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In line with the analysts’ expectations, sales of Zara owner Inditex grew by 7 per cent during Q1, FY24. To counter growing intense competition from rivals like H&M, the brand aims to chase new trends faster and expedite product deliveries.
In recent quarters, benefitting from improved shopping experiences, both online and in-store, the company outperformed many of its competitors. It currently faces intense competition from rapidly growing Chinese-owned online retailers Shein and Temu.
One of the world’s largest listed fashion retailers, Inditex’s sales during the first quarter of FY24 increased to €8.15 billion compared to the average analysts’ forecast of €8.1 billion, show results from an LSEG poll.
The company’s net profit during the quarter increased by 11 per cent to €1.29 billion in line with the €1.3 billion average forecast by analysts, according to the LSEG poll. This was against the 54 per cent rise in profits recorded in the first quarter of the last year.
Mohammad Ali Khokon, President, Bangladesh Textile Mills Association (BTMA) has urged the government to ensure a smooth supply of gas and electricity for the textile industry.
The association also demanded a withdrawal of the 7 per cent VAT on jhut collection and 15 per cent VAT on recycled yarn by the next budget. Further, it called for a reduction in the tax deducted at source from textile mills for the entire process involving supply of yarn, fabrics, dyeing and finishing to only 4 per cent
To make the industry more competitive for export, the government needs to remove the import duty on manmade fiber products, the association said. Its last demand included measures to make bank rates more affordable as the association would need double state value addition after graduation to get access to major markets after graduation.
Aligning with its broader goal of promoting innovation and entrepreneurship in the country, the Indian government plans to accelerate growth in the technical textiles sector to upto 15-20 per cent over the next five years, as per a KPMG report. The government also plans to support startups in this sector by offering grants of upto Rs 50 lakh each to 150 companies engaged in making technical textiles such as Kevlar and Spandex. This funding is a part of the government’s allocation of Rs 375 crore for FY25 from the National Technical Textiles Mission (NTTM). The textiles ministry has also relaxed the royalty cap on this scheme to facilitate the growth of these start-ups. Start-ups planning to avail this fund need to deposit 10 per cent of the total fund allocation in advance. As of now, 10 startups are set to be approved next week with the remaining to be selected over the next few months
Another of the textiles ministry’s initiatives includes developing fabric-based artificial teeth with dental resins made from polyester to make dental implants more affordable. For this, expensive ceramic, polymer and composite implants are being replaced with research being conducted by institutions like AIIMS and IITs.
Further, the government plans to introduce new quality control orders (QCOs) for textiles products, including technical, protective and build-tech textiles to monitor substandard imports from China.
As of now, the government has brought bedsheets, pillow covers, shoe covers, napkins, baby diapers, orchard protection covers, fencing nets, and insect nets among others under the QCO’ ambit. It aims to bring over 2,000 products under the QCO ambit in the coming years.
The Q1, FY24 net profit of sportswear and footwear retail chain, Foot Locker plunged by 77.8 per cent to $8 million compared to the same period in 2023.
The company’s net sales decreased by 2.7 per cent in absolute figures and 1.8 per cent in comparable sales to $1.874 billion during the quarter. This decline excludes the impact of currency exchange and changes in the company's accounting scope.
Regionwise, Foot Locker registered a 1.4 per cent decline in sales to $1.369 billion in Ameriica while its sales Europe, the Middle East and Africa (EMEA) remained stable at $394 million (€364 million). The company’s sales in the Asia-Pacific region, however, dwindled by 23.4 per cent to $111 million.
For the full fiscal year, Foot Locker anticipates sales to either decline or grow by a single percentage point. The company’s robust performance during the first quarter of the year demonstrates the success of its ‘Lace Up’ plan, says Mary Dillon, President and CEO. This strategic plan positions the company for sustainable growth and value creation for shareholders, she adds.
Egypt's General Authority of the Suez Canal Economic Zone (SCZONE) signed a land deal with Eroglu Egypt for a 65,000-square-meter plot to build a readymade garment factory. This $40 million project in the Qantara West Industrial Zone is expected to create over 3,000 jobs and position the zone as a textile and apparel hub, according to Amwal Al Ghad.
The factory, built by Turkey's Eroğlu Global Holding A S, will focus on jeans production. With an annual target of 7.2 million jeans, 70 per cent will be exported while the remaining will cater to the domestic market.
This project marks the sixth of 15 planned for the zone, which has already attracted 144 projects with a total investment of $3.22 billion in fiscal year 2023-2024, according to SCZONE Chairman Waleid Gamal El-Dien.
Egypt's strategic location near the Suez Canal, one of the world's busiest shipping lanes, makes it an attractive trade hub according to data analysis firm GlobalData. Their report highlights the importance of Egypt's textile and apparel sector, which accounts for 8 per cent of exports, 34 per cent of industrial output, and employs 10 per cent of the workforce.
Undergoing a green transformation to reduce its environmental impact, China's textile and apparel industry aims to achieve zero carbon emissions before 2030 and carbon neutrality by 2060.
The industry currently emits around 230 million metric tons of CO2 annually, accounting for 2.8 per cent of national industrial emissions.
Cashmere manufacturer, Erdos Group leads the charge by setting up research labs to monitor grassland health and promote sustainable goat breeding practices; developing new dyeing and knitting technologies to minimise carbon emissions during production. These efforts have resulted in the company reducing emissions per cashmere sweater by 2.16 kilograms compared to 2022.
Aiming for carbon neutrality by 2050, sportswear giant Anta Sports also strives for zero carbon emissions and eliminating virgin plastic use in their own facilities by 2030. The company also aims to achieve zero landfill waste, and increase the proportion of sustainable products to 50 per cent of their total by 2030.
Focused on making denims more eco-friendly, Advance Denims plan to increase sourcing of sustainable and environmentally friendly fibers to develop innovative denim fabrics and collaborating with brands like Levi Strauss to offer plant-based denim options.
Textile leader, Jiangsu Dasheng Group is pioneers sustainable practices by implementing zero-carbon fiber raw materials in their production and constructing China's first green, carbon-neutral spinning factory with a capacity of over 6,000 tons annually (expected completion by 2025).
These efforts by China's textile industry are not only fostering new, environmentally conscious production methods but also promoting a harmonious balance between human activity and the natural world and setting a positive example for the global textile industry.
The latest report by Savills, a global real estate advisor, highlights a shift in the luxury retail landscape. The report, titled ‘Global Luxury Retail 2024 Outlook’, highlights while the market faces some challenges there is a shift in focus for luxury brands, prioritizing local markets and customer experience over aggressive global expansion.
The report acknowledges current economic challenges but emphasizes the long-term resilience of the luxury sector. While growth in store openings slowed in 2023 after a post-pandemic surge, Savills points out this doesn't signal a decline. Instead, it reflects a strategic shift by luxury brands towards a more customer-centric approach. This approach prioritizes understanding the specific needs and preferences of local consumers. The report highlights a rise in store openings in resort destinations, where affluent clientele live and vacation. However, finding suitable real estate in these areas can be challenging. Savills suggests that luxury hotel expansion might create opportunities for co-location, benefiting both retailers and hospitality businesses.
Key takeaways from the Savills Report
Customer-centric strategy: After years of tracking store openings, Savills emphasizes the increasing importance of the customer in real estate decisions. Brands are prioritizing locations that cater to their target audience's needs and preferences.
Local market focus: There's a move away from a purely global expansion strategy. Brands are paying closer attention to the specific strengths of each market and tailoring their presence accordingly.
Resilient luxury spend: Despite headwinds, luxury spending is expected to see average annual growth of 4 to 8 per cent by 2030, according to Bain & Company. This indicates a long-term optimistic outlook for the sector.
Strategic store expansion: While store openings slowed in 2023 compared to the post-pandemic boom, resort markets continued to see growth. Savills suggests luxury hotel expansion could offer new opportunities for retail partnerships.
Real estate a key battleground: Despite facing headwinds, real estate acquisitions by luxury brands reached new highs, indicating a continued focus on physical stores alongside digital strategies.
Focus on underserved markets: The report identifies cities with strong local affluence and potential for luxury retail growth, highlighting opportunities for brands in these areas.
The Middle East on the rise: Savills points to the Middle East as a region attracting growing interest from luxury brands due to its potential.
The report also emphasizes the ongoing importance of physical stores. While e-commerce remains a powerful force, Savills argues that brick-and-mortar locations are crucial for brand experience and customer engagement. Interestingly, the report finds that despite economic headwinds, property acquisitions by luxury brands are at an all-time high, indicating a long-term commitment to physical retail space. Savills also identifies cities with strong local fundamentals and a potential for underserved luxury markets.
Overall, the Savills report paints a picture of a luxury retail sector adapting to changing consumer habits and economic realities. While acknowledging short-term challenges, the report underscores the long-term strength of the market and the enduring importance of physical stores alongside a robust digital presence.
After two years of increases, silk fabrics imports by Japan dropped significantly in 2023, both in volume and value.
Silk fabrics imports by Japan dropped 5.2 per cent to 3.7 million sq m in volume during 2023 as against a 7.9 per cent growth seen in 2021. The value of silk fabric imports also declined to an estimated $29 million in 2023. Similar to volume, imports hit a peak of $65 million in 2013 and haven't recovered. The most significant growth came in 2022 with a 6.2 per cent increase.
Vietnam, China and Italy emerged as the top suppliers of silk fabrics to Japan in 2023. The most significant rise in exports of silk fabrics to Japan was witnessed by Vietnam with an annual growth of 0.3 per cent in volume over the past decade. On the other hand, the country’s imports from China and Italy declined.
By value, Vietnam ($13 million), China ($11 million), and Italy ($3.4 million) remained the highest importers of silk fabrics from Japan. Vietnam again led with an annual growth of 2.2 per cent in import value.
The average import price per square meter remained flat at $7.9 in 2023. Prices varied significantly by country. Italy had the highest price ($22 per meter), while Vietnam offered the lowest ($6.2 per meter).
Vietnam with 19 per cent saw the most notable annual price growth over the past decade, compared to other major suppliers.
China's cotton yarn imports declined by 35 per cent in April 2024 to around 110,900 tons compared to March 2024.
The unit price of cotton yarn imports increased to $2.48/kg, impacting cost-effectiveness compared to domestic yarn. The raising of prices by Pakistani and Uzbekistani yarn mills after the Chinese New Year led to a decline in imports by China from these countries. Chinese buyers also reduced orders due to the rise in international yarn prices. The country’s imports from Pakistan declined to 11,400 tons due to post-holiday price hikes while imports from Uzbekistan dropped by 12 per cent to 13,700 tons compared to March. China’s cotton yarn imports from India declined by 10 per cent to 13,900 tons compared to March.
China’s import of carded single yarn declined across all categories, with the most significant drop in 8-25s. Imports of blended cotton yarn also fell to 13,480 tons compared to March with Vietnam importing around 82.5 per cent of the required material.
There was a growing trend towards importing carded single yarn below 8s and combed yarn 30-47s during the month.
Surpassing Zhejiang, yarn imports from the Guangdong Province amounted to 4,565 tons. Imports from the Zhejiang province declined to 29.42 per cent. The import share of Shanghai surged to 17.71 per cent while the Fujian province witnessed the most significant decrease in yarn imports to 1,167 tons.
Overall, rising import costs and price sensitivity, continue to impact China's cotton yarn imports. The decline is likely to continue with the rise in international prices for yarn.
Set to make comeback at Superstudio Più in Milan on June 05-06, 2024, Denim Premiere Vision, will introduce the ‘A Better Way’ initiative to highlight the exhibitors’ sustainability efforts and their alignment with evolving environmental regulations. The program will also assist brands in promoting the best practices of exhibitors.
Developed with input from independent experts, the initiative involves questionnaires submitted to exhibitors and considers international certifications and labels such as GOTS, FSC, and Oeko-Tex Standard 100. Exhibitors participating in the initiative will be distinguished using five criteria: social initiatives, production site impact, traceability, product composition and processes, sustainability, and end-of-life considerations for finished products.
Approximately 90 exhibitors from 19 countries will participate in the exhibition, with denim spinners and weavers comprising about 62 per cent. Other exhibitors will include garment makers, promotional services, technologies, and accessory/component manufacturers. Lorenza Martello, Première Vision’s denim expert, will discuss Fall/Winter 25-26 denim collections that aim for a balance between understated volumes and striking embellishments, as well as a mix of moderate textures and opulent shapes during trend seminars.
The Fashion Forum will showcase fabric trends, and Project Tomorrow—a collaborative collection of 20 denim garments. Created by students from Milanese fashion design schools NABA and IED, these garments were prepared under the guidance of patternmaker Alessio Berto. Fabrics for this innovative project were donated by Japan Blue, Orta, Kuroki, and other mills.
Launched in 2022, the Denim Fashion District will return to the trade show with collections from established brands, rising stars, and innovative upcycling labels. Visitors can explore designs from Roy Roger's, Carrera Jeans, Fade Out Label, Stripes Of-f Road, Anna Galaganenko, SPOT Jeans, Hen's Teeth, Ksenia Schnaider, Madson, Afropicks, Manifattura Ceccarelli, and Daily Blue by Adriano Goldschmied.
The event will culminate with a panel discussion titled ‘Denim Titans’: Daring, Madness and Revolution’ on June 5, 2024. Denim industry icons Jimmy Taverniti, Adriano Goldschmied, François Girbaud, and Marithé Bachellerie will share their insights at the show hosted by Isko.
This year's Denim Première Vision promises a dynamic exploration of sustainable practices, innovative design trends, and the enduring legacy of denim pioneers.
