FW
Giving a huge boost to the domestic industry, India’s textiles and apparel exports rose by 9.7 per cent in May this year compared to the same period in 2023.
As per a report by the Confederation of the Indian Industry (CITI), India’s textile and apparel exports increased to $3,089.19 millionduring the month, from $2,816.1 million registered in the corresponding month of the previous year. Textiles exports rose by 9.59 per cent Y-o-Y while apparel exports increased by 9.84 per cent.
However, India’s import of textile yarns, fabrics and made-ups declined by 0.45 per cent during April-May 2024 compared to the same period last year. Apparel imports fell by 16 per cent in April 2024 compared to April 2023. From Jan-Apr’24, India’s apparel imports declined by 18.4 per cent compared to corresponding period last year.
According to ChandrimaChatterjee, Secretary General, Confederation of Indian Textile Industry, a slight improvement in global demand has spiked India’s textile and apparel exports.
Bangladesh and China continued to be the primary destinations for garment imports by India. However, apparel imports by India have been on a decline due an increased demand from Western markets and higher production costs in Bangladesh. Whether this trend continues, remains to be seen.
Terming the newly unveiled federal budget as ‘extremely regressive, All Pakistan Textile Mills Association (APTMA) warns that it may pose a threat to the textile sector and its exports.
Setting ambitious revenue targets for the fiscal year ending June 2025, the budget was presented by Muhammad Aurangzeb, Finance Minister last week. A total outlay of Rs 18.87 trillion ($68 billion) was earmarked in it for the year.
A few of the key objectives outlined in the budget include, reducing the public debt-to-GDP ratio to sustainable levels and improving Pakistan’s balance of payments position, according to the budget document.
The budget also aims to boost non-tax revenue, such as petroleum levies by 64 per cent, while sales tax on textile and leather products, as well as mobile phones, is expected to rise by 18 per cent.
However, the new budget could have ‘dire consequences’ for employment, external sector stability, and overall economic and political stability in Pakistan, warn textile mill owners.
The tax rate on exports has increased from a 1 per cent final tax regime to a staggering 29 per cent on profits, plus a 2 per cent advance tax on export proceeds. This excessive taxation eliminates incentives for export-oriented activities and drains liquidity from the sector as the 2 per cent advance tax will soak up all liquidity from low-margin high-volume industries like textile, adds APTMA.
The 18 per cent sales tax and turnover tax might erode the competitiveness of local manufacturers by reducing domestic value addition in exports and worsening the trade balance, the association further states.
After peaking at $19.3 billion in FY2021-22, Pakistan’s textile exports fell to approximately $16.5 billion in FY2022-23, with a similar downward trend continuing throughout FY2023-24, with monthly exports consistently falling over $600 million below the installed capacity.
This drastic decline highlights the urgent need for governmental intervention to support the sector. No measures have been proposed to resolve the industry-wide energy crisis, APTMA notes.
APTMA points out , rising energy costs, high-interest rates, and a dysfunctional sales tax refund mechanism had pushed many firms to the brink of bankruptcy. The association warns of a severe deterioration in both foreign and domestic investment prospects and destabilisation of the external sector and overall economic growth in the coming years if the government fails to o reconsider the FY25 budget and implement measures to address the prohibitive energy costs, rationalise taxation, and provide a conducive business environment to avert an imminent collapse of the textile sector.
India's cotton industry, a leader for years, finds itself under the watchful eye of the international trade fraternity. While acknowledged as a major player, its future trajectory remains a subject of debate.
India boasts of several advantages. Fertile land, ideal climatic conditions, and a long history of cotton cultivation, make it a natural producer, explains Arjun Khanna, President of the Cotton Association of India (CAI). This translates to a diverse range of cotton varieties, catering to various market demands. As per a report by the Textile Ministry of India, India is the world's largest cotton producer, accounting for roughly a quarter of global production. This on ground means a reliable domestic supply chain, a key factor for international buyers. And as veteran cotton trader Amitabh Roy states, "The sheer volume of Indian cotton is a magnet. Buyers know they can find the quantity they need here."
Unravelling yarn
However, challenges loom large. Yields in India are significantly lower compared to major competitors like the US and China. A 2023 report by the International Cotton Advisory Committee (ICAC) highlights lower yields compared to major competitors like China and the US. This inefficiency is compounded by fragmented landholdings and inadequate infrastructure, leading to higher production costs. As textile industry analyst Lisa Wang observes, while India has the raw material, translating that into competitive pricing remains a hurdle.
India has a growing niche in organic cotton production. This sustainable alternative is gaining traction internationally. The ‘Sustainable Better Cotton Initiative’ (BCI) reports a significant rise in Indian BCI cotton production. However, the lack of standardized certification processes and limited processing facilities create bottlenecks.
Weaving a brighter future
The future of the Indian cotton industry hinges on its ability to address these challenges. Investment in research to improve yield and fiber quality is crucial. Additionally, widespread adoption of sustainable practices is essential to cater to a growing global demand for eco-conscious textiles. Modernization, quality focus, and a commitment to sustainability are the threads needed to weave a brighter future. Government initiatives like the ‘Textile Mission’ aim to modernize infrastructure and improve farm productivity.
The international trade fraternity views the Indian cotton industry with a mix of admiration and apprehension. While the potential is undeniable, overcoming existing hurdles is crucial to realizing its full potential. Through focused investments in infrastructure, improved farm practices, and a commitment to sustainability, India's cotton industry can weave a successful future.
Jeanologia has been awarded the title of 'Best Business Project' at the first Spanish Fashion Academy Awards, held on June 13 at Madrid's TeatroFernan Gomez Centro Cultural de la Villa. This accolade celebrates the company's leadership in sustainable and technological innovations within the fashion industry.
At the gala, which honored Spanish fashion talent and commemorated the 129th anniversary of iconic designer Cristobal Balenciaga, Jeanologia stood out for its three-decade-long commitment to revolutionizing textile production. The company has drastically reduced water and energy consumption and eliminated harmful chemicals, setting new standards in eco-friendly fashion.
Chosen from over 400 nominees by 129 founding academics, Jeanologia's global impact and visionary approach were unanimously recognized. CEO Enrique Silla accepted the award, a statuette by Helena Rohner inspired by Balenciaga’s headdress, emphasizing the importance of creating beautiful products sustainably.
Silla emphasized that fashion loses its beauty if it is created in a harmful way, noting that Jeanologia's technologies allow designers to produce beautiful garments while being environmentally responsible. He also underscored Spain's leadership in sustainable fashion technologies and expressed appreciation to the Spanish Fashion Academy for recognizing the team's contributions, acknowledging the convergence of fashion, the environment, and science.
Jeanologia's win marks a significant milestone, reinforcing its dedication to a future where fashion embodies beauty, innovation, and environmental responsibility.
In October 2023, the Karl Mayer Group launched a new production company in Romania, aiming to bolster its resilience and competitive edge. Named Karl Mayer Romania SRL, the facility will commence operations in rented premises in Baia Mare from February 2024, with plans to eventually relocate to a dedicated factory nearby.
Patrick Mack, appointed as General Manager in May 2024, brings valuable experience to the role, having previously established a factory for another foreign company in Romania. He will collaborate with Manfred Reinhold, another key leader at the subsidiary. Mack's strategic vision focuses on integrating the new site seamlessly into Karl Mayer's global manufacturing network.
Patrick Mack emphasized the strategic importance of Karl Mayer Romania, expressing his goal to build a facility that upholds the company's high standards, enhances overall performance, and embodies its brand values. He plans to leverage German quality, Romanian ingenuity, and efficient processes to create a world-class production environment, fully backed by the Karl Mayer Group.
Growing concerns over unsold inventory, sparked by a decline in consumer spending, are leading to unprecedented discounts being offered by a few luxury labels in the Chinese market.
From this month, the price of a mall beige crocodile-pattered version of Balenciaga’s iconic hourglass handbag has been reduced by 35 per cent to $1,947on Alibaba Group Holdings’s the mainland’s dominant e-commerce platform, Tmall. This price is lower than those listed on the brand’s official websites globally and major luxury platforms like Farfetch.
A part of French luxury giant Kering SA, Balenciaga averaged a 40 percent discount on sale items during three of the first four months of 2024. The brand has also more than doubled its number of discounted products on Tmall, with these items accounting for more than 10 percent of its inventory on the platform from January to April. Last year, Balenciaga only offered discounts in January at an average of 30 percent and had no markdowns at all in the first four months of 2022.
Last year, online orders accounted for nearly half of China’s luxury revenues, according to consultancy Yaok Group. A majority of these orders were captured byTmall.
The decline in demand from the Chinese market has already impacted luxury earnings. Kering warned in April of a potential first-half profit drop of up to 45 percent, driven by weak Gucci sales in China. Burberry’s stock has more than halved in the past year due to weak demand in China and the US. Chanel also cautioned that conditions are becoming more challenging, even at the higher end of the market.
Additionally, Japan’s weak yen is contributing to the slowdown in sales in China, as consumers seek the lowest prices available by shopping in Japan.
Being held in Florence’s Fortezza Da Basso, the 106th edition of PittiUomois being attended by over 5,000 foreign buyers, says RaffaelloNapoleone, CEO, PittiImmagine. Foreign presence at the fair equals 45 per cent of the total 11,000 buyers attending the event.
On the other hand, Italian buyers to the trade show have reduced by 6 per cent.The highest visitors are being witnessed from Germany, The Netherlands, The UK, Spain, Japan, Turkey, etc.
Antonio De Matteis, President, PittiImmagine, advises,the show this season needs to be approached cautiously and with the same energy as always.The trade show encourages exhibitors to present the best of their products and confirm its market leadership, he adds further emphasising, it needs to address the weak dynamics of domestic consumption.
Matteisalso calls for increasing the involvement of business and labor representatives, Italian Government and European institutes, in the industry
Rizal TanzilRakhman, Former Secretary General, Indonesian Textile Association (API), has emphasised on the urgent need for the government to revise Trade Minister Regulation No 8. of 2024,concerning import policies. The government needs to listen to stakeholders, and implement necessary changes, stated Rizal, who also serves as an executive at the textile nonprofit RantaiTekstil Lestari (RTL).
If the government fails to take action, the textile industry may suffer further, leading to mass layouts, warned Rizal. By facilitating textile imports, the Regulation 8/2024 may damage the domestic textile industry leading to an influx of imported garments, reducing capacity utilisation in the local textile industry and either delaying or cancellation orders in small and medium industries.
Around 20 per cent of the small and medium size industries in Bandung, West Java have already shut down due to the relaxation in import regulations, rues Nandi Herdiaman, Chairman, Bandung Garment Entrepreneurs Association (IPKB). A failure to revise the regulation may lead to a rise in unemployment rates in Indonesia, causing great sufferings to the garment sector in the country, adds Herdiaman.
Non-profit organisation, the Better Cotton Initiative (BCI) has certified several cotton clusters in Uzbekistan, as per reports by the Uztuqimachiliksanoat press service.
Discussing this issue of cotton certification in the country, Rachel Beckett, Startup Support Program Manager, BCI and the representatives from the cotton industry held a meeting that highlighted the interest of foreign clothing brands in Uzbek cotton following the end of the Cotton Campaign boycott, The meeting also emphasised on the need to expand organic cotton production in the country.
Having abundant cotton resources and a comprehensive production cycle, Uzbekistan ensures seamless tracking of textiles enterprises from field to market, says Beckett.
Three of the six raw cotton clusters in the country are soon set to be officially recognised as eco-cotton producers. Currently, raw cotton in six clusters adheres to BCI standards under the Sustainable Cotton program of the German Society for International Cooperation (GIZ). Farmers and business leaders in these clusters have received training from GIZ and BCI.
Dedicated to enhancing sustainable cotton growing practices, BCI aims to not only ensure the well-being of cotton-growing communities but also safeguard and restore the environment.
Currently, BCI works with approximately 2.4 million farmers across 25 countries, including the US, Turkey, India, Pakistan, Kazakhstan, and Tajikistan. Farmers in these countries produced 23 per cent of the world’s total cotton output amounting to 6.2 million tons in 2022.
The cotton certified by BCI is utilised by leading brands such as H&M, Levi’s, Adidas, and Nike for their textile production.
Driving a fast fashion waste crisis, Australians now purchase more clothing per person than any other country, as per a new research report by the Australia Institute. The study reveals, overtaking US, Australia has become the world’s largest consumer of textiles per capita, largely due to fast fashion, which often ends up in landfills.
Findings from the research report indicate, on an average Australians purchase 56 new clothing items per year, surpassing the US at 53 items, the UK at 33 items, and China at 30 items. The average value per item purchased by Australians is AUD $13, significantly lower than in the UK ($40), US ($24), Japan ($30), or Brazil ($16). Annually, more than 200,000 tons of clothes are discarded into landfills, equivalent to nearly four Sydney Harbor Bridges in weight, as per a report by Textile Waste in Australia.
The report recommends several policy measures to curb fast fashion waste, including implementing a French-style fast fashion tax, banning the export of textile waste within five years, and providing government-funded discounts for garment repairs. It also calls for federal investment in developing an Australian circular textiles industry and increased support for community op shops and recycling initiatives.
Polling by the Australia Institute indicates that nearly 63 percent of the Australians are concerned or very concerned about the environmental impact of textile waste. When asked who should be responsible for eliminating this waste, 71 percent pointed to businesses, followed by consumers at 57 percent and the government at 54 percent.
The research also highlights a gap in public knowledge regarding textile materials. Fewer than half (46 percent) of respondents could identify petroleum as the source of polyester, and only 27 percent were aware that more than half of the clothes sold in Australia are made from plastic.
