FW
The Cotton Corporation of India (CCI) has procured 33 lakh bales of cotton at the Minimum Support Price (MSP) from farmers during the ongoing cotton season, which is set to conclude next month.
Lalit Kumar Gupta, Chairman and Managing Director, CCI notes, the corporation conducts two e-auctions daily: one specifically for textile mills and another open to all buyers.
Despite these efforts, the offtake by mills has been sluggish, largely due to an accumulation of yarn stocks and a slowdown in demand. For almost 25 days, CCI sold only 25,000-30,000 bales daily. However, sales increased recently with the corporation selling 20,000 bales. Currently, CCI holds a stockpile of nearly 20 lakh bales.
Looking ahead, CCI needs to prepare for the next cotton season that begins October asMSP operations are expected to expand during this period, emphasises Gupta.
Toincentivise textile mills to purchase more cotton, CCI has introduced a new measure allowing mills to take delivery within 60 days from Aug 01, 2024. Additionally, the corporation has appealed to mills to secure their stock requirements for the current cotton season, aiming to boost sales and manage inventory levels more effectively.
The slowdown in the Italian textile and apparel sector, witnessed in H1 2024 has intensifiedin H2 2024 with the purchasing power of consumersdeclining and geopolitical tensions rising.
As per a report by the employer’s federation for the Italian fashion industry, SistemaModa Italia (SIMI),only 17 per cent of the entrepreneurs reported revenue increases in the first six months of the year. The average sales of these entrepreneurs also decreasedby 5.8 per cent compared to the same period in 2023.
Most industry players do not expect revenues to improve in the second half of the year. Around 48 per cent respondents say, they anticipate market conditions to stabilise in H2, FY24 while 33 per cent anticipate market conditions will deteriorate in the second half of the year.
Conducted in early July among small and medium-sized enterprises (SMEs) across various regions, the surveyshows, only 19 per cent of companies expect sales to increase for the rest of the year. Meanwhile, 61 per cent anticipate a slowdown, and 20 per cent expect stable sales. As per SMI’s prediction, revenues from the textile and apparel sector areexpected to decline by 6.2 per cent during the first nine months of FY24.
Around 64 per cent of entrepreneurs predict, they will end 2024 below 2023 levels, while only 11 per cent hope sales will improve during the rest of the year. A majority, 70 per cent, do not expect recovery until early 2025.
Employment levels in the sector remain relatively stable, according to 54 per cent of entrepreneurs. However, 20 per centreport staff reductions, and 26 per cent have used social safety nets in the second quarter. This trend is expected to intensify, with 33 per cent of companies planning to use social safety nets in the third quarter.
Sergio Tamborini, President, SMIemphasises, the sectors needs to introduce targeted measures to invigorate the production chain and strengthen strategic relationships with Europe and key markets. An urgent strategic plan to preserve Italy's creative, human, and industrial capital needs to be formulated, he adds.
In celebration of National Relaxation Day on August 15, Tommy Bahama has teamed up with Ray’s Hometown Bar on the Lower East Side for a special capsule collection. Known for its motto "Make Life One Long Weekend," Tommy Bahama has designed three signature silk camp shirts and three baseball hats for the occasion.
The collaboration will include two kickoff events and ten happy hours at Ray’s, offering attendees cocktails made with Tommy Bahama spirits. Carlos Quirarte, cofounder of Authentic Hospitality, highlighted that Ray’s has always been a welcoming spot for the community to relax, making the partnership with Tommy Bahama, known for its relaxation-inspired clothing, a perfect fit.
Ray’s designer, Jack Berry, explained that the inspiration came from Tommy Bahama’s patterns, which evoke casual hangouts and the art of a good cocktail. They chose three iconic silk camp shirt styles and added a subtle Ray’s touch. The hats, designed in teal and coral, reference Miami architecture, a central element of the Tommy Bahama brand.
Challenges including high production costs, elevated interest rates, inadequate gas supply, and soaring electricity tariffs, have led to thePakistan’s textile exports stagnating at 1.6 per cent of global exports, amounting to a mere $16 billion. As per a report by APTMA, the country lags significantly behind the $40 billion worth of textile exports from Bangladeshdespite a $5 billion investment in modern machines as energy shortages continue to hinder growth.
ZahidMazhar, Chairman, APTMA—Southern Zone, notes, Pakistan’s textile exports declined from $19.33 billion in 2021-22 to $16.50 billion in 2022-23. To reach the ambitious target of $60 billion in exports by 2027, the country needs to increase its textile exports to $33 billion byintroducing supportive policies, he adds.
A few of the key challenges being faced by the textile industry in Pakistan include high energy costs, especially capacity payments to Independent Power Producers (IPPs), which inflate electricity tariffs. The government pays Rs. 35 per unit for electricity but charges Rs. 60 per unit.
There is a call to cancel unnecessary IPP contracts and conduct a forensic audit, as capacity payments have surged from Rs. 200 billion in 2015 to Rs. 2 trillion in 2024.
The textile industry also struggles with high gas and RLNG costs, leading to the closure of 30 per cent of mills. The government's plan to cut off gas supply to captive power plants by January 2025 is impractical, given the current electricity network's limitations.
Additionally, high interest rates of 19.50 per cent are stifling industrial activity, and the recent Federal Budget 2024-25 has imposed anti-industry measures, including increased taxes and withdrawal of zero-rating sales tax on local inputs for export manufacturing. These policies threaten to deindustrialise the economy and hinder export growth, particularly in the textile sector, which is vital for Pakistan's economic stability.
Being held at Yashobhoomi, Dwarka from Aug 01-03, the 11th edition of GartexTexprocess highlights the potential for foreign direct investments (FDIs) and joint ventures in the sector. Organised by MEX Exhibitions and Messe Frankfurt Trade Fairs India, the event spanning three days, showcases the latest industry trends and innovations.
Over 180 exhibitors, representing more than 600 brands from India, China, Italy, Japan, Singapore, Taiwan, and the USA, are participating in the event. They are presenting their latest advancements in textiles and garment manufacturing, including denims, machinery, sewing machines, fabrics, trims, and accessories.
The inauguration was graced by several notable figures from the textile industry, including Giriraj Singh, Elgar Straub, Managing Director, VDMA Textile Care, Fabric & Leather Technologies;SharadJaipuria, President, Denim Manufacturers Association and Chairman, Ginni International; Simon Lee, Managing Director, Hyosung Group);AamirAkhtar, Group President and CEO-Textiles, Jindal Worldwide; Mithileswar Thakur, Secretary General, Apparel Export Promotion Council;HimaniGulati, Director, MEX Exhibitions, and Raj Manek, Managing Director, Messe Frankfurt Trade Fairs India.
Appreciating the event for its comprehensive knowledge sessions, product displays, and B2B networking opportunities, Singh emphasisedon the importance of joint ventures and FDIs, as well as the collaborative efforts between suppliers, manufacturers, and brands in driving the textile sector forward. He highlighted the sector's significant employment potential, second only to agriculture, and stressed the importance of sustainable fabrics like handlooms.
The event showcases innovative product launches and the latest trends in the industry. Expressing his delight at the positive response, Manek notes, the Indian government's focus on manufacturing is worth appreciating. Highlighting the strong turnout and international participation, Juneja underscores the event's role in shaping the future of textile and garment manufacturing.
Dedicated to denims, the second day included sessions covering topics such as denim manufacturing, sustainable solutions, laundry automation, and the use of AI in trend identification and lifecycle assessment. These discussions offered valuable insights for industry professionals, enhancing their knowledge and practices.
A leading European importer of fabrics, yarns, and finished textiles, Stockport-based Premier Textiles has recently become a supplier on the Better Cotton Platform (BCP). This platform supports the Better Cotton Initiative (BCI), a global movement aimed at enhancing the sustainability of cotton production by alleviating environmental stress and improving the livelihoods of cotton farmers.
The BCP is utilised by over 13,000 industry players, including ginners, traders, spinners, fabric mills, garment manufacturers, sourcing agents, and retailers.
Founded in 1981, Premier Textiles manages an extensive inventory of over 5 million linear meters of fabric. The independent, family-owned company operates more than 50,000 sqft of modern warehousing across Stockport, Bury, and North America, with a dedicated workforce of over 40 employees.
Ashok Kallumpram, Group Managing Director, emphasises, joining the BCP underscores Premier’s dedication to sustainability, responsible sourcing, and reducing environmental impact. The company’s collaboration with mills that are committed to high standards in chemical management, material sustainability, water and waste management, and renewable energy efficiency aligns with its goals. By joining the BCP, Premier Textiles reinforcesits commitment to sustainability and support the move towards sourcing all BCI Cotton.
Premier’s portfolio includes Premier Digital Textiles, Premex Solutions, and Bancroft Soft Furnishings. The BCI is a non-profit organisation that trains cotton farmers globally in sustainable practices, focusing on efficient water use, habitat conservation, reduced chemical usage, and workers' rights. Cotton from Better Cotton farms is integrated with conventional cotton during production through a mass balance system, meaning not all products may contain Better Cotton.
By joining the BCP, Premier Textiles continues to strengthen its sustainability efforts and its role in promoting more responsible cotton sourcing.
Crocs Inc registered a 3.6 per centincrease in Q2, FY24 sales to $1.1 billion. The company’s growth during the quarter was largely driven by a significant rise in direct-to-consumer (DTC) sales, particularly in international markets.
The Colorado-based company saw an 8.9 per cent growth in DTC revenues, while wholesale revenues declined by 1.3 per cent for the three months ending June 30. Revenue from the Crocs brand rose 9.7 per cent to $914 million, fueled by increases in both DTC and wholesale channels. North American revenues grew by 3 per cent to $489 million, while international revenues increased by 18.7 per cent to $425 million. In contrast, HeyDude revenues fell by 17.5 per cent to $198 million. The company’s net income for the quarter declined to $229 million from $277 million in the same period last year.
Andrew Rees, CEO, attributes the strong performance to exceptional international growth for the Crocs brand. Regarding the HeyDude brand, Rees emphasises on the efforts taken to improve long-term brand health and plans to enhance brand visibility through increased marketing in the latter half of the year.
Additionally, Crocs recently partnered with Apparel Group India to expand its retail presence in North and East India. Apparel Group will serve as Crocs' exclusive retail licensee for the region, further bolstering the company's global footprint.
Target is launching its first denim take-back event in all Target stores from Aug 4-10, 2024. The initiative allows customers to recycle their used denim, regardless of brand or condition, and receive a 20 per cent discount on new denim purchases. This promotion applies to both national brands like Levi's and Target-owned brands such as Universal Thread, Wild Fable, Goodfellow& Co., and Cat & Jack.
The denim take-back event builds on the success of Target's car seat trade-in program, which has recycled 2.6 million car seats and 39.7 million pounds of material since 2016. Gena Fox, Senior Vice President -Merchandising - Apparel and Accessories, says, the company is offering 20 per cent off Target Circle deal to make it even more affordable for customers to refresh their denim wardrobes while also contributing to waste reduction waste and keeping used denim out of landfills.
Denim is a major category within Target's apparel portfolio. The company owns brands like Universal Threads, Wild Fable, Goodfellow & Co, and Cat & Jackalong with with national brand partners like Levi's.The popularity of new styles and fits, such as baggy and cargo silhouettes, as well as straight and relaxed fits, continues to grow in the market, she notes.
Brixton's new Fall 2024 collection embodies the brand's rich heritage and dedication to celebrating diversity and individuality within communities. The collection showcases an extensive range of apparel and headwear, meticulously designed for comfort and durability, suitable for any season. This season, Brixton has expanded its offerings with tailored trousers and novelty bottoms, seamlessly blending functionality with a refined aesthetic.
A key highlight of the collection is its versatile day-to-night styling, featuring cozy cardigans, soft lounge sets, vintage-inspired slips, and statement accessories. These pieces are designed to make a statement while ensuring the wearer feels comfortable and stylish throughout the day. The collection captures the laid-back yet sophisticated vibe that Brixton is known for, offering wardrobe staples that can transition effortlessly from casual daywear to chic evening attire.
Inspired by the unique style of singer-songwriter Zella Day, the collection's garments reflect the various facets of a musician's day-to-day life. Each piece is crafted to embody the essence of Zella Day's life and artistic expression, showcasing elements that resonate with her free-spirited, bohemian style. The collection incorporates boho-chic elements with a modern twist, making it perfect for those who appreciate fashion that tells a story and exudes personality.
Additionally, the collection emphasises a commitment to quality materials and craftsmanship, ensuring that each item not only looks good but also stands the test of time. The thoughtful design and attention to detail make this collection a standout, offering pieces that are both fashionable and practical. Whether it's the intricate embroidery on a vintage slip or the perfect fit of a tailored trouser, every element is carefully considered to provide a cohesive and inspired wardrobe.
India and the United Kingdom are in the final stages of negotiating a Free Trade Agreement (FTA), with the textile and apparel sector poised for significant benefits. The deal has the potential to reshape trade flows, boost exports, and create a win-win situation for both nations. Rajeev Saxena, Joint Secretary, Ministry of Textiles opines, "The FTA will provide a level playing field to Indian textile exporters and help exports grow significantly. We are confident that the FTA will be a win-win for both India and the UK."
Current state of play
India and the UK share a long-standing trade relationship in the fashion, apparel, and textile sectors. However, existing tariffs and regulatory hurdles have somewhat constrained the full potential of this partnership. India is currently the fifth-largest apparel supplier to the UK, with exports valued at approximately $1 billion annually. The sector faces challenges due to the 10 per cent duty imposed on Indian apparel exports to the UK, putting it at a disadvantage compared to competitors like Bangladesh, which enjoys duty-free access under the Least Developed Country (LDC) scheme. As Sanjay Jain, Managing Director of TT Ltd and former Chairman of CITI points out, "The FTA with the UK is a much-needed boost for the Indian textile industry. It will level the playing field with Bangladesh and enable us to tap into the full potential of the UK market."
Table: India's apparel exports to the UK
|
Year |
Value ($ mn) |
Growth rate (%) |
|
2019 |
950 |
3.2 |
|
2020 |
820 |
-13.7 |
|
2021 |
1050 |
27.4 |
|
2022 |
1120 |
6.7 |
The FTA is expected to eliminate tariffs currently ranging from 4 to 12 per cent on Indian textiles and apparel entering the UK market. This can significantly improve the competitiveness of Indian products, potentially leading to a $5 billion gain in exports according to the Global Trade Research Initiative (GTRI).
FTA, a catalyst for growth
Industry leaders believe the FTA can be a game-changer, unlocking new opportunities for both countries.
Tariff reduction: The elimination or substantial reduction of tariffs on textiles, apparel, and fashion products is expected to make Indian exports more competitive in the UK market.
Level playing field: The FTA is anticipated to level the playing field with competitors like Bangladesh, enabling Indian exporters to offer more competitive prices.
Rule of origin: Clear and simplified rules of origin will facilitate trade and boost investor confidence. Moreover Indian exporters can explore new product categories and cater to the evolving preferences of UK consumers.
Investment facilitation: The FTA is anticipated to encourage investments in the textile and apparel sector in both countries, leading to job creation and technology transfer.
Intellectual Property Rights: Strong IPR protection will safeguard the interests of fashion designers and brands.
The FTA is also expected to significantly boost Indian exports of apparel, textiles, and fashion accessories to the UK.
Table: Projected growth in Indian exports post FTA
|
Product category |
Projected growth (%) |
|
Apparel |
25-30 |
|
Textiles |
20-25 |
|
Fashion Accessories |
30-35 |
In terms of product segments, India has a strong foothold in women's apparel, with a wide range of products from ethnic wear to contemporary fashion. The UK is a major market for home textiles, and Indian exporters are well-positioned to capitalize on this demand. Moreover, India's cotton production prowess can be leveraged to increase exports of cotton-based apparel and textiles. As the negotiations for the India-UK FTA progress, the fashion, apparel, and textile sector is eagerly awaiting the final agreement, which is expected to unlock new avenues for growth and prosperity.
