FW
A recent summit in India, the Business Standard Manthan 2024, has generated a buzz in the global fashion industry. Experts predict that India is on the cusp of becoming a major player in the luxury market, potentially even spawning the "next Chanel."
This optimistic outlook stems from several factors. Firstly, India boasts a rich heritage of craftsmanship and artistry, which has always been a cornerstone of luxury goods. India is currently one of the fastest-growing luxury markets globally, projected to reach a staggering $200 billion by 2030 according to Bain & Company. Alexis de Ducla, director of Mathieu Lustrerie, a renowned chandelier maker, highlights this point, adding that what was previously lacking was investment and vision. However, according to Ducla, these elements have been steadily developing in recent years.
Confidence and investment fueling indian luxury brands
The rise of Indian luxury is also attributed to a growing sense of self-assurance among Indian consumers. Ducla observes a shift in customer preferences, where brand origin matters less than quality and personal taste. This trend aligns with a surge in investment in Indian luxury brands by corporate houses. Major conglomerates like Reliance Retail and Aditya Birla Fashion and Retail have acquired stakes in renowned Indian designers, providing them with the financial backing needed for global expansion.
India's Aspiration and Skilled Workforce: A perfect recipe for luxury
Abheek Singhi, from Boston Consulting Group, emphasizes the current aspirational phase of the Indian economy, which is expected to continue for decades. This, coupled with India's abundant skilled labor force, creates a perfect environment for the growth of domestic luxury brands. Singhi highlights the potential of craftsmanship to become a key competitive advantage for India in the global luxury market.
Collaboration and Showcasing Indian Craftsmanship: The pathway to global success
Experts believe that for Indian luxury brands to achieve true global recognition, collaboration with established names is crucial. Ducla suggests that international brands should view their entry into the Indian market as an opportunity for collaboration, showcasing the talents of Indian artisans within their collections. This sentiment is echoed by the recent move by French luxury house Dior, which held its first-ever Indian show, featuring the works of Indian craftspeople.
Making Luxury Accessible: The way to long-term growth
While Indian luxury is undeniably on the rise, experts caution against neglecting accessibility. Nikhil Sethi, from KPMG India, emphasizes the need for luxury products to integrate seamlessly into the daily lives of Indian consumers. This might involve strategic pricing that doesn't necessarily mirror global benchmarks.
India's hospitality sector, already renowned for its luxurious offerings, serves as a model for the future of Indian luxury. Kapil Chopra, founder of Postcard Hotels, points out that Indian hospitality has consistently delivered exceptional experiences, demonstrating the country's longstanding potential in the luxury space.
With a rich heritage, growing consumer confidence, and strategic investments, India is poised to become a major force in the global luxury landscape. Collaboration, accessibility, and a focus on showcasing Indian craftsmanship are seen as key factors that will propel Indian luxury brands onto the world stage.
The secondhand clothing market is exploding, and fashion brands are scrambling to get on board. A new report by Thredup predicts the global secondhand apparel market will balloon to a staggering $350 billion by 2028, growing at a rate of 12% per year. This is a gold rush for brands, which are shifting their focus from "why" they should embrace resale to "how" they can integrate it into their business model.
The secondhand market is outpacing traditional retail by a wide margin. In 2023 alone, the global secondhand market grew 18% compared to a measly 6% for overall apparel sales. In the US, secondhand sales are expected to reach a whopping $73 billion by 2028. This trend is being driven by a younger generation comfortable with online shopping – 63% of secondhand purchases in 2023 were made online, with Gen Z and Millennials leading the charge.
Why the Shift?
But here's the real kicker for brands: They don't have to cede control to established resale platforms. Thredup reports a 30% year-over-year growth in branded resale programs. Levi's, Kate Spade, J.Crew, and even Oscar de la Renta are just a few examples of brands launching their own initiatives. These programs offer incentives for customers to both sell and buy pre-loved items, creating a closed loop that benefits both the brand and the environment.
The message for brands is clear: The secondhand market is a force to be reckoned with. By embracing resale, brands can tap into a growing customer base, boost their sustainability credentials, and secure a profitable slice of this booming market.
Sustainability and revenue boost
Sustainability is a major driver, but there's more to the story. Resale programs can attract new customers, generate additional revenue streams, and even boost brand loyalty. Concerns about cannibalizing sales of new items are fading as brands recognize that their customers are already shopping secondhand. The key to success lies in creating a seamless resale experience that complements, not competes with, new product offerings.
Top Resale Performers
The report also unveils list of top brands in resale for 2023, based on sales volume and sell-through rates on their platform. Here are the frontrunners:
• Lululemon
• Patagonia
• Vuori
• Reformation
• Free People
• Zara
• Johnny Was
• Sézane
• Anthropologie
• Skims
Rising Stars to Watch
The list also identified a group of "rising stars" in resale, showcasing brands experiencing significant growth in listed items and sales:
• Aritzia
• Spanx
• Outdoor Voices
• Rag & Bone
• Liverpool Los Angeles
• Mango
• Show Me Your Mumu
• Vans
• J. McLaughlin
• Nic + Zoe
A new report by ThredUp, a major online consignment platform, paints a rosy picture for the secondhand clothing market, predicting explosive growth in the coming years. The report forecasts the global secondhand market will balloon to a staggering $350 billion by 2028, driven by a surge in consumer demand and a shift towards online shopping. However, a closer look reveals a more complex story with regional variations, evolving consumer motivations, and questions about the long-term viability of the business model.
US dominates, but other markets emerge
The report highlights the US as a powerhouse in the secondhand clothing market, with a projected value of $73 billion by 2028. This dominance can be attributed to several factors. The US boasts a strong culture of thrifting, with established stores fostering a love for pre-loved clothing. Additionally, high disposable income allows some consumers to access designer or unique items at a discount. Finally, a well-developed e-commerce infrastructure makes online secondhand shopping convenient and accessible.
However, the secondhand market isn't just an American phenomenon. Europe, particularly Germany and the UK, has a thriving vintage clothing scene. Developing economies in South America and Southeast Asia are also seeing a rise in secondhand clothing due to increasing internet access and a growing middle class. This suggests the secondhand market has the potential to be a global force.
Sustainability vs Affordability: What drives consumers?
The ThredUp report emphasizes sustainability as a key driver of secondhand shopping. While environmental consciousness is certainly a growing concern, affordability likely plays a bigger role for many consumers, especially with the threat of a looming economic downturn. However, the report also indicates a potential shift – growing awareness of fast fashion's environmental impact could lead to a more conscious embrace of secondhand clothing.
Brands Embrace Resale: A win-win situation?
The report highlights a growing trend of brands launching their own resale programs. This move benefits brands in several ways. Resale allows them to tap into a new customer base who might not be able to afford new items at full price. It also offers a new revenue stream and aligns with growing consumer demand for sustainable practices. By embracing resale, brands can demonstrate their commitment to environmental responsibility and potentially win over eco-conscious consumers.
Profitability Concerns: Can the model survive?
Despite the optimistic market forecast, a major concern lies in the lack of profitability among major players like ThredUp. Sorting, processing, and marketing used clothing can be expensive, and the increasingly crowded secondhand market puts pressure on margins. Additionally, educating consumers about the value proposition of secondhand clothing takes time and investment. ThredUp's focus on long-term growth suggests they believe the model can become profitable as the market matures and operational efficiencies are achieved. However, the lack of immediate profitability raises questions about the long-term sustainability of the business model itself.
Future Trend or Fad? The verdict is still out
The secondhand clothing market's growth suggests it's more than just a passing fad. Several factors support its long-term viability. Growing consumer awareness of the environmental impact of fast fashion could fuel a permanent shift towards secondhand clothing. Additionally, affordability will remain a major driver, especially in economically uncertain times. Furthermore, advancements in online platforms and logistics will make secondhand shopping even more convenient and appealing.
However, the secondhand market's future success hinges on overcoming some key challenges. First, secondhand businesses need to find ways to become profitable to ensure their own long-term sustainability. Second, continued education is crucial to highlight the environmental and economic benefits of secondhand clothing for sustained market growth. The future of this market depends on addressing these challenges and solidifying the value proposition for both consumers and businesses.
The Indian textile and apparel industry, especially for SMEs, is poised for a potential rebound, as indicated by the recent CRISIL SME Tracker report. However, beyond the fluctuations in cotton prices, a multitude of challenges confront these enterprises. This comprehensive analysis aims to dissect the intricacies of the situation, incorporating insights from various sources, including industry reports, case studies, and expert opinions.
Is cotton the only culprit?
While cotton price volatility remains a significant concern impacting SMEs, it is not the sole culprit behind the industry's challenges. The CRISIL report acknowledges subdued export demand as another critical factor, alongside global economic headwinds and fierce competition from other textile-producing nations like Bangladesh and Vietnam. Additionally, a joint study by CITI and CRISIL underscores challenges such as stiff competition and limited access to credit.
The composition of textile SMEs
SMEs constitute a substantial 75% of the textile value chain, though there exists a vital dichotomy between export-oriented and domestically focused enterprises. Clusters such as Tirupur and Mumbai heavily rely on exports, while Kolkata and Ludhiana cater more to the domestic market . However, the dominance of SMEs in the domestic market is highlighted, with around 60% primarily targeting domestic consumers.
Can domestic demand save the day?
While resurgence in domestic demand offers hope, it presents its own set of challenges. Many domestic SMEs lack the necessary resources to penetrate the pan-India market effectively, facing stiff competition from larger players. Moreover, rising raw material costs and intense competition continue to squeeze margins, as evidenced by the struggles faced by SMEs in regions like Ludhiana.
Challenges beyond cotton
The hurdles faced by textile SMEs extend far beyond cotton prices. Limited access to credit inhibits expansion and technological advancement, while a persistent skill shortage hampers productivity. Moreover, technological backwardness and fierce competition from both larger domestic players and imports create a challenging environment for these enterprises.
Case Studies: Illustrating Real-World Struggles
The plight of export-oriented SMEs in Tirupur and the challenges encountered by knitwear manufacturers in Ludhiana exemplify the multifaceted obstacles faced by Indian textile SMEs. Industry experts emphasize the need for a multi-pronged approach beyond stable cotton prices, advocating for improved access to credit, skill development initiatives, and technological adoption.
While optimism surrounds the potential rebound of Indian textile SMEs, a deeper examination reveals a landscape fraught with challenges. To ensure sustained growth and resilience, concerted efforts are required to address issues beyond cotton prices. Initiatives focusing on skill development, facilitating access to credit, and fostering innovation are imperative for the long-term vitality of this crucial sector within the Indian economy.
After being hit by volatile cotton prices and muted export demand in the previous two financial years, India’s textile industry is expected to witness a rebound in revenues in the next financial year.
As per a report by CRISIL, the industry will close this financial year with lower revenues as nearly 25 per cent correction in the cotton prices and subdued RMG exports have toned down realisations. Accounting for one-fourth of the overall market, exports are currently impacted by a slowdown in key markets, although domestic demand continues to grow at a steady rate. Particularly impacted are small and medium enterprises (SMEs),that constitute upto 75 per cent of the textile value chain. Growth is expected to revive in the next financial years as domestic demand continues to rise, cotton prices stablise and exports recover.
With consumption continuing to be lower than production, cotton prices are likely to remain stable, supporting the cost competitiveness of the cotton textile value chain. The volume growth for cotton spinners is likely to normalise after an 80-85 per cent growth this year on a low base. For RMG players, volumes are expected to inch up in line with a gradual improvement in major export destinations such as the US, EU, and UK.
Revenue growth in key export-oriented RMG clusters such as Tirupur, Bengaluru and Mumbai is expected to slowdown to 6-7 per cent in the next financial year. Highly dependent clusters on the domestic market, such as Kolkata, Kanchipuram and Ludhiana are likely to outperform export-centric clusters.
Profitability of players is expected to improve as cotton prices stabilise and inventory losses minimise. Over the medium term, the free trade agreements with the UK and the setting up of textile parks under the PM MITRA scheme will help improve India’s competitiveness in the RMG domain. The scheme will be complemented by the Production Linked Incentive scheme that will also boost to domestic manufacturing.
The fourth-quarter like-for-like sales of British sportswear retailer JD Sports grew at a modest rate of just 0.1 per cent despite the company offering renowned brands like Nike, Adidas, and other sports fashion ranges. Regis Schultz, CEO noted that the trading environment remained arduous during the quarter due to factors such as reduced product innovation and heightened promotional activities, particularly online.
As previously revised in Jan, the pretax profit of JD Sports for the fiscal year ending Feb 4 is expected to decline in the range of £915-935 million. The company’s like-for-like sales declined by 3.2 per cent in Britain and Ireland during the fourth quarter of the current financial year. It attributed this decline to a higher proportion of clothing sales compared to other regions, coupled with a strategic decision to limit discounts, which put JD Sports at a disadvantage against certain online competitors.
The company’s clothing sales remained lower than its footwear sales during the quarter. This prompted one of the company’s key suppliers, Nike to warn it of reduced sales in the first half the financial year as it contends with emerging brands.
Despite these challenges, JD Sports affirmed its post-year-end trading performance aligned with expectations. Looking ahead, the retailer expects pretax profit for the upcoming fiscal year to range between £900 million and £980 million.
Trutzschler has boldly addressed the global textile waste crisis by expanding its portfolio to become the pioneering full-liner in textile waste preparation, from mechanical recycling to spinning preparation of torn secondary fibers. This comprehensive Truecycled solution, developed in collaboration with Balkan Textile Machinery in Turkey, was unveiled at ITMA 2023 in Milan, garnering significant interest and inquiries.
The success of Trutzschler's Truecycled system lies in its holistic approach, finely tuned to individual customer requirements. Georg Stegschuster, a leading researcher in textile recycling, emphasizes the importance of a systems approach in achieving optimal quality results and minimizing fiber shortening. The integration of tearing and spinning preparation processes is crucial, ensuring control and expertise at every stage.
Notably, Trutzschler's solution balances gentleness with effectiveness. Tailored tearing settings and advanced spinning preparation technologies, such as the TC 30Ri card and IDF 3 draw frame, enable gentle treatment of fibers while maintaining efficiency. This approach maximizes the utilization of recycled materials and enhances the quality of end-products, demonstrating a significant advancement in mechanical recycling.
As the first full-liner in mechanical recycling and textile waste preparation, Trutzschler offers a complete system covering the entire process chain. Manufacturers can now achieve superior quality results without compromising on fiber integrity, thanks to Trutzschler's expertise and commitment to sustainability. This marks a new chapter in mechanical recycling, with Trutzschler's Truecycled system at the forefront of innovation and environmental stewardship.
A recent report from ThredUp projects, the global secondhand apparel market will grow at a 12 per cent CAGR to reach $350 billion by 2028.
Published in collaboration with retail analytics firm GlobalData, the report states, the global secondhand market surged by 18 per cent to reach a total value of $197 billion in 2023. Recording a 11 per cent growth in 2023, seven times faster than the general retail clothing market, the secondhand apparel market in the United States is anticipated to hit $73 billion by 2028.
By 2025, secondhand sales are forecasted to constitute approximately 10 per cent of the global apparel market, with online resale accounting for half of all secondhand spending. The report also predicts that resale will outpace off-price retailers (such as outlets and discount stores) by six times by 2033.
With 63 per cent of its consumers purchasing secondhand apparels online, Thredup noted a notable increase in 2023, Furthermore, 45 per cent of Gen Z and millennials preferred to shop for secondhand clothes online during the year.
This growth was mostly driven by the emergence of branded resale programs. James Reinhart, CEO and Co-Founder, Thredup, highlights a paradigm shift in the mindset of apparel brands towards embracing resale as a viable strategy. Reinhart notes a 30 per cent Y-o-Y increase in brands adopting resale programs, with prominent names like Levi's, Kate Spade, J. Crew, and Oscar de la Renta launching their own initiatives. These programs not only align with sustainability objectives but also serve as a means to attract new customers and boost revenue.
Addressing concerns surrounding product cannibalisation and brand dilution, Reinhart states, such worries are diminishing as brands recognise the value of integrating resale seamlessly into their offerings.
The secondhand apparel market is experiencing explosive growth, according to a new report by online consignment platform ThredUp. The report, conducted in partnership with retail analytics firm GlobalData, predicts the global market will reach a staggering $350 billion by 2028, with a compound annual growth rate (CAGR) of 12%.
This growth significantly outpaces the overall apparel market, highlighting the increasing popularity of thrifting and resale. In the United States alone, the secondhand market is expected to hit $73 billion by 2028, growing at a rate seven times faster than traditional clothing retail.
Key Takeaways:
Surging popularity: The global secondhand market ballooned by 18% in 2023, reaching $197 billion.
Online dominance: Nearly two-thirds (63%) of U.S. secondhand shoppers made online purchases in 2023, with online resale projected to reach $40 billion in the next five years.
Consumer motivations: Resale offers affordability (60% of consumers see it as the best value) and sustainability. Over half of consumers say they'll increase secondhand spending if the economy weakens.
Branded resale on the rise: The number of brand-operated resale shops surged by 31% in 2023, with companies like J.Crew and Kate Spade embracing resale opportunities.
Government action sought: 42% of consumers believe governments should promote sustainable fashion through legislation.
A bright future, but challenges remain
While the report paints a rosy picture for the secondhand market, some challenges persist. Major players like ThredUp are still working towards profitability, despite steady progress. Additionally, some consumers may require a nudge towards resale, with a significant portion calling for government incentives for sustainable fashion practices.
ThredUp's report underscores the secondhand market's transformation into a mainstream force. Driven by consumer preferences, economic factors, and environmental concerns, resale is poised for continued growth in the coming years.
The textile yarn market is expected to reach $23.51 billion by 2030, driven by a rising global demand for textiles across various industries, reveals a study by Virtue Market Research, highlighting growth projections, trends, and opportunities. Despite pandemic's disruption of supply chains, the textile yarn market exhibits resilience. The growing demand for textiles in apparel, home furnishings, automotive parts, and industrial applications fuels long-term market growth. As economies recover and manufacturing resumes, the pent-up demand for textiles is expected to propel the market forward.
Sustainability in the spotlight
A key driver is the increasing focus on sustainability. Consumers are demanding eco-friendly textiles made from recycled fibers, organic cotton, and biodegradable materials. Manufacturers are responding by investing in sustainable production practices and certifications to meet this growing demand.
The market presents a significant opportunity in technical textiles -- those used for medical, hygiene, and protective applications. The pandemic has underscored the importance of technical textiles in healthcare, driving demand for yarns in medical gowns, masks, and hygiene products. Manufacturers are expanding production and diversifying product lines to capitalize on this trend.
Digitalization revolutionizes yarn production
Digitalization and automation are transforming yarn manufacturing. Technologies like artificial intelligence, the Internet of Things (IoT), and data analytics are being integrated into equipment to enhance efficiency, quality control, and productivity. Automated machines enable faster production, higher yarn consistency, and reduced costs. Additionally, real-time process monitoring, predictive maintenance, and optimized production schedules are facilitated by digitalization, giving manufacturers a competitive edge.
Chemical yarns, encompassing synthetic fibers like polyester, nylon, and acrylic, represent the largest market segment due to their versatility, durability, and affordability. However, plant-based yarns, derived from natural fibers like cotton, hemp, flax, and bamboo, are the fastest-growing segment. These fibers' softness, breathability, and biodegradability appeal to eco-conscious consumers, propelling market growth.
Artificial reigns, animal yarns rise
Artificial yarns, including polyester, nylon, acrylic, and viscose, dominate the market due to their versatility and ability to mimic natural fibers with added benefits like wrinkle, moisture, and abrasion resistance. However, animal yarns derived from sheep, goats, and silkworms are experiencing significant growth. Wool's warmth, softness, and moisture-wicking properties make it ideal for winter wear and outdoor clothing, while silk's luxurious texture and sheen are sought after in high-end fashion.
The apparel segment, encompassing a wide range of clothing and fashion items, is the largest application for yarns. Both natural and synthetic fibers are used, offering a variety of textures, colors, and performance properties. However, the industrial segment, encompassing technical textiles used in automotive, aerospace, construction, and healthcare, is the fastest-growing. These yarns are engineered for specific performance requirements like strength, durability, heat resistance, and chemical resistance, finding applications in tire cords, conveyor belts, ropes, hoses, filters, and medical textiles.
The Asia-Pacific region, including China, India, Japan, and South Korea, is the largest market segment due to abundant raw materials, low labor costs, and supportive government policies. However, North America, which includes the United States, Canada, and Mexico, is the fastest-growing region. This growth is driven by rising demand for sustainable and high-quality textiles, technological advancements, and a shift towards locally produced goods. The pandemic has accelerated e-commerce adoption and digital technologies, further propelling online retail channels for textiles and apparel in North America.
Sustainability, technology, and collaboration
Sustainability initiatives are a key differentiator for companies. Focus areas include using recycled fibers, water-saving techniques, and minimizing carbon emissions. Collaboration with sustainability organizations, participation in certification programs, and transparent communication about these efforts are crucial for building trust with consumers.
Companies are embracing digitalization to streamline operations, enhance efficiency, and meet consumer demands. Advanced manufacturing technologies like automation, robotics, and data analytics are being implemented. Additionally, companies leverage digital platforms for marketing, sales, and distribution, enabling them to reach a wider audience and adapt to changing market trends.
Collaboration and partnerships are becoming increasingly prevalent. Examples include textile manufacturers collaborating with technology firms to develop innovative yarns, brands partnering with suppliers for sustainable product lines, and strategic alliances for market expansion. These collaborations leverage combined expertise, resources, and networks to drive market growth and competitiveness.
In conclusion, the textile yarn market is poised for significant growth, driven by rising demand for textiles, a focus on sustainability, and technological advancements.
