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US-based footwear giant Deckers Brands expects net sales during the entire FY 25 to grow by 10 per cent approximately to $4.7 billion.
Driven by a double-digit growth across all markets, the company’s net sales during Q1, FY25 increased by 22.1 per cent to $825.3 million.
Direct-to-consumer net sales of the California-based company rose by 24 per cent to $310.6 million for the fiscal quarter ending June 30, 2024. Wholesale net sales also expanded by 21 per cent to $514.8 million.
Regionally, domestic net sales of the company grew by 23 per cent to $515.9 million, while international net sales surged by 20.8 per cent to $309.5 million.
Brand-wise, Ugg sales rose by 14 per cent to $223 million, and Hoka brand sales jumped by 29.7 per cent to $545.2 million. These gains offset a 4.3 per cent decrease in net sales for Teva and a 28.4 per cent decline for Sanuk. Sales of other brands, mainly Koolaburra, skyrocketed by 123.5 per cent to $4.0 million.
The brand licensing division of Hela Apparel Holdings, Focus Brands has entered into an exclusive long-term licensing partnership with Reebok to design, source, and distribute Reebok-branded outerwear products for adults and kids in the UK and Europe.
A part of the Authentic Brands Group, Reebok boasts a rich heritage across various active pursuits. This collaboration expands Focus Brands' existing strategic relationship with the Authentic Brands Group and marks the first major milestone for the Hela Group since acquiring Focus Brands in January.
According to Ray Evans, CEO, Focus Brands, the company’s agreement with Reebok helps strengthen relationship with the team at the Authentic Brands Group. The joint venture is designed boost Reebok’s presence in the outerwear category by leveraging Hela Group’s manufacturing capabilities.
As per the agreement, Focus Brands will be Reebok’s exclusive brand licensing partner in the UK and Europe for its outerwear category, covering products for men, women, and kids, including outdoor jackets, soft shells, bonded fleeces, and padded jackets. These products will be available in specialty sports stores, major department stores, and e-commerce platforms across the region. Focus Brands will oversee all aspects of design, sourcing, marketing, and distribution.
This partnership represents Focus Brands’ strategic expansion with Authentic Brands and the first significant milestone for the Hela Group since acquiring Focus Brands in January. The group’s new licensing agreement with Reebok is a further step in growing Focus Brands into a world-leading brand management company.
Archroma, a global leader in specialty chemicals, has achieved a Gold rating from EcoVadis, positioning it among the top 5 per cent of over 130,000 companies evaluated for sustainability. This accolade underscores Archroma's commitment to environmental performance, ethics, labor rights, and sustainable procurement.
Mark Garrett, Group CEO, highlighted the company's dedication to sustainability through its 2030 environmental targets, which include a 40 per cent reduction in water intensity, a 15 per cent cut in energy intensity, and zero hazardous waste to landfill. Archroma also aims to slash Scope one greenhouse gas emissions by 20 per cent and Scope two emissions by 40 per cent during this period.
Martina Beitke, Group Sustainability Director, emphasized the importance of ongoing sustainability assessments since 2017, noting their role in enhancing industry standards. She praised the company’s commitment to innovation, partnership, and strong leadership in driving positive environmental and societal impacts.
A new report, ‘Voice of the Consumer Survey 2024’ by PwC India, reveals a seismic shift in the Indian consumer landscape. As digitalization accelerates, consumers are becoming increasingly discerning about where they spend their money and whom they trust with their personal data.
The survey, based on responses from 1,000 Indian consumers, underscores the growing importance of trust, sustainability, and personalized experiences in the retail sector. While online shopping is gaining traction, physical stores continue to hold a strong appeal, with 56 per cent of consumers frequently purchasing non-grocery items in-store. However, the in-store experience needs an upgrade. Retailers must leverage technology like augmented reality and mobile payments to create engaging and seamless shopping journeys.
Trust as the new currency
Data privacy emerges as a paramount concern. Almost 82 per cent of Indian consumers consider data protection crucial for building trust. This sentiment is particularly pronounced in the context of social media, the least trusted channel despite being a primary platform for product discovery. Brands must prioritize transparent data handling practices to gain consumer confidence.
Ravi Kapoor, Partner and Leader – Retail and Consumer sector, PwC India, emphasizes the importance of authenticity in building trust. "Brands need to stay authentic to earn consumer trust and ultimately build loyalty," he said.
The rise of conscious consumerism
Indian consumers are increasingly conscious of their impact on the environment. The survey revealed that 46 per cent consumers view climate change as a significant threat, driving a surge in demand for sustainable products. A remarkable 60 per cent are actively seeking out environmentally friendly options, with 75 per cent actively seeking information on food sustainability.
“Our survey reveals three main drivers of building trust; firstly, how well do brands make life easier for their consumers; secondly, how well they connect with their consumers and finally how do they ensure inclusiveness with their consumers,” said Kapoor.
The fashion and apparel sector, a major contributor to environmental concerns, is at a crossroads. Brands must integrate sustainability into their core business models, from sourcing to production and packaging. Offering transparent information about sustainability practices, such as independent sustainability scores, can significantly enhance brand reputation.
The survey highlights the influence of social media in the fashion industry. A whopping 77 per cent of consumers discover new brands through social media, emphasizing the importance of effective digital marketing strategies. However, trust remains a challenge, with 76 per cent of consumers expressing concerns about privacy on social media.
To thrive in this evolving landscape, businesses must adopt a holistic approach. This includes prioritizing data privacy, incorporating sustainability into core operations, delivering exceptional customer experiences, and leveraging technology responsibly. “Indian consumers’ optimistic sentiment shines through the survey with a whopping 75 per cent of consumers saying that they will increase spends in the clothing/footwear/grocery and health and beauty categories in the next six months,” noted Kapoor.
By understanding and responding to these consumer trends, businesses can build lasting relationships and drive growth in the dynamic Indian market.
With production rebounding, the United States is expected to reclaim its status as the top cotton exporter in 2024/25, as per the June 2024 World Agricultural Supply and Demand Estimates (WASDE) report by USDA.
In the 2023/24 season, Brazil surpassed the US to become the world's largest cotton exporter, with exports reaching 12.4 million bales. Brazil's cotton production during the 2023/24 season is estimated to have hit a record 14.6 million bales under favorable conditions, while US production declined due to drought in the Southwest.
For over a century, the United States has been the world's leading raw cotton exporter, a position it has rarely relinquished. The most recent exception was during the marketing year 1992/93 spanning August–July, when Uzbekistan took the lead. Historically, US-grown cotton primarily was supplied to domestic mills, but by the early 2000s, raw cotton exports became predominant.
The expansion of textile and apparel product exports from countries like China, following the phase-out of import quotas in developed countries, shifted the destination of US-grown cotton to foreign mills. This shift led to increased competition from other cotton-producing nations. Recently, Brazil has emerged as a significant competitor, driven by the expansion of cotton production in its Center-West region.
World Emblem, the leading emblem and patch manufacturer, introduces Flexbroidery, a new product offering a cost-effective and sustainable alternative to traditional embroidery.
Flexbroidery patches provide intricate detail and vibrant colors with a raised texture, applied easily in-house using low-melt heat seals. This innovation allows unlimited color options at no extra cost and enables customers to stock patches, eliminating garment shipping needs.
Flexbroidery’s heat pressing method provides an embroidered appearance without the use of threads or machinery. It is ideal for various applications, including corporate branding, personal projects, uniforms, accessories, and apparel, according to Randy Carr, President and CEO of World Emblem.
World Emblem leverages cutting-edge technology to produce customized, multi-textured emblems, including Flexbroidery, at their facilities in Georgia, Texas, California, and Mexico. World Emblem provides rapid production and delivery, setting a new standard for the industry.
Textile manufacturer Trident reported a 21 per cent decline in consolidated net profit during Q1, FY25 as company faced challenges in controlling costs amid rising cotton prices.
A supplier of goods to online retailers such as Flipkart and Myntra, as well as outlets like Shoppers Stop and DMart, Trident has been negatively impacted by over a year of increasing cotton prices, its primary raw material.
Trident’s consolidated net profit declined to Rs. 73.7 crore during the quarter ended June 30, 2024 compared to Rs. 93.4 crore in the corresponding quarter of the previous year.
However, the company's operating revenue increased by 17 per cent to Rs. 17.43 billion during the quarter compared to corresponding quarter in the previous year. Its total expenses also increased by 20 per cent as raw materials costs rose by 18 per cent. Revenues from Trident’s main revenue contributor, the company’s core yarn segment, grew by 49 per cent during the quarter.
For the current season, Pakistan Cotton Ginners Association (PCGA) reported a significant decline in cotton production with output dropping by nearly half compared to the same period last year.
As per the association's report, as of July 15, supply of raw cotton, known as phutti, to ginning factories declined by 48.48 per cent to 442,000 bales as against 858,007 bales processed during the same time last year.
The report attributes this disappointing performance to climate change, though it also highlights deeper, systemic issues within the sector that need urgent attention. Without addressing these underlying problems, cotton industry, which plays a crucial role in employment, industrial production, and exports, will continue to struggle, it adds.
According to the report, the two major issues plaguing cotton cultivation in Pakistan include lack of mechanisation and use of substandard seeds. Absence of mechanised farming in the country results in lower quality cotton, impacting the export potential of the crop. This forces the textile industry to import higher quality raw cotton to maintain its international market share. Consequently, textile mills in the country have reduced their purchase of locally grown raw cotton this year.
Additionally, the genetically modified Bt cotton seeds commonly used in Pakistan have lost their pest-resistant qualities over time. Experts believe, Bt genes need to be continuously improved to maintain their effectiveness against pests. However, poor research and inadequate efforts to enhance seed quality in the country continue to compromise on the crop's yield and quality.
These issues are driving many farmers to switch to more profitable crops like sugarcane, which, although lucrative in the short term, has detrimental effects on the agriculture sector. The shift to sugarcane, a water-intensive crop, in a country already facing water scarcity, further exacerbates this situation.
To reverse this trend, the government needs to introduce policies promoting high-quality cotton through increased mechanisation and better seeds are essential, opines PCGA. The country also needs to boost investments in research and development to improve seed varieties and educate farmers on modern farming techniques is crucial, it adds
Ongoing energy crisis coupled with rising operating costs and shipment delays have led to a 25-40 per cent decline in orders for apparel exporters in Bangladesh. This is also resulting in factories operating well below their capacities.
Production costs in Bangladesh have risen by 20–33 per cent increase. Yet, manufacturers continue to decline export orders as international buyers are offering up to 20 per cent lower rates. This price disparity is prompting buyers to shift from Bangladesh to competitor nations like India, Pakistan, and Sri Lanka, where advantageous exchange rates and quicker shipping allow them to accept lower pricing.
The country’s largest export sector is bracing for a 7 per cent drop in sales during this year’s peak winter season in the West. This comes at a time when government incentives have been cut, and revised data has revealed that the last 10 months’ export figures were overstated by about $11 billion.
Mesbah Uddin Khan, Managing Director, Windy Group, notes, buyers are proposing prices 15–20 per cent below production costs. His group too could not secure 20 per cent of orders for August and September this year, with the time to secure orders for the Autumn Holiday season expiring, he adds.
Shovon Islam, Managing Director, Sparrow Group, echoes, declining demand in major markets and the low prices offered by buyers is causing a slowdown in order placements. Besides wage increases and rising of gas and power prices, Red Sea tensions are also increasing production costs. However, buyers fail to match these with their offers, making it difficult for most manufacturers to schedule orders based on their production capacity. Small and medium-sized manufacturers are struggling more than larger factories to book orders, emphasises Islam.
This is resulting in buyers moving to India and Sri Lanka, which offer stronger competitive advantages through better incentives and favorable exchange rates. Concerns over timely shipments are also leading to top buyers relocating their orders to Vietnam, India, and Sri Lanka, highlights Islam, also a director of the Bangladesh Garments Manufacturers and Exporters Association (BGMEA).
Siddiqur Rahman, Former President, BGMEA, points out, potential geopolitical instability due to wars could affect consumer confidence. Reduced monetary incentives amidst persistent gas and energy shortages is already causing delays in shipments and higher manufacturing costs, impacting exporters’ competitiveness. To help maintain their competitiveness in the global market, he urges the government to reinstate the cash incentive for exporters.
Marking the fifth season of their collaboration, Copenhagen Fashion Week (CFW) and Ukrainian Fashion Week (UFW) are once again teaming up for the Spring/Summer 2025 edition. The collaboration also highlights the ‘Support Ukrainian Fashion’ initiative.
Ukrainian fashion brands J’amemme, Katerina Kvit, Omelia, Plngns, And Sidletskiy will unveil their SS25 collections on August 6, 2024 at Ukraine House in Denmark. The installation will focus on one of the oldest biosphere reserves on the planet and the largest protected steppe area in Europe, Askania-Nova which currently suffers from the consequences of the Russian occupation.
With an aim to preserve culture, traditions, and creativity in the darkest times, UFW uses fashion to speak about the daily challenges faced by the industry including thousands of workers working under challenging conditions – despite rocket attacks and power outages. It also emphasises on the difficulties faced by Ukrainians in their daily lives, states Iryna Danylevska, Founder and CEO, Ukrainian Fashion Week.
Cecilie Thorsmark, CEO, CFW, adds, the SS25 season aims to recognise the tireless work of Ukrainian Fashion Week in the face of relentless struggle and invasion. The edition will include dedicated presentations by five designers at the Ukraine House in Copenhagen besides the TG Botanical as part of its official Event Schedule.
