FW
The upcoming conference in Cologne, Germany, on March 12-13, 2025, will explore pathways to a sustainable textile industry, featuring over 40 expert-led presentations. Experts from nova-Institute, CIRFS, The Fiber Year, and other leading organizations will provide insights into transforming the textile sector amid changing market conditions.
Key discussions will focus on the future of cellulose fibres and strategies for reducing reliance on fossil fuels. Michael Carus from nova-Institute will highlight the long road ahead in adopting fossil-free textiles, while Dieter Eichinger from CIRFS will propose ‘Cellulose’ as a unified standard to streamline fibre terminology and foster sustainability. This standardization aims to simplify the market, promoting transparency and enabling eco-friendly innovations.
Another critical topic will be the impact of slow demand growth on manufacturing, with Andreas Engelhardt of The Fiber Year discussing its effects on traditional sales channels and production strategies. The Lyocell market’s rapid growth will also be a focal point, as Simone Seisl and Hawkins Wright explore its potential driven by increasing demand for sustainable alternatives and investments in production capacity.
The conference will also feature Marina Crnoja-Cosic from the European Technology Platform for the Future of Textiles and Clothing (Textile ETP), showcasing its role in driving textile innovation and sustainability. With over 300 member organizations and 1,200 experts, Textile ETP is a key player in advancing European textile research and fostering collaboration.
This event promises to be a critical platform for discussing innovative solutions and strategies to navigate the evolving landscape of the textile industry.
The Lenzing Group, a global leader in regenerated cellulose fibers, celebrates a major milestone in its collaboration with CPL Prodotti Chimicisrl and Oniverse, owner of the Calzedonia fashion brand. Central to this partnership is Lenzing Acetic Acid Biobased, a sustainable by-product of Lenzing’s wood-based pulp production.
CPL, the first licensed partner for Lenzing Acetic Acid Biobased, will use this innovative product in various industrial processes, including textile dyeing for Oniverse. This collaboration underscores Lenzing's commitment to a circular economy, offering products with significantly lower carbon footprints and greater environmental benefits.
Elisabeth Stanger, Senior Director of Biorefinery& Co-Products at Lenzing, emphasized that the alliance reflects the strong trust in Lenzing’s sustainable solutions. She explained that their biobased acetic acid plays a key role in reducing industrial carbon emissions.
Marco Lanzetti, owner of CPL, praised the long-standing partnership with Lenzing, noting that combining quality with sustainability reflects shared values. Federico Fraboni, Head of Sustainability at Oniverse, emphasized the importance of this initiative in showcasing how interconnected supply chains can minimize waste and environmental impacts.
Lenzing’sbiorefinery process efficiently transforms renewable wood into valuable products like Lenzing Acetic Acid Biobased, which boasts an 85 per cent lower carbon footprint than fossil-based alternatives. The product is widely applicable across industries, including textiles, food, cosmetics, and pharmaceuticals, strengthening Lenzing's position as a leader in sustainable innovation.
The European Union and South America's Mercosur bloc announced a long-awaited free trade agreement, concluding 25 years of negotiations. European Commission President Ursula von der Leyen, speaking in Montevideo alongside her Mercosur counterparts, called the deal a ‘political necessity’ amid rising global protectionism.
The agreement aims to reduce EU reliance on China and shield the bloc from potential US trade tariffs. However, it faces significant hurdles, requiring legal formalization and approval from EU member states. France leads opposition, citing environmental and agricultural concerns, with French farmers fearing competition from South American imports.
The updated pact includes amendments on public procurement, auto trade, critical minerals, and environmental safeguards to address South American concerns. Brazilian President LuizInacio Lula da Silva welcomed the milestone but noted challenges ahead. Paraguayan President Santiago Pena echoed this caution, highlighting the need for further work.
Supporters, including Germany and Spain, argue the deal diversifies EU trade and bolsters its green transition. Critics, like France and Italy, remain steadfast in their objections. Approval requires backing from 15 EU states representing 65 per cent of the population and a simple majority in the European Parliament, leaving its future uncertain.
Sri Lanka's recent reaffirmation of its commitment to the EU's Generalized Scheme of Preferences Plus (GSP+) program underscores its critical importance to the island nation's economy, particularly for its textile and apparel industry. This trade program grants Sri Lanka preferential access to the lucrative European market, offering duty-free entry for thousands of products, including vital textile and apparel exports.
The GSP+ program isn't just about economic benefits; it's tied to Sri Lanka upholding 27 international conventions on human rights, labor standards, environmental protection, and good governance. This makes GSP+ a powerful tool for promoting sustainable and inclusive development in the country.
Sri Lankan textiles and apparel exports
The textile and apparel industry is a significant contributor to the nation's economy, providing employment for hundreds of thousands of workers, predominantly women. In 2023, Sri Lanka exported a total of $3.63 billion worth of goods to the EU and the UK, which was almost 30 per cent of its total exports. Of this, the textile and apparel sector accounted for a lion's share, with the EU and UK being the destination for over half (54.9 per cent) of Sri Lanka's total apparel exports.
Table: Sri Lanka’s total apparel exports to the EU, UK
|
Year |
Total Exports to EU & UK ($ bn) |
Apparel Exports to EU & UK ($ bn) |
Total exports in per cent |
|
2019 |
3.28 |
2.15 |
65.50 per cent |
|
2020 |
2.95 |
1.88 |
63.70 per cent |
|
2021 |
3.31 |
2.05 |
61.90 per cent |
|
2022 |
3.5 |
2.1 |
60.00 per cent |
|
2023 |
3.63 |
2.25 |
54.90 per cent |
Source: Sri Lanka Export Development Board
GSP+ advantages and challenges
The GSP+ program provides Sri Lankan exporters with a significant competitive edge by eliminating tariffs on many goods. Without GSP+, these exporters would face the EU's Most Favored Nation (MFN) tariffs, which can be substantial. For the apparel sector, this difference (known as the preference margin) is often more than 10 percentage points.
However, utilizing GSP+ benefits is not without its problems. Complex rules of origin, which dictate the minimum local content required for a product to qualify for preferential treatment, can be challenging and costly to comply, particularly for the apparel sector which often relies on imported fabrics and yarns. This is reflected in the utilization rates:
Table: Sri Lanka’s utilization rates
|
Product category |
Exports to EU & UK ($ mn) in 2019 |
GSP+ utilization rate |
|
Knitted or crocheted apparel |
1,310 |
52.30 per cent |
|
Non-knitted apparel |
842.45 |
52.30 per cent |
|
Rubber products |
340.95 |
96.40 per cent |
Source: ‘Who Stands to Lose? Examining the Fallout of GSP+ Preference Erosion in Sri Lanka’
Losing GSP+ would have a devastating impact on Sri Lanka's apparel sector. A study by the Institute of Policy Studies (IPS) estimates that reverting to MFN tariffs could lead to a decline in overall exports of $1.23 billion (36.7 per cent compared to 2019 levels), with the apparel sector bearing the brunt of the loss ($996.38 million, or a 44.63 per cent drop). This decline in exports translates to significant job losses. The IPS analysis suggests that 73,574 workers could be at risk of losing their jobs if GSP+ is withdrawn, with 87.1 per cent of those workers coming from the apparel sector. Women, who make up 70.5 per cent of the apparel industry's workforce, would be disproportionately affected.
Take the example of leading apparel manufacturer in Sri Lanka, Hirdaramani Group which has been a vocal advocate for GSP+. The company, which employs over 10,000 workers, has leveraged GSP+ to expand its exports to the EU. However, they have also highlighted the challenges posed by rules of origin, particularly for high-value products like lingerie, where sourcing specific components within the region can be difficult. They stress the need for greater flexibility in these rules to maximize the benefits of GSP+.
The road ahead
Maintaining GSP+ is crucial for Sri Lanka's economic stability and the livelihoods of its workers. The government must continue to demonstrate its commitment to the 27 conventions and work towards improving GSP+ utilization rates. This includes:
Enhanced cumulation: Increasing the cumulation of non-originating materials, as seen in the recent EU approval of cumulation between Sri Lanka and Indonesia, can significantly benefit the apparel sector.
Rules of origin reform: Advocating simpler and more flexible rules of origin that reflect the realities of global supply chains is essential.
Long-term strategies: Exploring options like a free trade agreement with the EU can provide a more permanent solution for preferential market access, especially as Sri Lanka potentially moves towards upper-middle-income status, which would disqualify it from GSP+.
The GSP+ program is a lifeline for Sri Lanka's textile and apparel industry, supporting jobs, promoting inclusive growth, and driving sustainable development. By addressing the challenges and maximizing its utilization, Sri Lanka can ensure that GSP+ continues to be a powerful engine for its economic future.
A key textile hub in India, Surat is witnessing a rise in inquiries from major brands seeking alternatives to Bangladesh. Conversion of these inquiries into confirmed orders is likely to spur growth in the city’s garment sector to 25 per cent.
While Bangladesh is a major importer of fabrics from Surat, the ongoing turmoil, brands are seeking more stable sourcing destinations given the current law-and-order challenges in the country along with worker unrest in key regions like Dhaka and Chittagong.
Indian manufacturers see this as an opportunity to supply more value-added products to the global market. Ashish Gujarati, Former President, South Gujarat Chamber of Commerce, says, the recent spike from major brands due to Bangladesh’s challenges could significantly boost the sector.
Surat’s garment sector currently generates a monthly turnover of around Rs 600 crore, primarily through man-made fiber products. Meanwhile, cotton garment hubs in Tiruppur and Coimbatore (Tamil Nadu), Ludhiana (Punjab), and Noida (Uttar Pradesh) are also expected to gain from the situation.
Gujarati emphasised that while the current developments present short-term gains, sustained growth in the garment manufacturing sector would require strategic capitalisation and government support.
The garment industry in Bangladesh has faced mounting pressures, including financial stress and worker unrest in clusters around Dhaka, Chittagong, Gazipur, Narayanganj, and other regions.
Recent reports, such as one from Swedwatch, a Swedish non-profit, have highlighted dire working conditions for garment workers in Bangladesh. The report urged European Union countries to enforce stricter due diligence to protect workers' rights and called on brands to engage more meaningfully with stakeholders, including trade unions, to improve wages and working conditions.
This shifting dynamic represents an opportunity for Indian textile hubs as it allows them to strengthen their position in the global supply chain while meeting the growing demand for sustainable and ethical garment production.
Chanel, the world's second-largest luxury brand, hosted a spectacular Metiers D’Art show in Hangzhou, China, amidst swirling rumors about its next artistic director. The event, attended by 1,100 guests, including stars like Tilda Swinton and Lupita Nyong’o, highlighted Chanel’s focus on its very important clients (VICs), who spend upwards of $20,000 annually.
China's slowing luxury market has affected global brands, including Chanel, which reported $20 billion in revenue for 2023. Chanel's president, Bruno Pavlovsky, highlighted the importance of re-establishing connections with Chinese customers, emphasizing the brand's strategic focus on the region following the challenges of the Covid-19 pandemic.
Choosing Hangzhou over fashion hubs like Shanghai was a nod to the city’s artisanal silk heritage and Coco Chanel’s Coromandel screen collection, which inspired the show’s lakefront setting and floral motifs. The collection blended Chanel’s iconic bouclé coats with local silks, jade knits, and pleated skirts, though some designs lacked cohesion.
While the event celebrated craftsmanship, questions linger about Chanel’s creative future. The absence of a bold artistic vision underscored the need for a new designer capable of delivering innovative, exciting fashion that captivates clients and critics alike. For now, Chanel is focused on strengthening ties with its loyal clientele, even as the industry eagerly awaits its next creative leader.
In FY2023-24, India exported wool products worth $1.74 billion with exports of its woolen ready-made garments, carpets, yarn and fabrics amounting to $1.45 billion from April-January 2023-24.
Of these, the share of wool carpets exports was the highest with 80 per cent. In FY24, India exported wool carpets worth $1.34 billion during the year while it exported woolen yarn and fabrics worth $192 million. RMG products worth $202 million were also exported by India in FY24.
India exports its wool fabrics, hand-made carpets and ready-made garments to the US, the UK, Italy, Germany, Australia, UAE, Netherland, Sweden, France, Japan, etc. One of the major importers of wool products from India in 2023-24 was the US which imported products worth $853 million during the year. This was followed by the UK and Germany with imports worth $123 million and $96 million. India also exported wool products worth $86 million to the Italy, $57 million to Australia and $45 million to the UAE during the financial year.
India exported its wool fabrics to Italy, the UK, Korea, Japan, and the US during 2023-24. Italy emerged the major importer of woolen fabrics from India during the year with a share of 25.5 per cent of total exports.
Majority of India’s woolen carpets are exported to the US. In 2023-24, the country exported carpets worth $803 million to the US, with its share constituting 59 per cent of total. India mainly exports woolen ready-made garments to the US, the UK, UAE, Oman, Germany, France, Hong Kong, and Afghanistan. Combined together, these countries accounted for 75 per cent of the total woolen garments’ exports from India during 2023-24.
To improve India’s competitiveness in the wool industry and the quality of its wool products, the Ministry of Textiles allocated Rs 126 crore under the Integrated Wool Development Program (IWDP) scheme during a five-year plan period (i.e. 2021-22 to 2025-26). This scheme aims to harmonise the wool supply chain, link the wool industry and producers, and provide a marketing platform to the smaller woollen products manufacturers in India. Through this scheme, the Ministry of Textiles aims to improve the quality of woolen products by increasing wool testing, improve the tools available for manufacturing and providing skill development and capacity building capabilities to hand-made manufacturers.
China National Textile and Apparel Council (CNTAC) has signed an MoU with Pakistan’s Board of Investment (BOI) to develop textile parks in Pakistan.
As per a report by China Economic Net, the MoU was signed at the 2024 China Textile Conference in Keqiao, Shaoxing. Titled, ‘How to take science and technology, fashion and green; as a guide to boost productivity and shape the industry’s future, the report offers a robust framework to develop these textile parks to enhance bilateral trade, foster technology transfer and enhance capacity
Focusing on four core topics ‘Innovation Environment, Materials, Artificial Intelligence, and Production Processes, the Shaoxing conference discussed leading innovative industry trends to promote, transform and optimise the global textile chain.
A backbone of Pakistan’s economy, textile industry is a major contributor to its exports. Being the second largest supplier of cotton cloth and fifth largest cotton exporter, Pakistan offers unmatched potential for this collaboration.
Its strategic location alongwith a skilled workforce and vertical integration positions Pakistan as an ideal partner to these Chinese enterprises, states Khalil Hashmi, Pakistan’s Ambassador to China.
As against a 2.68 per cent growth in India’s apparel exports to the country, Bangladesh’s apparel exports to the US grew by 11.76 per cent during the July-November’24-25 period as against the corresponding period of the previous fiscal year. Meanwhile, Vietnam’s apparel exports to the US grew by 3.98 per cent during period.
Data from the Export Promotion Bureau (EPB) shows, during the period, Bangladesh exported apparel products worth $19.9 billion, of which RMG exports constituted 80.97 per cent.
Bangladesh's share of apparel exports to the US market decreased by 3.33 per cent Y-o-Y during the January-October’24-25 period while China’s decreased by 1.06 per cent.
Bangladesh's RMG exports have been growing with the country becoming the second-largest RMG exporter in the world. In the July 2023-May 2026, Bangladesh’s RMG exports increased by 2.86 per cent to $43.85 billion.
Sri Lanka’s Joint Apparel Association Forum (JAAF) has partnered with global civil society organisation, Solidaridad to help local companies align with the European Union's supply chain rules on human rights and sustainability.
As a part of this initiative, JAAF organised a workshop to address the EU’s Corporate Sustainability Due Diligence Directive (CSDDD). The event provided local businesses with insights into risk assessment, sustainability metrics, and due diligence reporting to meet the stringent requirements of the directive.
This collaboration helps Sri Lanka’s apparel industries adapt to evolving global trade norms, says Yohan Lawrence, Secretary General.
Introduced in 2023, the CSDDD mandates companies within EU-bound supply chains to adhere to high environmental and human rights standards. While Sri Lanka’s suppliers are not directly obligated to comply, aligning with these regulations helps them remain competitive in the EU market, which accounts for 30 per cent of the country's apparel exports.
Around 80 per cent of Sri Lanka’s apparel exports to the EU are targeted to countries such as Italy, Germany, the Netherlands, and France, which makes compliance a strategic necessity. The workshop also resulting in the signing of an agreement between JAAF and Solidaridad to formalise their partnership to help Sri Lanka’s suppliers meet CSDDD standards.
The event was attended by notable dignitaries, including Lars Bredal, Deputy Head, Delegation for the EU to Sri Lanka and the Maldives, and Iwan Rutjens, Deputy Head, Mission for the Kingdom of the Netherlands.
JAAF hailed Shahid Sangani, Secretary, Free Trade Zone and Apparel Manufacturers' Association (FAAMA), for his behind-the-scenes contributions to the program.
