recent decline in apparel price increases, despite overall inflation, suggests this might be happening already.
The apparel industry has gone through a roller-coster price changes due to the pandemic. While the future remains uncertain, one thing is clear: brands and retailers that adapt their pricing strategies, focus on product innovation, and build strong value propositions will be best positioned to thrive in this ever-changing landscape. As retail analysts explain, one needs to see what consumers are willing to spend on, and push it a little bit if business is good. But pushing too hard, as inflation continues to bite, might backfire. The question remains: when will shoppers finally push back on high prices?
The report ‘2024 USFIA Fashion Industry Benchmarking Study’ released in collaboration with University of Delaware highlights the change in apparel sourcing patterns. The study highlights the mounting economic pressures faced by the US fashion industry, including inflation, supply chain disruptions, and geopolitical tensions. These challenges have accelerated a trend towards diversification, creating a golden opportunity for India. For the first time ever, India has surpassed Bangladesh as the top apparel sourcing destination for US fashion companies.
Reducing China sourcing
A significant shift in apparel sourcing dynamics is evident from the latest survey findings. This year, a record 43 per cent of respondents scaled back their apparel sourcing from China to less than 10 per cent, a notable increase from just 18 per cent in 2018. Moreover, nearly 60 per cent of those surveyed no longer consider China their primary apparel supplier in 2024, marking a substantial rise compared to the pre-pandemic range of 25-30 per cent.
Despite China's recognized economic competitiveness in apparel manufacturing—such as robust vertical integration, low minimum order quantities (MOQs), flexibility, cost-effectiveness, and rapid market responsiveness—non-economic factors are driving a strategic reshaping of supply chains. Heightened concerns over forced labor risks and geopolitical uncertainties are compelling US fashion companies to diversify their sourcing away from China. This strategic realignment extends to companies actively selling products within China.
Looking ahead, nearly 80 per cent plan to further decrease their reliance on Chinese sourcing over the next two years, signalling a sustained trend towards risk mitigation. Large-scale US fashion enterprises, particularly those with over 1,000 employees and substantial current Chinese sourcing, are at the forefront of efforts to "de-risk" their supply chains.
India, capitalizing on global challenges
In 2024, a notable shift in sourcing patterns emerged as more respondents indicated sourcing from India (89 per cent utilization rate) than from Bangladesh (86 per cent utilization rate) for the first time in survey history. This trend highlights India's rising prominence as a preferred apparel sourcing destination among surveyed companies.
Looking forward, nearly 60 per cent respondents expressed intentions to increase their apparel sourcing from India over the next two years. This planned expansion surpasses growth projections for any other Asian country, underscoring India's growing appeal as a strategic sourcing hub in the region. India's vast skilled workforce, coupled with a growing domestic market, has been instrumental in its success. The country's rich textile heritage and diverse production capabilities offer global brands a wide range of options, from high-end fashion to mass-market apparel. Furthermore, the government's initiatives to promote 'Make in India' have created a positive ecosystem for apparel manufacturers.
India has capitalized on these challenges, positioning itself as a preferred alternative to traditional sourcing hubs. For the first time, India has surpassed Bangladesh as the most sought-after apparel sourcing destination for US fashion companies. This growth is due to a combination of factors:
Cost competitiveness: India offers a compelling cost advantage compared to many other sourcing destinations.
Skilled workforce: The country has a large pool of skilled labor, capable of meeting the demands of the fashion industry.
Government support: The Indian government's focus on boosting the textile and apparel sector through initiatives like the Production Linked Incentive (PLI) scheme has created a conducive environment for businesses.
Sustainability focus: Emphasizing sustainable practices, such as eco-friendly production processes and ethical sourcing, can attract environmentally conscious global brands.
Infrastructure development: Continued investment in transportation, logistics, and port infrastructure is essential to ensure efficient and cost-effective supply chains.
While economic factors have undoubtedly played a role, India's growing appeal also stems from its ability to address other critical concerns for US brands. The country has made significant strides in improving labor standards and sustainability practices, aligning with the increasing emphasis on ethical sourcing.
Despite the promising outlook, India faces certain challenges that need to be addressed. On major one is infrastructure bottlenecks. While significant progress has been made, infrastructure development still lags behind in some regions, impacting supply chain efficiency. Rising labor costs could also erode India's competitive advantage, necessitating a focus on productivity and value-added services. And another important aspect is addressing trade barriers and improving market access in key export destinations will be crucial for sustained growth.
By effectively addressing these challenges and capitalizing on the opportunities presented, India can solidify its position as a global fashion sourcing powerhouse and contribute significantly to the country's economic growth.
