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Two flagship brands of AEO Inc, American Eagle and Aerie have collaborated to launch a new limited edition athleisure denim collection.
Called, 'A Match Made in Denim,' the collection combines the best elements of American Eagle’s iconic jeans and Aerie’s signature soft, comfortable fabrics to create a unique athleisure line that mimics the look of denim.
Jennifer Foyle, President and Executive Creative Director for both brands highlights, the collection uses the cool transfer technology that adapts the fabric characteristics of AE’s denim designs to other materials. This technique gives sports bras and leggings the distinctive salt-and-pepper appearance of ’90s denim. The collection also features printed trompe-l’œil back pockets and unfinished hems on the bottoms.
Special dyeing and washing techniques were applied to create authentic denim effects in the collection. Seams on underwear and sports bras replicate the washed-down look of jeans, while items like corset denim tops and sports bras feature a light cloudy wash.
The 34-piece collection includes tube dresses, zip-up jackets, wrap skirts, sweatshirts, T-shirts, joggers, sports bras, intimates, leggings, and men’s underwear. Additionally, a line of women’s swimwear features a one-piece, bikini, and sarong with a dark denim look. Denim accessories such as a polka dot cap, bucket hat, scrunchie, bag, and sneakers complete the collection.
The collection retails for $7.95-$69.95 and is exclusively available at AEO’s unique store concept, The Gateway, in New York City, and online at AE.com and Aerie.com.
A landmark agreement to transform Indonesia’s textile sector by adopting a circular economy approachwas signedat the Green Economy Expo held at the Jakarta Convention Center (JCC).
The collaboration involves the Global Green Growth Institute (GGGI) Indonesia, the Ministry of National Development Planning (Bappenas), Bandung Polytechnic of Textile Technology (Politeknik STTT Bandung), and PT DaurLangkahBersama.
Collaborating with key government institutions and initiatives such as Pable, a textile-to-textile recycling company, this partnership under GGGI Indonesia’s Green Transition Investment Program (GTIP) aims to mitigate the environmental impact of textile waste. The focus is on promoting circular textiles, creating green jobs, and organizing training programs.The Finnish Ministry of Foreign Affairs has pledged support to GGGI Indonesia's efforts.
Bappenas has recently released Indonesia's Circular Economy Roadmap and National Action Plan, highlighting textile waste as a critical sector for circular intervention. With textile waste in Indonesia estimated at 2.3 million tons annually and projected to rise by 70 per cent without intervention, this partnership is crucial. PriyantoRohmattullah, Director – Environment at Bappenas, emphasised that the initiative aims not only to manage textile waste but also to develop a circular textile ecosystem. This includes creating financial schemes and building capacity among circular textile industry players.
A key partner, Bandung Polytechnic of Textile Technology will enhance its technical and vocational education and training (TVET) programs through this collaboration. This will improve skills and knowledge in textile recycling techniques, ultimately leading to more job opportunities.
Yorkie Sutaryo, Head, GGGI Indonesia and GTIP Indonesia, states, the long-term goal of the initiative is to support local businesses in accessing markets with stringent sustainability standards. It aims to foster a more sustainable, resilient, and competitive textile industry in Indonesia.
The partnership marks a significant step towards a greener future for Indonesia's textile sector, aligning with global sustainability goals and national priorities.
The fashion industry, seemingly obsessed with staying ahead of the curve, is riddled with stories of once-dominant brands and retailers falling apart at the seams. While economic downturns can take their toll, the reasons for collapse are often a complex mix of strategic missteps and a failure to adapt to the ever-evolving landscape.
Financial missteps
Retailers like In The Style, a British online fashion brand, serve as a cautionary tale. Their initial success hinged on influencer collaborations, but a reliance on this trendy tactic proved unsustainable. Mark Tweed, Brand Director, loungewear brand CyberJammies, highlights the danger of unchecked expansion as per him, fast moving businesses suck cash at an increasing rate. And just when revenue falls, businesses with large overhead immediately get into trouble. The Style's rapid growth led to bloated operational costs, leaving them vulnerable when consumer spending dipped.
Retail expert Andrew Spring of Jirsch Sutherland pinpoints dwindling margins as a key factor. As per him fashion retailers struggle to navigate ever-evolving trends. If they focus too much on one trend, they are left with unsold stocks. And if they take a trend too lightly they may end up missing an opportunity. This inability to predict and cater to ever-shifting consumer desires leads to overstock and lost revenue.
The rise and fall of retail giants
Media is full of cautionary tales. Once-ubiquitous brands like Barneys New York and BCBG Max Azria have filed for bankruptcy, citing everything from heavy debt loads to an inability to compete with online giants. The COVID-19 pandemic only exacerbated these issues, as lockdowns forced physical stores to close and consumers migrated online.
One good example is Forever 21, once a fast-fashion giant, filed for bankruptcy in 2019. Experts point to their over-reliance on low-cost manufacturing and a trend-chasing strategy that resulted in mountains of unsold inventory. Their inability to keep pace with the shift towards online shopping and a growing consumer focus on sustainability also contributed to their downfall.
Failing to connect with customers
Spring emphasizes retailers seem to encounter problems when they lose touch with their brand's target audience. This can manifest in poorly chosen product lines or a failure to adapt to changing consumer preferences. For instance, department stores Macy's struggled to compete with the fast-fashion giants like H&M and Zara, which catered to a more trend-conscious audience with quicker turnaround times.
In the fast-paced world of fashion, understanding your target audience is paramount. In The Style, a British online retailer, boomed with influencer collaborations but faltered when it failed to adapt to a cost-of-living crisis and changing consumer preferences, leading to a near-bankruptcy situation. J.C. Penney, a once-dominant American department store chain, alienated its core customer base with drastic modernizations, ultimately filing for bankruptcy in 2020.
Rapid expansion can also be a double-edged sword. Incurring high operational costs to support a growing infrastructure without a corresponding rise in sales can lead to financial strain.
The Rise of e-commerce and the Need to Adapt
The rise of e-commerce has fundamentally altered the retail landscape. While some brands, like Zara, have successfully transitioned to an omnichannel approach, others have been left behind. Legacy retailers burdened by high rents and inflexible store layouts struggle to compete with the agility and convenience offered by online platforms. For example, Macy's, a retail giant, has been closing stores and restructuring operations to adapt to the changing consumer landscape.
The road to recovery adapting and innovating
The fashion industry is a dynamic ecosystem. Understanding the ever-changing landscape and adapting accordingly is crucial for survival. Successful brands are embracing:
Omnichannel strategies: Integrating online and offline shopping experiences to cater to a tech-savvy customer base.
Sustainable practices: Implementing eco-friendly production processes and sourcing materials to attract environmentally conscious consumers.
Data-driven decision making: Utilizing data analytics to understand customer preferences and optimize product offerings and marketing strategies.
Transparency in sourcing and production resonates with today's conscious consumer. Finally, a willingness to adapt to emerging trends, while maintaining a core brand identity, is key to staying relevant. The fashion industry is a testament to the adage, ‘Change is the only constant’. Those who can adapt, innovate, and connect with the ever-evolving consumer will weather the storms and continue to turn trends into profits.
The Indian government plans to expand the Production Linked Incentive (PLI) scheme for textiles by including a wider range of products and lowering the minimum investment and turnover criteria.
Initially launched in 2021 with an approved outlay of Rs10,683 crore, the PLI scheme for textiles has so far been limited to the production of man-made fibers (MMF) apparel, MMF fabrics, and technical textile products. The scheme was reopened last year after the initial round did not attract enough investments to fully utilise the earmarked funds. Despite industry pressure to include cotton garments and reduce the investment and turnover thresholds, no changes were made during the second application round.
Textiles Minister Giriraj Singh recently announced that the PLI scheme might be expanded to cover all types of garments, ending speculation on the matter. However expansion of the scheme to cover garments made of all fibers, including cotton would entail lowering of the minimum investment and turnover criteria to ensure benefits to garment manufacturing units, opines an industry official
The scheme is currently divided into two parts: the first part requires a minimum investment of Rs100 crore and a minimum turnover of Rs200 crore, while the second part requires a minimum investment of Rs300 crore and a minimum turnover of Rs400 crore. The incentive is higher for entities opting for the higher investment and turnover criteria.
The proposed changes to the scheme will require several approvals. Firstly, it needs to be approved by Textile Ministry andthe Textiles Minister. Thereafter, the Finance Ministry needs to be approve the proposal, adds the official.
For decades, Indian apparel brands and retailers relied primarily on domestic sourcing. However, in recent years, there's been a significant shift towards Bangladesh. This trend, spurred by several factors, is transforming the landscape of the Indian apparel market.
Bangladesh a cost-competitive edge
The primary driver for this shift is cost competitiveness. Bangladesh offers significant advantages over domestic sourcing for Indian companies.
Labor costs: Bangladesh boasts lower labor costs compared to India. A 2023 study by the Garment Manufacturers and Exporters Association (BGMEA) of Bangladesh revealed that average wages in the Bangladeshi garment industry are nearly 20 per cent lower than their Indian counterparts.
Duty benefits: The South Asian Free Trade Agreement (SAFTA) allows duty-free import of certain apparel items from Bangladesh to India. This significantly reduces landed costs for Indian companies.
Strong manufacturing base: Bangladesh has emerged as a global leader in apparel manufacturing, boasting a skilled workforce and efficient production lines. Leading brands like H&M, Zara, and GAP source heavily from Bangladesh, a testament to its capabilities.
Reliance Retail, one of India's largest retail chains, exemplifies this trend. In 2017, they established a sourcing office in Bangladesh and have since ramped up their procurement from the country. As Mohit Batra, Country Head of Reliance's Bangladesh operations explains, they are offering huge quantities and are looking for manufacturers that can offer 20 per cent of their capacity. This highlights the significant cost savings Reliance enjoys by sourcing from Bangladesh.
Table: Bangladesh apparel exports to India productwise
|
Product category |
Percentage |
|
Knitwear (T-shirts, polos, etc.) |
60% |
|
Woven Shirts and Blouses |
20% |
|
Bottoms (Jeans, trousers) |
15% |
|
Others (Dresses, jackets) |
5% |
Product diversification in focus
While cost remains a major driver, Indian brands are also looking at Bangladesh for product diversification. Bangladesh excels in knitwear production, particularly T-shirts, polos, and sweatshirts. This aligns perfectly with India's growing demand for casual wear. Sweaters, hoodies, and other knitted garments are popular Bangladeshi exports, leveraging the country's expertise in knitwear manufacturing. Jeans and denim clothing are another major category, as Bangladesh has emerged as a global leader in denim production.
|
Year |
Bangladesh apparel exports to India |
Growth rate |
|
2017 |
129.81 |
- |
|
2018 |
279.19 |
115% |
|
2023 (estimated) |
403 |
45% (CAGR) |
The increasing sourcing from Bangladesh presents a win-win situation for both countries. India gains access to cost-competitive, high-quality garments, while Bangladesh expands its export market. As Deepak Mohindra, Founder of Apparel Sourcing Week, predicts, "Bangladesh's exports of garments to India could exceed $1 billion in two years." This trend is likely to continue as Indian brands and retailers seek to optimize their supply chains and cater to the growing demand for affordable fashion.
Fast fashion's grip on the clothing industry may be loosening, as a growing movement – slow fashion – takes root. Fast fashion, with its emphasis on cheap, trendy clothes and frequent turnovers, has dominated for decades. However, a growing awareness of its environmental and social costs has led to the rise of slow fashion – a movement promoting ethical production, quality garments, and mindful consumption.
The rise of slow fashion, a measured emergence
Data suggests slow fashion is gaining traction. A Global Fashion Agenda 2022 Pulse Survey revealed that 63 per cent of fashion executives believe sustainability will be a key competitive differentiator within the next three years. This shift is driven by a growing consumer base concerned about the environmental and ethical impact of fast fashion. A McKinsey & Company report: states that 60 per cent of millennials are willing to pay a premium for sustainable products. . The rise of resale platforms like ThredUp (reportedly valued at $1 billion in 2021) and Patagonia's worn wear program further highlight a shift in consumer behavior.
Growth drivers: Ethics, environment in focus
Several factors fuel slow fashion's rise. Ethical concerns about garment worker rights and fair wages are a major motivator. The Rana Plaza garment factory collapse in 2013 tragically highlighted the dangers of fast fashion's exploitative practices. Exploitative labor practices in fast-fashion factories have been exposed, pushing consumers towards brands committed to fair wages and safe working conditions. Environmental consciousness is another key driver. A 2020 McKinsey report estimates the fashion industry is responsible for 10 per cent of global carbon emissions. Consumers, particularly millennials and Gen Z, are increasingly concerned about sustainability and are seeking eco-conscious alternatives. Patagonia, a leading outdoor apparel brand, exemplifies this shift. The company prioritizes recycled materials and encourages customers to repair worn-out gear, fostering a culture of mindful consumption. Also, slow fashion emphasizes well-made, timeless pieces that last longer, appealing to those seeking value over fleeting trends.
Challenges in slow fashion's growth
Despite its momentum, slow fashion faces hurdles. Higher production costs due to quality materials and ethical labor practices can translate to steeper price tags making it less accessible to budget-conscious consumers. Transparency throughout the supply chain is another challenge. Consumers need clear information about a garment's origin and production process to make informed choices. While awareness is growing, many consumers remain unfamiliar with slow fashion options or struggle to differentiate between genuine and performative sustainability efforts by brands. Moreover, fast fashion's dominance, aggressive marketing strategies, and convenience still pose a significant challenge.
The embrace of slow fashion varies geographically. Europe, particularly Germany and Scandinavia, leads the way, driven by strong consumer awareness and government regulations promoting sustainability. North America shows promise, with a growing market for eco-conscious brands. As per Grand View Research, the US market projected to reach $25.2 billion by 2025. However, regions like South Asia, where fast fashion's affordability holds strong appeal, may take longer to adapt. A growing middle class and rising awareness of environmental issues could lead to a shift in these regions.
Segment wise, luxury and premium have a higher profit margin, allowing brands to invest in sustainability initiatives more readily. Consumers in these segments are also more likely to prioritize ethical and environmental factors. The value segment presents the biggest challenge. While some affordable slow fashion brands exist, convincing budget-conscious consumers to pay a premium for sustainable clothing requires a shift in mindset and potentially, government incentives.
Womenswear has traditionally been a bigger driver of fashion trends, making it a natural leader in slow fashion adoption. Menswear and kidswear sectors are showing slower growth, possibly due to a more traditional focus on functionality and durability, which slow fashion inherently promotes. However, there's growing interest in sustainable options for these segments as well.
The future of slow fashion is promising. As environmental concerns escalate and consumer awareness grows, slow fashion is expected to continue its upward trajectory. Technological advancements in sustainable materials and production processes, coupled with government support and increased industry transparency, can further accelerate this growth. However, bridging the price gap and effectively communicating the value proposition of slow fashion remain key challenges.
The Tamilnadu Spinning Mills Association (TASMA) has urged Union Textile Minister Giriraj Singh to ensure Cotton Corporation of India (CCI) sells cotton procured through the minimum support price (MSP) programto actual user mills only till the season’s end.
In a letter to the minister, K Venkatchalam, Chief Advisor, TASMA said, the sale of CCI’s stocks in a calibrated manner will enable the cotton textile value chain to sustain its performance, especially in export markets.
TASMA urged Singh to direct CCI to continue to retain the stock without selling to traders and ensure it sells only to user mills till September, the season’s end.
Of the total cotton procured by it, CCI currently holds around 20 lakh bales (170 kg each), which is only around 22 days’ consumption. To ensure the stability of cotton prices, fulfill export commitments and sustain their current performance, it is essential to ensure the availability of home-grown cotton to the cotton spinning mills in India, adds Venkatchalam.
Stating that India has become a ‘cotton-deficit country,’ he said globally, all the cotton-consuming countries maintain 70 to 80 per cent of the annual cotton consumption as reserve stocks.
India had decided to maintain at least 2.5 months’ consumption, as the closing stock which works out to 65-70 lakh bales and the Committee on Cotton Production and Consumption (COCPC) Chaired by the Textile Commissioner has projected 47.38 lakh bales as the closing stock.
Considering the speculative tendency, cotton traders, taking advantage of the 11 per cent import duty on cotton, other than ELS cotton, have been adopting import parity pricing and consequently, increasing the cotton price during the off-season, Venkatachalamalleges.
This is affecting the export performance which is leading to stoppage of production by spinning mills, which would make a cascading effect on the entire textile value chain, he adds.
In a seminar titled ‘Roadmap for Manufacturing Machines and Components for Technical Textiles,’ BhaveshPael, President, ITAMMA, projected the Indian textile industry will grow to $350 billion by 2030 with exports reaching $100 billion.
Titled, ‘Roadmap for Manufacturing Machines and Components for Technical Textiles - with B2B Interactions,’ the seminar was organised by ITAMMA as a part of the “ITAMMA Technology Cell” initiative during ‘Texfair 2024,’ held from June 21-24 in Coimbatore. . According to Patel, India’s fiber production grew to 2.15 million tons in 2022-23 with yarn production reaching 5,185 million kg, driven largely by a demand for natural fiber. He emphasisedon the importance of exhibitions like Texfair as platforms for connecting supply and user industries to address future business needs.
The seminar featured a presentation by SudarsanRajagopalan, a textile engineer with extensive experience in medical textiles. His presentation focused on the immense potential of technical textiles, urging participants to look beyond traditional classifications and embrace high-value, high-volume opportunities. He stressed on the importance of understanding the needs of customers from different industries and forming strategic joint ventures and international associations.
Rajagopalan highlighted the necessity of proper testing, quality benchmarking, compliance with standards, and patenting innovations. He emphasisedon the need for a new talent pool to communicate effectively with end-users and suggested creating special-purpose vehicles (SPVs) and leveraging the National Technical Textile Mission (NTTM) scheme to develop local machines and tools for technical textiles.
The seminar concluded with a call to address the environmental impact of synthetic textiles and the need for efficient disposal processes. ITAMMA announced the formation of a ‘Member-Group for Technical Textile Projects,’ inviting industry experts to provide guidance, consultancy, and turnkey project handling for members exploring opportunities in technical textiles.
Attended by over 240 exhibitors and over 60,000 visitors, the 14th edition of SIMA Texfair 2024 generatedaround Rs. 1000 crores in business. ITAMMA, closely associated with SIMA, executed its services from stall D 112-A and interacted with over 75 exhibitors, inviting them to join ITAMMA.
Reflecting the optimistic outlook of the Indian textile industry fuelled by a boost in the manufacturing sector, signing of new FTAs, recent growth in textile exports, and the government's focus on making India a 'global manufacturing hub, GartexTexprocess India is expected to showcase over 600 brands over 15,000 sq m.
The show is scheduled to be held from Aug 01-03, 2024 at Yashobhoomi (IICC), Dwarka, New Delhi. It will feature global excellence in textile solutions from countries such as China, Italy, Japan, Singapore, Taiwan and the US. Over 200 exhibitors will present their latest innovations from over 600brands across seven countries.
The show will have curated zones for product categories like Knitting, Sewing Machinery, Digital Printing, Embroidery, Fabrics& Trims. The Trims segment will be expanded with the addition of new exhibiting companies to it. The show will also host knowledge sessions with government officials, industry experts, and innovators.
Leading Indian brands like AT Inks, Aura Technologies, BABA Textile Machinery, and Britomatics India alongwithinternational brands includingBaoyou, Brother, Datatex, Dupont, and Jack will participate in the show. The event will launch over a dozen new products by notable brands including Amtex Dye Chem Industries, Behariji Enterprises, Codeverse Technologies, Creative Industries, LNJ Denims, and Panchsheel Enterprises.
Organised byMesse Frankfurt Asia Holdings and MEX Exhibitions, GartexTexprocess will showcase new innovations in the Indian textile industry besides presenting a transformative display of textile manufacturing machinery, garments, fabrics, denim, trims, and accessories.
Despite the global economic and political landscape, India’s textile and apparel exports increased by 9.59 per cent and 9.70 per cent respectively in May 2024, as per a report by the Confederation of Indian Textile Industry (CITI). Growing at a CAGR of 10 per cent, the Indian textiles and apparel market is projected to reach$350 billion by 2030, with exports hitting$100 billion, adds another report by IBEF. The sector will expand with new innovations from fabric and garment manufacturers, textile machinery companies, and future government policies.
A recent meeting between a Chinese delegation including representatives from leading garment and textile companies, and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), explored trade and investment opportunities in the textile and apparel sectors of the two countries.
Both sides highlighted the potential for expanding business ventures, emphasising Bangladesh’s capabilities in producing high-value, man-made fiber-based garments and its ongoing efforts to upgrade technological infrastructure.
The BGMEA delegation was led by SM Mannan (Kochi), President while the Chinese side was represented by XuJinshan, President, Fujian Qunfeng Machinery Co The meeting was also attended by MdNasirUddin, Vice President-Finance, BGMEA, Rajiv Chowdhury and MdJakirHossain, Directors and Solaiman, Director , M & H Corporation. From the Chinese delegation, XuJinshan, Chen Qi Ping, and Yang Ming Ming participated in the discussions.
BGMEA leaders underscored Bangladesh’s growing focus on high-value products, particularly man-made fiber-based garments, and upgrading technology and machinery to enhance manufacturing capabilities. They also emphasised on the prospects of Chinese investment in Bangladesh’s high-end textile and backward linkage industries, noting that such investment would benefit both parties.
The participants expressed optimism about collaborative efforts aimed at increasing Bangladesh’s garment production capacity through knowledge exchange and technical skill enhancement.
