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Recent political instability and labor unrest in Bangladesh have cast a shadow over its apparel industry, the second-largest in the world after China. As orders shift to competitors like India and Vietnam, experts are divided on whether this represents a short-term blip or a more significant threat to Bangladesh's ambitious economic plans.
Orders exodus amidst uncertainty
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) statistics reveal a worrying picture. While Bangladesh's garment exports grew by a mere 5.34 per cent in the July-September quarter, Vietnam and India saw increases of 15.57 per cent and 13.45 per cent, respectively.
This shift is attributed to factors like the political turmoil due to the fall of Sheikh Hasina government and ensuing protests that created an uncertain business environment. Deep-rooted labor grievances, including demands for better wages and working conditions, have led to strikes and factory closures. And infrastructure challenges as Bangladesh's reliance on imported fabric and persistent power shortages hamper its competitiveness.
Table: Garment export growth
|
Country |
Export growth (July-September 2024) |
|
Bangladesh |
5.34% |
|
Vietnam |
15.57% |
|
India |
13.45% |
|
Source: BGMEA |
India and Vietnam reaping benefits
The turmoil in Bangladesh has led to competing countries like India and Vietnam gaining from the situation. India, with its integrated supply chains, large workforce, and stable political environment, is emerging as a preferred alternative. The Tiruppur knitwear hub alone secured $54 million in orders in September. Vietnam, known for its competitive labor costs and efficient manufacturing, is also attracting increased business.
However, industry experts in Bangladesh are optimistic, emphasizing the country's established supply chains, skilled workforce, and commitment to sustainability. They believe that resolving power shortages and restoring political stability will enable a swift recovery.
However, analysts caution that prolonged unrest could erode buyer confidence and lead to a permanent loss of market share. Mehdi Mahbub, an apparel business analyst, warns, "If the unrest continues for another quarter and opportunities keep shifting, competitors could certainly take over."
The need for action
To mitigate the long-term impact, experts recommend:
Restoring political stability: Ensuring a predictable and secure business environment is crucial to regain investor confidence.
Addressing labor concerns: Engaging with workers to address their grievances and improve working conditions is essential for long-term sustainability.
Investing in infrastructure: Upgrading power infrastructure and reducing reliance on imported fabrics could enhance competitiveness.
Diversifying the economy: Reducing dependence on the apparel sector will reduce risks associated with global market fluctuations.
Thus the shift of apparel orders away from Bangladesh underscores the vulnerability of export-oriented economies to political and social disruptions. While the country's apparel industry has demonstrated resilience in the past, decisive action is needed to address underlying challenges and ensure its long-term competitiveness.
WGSN, a leading authority in trend forecasting, alongside Coloro, has unveiled its highly anticipated fashion predictions for 2025. These insights, encompassing colors, materials, and cultural influences, provide a glimpse into the styles poised to shape the fashion landscape.
Key color trends for 2025
Future dusk: This rich hue, blending deep violet and midnight blue, represents the transitional beauty of dusk. As WGSN explains, it embodies escapism and change, aligning with societal shifts and innovations like space tourism. Future Dusk, suitable for both classic styles and bold metallic finishes, is expected to resonate in luxury evening wear and investment pieces.
Cherry lacquer: A deep, rebellious red between Bordeaux and cherry, Cherry Lacquer symbolizes resistance and sensuality. It’s ideal for statement materials like patent leather and appeared prominently in collections from Versace and Gucci.
Retro blue: Evoking nostalgia and comfort, Retro Blue harkens back to analog times, providing a stabilizing touch in uncertain periods. Designers such as Emporio Armani and Zuhair Murad have showcased its versatility in contemporary silhouettes.
Neon flare: Reflecting the urgency of the climate crisis, this bold coral hue energizes with its electric vibrancy. Featured in avant-garde designs from Viktor & Rolf, it conveys collective action and futuristic innovation. Urangoo Samba, WGSN's Head of Color, notes that these hues align with the broader cultural zeitgeist: "In the near future, the lines between reality and fantasy will blur, and our choices will reflect immersive, transformative narratives."
Material and design directions
WGSN anticipates a focus on tactile and adaptive materials, blending functionality with aesthetic appeal. Space-age influences will permeate textiles and silhouettes, paralleling advances in technology and science. Metallic finishes, intricate layering, and modular designs will define the era’s cutting-edge style.
Case studies from the runway
Haute couture highlights: Designers like Giorgio Armani Privé and Gaurav Gupta have embraced Future Dusk in celestial-inspired gowns, demonstrating its versatility and allure.
Bold red statements: Cherry Lacquer appeared in Zuhair Murad’s ethereal creations and Versace’s structured pieces, emphasizing its duality of defiance and allure.
Retro and coral notes: Retro Blue’s nostalgic charm graced Emporio Armani’s collections, while Neon Flare punctuated the vibrant displays of Valentino and Mark Fast.
The report identifies six key trends that will shape the fashion industry in the coming year.
The rise of individuality: Consumers are increasingly looking for clothing that reflects their unique personality and style. This trend is being driven by the rise of social media and the growing popularity of online shopping, which has made it easier for people to express themselves through their clothing choices. For example, Gucci has embraced the trend of individuality by launching a new campaign that celebrates the unique style of its customers. The campaign features a diverse cast of models who are wearing Gucci clothing in their own unique way.
The return of vintage: Vintage fashion is making a comeback in 2025. This is due in part to the growing popularity of sustainability and the desire for unique and timeless pieces. Consumers are also looking for clothing that has a story, and vintage pieces often have a rich history that can add to their appeal. Levi's has embraced the trend of vintage fashion by launching a new collection of vintage-inspired jeans. The collection features classic Levi's styles that have been updated with a modern twist.
The comfort factor: Comfort is a top priority for consumers in 2025. This is due to the increasing demand for athleisure wear and the growing popularity of working from home. Consumers are looking for clothing that is both stylish and comfortable, and they are willing to pay a premium for pieces that meet these criteria. Nike has embraced the trend of comfort by launching a new line of athleisure wear. The line features comfortable and stylish clothing that is perfect for everyday wear.
The rise of sustainable fashion: Sustainability is becoming an increasingly important issue for consumers, and this is reflected in the fashion industry. In 2025, we will see a rise in the demand for sustainable fashion brands and products. Consumers are looking for clothing that is made from recycled materials and that is produced in an ethical and sustainable manner. Stella McCartney for example, has embraced sustainable fashion by using recycled materials in her designs. She has also partnered with Fairtrade to ensure that her clothing is produced in an ethical and sustainable manner.
The power of technology: Technology is playing an increasingly important role in the fashion industry. In 2025, we will see a rise in the use of artificial intelligence, virtual reality, and augmented reality in fashion design, production, and retail. Farfetch has embraced the trend of technology by using artificial intelligence to personalize the shopping experience for its customers. The company has also developed a virtual reality app that allows customers to try on clothes before they buy them.
The global fashion landscape: The fashion industry is becoming increasingly globalized. In 2025, there will be a rise in demand for international fashion brands and products. Consumers are looking for clothing that reflects the diversity of the world around them, and they are willing to shop from brands that are based in different countries.
The 2025 trends transcend fashion, offering a blueprint for innovation across design industries. As cultural, technological, and ecological factors converge, these trends promise to inspire an era of creativity and resilience.
The Indian Textile Accessories and Machinery Manufacturers Association (ITAMMA) held its 81st Annual General Meeting (AGM), marking a significant shift towards digitalization and sustainability. ITAMMA President Bhavesh Patel emphasized the association’s digital transformation, highlighting a new marketplace ecosystem developed in collaboration with Sambuq.com. This initiative aims to help members navigate the challenges of sustainability and responsible manufacturing in global markets.
Patel stressed that ITAMMA’s role has evolved from being a facilitator to a proactive partner, aiding members in boosting competitiveness through technology upgrades, quality improvements, and cost-effectiveness.
ND Mhatre, Director General (Technical), underscored the importance of creativity, innovation, and sustainability in the current technological era. He emphasized the need for responsible developments in textile machinery to meet the demands of garmenting, retail, and fashion sectors. Mhatre highlighted the role of digitalization and AI in tracking the entire textile production chain, connecting manufacturers, processors, and retailers.
Anil Singhee, Managing Director of Addon Holdings, in his Guest of Honour speech, called for closer collaboration between machine manufacturers, designers, garment makers, and retailers. He stressed the importance of developing machines that reduce water usage, enhance energy efficiency, and minimize waste, aligning with sustainable manufacturing goals. Singhee also advocated for increased R&D investment and global exposure to create innovative, customized machines.
Singhee outlined a roadmap for the industry, urging manufacturers to adopt modular systems, embrace automation, and leverage technologies like 5G and IoT for smart manufacturing. He highlighted the importance of listening to customer feedback, continuous improvement, and building a robust ecosystem.
KartikayDhanda, Secretary of the Textile Committee, discussed initiatives on sustainability, circularity, and geographical indications (GI) for textiles and handlooms. He also mentioned the ongoing upgrades of textile laboratories to meet global certification standards.
Presentations by Tata Power representatives, including PayalShrimal and Mahesh Kulkarni, showcased the impact of solar energy projects on the textile industry. They highlighted benefits such as reduced energy costs and enhanced sustainability.
Outgoing ITAMMA President Purvik Panchal reflected on achievements in digitalization and social media campaigns, while incoming President Nimesh J Shah outlined financial strengthening initiatives for the association’s self-sustainability.JH Shah, a former ITAMMA President, received the Lifetime Achievement Award for his contributions to the association’s growth. His efforts in financial stabilization and proactive initiatives have positioned ITAMMA for long-term success.
The AGM concluded with the release of ITAMMA’s 81st Annual General Report and a presentation of the association’s activities in 2023-24. ITAMMA’s renewed focus on innovation, sustainability, and digital integration aims to propel the Indian textile machinery sector to greater heights in global markets.
Sports fashion brand, Lacoste UK swung to a pre-tax loss of £3.269 million in 2023, even though the company’s turnover increased to £70.192 million during the year from £69.922 million in the previous year.
The brand also posted a net loss of £3.223 million for 2023, a reversal from the net profit of £1.846 million achieved a year earlier. Its retail revenue form boutique and outlet stores increased by a meager 0.3 per cent. This was despite the launch of a new global flagship store on London’s Regent Street in April 2023, aimed at enhancing the brand’s positioning and underscoring the UK’s importance to the French company.
However, the flagship’s impact was overshadowed by a weak wholesale performance, with wholesale revenues declining by 4.5 per cent. Lacoste attributed this decline to the challenging economic environment and the cost-of-living crisis, which dampened consumer footfall in physical stores.
Nevertheless, Lacoste maintained its focus on a premium strategy, emphasising partnerships with mid- to top-tier wholesale customers. The company’s gross margin remained steady at 44 per cent, avoiding significant markdowns despite the tough market conditions.
During the year, Lacoste UK acquired full ownership of Pentland Brands UK Distribution(PBUKD). A former licensed distributor of Lacoste footwear in the wholesale channel, PBUKD continued in this role for most of the year. In December, a sub-distribution agreement was signed, enabling Lacoste UK to take over as the distributor for Lacoste footwear in Britain and internationally starting from the Spring/Summer 2024 season. Under this arrangement, PBUKD earns royalties from Lacoste UK while the latter recharges service costs to PBUKD.
Additionally, Lacoste UK partnered with a third-party logistics provider to operate a new UK-based warehouse, which became operational in May 2023. This move aims to mitigate the financial impact of double import duties by eliminating the need to ship goods from the company’s European warehouse in France.
Move over skinny jeans, there's a new silhouette in town. Barrel jeans, with their distinctive wide-leg and cinched ankle, are emerging as the must-have denim trend of the moment. This unique shape, reminiscent of a, well, barrel, offers a fresh take on classic denim, blending comfort and style in a way that's capturing the attention of fashion enthusiasts worldwide.
What are barrel jeans?
Barrel jeans are characterized by a high waist, a relaxed fit through the hip and thigh, and a tapered leg that gathers at the ankle. This creates a voluminous silhouette that's both flattering and fashion-forward. The style is often seen in rigid denim, adding to its structured and slightly retro appeal. They are trending because of several factors. First is their freshness. After years of skinny jeans dominance, the fashion world is craving something new. Barrel jeans offer a refreshing alternative that's both modern and nostalgic. Comfort is another major factor, as unlike their restrictive predecessors, barrel jeans provide ample room for movement. This comfort factor is a major draw for those seeking style without sacrificing ease. Barrel jeans can be dressed up or down, making them suitable for various occasions. Pair them with sneakers and a T-shirt for a casual look, or dress them up with heels and a blazer for a night out. Moreover, the cinched ankle and high waist create a flattering silhouette that complements various body types. The wide leg elongates the legs, while the tapered ankle provides balance.
While the barrel jeans trend is gaining traction globally, it's particularly prominent in fashion-forward cities like New York, London, and Paris. These cities are known for their embrace of cutting-edge styles, and barrel jeans have quickly become a staple in the wardrobes of trendsetters.
In the article "Yes, Barrel-Leg Jeans Are Universally Flattering," for The Cut fashion writer Danya Issawi highlights the versatility of barrel jeans, showcasing how they can be styled for various occasions. Issawi write, “Barrel jeans are the most mystifying trend I'm grateful to have existed in my timeline. I love the wide leg. I love the way they puddle at the feet. I love how I can dress them up or down or somewhere in between."
Elle magazine too acknowledges the growing popularity of barrel jeans, in their article "Barrel-Leg Jeans Are Officially The Denim Shape Of The Season." They cite Citizens of Humanity, a denim brand, as a driving force behind the trend, noting that retailers have "bought heavily into the horseshoe style" for the Autumn/Winter 2024 season. Fashion influencers on Instagram and TikTok too are also highlighting the barrel jeans trend. Many are showcasing their own unique styling approaches, further demonstrating the versatility of this denim silhouette.
Indeed, with their blend of comfort, style, and versatility, barrel jeans are poised to remain a key trend in the denim world. As more brands embrace this silhouette and offer their own interpretations, one can expect to see even more innovative and exciting styles emerge. Whether one’s seasoned fashionista or simply looking for a comfortable and stylish alternative to skinny jeans, barrel jeans are definitely worth exploring.
The Indian textile industry is ready for a change with the advent of Industry 5.0. A new report, ‘Decoding the Fifth Industrial Revolution: Marching towards a resilient, sustainable and human-centric future’, highlights the potential of this new technology to revolutionize the sector, boosting profitability and creating a more sustainable and human-centered approach to production.
Report highlights
Higher profits through automation and AI: Industry 5.0 technologies, such as advanced robotics, artificial intelligence (AI), and the Internet of Things (IoT), can significantly enhance productivity and efficiency in textile manufacturing. This translates to reduced costs, faster production times, and ultimately, increased profitability.
Sustainability as a core principle: The report emphasizes the importance of sustainability in Industry 5.0. By leveraging technologies like AI-powered energy management systems and water-recycling solutions, textile companies can minimize their environmental footprint and contribute to a circular economy.
Human-centric approach: Industry 5.0 prioritizes the well-being of workers. By automating repetitive and hazardous tasks, it allows employees to focus on more creative and value-added roles, leading to improved job satisfaction and skill development.
Mass personalization: Industry 5.0 enables mass personalization, allowing textile companies to cater to individual customer needs and preferences. This can be achieved through technologies like 3D printing and on-demand manufacturing.
Implementation of Industry 5.0
Several factors are likely to drive the implementation of Industry 5.0 in the Indian textile sector. The Indian government is actively promoting Industry 4.0 and 5.0 through initiatives like the ‘Make in India’ campaign and the ‘National Policy on Advanced Manufacturing’. These policies provide incentives and support for companies adopting advanced technologies. And with global competition intensifying, Indian textile companies need to embrace Industry 5.0 to remain competitive. By adopting advanced technologies, they can improve product quality, reduce costs, and enhance customer satisfaction.
Consumers too are demanding personalized products and sustainable practices. Industry 5.0 enables textile companies to meet these demands, leading to increased customer loyalty and market share.
Table: Industry 5.0 and its impacts on profits
|
Factor |
Impact on profitability |
|
Automation and AI |
Reduction in production costs by 15-20% |
|
Energy-efficient technologies |
Decrease in energy consumption by 10-15% |
|
Reduced waste and improved resource utilization |
Savings of 5-10% on raw material costs |
|
Mass personalization |
Increase in sales by 10-15% |
In India some companies have already incorporated Industry 5.0. For example, Leading textile manufacturer, Arvind Limited has implemented AI-powered systems to optimize its production processes. This has resulted in a significant reduction in energy consumption and waste generation, leading to improved profitability and sustainability. Similarly, Welspun India, a global home textile leader, has embraced automation and robotics to enhance its manufacturing efficiency. This has led to higher production capacity and lower labor costs, contributing to higher profits.
Therefore, industry 5.0 presents a significant opportunity for the Indian textile sector to enhance its profits, sustainability, and competitiveness. By embracing advanced technologies and prioritizing human-centric values, textile companies can weave a new future of growth and prosperity.
London Fashion Week has become the first major fashion event to ban collections created using exotic animal skins from 2025. As announced by David Leigh-Pemberton, Deputy Director-Policy and Engagement, British Fashion Council, henceforth, the event will feature designers producing collections made without animal skin-free materials.
This ban is a part of the broader initiative of the Institute of Positive Fashion, which focuses on enhancing sustainability, social responsibility, and environmental standards within the fashion industry. It aligns with London’s growing reputation as a hub for forward-thinking, ethical fashion. The move also aligns London with smaller yet influential fashion events like Melbourne and Copenhagen Fashion Weeks, which have similarly adopted bans.
The decision to ban exotic skins from their collections is a result of mounting pressure from animal rights groups, long advocating to end the use of animal-derived materials in its collections. Organisations like PETA have disrupting fashion events, urging designers to stop using animal skins, leather, and fur.
Praising BFC for its progressive stance, Yvonne Taylor, Vice President - Corporate Projects, PETA, notes, tens of thousands of supporters contacted the BFC to urge the ban. She also applauded the British designers who helped bring about this policy change, calling it a victory for animal rights and sustainable fashion.
From $197 billion in 2023, the Indian textile industry is poised to grow to $350 billion by 2030, expanding at a CAGR of 10.1 per cent. Driven by a focus on sustainability and technological advancements, the industry is undergoing a significant transformation. As per a report by Texprocil, the sector is embracing sustainable materials, fibers, and eco-friendly production methods to reduce its environmental footprint while enhancing its global competitiveness.
This rapid growth in textile production, coupled with the increased adoption of synthetic fibres, has raised environmental concerns. Over the last 15 years, garment production in India has doubled, while the lifespan of garments has decreased by 36 per cent with only 1 per cent of fibers being recycled into clothing. The industry consumes significant resources, generating substantial wastewater and pollution. To address these challenges, manufacturers are adopting innovative practices like recycling, upcycling, water conservation, and renewable energy use. Companies like Welspun are shifting to solar and wind energy, while BRFL Textiles has developed waterless dyeing techniques to minimise environmental impact.
The government too has introduced several initiatives to foster sustainable practices in the industry. It has launched programs like the Sustainable Resolution (SU.RE) and PM MITRA to promote eco-friendly manufacturing and the circular economy, while the Production-Linked Incentive (PLI) scheme incentivises domestic production. The amended Technology Upgradation Fund Scheme (A-TUFS) further supports modernisation through financial incentives. The government is also setting up seven textile parks under the PM MITRA scheme to enhance industry efficiency and sustainability.
Despite these advancements, the industry continues to face certain challenges. The decentralised supply chain, limited technical expertise, and stiff competition hinder the widespread adoption of sustainable practices. However, collaboration among manufacturers and resource-sharing initiatives are fostering innovation and cost-effective green solutions.
Singapore-based Mega Textile Singapore plans to develop a textile facility to manufacture knitwear, fabrics, colored yarns and semi-finished items in Vietnam.
To span 51 hectare in the The Loc Industrial Park, the facility will be developed with an investment of $590 million. It will produce 67,200 tons of fabric, 10,300 tons of knitwear, 7,200 tons of colored yarns, 100 million belts, 130 million clothing items and 2.2 million cut semi-finished items annually.
To be developed by Mega Textile Vietnam-the subsidiary of Mega Textile Singapore, the project will employ over 15,000 local people and help Nghe An attract foreign direct investment (FDI) worth $1.7 billion this year, among the top 10 figures in Vietnam.
Established in 2022 by China-headquartered Best Pacific International Holdings, Mega Textile Singapore, is a supplier to many global brands, such as Adidas, Uniqlo, H&M, and Victoria's Secret. Prior to Nghe An, the firm had established Best Pacific Vietnam Co in 2015 in Hai Duong, the northern province of Vietnam.
Vietnam’s textile and apparel (T&A) exports rose by 8.9 per cent to $30.57 billion during Jan-Oct’24. The country’s export revenue during the 10-month period grew by 14.9 per cent Y-o-Y to $335.59 billion.
Despite a 7.64 per cent Q-o-Q rise, Bangladesh's RMG exports declined by 2.8 per cent Y-o-Y to $9.51 billion in Q1, FY25. Demonstrating resilience, the sector maintained steady growth despite domestic political unrest, as per stakeholders.
Bangladesh had exported RMG worth $9.79 billion in the corresponding quarter of the previous fiscal, according to the latest report of Bangladesh Bank.
By Q1, FY25-end, Bangladesh’s export earnings from RMG sector increased to $9.51 billion from $8.83 billion in the preceding quarter, as per data by the Bangladesh Bank.
Accounting to71.2 per cent, the United States, Germany, and other key European markets contributed to $6,77 billion to Bangladesh’s total exports during the quarter.
Moreover, highlighting the sector's significant value addition despite global economic challenges, net RMG exports during the quarter amounted to $5.61 billion or 59.06 per cent of the gross figure.
Though since its emergence the Bangladesh RMG industry accounted for the lion's share of the country's export earnings, it continues to face challenges like concerns related to labour rights, workplace safety, and environmental sustainability.
Other drawbacks of the industry limited product and market diversity, lack of sufficient backward linkage industry, concentrated market, high lead time, lack of efficiency in producing high-value products, global geopolitical conflicts, energy price hikes, etc.
Nevertheless, the sector made a significant contribution of 7.87 per cent to Bangladesh's GDP in FY24. RMG export earnings in FY24 stood at $36.13 billion, indicating a low growth of 5.36 per cent compared to the previous fiscal year.
Export earnings from the leather and leather products industry accounted for 2.48 per cent, export earnings from jute products totaled 1.3 per cent while earnings from exports of other products accounted for 10.36 per cent of the total products.
In the apparel segment, export earnings form sub-sectors like woven sector accounted for 35.72 per cent whereas earnings from knitwear exports contributed 45.87 per cent.
Shams Mahmud, Managing Director, Shasha Denims and Former President, Dhaka Chamber of Commerce and Industry, said despite the recent unrest, the sector now remains stable and its future outlook remains bright.
