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Despite its FY 23 revenues increasing by 4 per centto €2.45 billion in 2023, the Armani Group is experiencing a slowdown its Asia market, which is affecting the group’s sales this eyar.
Having experienced a single-digit slowdown in the second half of 2023 and 2024, the Armani Group attributed it to adjustments within the luxury market, particularly in the Asia ex-Japan region and the more accessible segment of their offerings. This decline was evident in H2, FY23 and continued into the H1, FY24, contrasting with an exceptionally strong H1, FY23.
The slowing of growth in China, the world's second-largest economy and a crucial market for luxury goods, has impacted sales for major fashion brands. For instance, the world's largest luxury group, LVMH recorded 14 per centdecline in net profit during H1, FY24 amidst an uncertain economic environment.
Despite these challenges, the Armani Group's pre-tax net profit rose by 4.4 per cent to €224.5 million in FY23, with adjusted profit amounting to €523 million, compared to €519 million in 2022. The company deliberately sacrificed some margin points to avoid significantly raising retail prices, despite inflationary pressures, states Giuseppe Marsocci, Deputy General Manager
Giorgio Armani, Founder, CEO, and Chairman, emphasisedon the company's preparedness to navigate a market slowdown without prioritising maximum year-on-year profit at all costs. This cautious approach aims to sustain the brand's long-term stability and reputation in the luxury market.
One of India’s leading knitwear manufacturers and exporters, Tiruppur-based Eastman Exports, has appointed Ritesh Kumar as its new CEO.
Armed with over 25 years of experience in the garment industry, Kumar is expected to drive the growth of Eastman Exports and strengthen its position in the global market. He has previously served as Senior Vice President at Shahi Exports.
Known for supplying garments to luxury brands worldwide, Eastman Exports began its operations in the 1970s as a small dye house. The company eventually expanded into exports in 1983 and rebranded itself as Eastman Exports. Over the years, it has evolved into one of the largest vertically integrated textile manufacturers in India, offering end-to-end production capabilities.
The company boasts 35 garment manufacturing units, which collectively produce over 100 million knitted garments annually. This extensive production capacity enables Eastman Exports to cater to a wide range of high-quality apparel demands, from casual wear to luxury fashion.
The appointment of Kumar as CEO marks a significant step in the company's continued expansion and commitment to excellence in the textile industry.
With its share rising to 39 per cent of overall leasing activities, the fashion and apparel segmentdominated retail leasing in Indiaduring H1, FY24.
As per a report by CBRE South Asia, retail leasing activities in India soared to a five-year high in the first half of the current year.
From Jan-June’24, retail leasing increased to 3.1 million sq ft. across eight cities compared to the H1 period in the last five years. Retail leasing activities in the country grew at the rate of 7 per cent during the period.
The absorption was led by Bengaluru, followed by Chennai and Delhi-NCR, which accounted for nearly 59 per cent of the total leasing.
In the coming quarters, the influx of investment-grade mall supply will influence primary leasing trends with leading malls across key cities continuing to witness strong demand for secondary spaces.
Indian cities are also attracting global retailer from Switzerland, America and Japan looking to expand their presence in India, the report highlights. In H1, FY23, about 0.5 million sq ft. of retail space was added across Tier-Ii cities, as per the report. Tier-II cities witnessed an overall space take-up of 0.4 million sqft in H1, with the absorption dominated by Indore and Kochi, accounting for a joint share of 56 per cent, followed by Lucknow and Chandigarh, each with a 17 per cent share.
Ram Chandnani, Managing Director, Advisory and Transactions Services, CBRE India affirms, with a growing number of direct-to-consumer (D2C) brands recognising the importance of establishing a physical presence, the ongoing introduction of quality supply is expected to continue stimulating an uptick in overall space absorption in the coming quarters.
Valued at $140.12 billion in 2022, the global functional textiles market is projected to expand at a CAGR of 7.7 per cent from 2023-31 to reach a value of $273.18 billion by 2031.
As per a report by Textile Today, the rapid growth of these textiles will be fueled by technological advancements, increased consumer demand for high-performance fabrics, and the expanding applications of these textiles across various industries.
Designed to perform specific functions beyond the traditional properties of textiles, functional textiles possess added properties that make them smart, protective, customisable, and flexible. They can be controlled or adjusted according to the requirements of the end user, with a single piece often featuring multiple functional properties, allowing it to serve diverse purposes.
The functional properties of these textiles are integrated at various stages of manufacturing, including fiber, yarn, fabric, and garment production. The focus during their production is on the integration of functional features rather than aesthetics, ensuring that the textiles meet specific functional requirements.
Sustainability is a significant trend in the functional textile market, with a growing emphasis on eco-friendly materials and processes. There is an increasing use of recycled fibers, biodegradable materials, and sustainable manufacturing practices, reflecting the industry's commitment to environmental responsibility.
Customisation is also becoming more prevalent in the functional textiles market with consumers and businesses seeking tailor-made solutions that meet specific needs and preferences. This trend is particularly notable in the sportswear and healthcare sectors, where functional textiles are often required to meet specialised performance criteria.
Looking ahead, the functional textile market is poised for continued growth across various segments. Key drivers include technological advancements, increased consumer awareness, and the expanding range of applications. Sustainability and customisation are expected to remain central trends, influencing the development and adoption of functional textiles.
To capitalise on the opportunities in this dynamic market, manufacturers and industry stakeholders will need to prioritise innovation, cost management, and regulatory compliance.
Collaboration across the value chain—from material suppliers to end-users—will be crucial in developing high-performance, functional textiles that meet the evolving needs of consumers and industries.
Sluggish demand for yarn and garments has caused cotton prices in India to fall below Rs60,000 per candy (356 kg), with expectations of a potential rebound from mid-August. The situation has worsened due to the recent student unrest in Bangladesh that resulted in around 150 deaths. The unrest led to a haltin India’s cotton exports to Bangladesh, notes Ramanuj Das Boob, a Raichur-based sourcing agent for domestic mills and multinationals and Vice-President, All India Cotton Brokers Association.
The decline in demand has also prompted the Cotton Corporation of India (CCI) to reduce its sale price by Rs1,800 per candy. CCI holds around 20 lakh bales (170 kg) of cotton procured under the minimum support price (MSP) scheme.
On the domestic front, Shankar-6, the export benchmark is priced at Rs56,800 per candy. The spot price for kapas (unprocessed cotton) on MCX is Rs1,506.50 per 20 kg, while it is being quoted at Rs7,505 per quintal in the Rajakot Agricultural Produce Marketing Committee Yard (APMC). Globally, cotton prices have dipped below 70 cents per pound, with December delivery on the InterContinental Exchange, New York, priced at 69.01 cents (Rs 45,800 per candy).
K Selvaraju, Secretary-General, Southern India Mills Association (SIMA), points out, cotton imports that attract an 11 per cent Customs duty, are more expensive by Rs5,000-6,000 per candy. This is impacting the industry's competitiveness. Though 2024 is not so bad a year as 2023, the textile sector is yet to recover to the strength seen in 2018-19, he adds.
Globally, demand for cotton remains subdued as yarn and garment offtakehas slowed, notesAnandPopat, a Rajkot-based cotton, yarn and cotton yarn trader. No one wantsto hold supplies in the pipeline asinterest rates are quite high, he adds.
Cotton sowing has decreased by almost 7 per cent, avers Das Boob. This may compel CCI to procure cotton under the MSP program next season, he adds.
The Istanbul Fashion Connection (IFCO) is set to become the new epicenter of the international fashion industry. Expected to attract over 30,000 visitors from more than 100 countries, the sixth edition of IFCO will be held from August 7-9, 2024, featuring 300 exhibitors at Europe's largest fashion trade fair. Mustafa Pasahan, Vice President of IFCO, expressed pride in the brand, highlighting its establishment as an indispensable part of the international fashion industry.
Turkiye's fashion industry has become a significant force in the global fashion scene, known for its blend of traditional and modern design elements. Turkish designers and brands are celebrated for their innovative styles, high-quality textiles, and exceptional craftsmanship, making the country a key destination for fashion buyers and enthusiasts. Istanbul, as a vibrant fashion center, influences global trends with its creative ideas.
Turkiye's unique position between Europe and Asia allows it to integrate diverse cultural influences, enhancing its standing in the international market. Istanbul, a city rich in cultural inspiration, serves as a bridge between different cultural expressions, contributing to the global appreciation of Turkish fashion.
Covering 30,000 square meters across four halls, top designers and brands will showcase the latest trends in womenswear, menswear, kidswear, denim, activewear, and shoes. The Core, the exclusive designer area, will feature over 20 designers, including ArzuKaprol, MeltemÖzbek, and Tuba Ergin. Market leaders such as Naramaxx, B&G Store, and Jakamen will use IFCO to network with international industry leaders and expand their customer base.
IFCO will continue its collaboration with the Fashion Designer's Association MTD for the IFCO Trend Area, themed "Ascension SS 26," designed by IMA Istanbul ModaAkademisi. WGSN will present the latest international fashion trends for A/W 25/26, while industry experts will discuss digital art in fashion, fashion exports, and the evolution of Turkish fashion. A panel on denim will explore pioneering solutions for the new century.
The IFCO B2B event will facilitate efficient networking sessions between manufacturers and buyers, fostering successful business relationships and collaborations. This format aims to maximize engagement and productivity, enabling participants to explore potential partnerships and expand their professional networks.
A recent analysis by Confederation of Indian Textile Industry (CITI) has revealed a growing disparity between domestic and international prices of Polyester Staple Fiber (PSF) and Viscose Staple Fiber (VSF) in India for the month of July. This widening gap has ignited concerns among industry stakeholders, potentially impacting the domestic textile sector.
Domestic prices a cause for concern
The data shows, the average domestic price for PSF for MSME spinners in July was Rs 112 per kg, whereas the international price (based on CCF China Chemical Fiber website) was Rs 75.61 per kg, reflecting a substantial difference of Rs 36.39 per kg. This translates to a staggering 48.13 per cent premium paid by domestic players compared to the international market. Similarly, the domestic price for VSF stood at Rs 156 per kg, while the international price was Rs 128.21 per kg, resulting in a price difference of INR 27.79 per kg or 21.68 per cent.
This trend persisted throughout the month, with the price gap showing little signs of narrowing. In the second week of July, the difference for PSF widened to 45.90 per cent, while for VSF, it was 21.27 per cent. The third week saw a slight moderation, with the gap for PSF at 45.53per cent and VSF at 20.50per cent.
Reasons for the gap
The reasons behind this widening gap are multifaceted. Industry experts attribute it to a combination of factors, including high input costs, supply chain disruptions, and exchange rate fluctuations. Additionally, the government's policies and import duties on raw materials have also contributed to the inflated domestic prices.
The burgeoning price differential poses a significant challenge for the Indian textile industry. Domestic manufacturers are facing increased production costs, making their products less competitive in the global market. This could potentially lead to a decline in exports and job losses in the sector.
Also, the higher prices are being passed on to consumers, resulting in increased costs for textile products. This could dampen domestic demand and impact the overall economy.
Need for policy intervention
To address this issue, the government needs to take immediate steps to reduce input costs, improve supply chain efficiency, and rationalize import duties. Additionally, promoting domestic production of key raw materials can help mitigate the impact of global price fluctuations. Industry stakeholders are urging the government to intervene and implement measures to bridge the gap between domestic and international prices of PSF and VSF. This will not only safeguard the interests of domestic manufacturers but also ensure the long-term sustainability of the textile industry in India.
The Tanzania Agricultural Research Institute (TARI) and the Tanzania Cotton Board (TCB) have teamed up to implement a project to promote cotton cultivation in the Morogoro region.
A part of the Cotton Victoria Project (CVP), this project aims to transform the area into the country's leading cotton hub, impacting over 600 farmers so far. James Shimbe, Acting Director, TCB notes, funded by the Brazilian government in partnership with TARI Ukiriguru, the project's launch has spurred many farmers to begin cultivating this economically significant crop.
Shimbe assures, TCB would continue to collaborate with TARI to boost cotton production across all eleven Tanzanian regions with potential for cultivation. Dr. Paul Saidia,Project Director and Director, TARI Ukiriguru Centre, notes, the ten essential principles for professional cotton cultivation include soil fertilisation management, new planting spacing, and overall plant management from planning to harvesting.
One significant change introduced by the project includes the adoption of new planting spaces—90 centimeters between rows and 30 centimeters between holes—allowing for approximately 44,444 cotton plants per acre. This method has led to bumper harvests and has attracted more farmers to cotton cultivation.
The project aims to establish multiple demonstration plots to help extension officers practically teach farmers the recommended cultivation practices. Thomas Tiluhongelwa, Project Head, CVP, highlights, the new planting techniques has enabled farmers in the region to achieve yields of up to 2,000 kg per acre. This impressive productivity has further encouraged more farmers to engage in cotton farming, he adds.
For the first time, the business of KhadiGramodyog has surpassed Rs 1.5 lakh crore, emphasisingthe significant growth in the sales of Khadi and handlooms in India, highlighted Prime MinisterNarendraModi in his monthly radio address, Mann Ki Baat.
Modiemphasised, the increasing demand for Khadi products is creating numerous job opportunities, particularly benefiting women associated with the industry. Many people who previously did not wear Khadi now do so with pride, contributing to a 400 per cent rise in sales, he noted. He encouraged listeners to include Khadi in their wardrobes if they haven't already, emphasising its growing appeal.
Khadi Gram UdyogBhavan, also known simply as KhadiBhavan, is a key establishment under the Khadi and Village Industries Commission (KVIC) in India. It serves as a prominent outlet and showcase for Khadi and village industry products.
The primary objective of KhadiBhavan is to promote Khadi (a hand-spun and hand-woven fabric) and other village industries, providing a platform for artisans and rural entrepreneurs to market their products.
In a recent meeting in Dhaka with representatives of global apparel buyers, leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) requested the buyers' forum to avoid demanding discounts for shipment delays caused by factory closures and the violent curfew.
Arshad Jamal Dipu, Vice President, BGMEA, emphasisedon the need for support from buyers, noting that factories and production schedules have been disrupted due to closures and communication outages. Dipu specifically requested the forum to refrain from imposing 'system-generated' discounts on member factories for delayed shipments, as these discounts, ranging from 5.0 to 10 percent, are automatically triggered by major buyers' systems if there is a 15-day delay. Additionally, the BGMEA urged buyers to consider reducing air shipments.
Dipu, who is also the Chairman of Tusuka Fashions, highlighted the costly nature of air shipments needed to meet deadlines. He mentioned,his company had to spend Tk 35 million on air shipments to send 80,000 pieces of garments. Industry insiders noted that the peak season for sweaters and winter garments is particularly affected, with substantial losses anticipated if air shipments are required.
An exporter pointed out that air shipment costs to the European Union have risen to $5.00 per kg of garments, compared to $1.70 per kg in India. This significant cost increase poses a particular challenge for winter garments like jackets, which are more expensive to ship than other items like denim jeans.
Exporters are concerned that next season's work orders may shift to other countries due to the internet shutdown, potentially sending a negative message to buyers and undermining their confidence. Although export-import activities have resumed at ports, exporters now face a shortage of containers and additional demurrage charges at Chattogram port due to the internet shutdown. Currently, around 37,000 containers are stranded at ports, including 13,000 ready-made garment containers, resulting in approximately Tk 100 million in port demurrage charges.
